Lynchburg City Council voted 6-1 to approve a performance agreement with the developers of the Rosedale project off of Graves Mill Road, with Councilman Jeff Helgeson the sole vote against the agreement.
As per the recommendation of City Manager Bonnie Svrcek, the city will reimburse Golden Mile LLC, the owners of the property, 100 percent of the costs of building the main road through the development up to a cap of $5.9 million.
The funds for the reimbursement will come directly from new tax revenues generated by the Rosedale development and the adjacent Bella Rose Plantation beginning Jan. 1, 2017. The developer will be reimbursed 75 percent of the revenues up until $3 million is paid out and then will be reimbursed 55 percent of revenue from there up until the cap of $5,879,794 is reached.
Region generated more than $500 dollars in 2015
Reporter: Margaret Carmel
Lynchburg News & Advance
October 12, 2016
In September 2014, City Council laid out its criteria for participation in such an agreement. City Council’s Finance Committee said it would require no more than 50 percent reimbursement for the hard costs of the road, connectivity to Breezewood Drive and only would reimburse the developer for 10 years.
According to a project timeline included in meeting documents, the developers have been in talks with the city over funding for road improvements both within the proposed development and on Graves Mill Road since 2012. Originally, the developers approached the city and requested they build a road and turn signal in exchange for a donation of the right-of-way.
In 2014, City Council approved a conditional use permit and the rezoning of 42 acres off Graves Mill Road just past Home Depot to allow the project. The following year, City Council approved a conditional use permit that amended the earlier conditional use permit and the rezoning of about 27 acres that was not included in the previous rezoning.
This agreement resembles the arrangement for a total of $5 million loaned to the developers of the Virginian hotel project on Church Street by the city for gap financing in 2015.
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