R-1 Purchase of 1006 E Ocean View Ave

16 Pages·2017·1.74 MB·English

THE CITY OF
NORFOLK
To the Honorable Council March 13, 2018
City of Norfolk, Virginia
From: Nikki Riddick, Director Subject: Purchase of the property
Department of General Services located at 1006 E. Ocean View Avenue
Reviewed: Ward/Superward: 5/6
Michallel G. Goldsmith, Deputy City Manager
Approved: Item Number:
Vt0 1,/m4 R-01
Dougl ith, City Manager
I. Recommendation: Adopt Ordinance
II. Applicant: City of Norfolk
III. Description:
This agenda item is an ordinance to authorize the City of Norfolk (the "City") to acquire the
property located at 1006 E. Ocean View Avenue from William Willits and Ronald Boone, Sr.
for the appraised value of $350,000.
IV. Analysis:
The property located at 1006 E. Ocean View Avenue is a strategic parcel that contributes to
implementation of the vision for the Cottage Line area in plallorfolk2030 which identifies the
parcel and surrounding areas as Residential Mixed. While commercial use can be appropriate,
it is envisioned as part of a larger mixed-use development. The purchase of this property will
allow the City to increase the open space along the Chesapeake Bay in the short- to mid-term
and holding for ultimate incorporation into a significant redevelopment of the area.
V. Financial Impact:
Purchase price $350,000 with an additional $15,000 for transactional costs
Typical Costs of Closing Each party to this transaction shall pay its own legal fees
VI. Environmental:
N/A
810 UNION STREET, SUITE 1101 • NORFOLK, VIRGINIA 23510 • 757-664-4242
www.norfolk.gov
VII. Community Outreach/Notification:
Public notification for this agenda item was conducted through the City's agenda notification
process.
VIII. Board/Commission Action:
N/A
IX. Coordination/Outreach:
This letter and ordinance have been coordinated with the Department of General Services —
Office of Real Estate and the City Attorney's Office.
Supporting Material from the City Attorney's Office:
• Ordinance
• Exhibits to Ordinance:
o Exhibit A — Legal Description
o Exhibit B — Purchase and Sale Agreement
•
2/20/18 —
Form a . • J :nes 1• •• Pursuant to Section 72 of the City Charter, I hereby
certify that the money required for this item is in
By the city treasury to the credit of the fund from
Office of the Ci" Attorney which it is drawn and not appropriated for any
other purpose.
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DEPT. General Services F v1 Director of Finan ate
NORFOLK, VIRGINIA
ORDINANCE No.
AN ORDINANCE AUTHORIZING THE ACQUISITION OF A
CERTAIN PARCEL OF PROPERTY LOCATED AT 1006 E.
OCEAN VIEW AVENUE FOR THE SUM OF $350,000.00;
APPROVING THE TERMS AND CONDITIONS OF THE
PURCHASE AND SALE AGREEMENT; AND AUTHORIZING
THE EXPENDITURE OF A SUM OF UP TO $365,000.00
FROM FUNDS HERETOFORE APPROPRIATED FOR
ACQUISITION OF THE PROPERTY AND ALL RELATED
TRANSACTIONAL COSTS.
- - -
WHEREAS, the City desires to purchase that certain
parcel of real property designated as 1006 E. Ocean View Avenue,
as described in Exhibit A attached hereto("Property"); and
WHEREAS, the City is empowered by the provisions of
Virginia Code Section 15.2-1800 and by Norfolk City Charter Section
2(5) to acquire private property for public use; and
WHEREAS, available property records indicate that the
persons or entities having an ownership or other possessory
interest in the property to be acquired by the City is, at the
time of the adoption of this ordinance, William Willits and Ronald
W. Boone, Sr.; now, therefore,
BE IT ORDAINED by the Council of the City of Norfolk:
Section 1:- That pursuant to the provisions of
Virginia Code Section 15.2-1800 and Norfolk City Charter
Section 2(5), the acquisition of the Property described
in Exhibit A for the sum of $350,000.00 is hereby
authorized and approved.
Section 2:- That the terms and conditions of the
Purchase and Sale Agreement, a copy of which is attached
hereto as Exhibit B, are hereby approved.
Section 3:- That the City Manager is authorized to
execute the Purchase and Sale Agreement and to accept an
appropriate deed, in form satisfactory to the City
Attorney, and to do all things necessary and proper for
the acquisition of the Property.
