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To accept a quitclaim deed from the School Board conveying a portion of 1461 Commerce Road, consisting of approximately 8.234± acres, and to authorize the Chief Administrative Office to act on behalf of the City in executing such deed. (6th District)
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WHEREAS, section 22.1-129 of the Code of Virginia (1950), as amended, provides for a
school board to convey title to real property owned by the school board for which the school board has determined that it has no use to the city comprising the school division by adopting a resolution that such real property is surplus and recording such resolution along with the deed to the property with the clerk of the circuit court for the city where such property is located; and
WHEREAS, section 15.2-1803 of the Code of Virginia (1950), as amended, provides that no deed purporting to convey real estate to a locality shall be valid unless accepted by the locality
and executed by a person authorized to act on behalf of the locality; and
WHEREAS, by adopting a resolution on May 12, 2026, a copy of which is attached to and made a part of this ordinance, the School Board of the City of Richmond declared a portion of the real property located at 1461 Commerce Road, consisting of approximately 8.234 acres, and more particularly as shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, and dated March 12, 2025, to be surplus so long as a suitable replacement property or properties for relocation of the present uses thereof is approved by the School Board as provided therein on or before the day which is two years after the date of the resolution; and
WHEREAS, upon approval of the replacement property or properties, the School Board’s resolution authorizes the execution and delivery of a quitclaim deed and such other documents and other actions as may be necessary to quitclaim any and all interest of the School Board in and to a portion of the property located at 1461 Commerce Road, consisting of approximately 8.234 acres, as shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, and dated March 12, 2025; and
WHEREAS, in conformance with section 15.2-1803 of the Code of Virginia (1950), as
amended, the City Council desires to accept from the School Board the conveyance of every interest the School Board might have in a portion of the property located at 1461 Commerce Road, consisting of approximately 8.234 acres, and more particularly shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, and dated March 12, 2025, a copy of which is attached to and made a part of this ordinance, and to authorize the execution of the deed by the Chief Administrative Officer;
NOW, THEREFORE,
THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That, if the conditions in the School Board’s resolution are satisfied, the School Board executes and delivers a quitclaim deed, then (i) the City hereby accepts the deed from the School Board conveying every interest it might have in a portion of the property located at 1461 Commerce Road, consisting of approximately 8.234 acres, and more particularly shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, and dated March 12, 2025, a copy of which is attached to and made a part of this ordinance, provided such deed is in a form approved by the City Attorney, (ii) the Chief Administrative Officer is hereby authorized to act on behalf of the City in executing such deed, (iii) the Chief Administrative Officer’s signature on the deed shall be deemed acceptance by the City of such deed and (iv) the Chief Administrative Officer, with the assistance of the City Attorney, is hereby authorized to take such other actions as may be necessary to complete the conveyance of every interest the School Board might have in a portion of the property located at 1461 Commerce Road, consisting of approximately 8.234 acres, and more particularly shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, and dated March 12, 2025, by the School Board to the City.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
DATE: May 4, 2026
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Sharon Ebert, Deputy Chief Administrative Officer
FROM: Angie Rodgers, Director, Department of Economic Development
RE: Commerce Road Property Transaction (Companion Paper - Acceptance of a Quitclaim Deed for 1461 Commerce Road from the School Board)
ORD. OR RES. No.
PURPOSE: An ordinance to accept a quitclaim deed from the School Board conveying its interest in a portion of the real estate known as 1461 Commerce Road, consisting of approximately 8.234± acres (the “RPS Portion”), and to authorize the Chief Administrative Office to act on behalf of the City in executing such deed.
BACKGROUND:
Legislation:
This ordinance is one of three separate ordinances that are all related to the Property (defined below), which will be introduced to City Council as companion papers. The three ordinances are:
1. An ordinance to accept a quitclaim deed from the School Board conveying its interest in a portion of the real estate known as 1461 Commerce Road, consisting of approximately 8.234± acres (the “RPS Portion”), and to authorize the Chief Administrative Office to act on behalf of the City in executing such deed. (The ordinance requested by this OR Transmittal.)
2. An ordinance to declare surplus and direct the sale of the RPS Portion, for $4,705,500, or such lesser amount as may be provided for herein, to City Central, LLC or its affiliate, for the purpose of facilitating the construction of a mixed-use development.
3. An ordinance to declare surplus and direct the sale of a portion of the city-owned real estate known as 1451 Commerce Road, consisting of approximately 4.715± acres (the “RPD Portion”), for $2,694,500, or such lesser amount as may be provided for herein, to City Central, LLC or its affiliate, for the purpose of facilitating the construction of a mixed-use development
Property:
The City owns an approximately 12.949 acre parcel of real estate commonly known as 1451 Commerce Road and 1461 Commerce Road (also known as 1240 Ingram Avenue) and identified as Tax Parcel No. S007-0836/004 in the 2026 records of the City Assessor, (the “Property”). The Property is split by two primary users and uses as follows:
• RPS Portion - An approximately 8.234-acre portion of the Property known as 1461 Commerce Road and shown as “Proposed New Parcel A” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, used by Richmond Public Schools for a variety of purposes including office, workshop, storage, and bus parking.
