Fredericksburg City Manager Tim Baroody and City Attorney Kathleen Dooley are recommending City Council approve a settlement offer from NBB, LLC, for pending lawsuits related to the building of townhomes on George Street, adjacent to the former National Bank Building. The vote is scheduled for council’s September 13 meeting.
NBB, LLC, has offered to revise its design:
– Reducing the number of units from seven to five.
– Reducing the height of the units to 44 feet, four inches.
– Removing one of the stories of the units.
– Lowering the cornice.
– Providing a front yard on George Street, and a side yard on Charles Street.
In return, City Council has offered to consider an economic incentive of $300,000 for the entire mixed use project, with $150,000 due upon completion of the rehabilitation of the National Bank Building and the issuance of certificates of occupancy for the first two townhomes. The second $150,000 would be due upon completion of the rest of the project.
The Fredericksburg Economic Development Authority (EDA) would pay the grants from its funds. The city would reimburse the EDA from the real estate tax increment generated by the mixed use development over the course of several years, with interest. The EDA will discuss this at their meeting on Monday, Sept. 12.
“If City Council is able to approve the redesign through a public hearing process, and if the City Council and EDA approve the economic incentive, then the parties would dismiss the pending lawsuits,” Baroody and Dooley said in their memo to council. The called the settlement a “win/win for NBB and the City.”
NBB, a division of Local Developer Mike Adams’ JON Properties, purchased the National Bank Building at 900 Princess Anne St. and the adjacent property on George St. for $1.6 million in August 2015.
The Architectural Review Board (ARB) approved Adams’ plan to build seven, four-story townhouses in the 300 block of George Street, behind the bank building. But City Council voted 6 – 1 on November 10 to suspend the ARB’s approval.
Adams’ company sued City Council on November 17, seeking to void their action.
City Council then filed a lawsuit against NBB, asking the court to dismiss the lawsuit. City Council also filed a lawsuit against the ARB, claiming citizens were not properly notified of the public hearing.
If the settlement agreement is approved, a public hearing will be scheduled for September 27.
The Architectural Review Board is not involved in this settlement.
More
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Developer Sues City Council Over Proposed Townhomes
City Council Overrules ARB’s Approval of Bank Property Townhomes
Preservation Group Opposes Plans for National Bank Building Property
Downtown Fredericksburg’s Historic National Bank Building Sold
Historic National Bank Building For Sale
Historic Bank Closes its Doors in Downtown Fredericksburg
