The Virginian-Pilot
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NORFOLK
A proposed real estate deal would give Norfolk a Fresh Market and create dozens of jobs, but members of the Ghent business community say the low sale price would make it a giveaway.
If an agreement between the city and a developer is finalized, 21st Street Partners would pay $500,000 for a 3.5-acre property on West 21st Street that is assessed at $2.58 million.
There are now at least two other offers for the property. S.L. Nusbaum Realty Co. has offered $1 million, and developer Richard Levin is offering $2 million. Selling the property for $500,000 would "devalue what Ghent is" and hurt property values, Levin said.
"There is a time to give away property, but this is not the time," Levin said.
Jack Plomgren, president of the Ghent Business Association, on whose board Levin serves, said the group wants the assurance that taxpayers would be "getting fairly compensated." A request for proposals from prospective buyers would accomplish that, he said.
"If this is a great deal and if it's the best the city can do, then we'll find out rather quickly, won't we?" Plomgren said Friday.
The city has struggled since 2007 to find a developer who can successfully redevelop the site, which is between Hampton Boulevard and Colley Avenue.
The details of the Ghent Station project became public when the City Council set a public hearing this week on the proposed land sale. The hearing is set for Dec. 11.
The current deal marks at least the third attempt to find a developer, and Mayor Paul Fraim and other city officials have said they believe the developer will produce results, and fairly quickly.
Fraim said he hasn't seen any plans from Levin. Levin said Friday that he would provide details in a proposal.
Levin made a similar offer earlier this year when he said he would pay $1.1 million for a 1.2-acre parcel on Monticello Avenue that was sold to Chick-fil-A for $800,000. That property was assessed at $1.01 million.
Under the proposal, 21st Street Partners, which consists of Stanton Partners and the Robinson Development Group, would pay $500,000 for the land. The partners would have to pay an additional $350,000 if they sold the property within the next two years. The city would reimburse the developer for the first $250,000 of demolition costs, according to the proposed contract.
In return, the city would receive new annual revenue of $200,000 from taxes.
The developer would spend about $10.5 million on a retail and office project initially, and the grocer would spend another $3.5 million for its store, according to city documents. The project would include a two-story medical office building that would become the new home for six Bon Secours physicians, as well as the health company's new physical therapy service.
Attempts to reach Chuck Rigney, interim economic development director for the city, and representatives of Stanton and the Robinson Development Group were unsuccessful Friday afternoon.
Councilman Barclay C. Winn noted that the property has been available for years and that Levin made his offer only after another developer had made plans for the site.
Levin said he assumed the city would request proposals for the property, as it did a few years ago.
Winn said his inclination is "not to slow down the process" with a new search for proposals.
But Councilwoman Theresa Whibley said she doesn't understand the urgency to finalize the agreement.
She said she wants a guarantee that the 21st Street Partners' proposal would be the best possible deal for the city, and if that means seeking out more proposals, then that's what should be done.
The city should be sensitive to Ghent property owners who are concerned that the discounted sale price would harm their property values, she said.
Jillian Nolin, 757-446-2326,jillian.nolin@pilotonline.com
Source: http://hamptonroads.com/2012/11/norfolks-land-deal-good-ghent
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