City Council

City of Petersburg City Council Virginia www.petersburgva.gov Samuel Parham, Mayor – Ward 3 Annette Smith­Lee, Vice­Mayor – Ward 6 Treska Wilson­Smith, Councilor – Ward 1 Darrin Hill, Councilor – Ward 2 July 27, 2021 ­ Special Charlie Cuthbert, Councilor – Ward 4 W. Howard Myers, Councilor– Ward 5 Closed Session City Council John A. Hart, Sr., Councilor – Ward 7 Agenda City Manager July 27, 2021 Stuart Turille Virtual Meeting 12:00 PM 1. Roll Call 2. Determination of the Presence of a Quorum 3. Discussion and/or Consideration a. A Resolution Authorizing The City Manager To Execute A Development Agreement Between The City Of Petersburg And Robert and Crystal Jones For The Development Of 357 University Boulevard located in Petersburg, VA 4. Closed Session a. The purpose of this meeting is to convene in the closed session pursuant to §2.2­3711(A)(1) of the Code of Virginia for the purpose of discussion pertaining to performance, assignment, and appointment of specific public employees of the City of Petersburg specifically including but not limited to discussion of the evaluation of the performance of the appointees of City Council. 5. Adjournment Page 1 of 23  3.a. City of Petersburg Ordinance, Resolution, and Agenda Request DATE: July 27, 2021 TO: The Honorable Mayor and Members of City Council THROUGH: Stuart Turille, City Manager Reginald Tabor, Interim Director of Planning & Zoning FROM: Cynthia Boone RE: A Resolution Authorizing The City Manager To Execute A Development Agreement Between The City Of Petersburg And Robert and Crystal Jones For The Development Of 357 University Boulevard located in Petersburg, VA PURPOSE: A Resolution Authorizing The City Manager To Execute A Development Agreement Between The City Of Petersburg And Robert and Crystal Jones For The Development of 357 University Boulevard located in Petersburg, VA. REASON: This action is necessary to facilitate the process of selling the City-owned property at 357 University Boulevard. RECOMMENDATION: The Department of Economic Development recommends approval of the Resolution approving the Development Agreement and authorizing the City Manager and the City Attorney to execute all documents to facilitate the sale of City-owned property in accordance with applicable legal requirements. BACKGROUND: The City of Petersburg City Council considered an Ordinance authorizing the City Manager to execute a purchase agreement related to the sale of city-owned property located at 357 University Boulevard on July 20, 2021. A Development Agreement has been drafted that requires, in consideration of the City's conveyance of the Property to Robert and Crystal Jones, that Robert and Crystal Jones shall perform the development of the property in compliance with the project summary documents and in accordance with terms defined in the Agreement. The Development Agreement shall be referenced as if set forth fully in the deed of conveyance of the Property from the City to Robert and Crystal Jones. The deed shall include provisions for the reverter described in the Development Agreement. This resolution authorizes conveyance of the property. COST TO CITY: Costs associated with the conveyance of Real Property Page 2 of 23 BUDGETED ITEM: N/A REVENUE TO CITY: Revenue from the sale of property and associated fees and taxes CITY COUNCIL HEARING DATE: CONSIDERATION BY OTHER GOVERNMENT ENTITIES: N/A AFFECTED AGENCIES: City Manager, Economic Development, City Attorney RELATIONSHIP TO EXISTING ORDINANCE OR RESOLUTION: Ordinance approved on July 20, 2021 REQUIRED CHANGES TO WORK PROGRAMS: N/A ATTACHMENTS: 1. scope of work (3) 2. 357ProposalPresentation (3) (1) 3. 