RD337 - City of Virginia Beach Oceana Encroachment Reduction Program Status Update


Executive Summary:
Dear Governor McDonnell:

This letter and its accompanying documents are intended to fulfill the City of Virginia Beach's obligation to account for its actions with regard to Base Realignment and Closure (BRAC) response programs and associated funding to support those programs. According to language in the budget adopted by the General Assembly this past spring, the City of Virginia Beach shall make a report to the Chairmen of the House Appropriations and Senate Finance Committees, and to the Governor, on or before November 1, 2011, on the specific properties purchased and the balance of monies remaining.

As of October 14, 2011, the City has spent or committed to spend the $7.5 million appropriated in the FY'12 budget on properties, incentives, and expenses located in Accident Potential Zone 1 and Clear Zones, as follows:

• Written agreements with property owners in APZ-1 (8 parcels): $7,123,000 ($6 million to close by end of October)

• Verbal Agreements with property owners in APZ-1 (2 parcels): $ 417,500

The City's commitment in APZ-1 will exceed the $7.5 million for this fiscal year. The City will match the state funds with other acquisitions under its BRAC Response programs, and to date has committed $7 million to accomplish same. We fully expect to spend a total of $15 million during this fiscal year, as we have done previously. With those funds, together with acquisitions from prior fiscal years, the City has accomplished the following:

Acquisition of Property Acres Cost By Location and Status:

Accident Potential Zone 1 and Clear Zones - Acquired
Acres: 72.35
Cost: $52,956,872

Accident Potential Zone 1 and Clear Zones - Pending (Under Agreement)
Acres: 23.77
Cost: $10,003,124

Interfacility Traffic Area - Acquired
Acres: 795
Cost: $16,681,381

Interfacility Traffic Area - Pending (Under Agreement)
Acres: 1038
Cost: $5,357,800

The City has further committed $1,700,000 toward its incentive program, designed to entice compatible businesses to locate or remain within Accident Potential Zone 1, or to incentive non-conforming businesses to locate outside the zone.

Another $3,000,000 is associated with expenses of the program (title, appraisals, demolition, engineering, environmental, personnel).

In support of these figures, I am attaching for your reference the following exhibits.

• A list of all the properties that have been acquired as of October 14, 2011 in APZ-1, the Clear Zones, and the ITA.

• A list of all of the properties that are under agreement to purchase in APZ-1, the Clear Zones, and the ITA. This also includes property in the newly created Rural AICUZ Area ("RAA"), adopted by Council on August 9, 2011 in response to a request from the Commanding Officer of Oceana. Most of these properties are expected to close in the next few weeks, including the acquisition of the London Bridge Commerce Center in APZ-1 (22 incompatible units)(scheduled for this week) and Rock Church Ministries property in the RAA (800 +/- acres)(tentatively scheduled for late November).

• A list of the properties that are owned by "Willing Sellers" - these are owners that have written to the City and asked for their property to be considered for acquisition under the program. Should the City receive funding for FY'13, the City would purchase these additional properties. The estimated value of these properties is $19,421,400.

• A summary of these acquisitions in a presentation entitled "APZ-1/Clear Zone/ITA Acquisitions and Agreements Status Report."

• A copy of the September 19, 2011 presentation, made to the House Appropriations Committee by Deputy City Attorney Rebecca D. Kubin, which explains in greater detail the City's three-part program.

There should be little doubt that the City of Virginia Beach, in partnership with the Commonwealth, continues to effectively reduce encroachment around Naval Air Station Oceana. By combining the three key aspects of the Virginia Beach Plan - land use controls, an acquisition program, and rollback incentives - the City has achieved a decrease in density and incompatibility surrounding the base, and will continue to use all available resources to proceed with this innovative and successful program.

Should you require additional information, please don't hesitate to let me know.

Sincerely,

William D. Sessoms, Jr.
Mayor