gi ate BE Richmony fe \ate/ MEMORANDUM To: “The Honorable Mayor Levar M. Stoney Members of Richmond City Council From: Lenora G, Reid ~ Acting Chief Administrative. onrcor( ce: Sharon L. Ebert ~ Deputy Chief Administrative Offcer Leonard L. Sledge ~ Director, Depariment of Real Estate Paul A. McClellan — Community & Economic Development Administrator Haskell C. Brown, Ill Interim City Attorney Bonnie M. Ashley ~ Deputy City Attorney Lawrence R. Anderson — Council Chief of Staff Dart February 24, 2020 SUBJECT: Unsolicited Offer for the “Navy Hill Development Site” Pursuant to Chapter 8, Article Ill, Section 8-58(a) of the City Code, | am notifying you of ‘an unsolicited offer Douglas Development Corporation via a letter dated February 20, 2020 (see attached document) requesting that the City sell approximately 14.28 acres of property referred to as the "Navy Hill Development Site” for $16,000,000.00. ‘The proposed mixed-use development on the property includes: Renovation of the Richmond Coliseum Hotel Apartments/Condos (Note: 10% of the apartments will bs earmarked as low Income housing) Retail Class A Office Bulldings Grocery Store Transit Genter (Note: the Transit Center will be leased back to the City upon completion) Please be advised that the following items are the minimum recuirements for an Unsolicited proposal. The items in bold italic letters are incomplete andior missing {rom the proposal: 900 EAST BROAD STREET, SUITE 2O! + RichMOND, VinsiNiA 23219 + (904) 646-7978+ Address of the property being purchased ‘+ Planned use of the property by the buyer ‘+ Economic benefit to the City including projected investment value, projected tax revenue and projected job creation + Purchase price ‘+ Adequate Good Faith Deposit in Certified Funds as required by City Code prior to introduction of an ordinance ‘The proposer did not include all of the required information in the proposal. The Depariment of Economic Development is following up with the proposer to acknowledge receipt of the proposal and to request the incomplete andlor missing information. Chapter 8, Article II, Section 8-58(c) ofthe City Code states, “No ordinance to direct the: sale of real estate to an offeror who has submitted an unsolicited offer may be introduced until the Council has adopted a resolution declaring such real estateto be surplus as described in Section 8-60 [Declaration of real estate as surplus]. The Council shall not act upon an unsolicited offer in accordance with Section 8-65 [Action of coun] and other applicable provisions in this article unl Une Chief Adtinistiative Officer first has proceeded in accordance with either Section 8-61 [Solicitation of offers by invitation for bids] or Sections 8-62 [Solicitation of offers by requests for proposals — generally] and 8-63 [Same — Evaluation of proposals}.” Please advise if there is any additional information that we can provide. Attachment — Doualas Development Offer Letter to Purchase the "Navy Hil Site” 900 EAST BnoAD SraEEr, SUITE ZO! + RICHMOND, VinciNiA 29219 + (804) 6Master Plan- Mixed-Use Development ‘At Douglas Development ouralm I to erate "Live Work Play” neighborhood destinations which return ‘ew Tax Revenues othe Ci, For four decades, Doulas Development has garnered redevelopment Successes In the District of Columbia, as well as Rehmond, Virgins. Douglas Development has earned a reputation for revitalizing underdeveloped, emerging areas and continues to win praise frm local government authorities, community members, neighbors, andthe realestate community at large. To support Rihmond's yer aver year population growth, and curb urban core decline, we must ientiy new ways to blend urban-stye ving wth waltable communities. The area of Downtown Richmond known a8 Navy Hil will proveto be the perfect setting to transform underulzed cy land to a vibrant ew community home to new businesses, restourans and family's. ur goal isto provide the highest and best wse forte and through commeril and resdential development therefore maximizing the City's newfound tax base, Whout costing the ct any money the economic benefits wil include anew hotel office bulings, transiteenter Coliseum, busting retall experiences and housing. With zero cost to ‘the ct, our proposal wil ring the existing Coliseum back to modern standards and will ot incude any ‘ax nerement Financing (TF fom the iy To reterate, cur proposal doesnot include any Bonds or ‘new Taves forthe eezene of ichmond; and a result creates new ecanom stimulus ad growth tht conly benefits the Citys newfound tax base Highlight of Master Plan Ince: 1+ Hotel: We wi create high occupancy hotel to support the convention center ané surrounding “+ Apartments/Cond- our propos outlines new apartments and condos ranging In price, We wil cnsider 10% of he apartments to be earmarked 2s low income housing. + Retall- his neighborhood wil become a destination forall of Richmond and the surrounding ‘areas, We are profesional in ceating new walkable dynamic streetscapes and shopping ‘experiences. Small businesses, breweries, Fitness gyms and mom and pop stares wll have 2 strong presence snd serve asthe backbone of our retail concept, 1+ Class A Office Bulldings- The exiting Richmond office space inventory and future evelopment pipeline is very lw so the ky hasa challenge of marketing thelr office space to new large Tenants, ie have working relationships with the largest Tenants inthe country and aim to shop this newsubmarkat to existing Richmond companies, but also new potential Headquarter relocatone fom outsise of Vigil + Grocery Store- To crete a iferye center we wil elect the correct grocery store to anchor the projec. 1+ Coliseum. We are experts at historic preservation and plan to bing the esting structure back tots formal glory. Without costing the Cty any money the Colseum willbe transformed into = modern stadium whe malntaining its historic integrity. Our goals to keep the existing structure and renovate in place + Transit Center- Dasgles Development will construct a pew urban-suburban bus line station which they wil lease back to the City upen completion.i] DOUGLAS DEVEL OPMENT February 18, 2020 City of Richmond Richmond Eeonoinie Development Authority Dear Siv¥Madam: Ded ike to submit to you the following offer to purchase the propety known asthe Navy Hill Development Site, consisting of approximately 1428 total aces in Richmond, Virginia Price: $15,000,000 “Terme: All Cash Closing At Selles option Deposit ‘1,000,000, at risk ypon execution of contract Contingencies: None Other Ter Purchaser will refurbish the existing Coliseum at Purchasers expense snd bring the facility up to modem day standards Development Plan: The balance of the ste will be converted to an adaptive re-uce consisting ofa mix of residential, office, tail and hotels uses Expiration: Midnight, May 18, 2020 ‘lease note that this offer shal not bind either pay wo any agreement until a Sale and Purchase ‘Agreement is executed by both partes "ook fad to your esponse ZZ A TiAl a al j \4 \ © vy Ce ve ae WH SUPEET, eA SUIETE DO MMOL F224 AANA HO LAS O22) 6