357UniversityBlvdDevelopmentAgreement 4. DevelopmentAgreementResolution Page 3 of 23 For purchase and development of 357 University Blvd. as a primary residential property of Robert and Crystal Jones. Total Budget: $130,000 Source: FHA 203k Home Rehabilitation/Renovation Mortgage1 Description of Work and Estimates General Contractor: Precision General Contracting Tim Neville, Owner precisiongeneralcontracting@gmail.com 804-317-2516 Timeframe: 4-6 Months (August – December 2021) Interior and Exterior Structural Repairs, to include Up to 100% of the amount available for removal of tree on corner of University and Plum. renovation to ensure the home meets code requirements for a single family residence. Total Loan Amount $ 130,000.00 Purchase Price: $ 35,250.00 Down Payment 10%: $ 3,250.00 Estimates Amount Available for Renovation: $ 98,275 Labor $ 36,480.00 Exterior Repairs $21,628.25 Exterior Space Upgrades $15,448.75 Landscaping $3,089.75 Interior Redesign & Repairs $21,628.25 Mock ups for exterior repairs are included on page two of this document. Based on Purchase Price outlined in the recently signed development agreement dated July 20th the following number set would apply in the estimates section: Total Loan Amount $ 130,000.00 Purchase Price: $ 6,800.00 Down Payment: $ 680.00 Amount Available for Renovation: $ 123,880.00 Labor $ 36,480.00 Exterior Repairs $ 30,590.00 Exterior Space Upgrades $ 21,850.00 Landscaping $ 4,370.00 Interior Redesign $ 30,590.00 1 See pre-Approval email attached to this document for details concerning loan. Loan process will be initiated upon council approval. Page 4 of 23 Page 5 of 23 Proposal for the purchase of 357 University Blvd. by Robert Jones, Jr & Crystal Jones 1 Page 6 of 23 ABOUT US Robert and Crystal Jones Robert and Crystal are a newly married couple. Robert is a long-time resident of the city of Petersburg. The couple is currently seeking a place to build a foundation for their family and they want to make the city of Petersburg their home. 2 Page 7 of 23  Purchase Proposal Purchasers Robert Leroy Jones, Jr. Crystal Lauren Jones Project Type: Single Family Home Lot Size: 0.112 Acres Property Address: 357 University Blvd Building: 2 Story Single Family Unit Petersburg VA, 23803 4 bedrooms 2 bathrooms Parcel ID: 010-150029 Assessment: Land $15,100 Building $55,400 3 Page 8 of 23  Purchase Proposal Purchasers Robert Leroy Jones, Jr. Crystal Lauren Jones Robert Jones, Jr. Crystal Jones Employer: City of Petersburg Department of Social Services Employer: Heart and Mind Therapy Services Position: Family Services Supervisor Position: Marriage and Family Therapist CONTACT INFORMATION Phone Numbers: 1 (804) 943-0739 *Robert’s Cell 1 (804-861-4720 ext 3057 *Robert’s Work 1 (804) 922-1837 *Crystal’s Cell Email: 4 rlj5h@virginia.edu Page 9 of 23  Purchase Proposal Purchasers Robert Leroy Jones, Jr. Crystal Lauren Jones Development Description: Description of Financing: Remodel of single family home for use as primary residence of the purchasers. Purchase – Cash on Hand Offered Purchase Price: Repairs – Home Improvement Loan, Gifts & Personal Loan $2115 (cash) (3% of assessed value) 5 Page 10 of 23 Community Benefit How does this proposal relate to the plans, goals and objectives identified by the city of Petersburg? 6 Page 11 of 23  from the City of Petersburg Strategic Plan Goal 1: Economic Development  Promote Economic Development to Attract New Business and Strengthen the City’s Tax Base  Objective 3: Diversify and Broaden the City Tax Base Page 12 of 23  $5569 $28,980 $63,175 Year 1 Year 5 10 year total estimate Tax Estimated Tax estimated tax Revenue Revenue revenue (+sale price) (+sale price) (+sale price) The sale of this property would result in an estimated $63175 in property estimated tax revenue to the city. In addition to the property tax revenue, the family Property Tax will also provide revenue in the form of local sales, VAT and excise taxes taxes. Revenues 8 Page 13 of 23 Proposed Investments in Property and Estimated Increase in Value (10 years) Year Value Investment Estimated Increase (45% of investment) Estimated Property Tax Revenue 1 $ 70,500.00 $ 75,000.00 $ 33,750.00 $ 3,454.50 2 $ 104,250.00 $ 25,000.00 $ 11,250.00 $ 5,108.25 3 $ 115,500.00 $ 25,000.00 $ 11,250.00 $ 5,659.50 4 $ 126,750.00 $ 10,000.00 $ 4,500.00 $ 6,210.75 5 $ 131,250.00 $ 10,000.00 $ 4,500.00 $ 6,431.25 6 $ 135,750.00 $ 5,000.00 $ 2,250.00 $ 6,651.75 7 $ 138,000.00 $ 5,000.00 $ 2,250.00 $ 6,762.00 8 $ 140,250.00 $ 2,500.00 $ 1,125.00 $ 6,872.25 9 $ 141,375.00 $ 2,500.00 $ 1,125.00 $ 6,927.38 10 $ 142,500.00 $ 6,982.50 10 year anticipated tax revenue from property $ 61,060.13 Page 14 of 23  from the City of Petersburg Strategic Plan Goal 2: Neighborhood Vitality  Support community development activities to enhance neighborhoods and improve