Section 4:- That the City Manager is further
authorized to correct, amend or revise the Purchase and
Sale Agreement as may be necessary to carry out the
intent of Council as expressed herein.
Section 5:- That the expenditure of the sum of up
to $365,000.00, from funds heretofore appropriated, for
the acquisition of the property, including all related
transactional costs, is hereby authorized and approved.
Section 6:- That this ordinance shall be in effect
from and after its adoption.
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EXHIBIT A TO ORDINANCE
1006 E. Ocean View Avenue
Tax Acct. No. 1366-7300
ALL THOSE certain lots, pieces or parcels of land, with the buildings and
improvements thereon, now numbered 1006 East Ocean View, situate in the
City of Norfolk, Virginia, and known, numbered and designated as parts of
Lots Numbers Twenty (20) and Twenty-one (21), on the plat of the land of
the Hiliary Land Heirs, recorded in the Clerk' s Office of the Circuit Court of
the City of Chesapeake, Virginia (formerly Norfolk County), Virginia in Map
Book 3 at page 82, and more particularly bounded and described as follows:
BEGINNING at a point in the eastern line of Lot 21, which is the dividing
line between Lots Nos. 21 and 22, which point is eighty (80) feet, more or
less, northerly from the north side of East Ocean View Avenue; thence W. 44
degrees 35' W. and parallel with said Avenue, and 10/05 feet northerly from
the north wall of the gasoline filling station building now on said land, a
distance of 42 feet to a point; thence S. 45 degrees 25' W. 10.05 feet to the
north wall of said building; thence N 44 degrees 23' W. along the northern
side of said building and a wall, 7.97 feet to a point; thence S 45 degrees 03'
W along the western side of said wall, 13.55 feet to a point; thence N 43
degrees 02' W. along the northern side of the continuation of said wall, 50.16
feet, more or less, to a point in the western line of Lot No 20; thence southerly
along the western line of Lot No. 20, a distance of 57.80 feet, more or less, to
the north side of East Ocean View Avenue; thence easterly along the north
side of East Ocean View Avenue, 100 feet to the dividing line between Lots
Nos. 21 and 22; thence northerly along said dividing line between lots Nos.
21 and 22 a distance of 80 feet, more or less, to the point of beginning.
EXHIBIT B TO ORDINANCE
PURCHASE AND SALE AGREEMENT
THIS AGREEMENT made this day of , 2018, by and
between WILLIAM WILLITS AND RONALD W. BOONE, SR. ("Sellers"), and the CITY
OF NORFOLK, a municipal corporation of the Commonwealth of Virginia ("City").
RECITALS:
A. The Sellers are the owner in fee simple absolute of a certain parcel of real property,
together with all rights and appurtenances thereunto pertaining, located in the City of Norfolk,
Virginia, known as 1006 E. Ocean View Avenue, being further described in Exhibit A, attached
hereto and made a part hereof ("Property").
B. City desires to purchase the Property from the Sellers and the Sellers desire to sell
the Property to City in accordance with the terms and conditions of this Agreement.
C. These recitals are incorporated by this reference into this Agreement.
NOW, THEREFORE, in consideration of the purchase price and the mutual promises
contained in this Agreement, the parties agree as follows:
1. SALE. The Sellers agree to sell and City agrees to purchase the Property, together
with all easements, rights, and appurtenances thereto.
2. PURCHASE PRICE. The purchase price ("Purchase Price") for the Property is
Three Hundred Fifty Thousand and 0/100 Dollars ($350,000.00). The Purchase Price will be
paid in the form of a check or by wire transfer of funds at closing.
3. CONVEYANCE.
a. The Sellers agree to convey the Property to the City by General Warranty
Deed, with English covenants of title, free and clear of all encumbrances, tenancies, and liens (for
taxes or otherwise), except as may otherwise be provided in this Agreement, subject to applicable
easements and restrictive covenants of record not adversely affecting the use of the Property for
any purpose or rendering the title unmarketable.
b. If a defect or non-permitted encumbrance is found that is of such character
that it can be cured by legal action within a reasonable time not to exceed ninety (90) days from
the date that this Agreement is fully executed by all parties ("Effective Date"), the Sellers will, at
their own cost and expense, promptly take action as is necessary to cure the defect. If the defect
cannot be cured within this time, City will have the option of terminating this Agreement or
waiving the defect and proceeding to Closing.
c. Possession of the Property will be given to the City at Closing, except that
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City will have access to the Property for the purposes specified in Paragraph 7.
d. The Sellers and City agree that the Title Company selected by the City shall
act as the settlement agent ("Settlement Agent") at the City's expense. The Settlement Agent shall
prepare the settlement statement, update and record the deed, collect and disburse settlement funds
in accordance with this Agreement and the settlement statement, and file any required state and
federal tax forms or other certifications in accordance with Paragraph 24.
