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CL- 1964 Consent Agenda   Item #:   B.    
City Council Regular Meeting
Meeting Date: 09/04/2018  
Subject:    Acceptance of a VHDA Grant to Assist with the Stabalization of 205 Jefferson Avenue
From: Earl B. Reynolds, Jr.

First Reading:     08/21/2018
Final Adoption:   09/04/2018
The subject property was condemned as being unfit for human habitation in 2014 after years of enforcement actions by City Inspections staff (see attached Register and Bee article).  The property is currently owned by a Texas registered LLC, Agomuo Ventures, LLC.  City staff was authorized to file a Circuit Court Petition in April 2017 to obtain Receivership rights under Virginia Code Statute 15.2-907.2.  Receivership allows City staff or their designees to enter the property, make necessary repairs, and take measures deemed necessary and appropriate to protect the property from further destruction.  The Receivership Order also puts the owner(s) on notice that the Court will allow the City to recover its documented costs of providing the aforementioned services by either voluntary payment by the owner(s) or by judicial sale, subject to Court approval.
Since the Receivership Order was issued by the Circuit Court, City staff objectives have been to (1) identify a redevelopment scenario which would get the property into responsible ownership to ensure a high quality renovation project equal to what has been experienced in the River District, and (2) be the least costly alternative to the City.  Two very favorable events have occurred, which will allow these objectives to be met.

1.          VHDA Community Impact Grant in the amount of $125,000 has been awarded to the City to assist with property stabilization.  A $75,000 local contribution for stabilization has been reserved in the Blight Eradication CIP to assist with this effort.
2. Danville Neighborhood Development Corporation Purchase:  The DNDC will purchase the property with a deferred loan to be provided by Preservation Virginia, Inc. (PV); the PV Board of Directors has acted favorably on the loan.  The loan details are still being worked out between Preservation Virginia, Inc., and the Virginia Department of Historic Resources.

It is recommended that the City Council concur with the following actions:
1.          Authorize the City Manager or the Deputy City Manager to execute the VHDA grant award which will provide $125,000 to help stabilize the subject property.  This action acknowledges the use of $75,000 from the Blight CIP Fund to support this activity; and
2. Authorize the Budget Director to set up an account in the Grant Fund for this purpose.

R/B Article
Grant Award

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