housing  Objective I. Prevent blight and deterioration Page 15 of 23 Artistic rendering of potential upgrades to exterior Page 16 of 23 Exterior Improvements Forecasted:  Clearing overgrowth from property  Installation of Solar power system  Remolding of front entrance  Installation of HVAC system  General landscaping of property  Destruction of dilapidated shed  Regular lawn maintenance  Replacing exterior siding and repairing damage to exterior molding and roofing Page 17 of 23  Robert Jones, Sr. Venus Bolton Jerel Blackwell, Sr. References Sheriff of Nottoway County VA Realtor Elder, Universal Cathedral Ministries 1 (434) 298-7752 1 (804) 467-5066 1 (804) 585-9441 rjones@nottowaysheriff.org venus@ruckartre.com blkx5@comcast.net For character references related to the couple you may contact 13 Page 18 of 23  DEVELOPMENT AGREEMENT FOR THE DEVELOPMENT OF VACANT PROPERTY AT 357 UNIVERSITY BOULEVARD PETERSBURG, VIRGINIA 23803 AS RESIDENTIAL DEVELOPMENT On this 27TH day of July, 2021 came the parties, Robert Jones and Crystal Neville Jones ("Purchaser"), and the City of Petersburg, VA, a municipal corporation formed and operating under the laws of the Commonwealth of Virginia ("the City”), hereinafter collectively referred to as "the Parties," and did enter into this Development Agreement for the development of vacant property at 357 University Boulevard, Petersburg, Virginia 23803 as residential development ("the Agreement") to wit: RECITALS The Purchaser has presented to Petersburg City Council and the City’s Administration “project summary documents” herein attached as (Exhibit A) outlining specific information regarding the project that is the subject of this Agreement, and which documents are hereby incorporated into this Agreement as if set forth fully herein. The project summary documents describe the intentions of the Purchaser with regard to the purchase and remodel to a single family residential home as their permanent place of residency ("the Property"). The requirements of the project summary documents are deemed by the Parties to supplement but not supplant all requirements described in this Agreement and shall be binding upon the Purchaser with regard to the development of the property. Upon presentation of these documents to the City by the Purchaser, Petersburg City Council did authorize the sale of the Property to the Purchaser contingent upon the execution of this Development Agreement which shall be referenced in the recorded deed for the property and include a reverter requirement for noncompliance with the terms described herein. AGREEMENT In consideration of the City's conveyance of the Property to the Purchaser, the Purchaser shall perform the development or the Property strictly in compliance with the project summary documents and in accordance with the following terms: A. The Purchaser shall be solely responsible for the development of the Property in accordance with the project summary documents, and shall comply with all Code, Zoning, and other legal requirements associated with the development. 1 of 4 Page 19 of 23 B. The Purchaser shall be solely responsible for obtaining all applicable permits and inspections required for the development. C. The City makes no representations or warranties regarding the property or its development and shall be responsible only for conveyance of the Property as described herein, which is conveyed in "as is' condition with no warranties of title or condition. D. The period of time described in the project summary documents during which The Purchaser is required to complete the development of the Property shall be known as the "Development Period." E. The Purchaser shall not be permitted to convey the property during the Development Period. Upon completion of the development of the property, The Purchaser shall notify the City who shall determine compliance and upon making such determination, certify in writing completion of the development in accordance with the project summary documents. A copy of said certification shall be provided to The Purchaser. Upon such certification, this Agreement shall cease to be effective and become null and void. F. Extensions to the time schedule described in the project summary documents will