4. FEASIBILITY PERIOD. City shall have ninety (90) days from the Effective Date
in which to complete its assessment of the Property, including title examination and environmental
assessment ("Feasibility Period").
5. CLOSING. The Closing will be made at the offices of the Norfolk City Attorney,
810 Union Street, Suite 900, Norfolk, Virginia 23510, or such other location as the parties may
agree, within thirty (30) days of the expiration of the Feasibility Period, or as soon thereafter as
settlement documents can be prepared and any title issues can be resolved.
6. CONDITIONS. City's obligations are expressly conditioned upon the satisfaction
of each of the following conditions in the sole determination of City. If any one of the following
conditions cannot be met within the Feasibility Period, City may unilaterally terminate this
Agreement:
a. Receipt of a satisfactory title commitment with all unacceptable title
exceptions, encumbrances, and conditions as deemed by City removed or cured at the Sellers'
expense.
b. Receipt of a Phase 1 Environmental Assessment and Report ("Phase I
Report") conducted and prepared by an environmental engineering and inspection company
selected by City at City's expense, and such other testing and reports as may be reasonably required
by City's consultant or recommended in the Phase IR eport, any such additional testing and reports
to be at Purchaser's expense.
c. Receipt of a report satisfactory to City of the results of testing of any
underground or aboveground storage tanks located on the Property.
d. Satisfaction by the Sellers of all obligations under this Agreement.
7. RIGHT OF ENTRY. City and City's authorized representatives may at any
reasonable time and after giving reasonable notice to the Sellers, enter upon the Property for the
purpose of making inspections, appraisals, surveys, including the cutting of survey lines and
putting up markers and driving stubs and stakes, site analysis, engineering studies, core sampling
for engineering reports, and locating existing rights of way, easements and utilities. City will
exercise this right of entry in such a way so as to not cause unreasonable damage to the Property.
To the extent permitted by law and without waiving any right to sovereign immunity, City agrees
to be responsible for all claims of liability for any personal injury or property damage or otherwise
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to any person or property caused by the negligence of City or its agents before or after Closing.
The Sellers agree to indemnify and hold harmless the City from all claims of liability for any
personal injury or property damage or otherwise to any person or property caused by action or
omission of the Sellers or their agents before Closing.
8. SELLERS' DOCUMENTATION. To the extent that any of the following items
exist and are in the possession of the Sellers and can be located through a reasonable search, the
Sellers agree to furnish to City, within ten (10) days from the Effective Date, any and all surveys,
title reports, topographical maps, engineering and architectural drawings or plans, lot layouts, and
any plans or profiles of any roadways, easements, or utility lines, proffered conditions, and any
and all correspondence or agreements with any federal, state, or city governmental body or agency
thereof in connection with the acquisition, purchase, or development of the Property. The Sellers
further agree to furnish to City all information available to the Sellers concerning the
environmental condition of the Property and the existence of any contract rights that the Sellers
might hold for the service of the Property by utilities, either public or private.
9. ENVIRONMENTAL AND RELATED MATTERS.
a. Definitions. As used in this Agreement, the following terms will have the
following meanings:
(i) Contamination means any release of a Hazardous Substance;
Petroleum Substance or Product; polychlorinated biphenyl (PCB); asbestos or asbestos containing
material; radon gas; or other substance considered to be a contaminant by professionals in the field
of environmental assessments under standard commercial practice;
(ii) Hazardous Substance means those substances as defined by the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C.
§ 9601(14), and includes any material that is toxic, flammable, explosive, or corrosive as these
terms are defined by CERCLA. Petroleum Substances or Products as defined below are excluded.
(iii) Petroleum Substance or Product means any material containing
refined or crude oil, or any fraction thereof, and includes natural gas, natural gas liquids, liquefied
natural gas, or synthetic gas usable for fuel or mixtures of natural gas and such synthetic gas.
Hazardous Substances as defined above are excluded.
