held June 26, 2018
Wednesday night, the Alexandria City Council held their final legislative meeting for FY2018, where they considered a Contingent Contract to Sell City-Owned Property at 912, 916, 920 King Street and 116 South Henry Street.
Details on these items can be found below.
Item: Consideration of a Contingent Contract to Sell City-Owned Property at 912, 916, 920 King Street and 116 South Henry Street
Action: Approved 6-0
Next Steps: The project design and details will be reviewed by the Board of Architectural Review (BAR) and then a Development Special Use Permit will be considered by the Planning Commission and City Council
Description: In September 2016, City Council authorized the City Manager to issue a Request for Proposals (RFP) for the disposition, sale and redevelopment of City-owned property on King and S. Henry Streets – which included a provision that proposals shall not result in a net loss of total off-street parking spaces compared to the existing conditions (85 parking spaces). Following the receipt of three responses to the RFP, the City of Alexandria interdepartmental Real Estate Committee was convened to evaluate and score these proposals and make a recommendation to the City Manager. The Committee unanimously recommended that the City pursue award of a sales contract to Galena Capital Partners based on their best and final offer of $5,300,000 for the properties – representing the highest offer; providing the highest amount of public parking through an automated parking solution; the greatest mix of residential units; and including an affordable housing contribution of $182,000 above the purchase price.
Details & Issues of Interest:
– Contingent contract purchaser: Galena Capital Partners
– Phased approach to the sale and construction of the sites per the requirements of the RFP to maximize the number of available parking spaces throughout the construction period
– Base offer price of $5,300,000
– Fifty-two (52) multi-family units of varying scale serving many market segments
– Approximately 150 parking spaces
– Approximately 10,000-15,000 square feet of ground level retail across the two sites
– Affordable housing contribution rate above the purchase price – estimated at $182,000 based on the preliminary design concept
– An independent appraiser established the adjusted market value as $5,300,000, or $80.00/SF-FAR assuming 66,266/SF is delivered (total, all parcels)
– Upon entering into a sales contract, the purchaser will be required to make a deposit of ten percent (10%) of the purchase price for the Property
– The contract will include a future purchase option by the City for the proposed parking garage
– The sale of the properties would be contingent upon required BAR, Planning Commission and City Council approvals
– The net proceeds after transaction and closing costs are anticipated to be $5,088,000
– The annual real property tax revenue is estimated at $340,000 for all subject properties- currently these properties are tax-exempt
Land use items we are tracking in July & August:
None! The City Council will go into recess following their final June meetings- so we will pick-up land-use tracking in September.