• RPD Portion - An approximately 4.715-acre portion of the Property known as 1451 Commerce Road and shown as “Proposed New Parcel B” on the attached aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn, used by the Richmond Police Department for property and evidence storage.
City Central, LLC (the “Developer”) offered to purchase both the RPS Portion ($4,705,500) and the RPD Portion ($2,694,500) for a combined total purchase price of $7.4M (less certain costs for replacement properties and relocations thereto), which represents fair market value based on an appraisal of the Property ordered by the City. The Developer owns approximately 44 acres of surrounding land and acquisition of the Property will enable construction of a large modern mixed-income, mixed-use community, offering a range of housing types and infill dwelling options - multifamily and single-family, affordable and market - to increase the
housing supply and affordability in Richmond. They propose a community that is walkable, connected, well-lit, landscaped with modern infrastructure, roads, sidewalks, and street trees. Planned non-residential spaces offer the possibility for neighborhood-scale amenities, commercial spaces, and grocery retail. The comprehensive land and proposed development will revitalize and enhance the local community, increase residency in the area, increase neighboring property values, create additional affordable housing and provide significant economic impacts to the City through construction and permanent job creation, tax revenue and utility infrastructure and revenues. Future Fall Line Trail is also contemplated along Commerce Road.
RPS and the City administration desire to facilitate the sale of the Property to the Developer only if (i) suitable replacement property(ies) are identified and approved within two years and
(ii) City Central is responsible for paying all costs associated with acquiring the property(ies) (if needed), renovating the property(ies) (if needed), and relocating the RPS/City uses thereto. Pursuant to the draft legislation, the Purchase Price(s) will be reduced by the amount expended by the Developer for certain costs for such replacement property(ies) and relocation with the balance paid in cash to the City at Closing (in the event the cost of the replacement property(ies) exceeds the Purchase Price for the respective portion of the Property, all such costs will be the sole responsibility of the Developer). City Code section 12-42 will apply to the amount of funds the City receives at Closing for the sale of the RPS Portion (“When payments are made to the City of money arising from the sale of [former school properties]the Director of Finance shall credit such receipts, except for the withholding described in subsection (b)(2) of this section, to a special reserve assigned to support public schools in the City. The City Council may appropriate funds from this reserve for the construction of new public school facilities or for the capital repair or renovation of existing active school properties.”)
Process RE RPS Portion:
Based on State law provisions, RPS may hold “beneficial title” to the RPS Portion based on its current use of the property. Therefore, the City Attorney’s Office advised that, prior to the introduction of an ordinance to City Council to authorize the sale to the Developer, the School Board must first adopt a Resolution conditionally declaring the RPS Portion surplus and authorizing delivery of a quitclaim deed conveying its interest therein to the City upon
satisfaction of such conditions. At its meeting on May 12, 2026, the School Board adopted the resolution attached hereto declare the RPS Portion surplus subject to certain conditions, which provide the following safeguards for RPS:
• The resolution conditionally declares the RPS Portion surplus: “WHEREAS, the School Board of the City of Richmond, Virginia has determined that it would have no further use of the property located at 1461 Commerce Road…if the present uses of the Property were relocated to a suitable replacement property or properties approved as provided herein…”
• The resolution requires a subsequent Board vote to approve the replacement property before RPS officially quitclaims its rights/title to the City: “WHEREAS, conditioned upon the approval of the Replacement Property by the School Board in a subsequent vote, the School Board desires to quitclaim any and all interest of the School Board of the City of Richmond, Virginia in and to the Property to the City of Richmond, Virginia…”
• The resolution provides a two-year timeline for the delivery of a replacement property before expiring.
Such conditions/safeguards are incorporated into the City ordinance authorizing the sale of the RPS Portion to the Developer. (Note - The ordinance authorizing the sale of the RPD portion to the Developer contains similar conditions/safeguards, specific to the City/RPD.)
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: Alignment with the City's overall Master Plan, as well as the Oak Grove/Bellemeade/Hillside Small Area Plan that will be proposed to Council.
FISCAL IMPACT: Combined with the companion paper that authorizes the sale of the RPS Portion to the Developer: One time impact - up to $4,705,500 cash at Closing ($4,705,000 less certain costs associated with the replacement property(ies) and relocation). Ongoing impact - annual tax revenues derived from the development of the currently tax-exempt RPS Portion as well as incremental revenues derived from enabling the surrounding development of property already owned by the Developer.
DESIRED EFFECTIVE DATE: Upon Adoption.
REQUESTED INTRODUCTION DATE: May 26, 2026 CITY COUNCIL PUBLIC HEARING DATE: June 8, 2026 REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Planning Commission (June 2) AFFECTED AGENCIES: Department of Economic Development, City Attorney’s Office RELATIONSHIP TO EXISTING ORD. OR RES.: N/A
ATTACHMENTS: Aerial depiction entitled “Commerce Road Site” prepared by Kimley Horn; RPS Resolution
STAFF: Matt Welch, Department of Economic Development Chris Nizamis, Department of Economic Development
Sarah Carperter, Mayor’s Office