(iv) Phase I and Phase II Environmental Assessment have the
meanings understood by professionals in the field of environmental assessments, which will
include screening the Property for existing or threatened Contamination, be designed to avail City
of certain defenses under applicable federal or state law, and include such other and further
inquiries and examinations as are considered necessary or desirable under standard commercial
practice at the time the assessment is conducted.
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(v) Release means occurrences as defined by CERCLA, 42 U.S.C. §
9601(10), and includes any intentional or accidental discharging, spilling, leaking, pumping,
pouring, injecting, escaping, leaching, dumping, disposing, or emitting into the environment.
b. Removal of Storage Tanks. The Sellers will, at their own cost and expense,
remove all Underground Storage Tanks (USTs) and Aboveground Storage Tanks (AGSTs) and
related piping they own at or on the Property and backfill with soil before Closing. Removal of the
USTs and AGSTs will be completed in accordance with applicable regulations of the Department
of Environmental Quality (DEQ) and to City's satisfaction. It is expressly understood and agreed
that the Sellers are not selling and City is not purchasing any USTs or AGSTs that are found to
exist on the Property, other than as specifically set forth herein, and that the responsibility of
ownership, maintenance, reporting, and renewal of these storage tanks will remain with the owner
of the tanks.
c. Phase I Environmental Assessment.
(i) As a condition precedent to City's obligation to purchase, City may,
at its sole discretion and expense, have a Phase I Environmental Assessment of the Property
performed by a qualified environmental consultant ("Consultant") selected by City, conducted in
accordance with standard commercial practice at the time of the assessment. A copy of the Phase
I Environmental Assessment will be made available to the Sellers, together with copies of any
supplemental reports or assessments. All such reports are herein called the "Environmental
Reports."
(ii) If the Consultant recommends soil, water, or structural remediation
or further assessment activity after or as a result of performing a Phase I Environmental
Assessment, City may at its option, and in its sole discretion: (1) terminate this Agreement and
receive reimbursement of any deposit that City may have paid; (2) request that a Phase II
Environmental Assessment of the Property be performed by the Consultant at the Purchaser's
expense, with the right to terminate this Agreement and receive a refund of any deposit paid, if
such Phase II Environmental Assessment is not satisfactory in City's sole discretion; or (3) proceed
to closing in accordance with the Agreement, notwithstanding any unsatisfactory environmental
assessment.
10. NOTICES. All notices to the parties hereto will be delivered by hand, via certified
mail return receipt requested, or via facsimile and all be deemed effective upon delivery if by hand
and upon confirmation of receipt if by other means, to the following address until the address is
changed by notice in writing to the other party:
Sellers: Mr. William Willits
Mr. Ronald Boone, Sr.
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City: Director, Department of General Services
Office of Real Estate
City of Norfolk
232 East Main Street, Suite 250
Norfolk, Virginia 23510
With a copy to: Bernard A. Pishko
City Attorney
810 Union Street, Suite 900
Norfolk, Virginia 23510
11. REPRESENTATIONS AND WARRANTIES BY THE SELLERS. The Sellers
represent and warrant as of the date of this Agreement and as of the date of Closing that:
a. The Sellers have the right, title, and authority to enter into this Agreement
and to perform its obligations hereunder;
b. The entry and performance of this Agreement by the Sellers will not breach
any other agreement with any other party or create a violation of any applicable law, rule, or
regulation;
c. To the best of the Sellers' knowledge. the Property and all structures and
operations on the Property fully comply with federal, state, and local environmental laws,
regulations, and requirements;
d. To the best of the Sellers' knowledge, no Hazardous Substance, Petroleum
Substance or Product, asbestos, asbestos containing material, or polychlorinated biphenyls (PCBs)
are being manufactured, treated, stored, sold, or disposed on the Property;
e. The Sellers have no knowledge of or reason to believe there exists on the
Property any soil, surface water, groundwater, or structural or other Contamination or threat of
such Contamination;
f. The Sellers have no knowledge of or reason to believe there exists on
property adjacent to the Property any Contamination of, or threat of Contamination to, soil, surface
water, groundwater, or otherwise;
g. To the best of the Sellers' knowledge, no environmental liens, restrictions,
notifications, or conditions regarding the release, treatment, storage, or disposal of Hazardous
Substances or Petroleum Products have been claimed or threatened relating to the Property;
h. After diligent inquiry, the Sellers have no knowledge of any notice, claim,
or assertion by anyone that there are any underground storage tanks on the Property, except as
disclosed in the Environmental Reports;
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