not be authorized except by the written consent of the City as approved by Petersburg City Council. G. The failure of The Purchaser to timely comply with all requirements of the project summary documents shall be considered a material breach of this Agreement. H. Upon material breach of this Agreement, the City shall provide The Purchaser with written Notice describing the breach. Upon receipt of written Notice of Breach, The Purchaser shall have thirty days to cure. The failure to cure the material breach within the thirty-day period shall result in default. I. All Notices and other correspondence sent pursuant to this Agreement shall be sent to the following persons and addresses: To the City: City Manager (with copy to City Attorney) 135 North Union Street Petersburg, VA 23803 2 of 4 Page 20 of 23  Notices may be sent via Hand Delivery, Courier, First Class Mail, Certified Mail, Registered Mail or other similar standard business delivery service and shall be effective upon receipt. J. This Agreement shall be referenced as if set forth fully in the deed of conveyance of the Property from the City to The Purchaser and shall run with the land until such time as all requirements are completed. The deed shall include provisions for the reverter described herein. K. The “original purchase price” for the Property shall be defined as the amount paid by The Purchaser to the City to facilitate the transfer of the property thirty five thousand two hundred fifty dollars ($35,250). L. Upon Default by the Purchaser, the City shall retain 100% of the purchase price and shall record the Notice of Default which shall cause the Property to automatically revert to the City. M. This Agreement shall be binding upon The Purchaser and successors in interest until such time that the obligations are concluded and the Agreement is declared to be null and void in accordance with the terms described herein. N. This Agreement shall be construed under the laws of the Commonwealth of Virginia. Any dispute arising from the performance or non-performance of any requirement described herein shall be litigated solely in the Circuit Court for the City of Petersburg, Virginia. O. If any provision of this document is deemed by a Court to be contrary to applicable law, the remaining terms shall continue in full force and effect. 3 of 4 Page 21 of 23 By signing below, the undersigned parties represent that they have the authority to bind and do hereby bind their respective entity to all terms of this Agreement. PURCHASER By:__________________________ Printed name: _________________ CITY OF PETERSBURG, VIRGINIA By: ________________________________ Stuart Turille, City Manager Approved as to form: By: ________________________________ Anthony C. Williams, City Attorney 4 of 4 Page 22 of 23  A Resolution Authorizing The City Manager To Execute A Development Agreement Between The City Of Petersburg And Robert and Crystal Jones For The Development Of 357 University Boulevard located in Petersburg, VA WHEREAS, The City of Petersburg City Council approved an Ordinance authorizing the City Manager to execute documents related to the sale of city-owned property located at 357 University Boulevard on July 20, 2021; and WHEREAS, A Development Agreement has been drafted that requires, in consideration of the City's conveyance of the Property to Robert Jones Jr and Crystal Jones, that Robert and Crystal Jones shall perform the development of the Property in compliance with the project summary documents and in accordance with the terms in the Agreement; and WHEREAS, the Development Agreement shall be referenced as if set forth fully in the deed of conveyance of the Property from the City to Robert and Crystal Jones; and WHEREAS, the deed shall include provisions for the reverter described in the Development Agreement. NOW therefore be it RESOLVED that the City Council of the City of Petersburg hereby approve the Development Agreement between the City of Petersburg and Robert and Crystal Jones. Be it further resolved, the City Manager and City Attorney are hereby directed to take all necessary action to facilitate the sale of the subject property consistent with the terms described in the Purchase and Development Agreements. Page 23 of 23