Original Proffer:  X

 

 

PROFFER FORM

 

Date:  July 24, 2007

ZMA #:  ZMA 2007-001 Hollymead Town Center Area A

Tax Map Parcel Numbers: 32-50, 32-51, 32-46, 32-44 (portion), and 32-45 (portion)

 

44.5 Acres to be rezoned from RA to NMD

 

Pursuant to Section 33.3 of the Albemarle County Zoning Ordinance, the owner, or its duly authorized agent, hereby voluntarily proffers the conditions listed below which shall be applied to the property, if rezoned.  These conditions are proffered as a part of the requested rezoning and it is agreed that:  (1) the rezoning itself gives rise to the need for the conditions; and (2) such conditions have a reasonable relation to the rezoning request

 

Tax Map Parcel Numbers: 32-50, 32-51, 32-46, 32-44 (portion), and 32-45 (portion) comprising 44.5 acres are subject to rezoning application ZMA 2007-0001 and to this Proffer Statement (the “Property”).  The Property is described with more particularity on a plan entitled “Hollymead Town Center, Conceptual Development Plan” prepared by Dominion Development Resources Inc., dated March 13, 2006 (revised June 12, 2007), and attached hereto as Exhibit A (the “General Development Plan”).  The Owner of the Property is HM Acquisition Group, LLC, a Virginia limited liability company (the “Owner”).

 

The Owner hereby voluntarily proffers that if the Albemarle County Board of Supervisors acts to rezone the Property to Neighborhood Model District (NMD) as requested, the Owner shall develop the Property in accord with the following proffers pursuant to Section 15.2-2298 of the Code of Virginia, 1950, as amended, and pursuant to Section 33.3 of the Albemarle County Zoning Ordinance.  These conditions are voluntarily proffered as part of the requested rezoning, and the Owner acknowledges that (1) the rezoning itself gives rise to the need for the conditions; and (2) such conditions have a reasonable relation to the rezoning requested.  If rezoning application ZMA 2007-001 is denied, these proffers shall immediately be null and void and of no further force and effect.

           

 

1.         Affordable Housing.  The Owner shall provide affordable housing equal to twenty percent (20%) of the total residential units constructed on the Property, in the form of for-sale condominiums and townhouses, and for-rent condominiums, townhouses, apartments and accessory units.  At least 40% of the affordable units will be in the form of for sale condominiums and townhouses.  Each subdivision plat and site plan for land within the Property shall designate the lots or units, as applicable, that will, subject to the terms and conditions of this proffer, incorporate affordable units as described herein, and the aggregate number of such lots or units designated for affordable units within each subdivision plat and site plan shall constitute a minimum of twenty percent (20%) of the lots in such subdivision plat or site plan.  Notwithstanding the foregoing, however, the Owner may elect, in the alternative to meet any affordable housing requirement imposed by this proffer as satisfaction for a site plan or subdivision plat approval by voluntarily contributing to the County a sum of $19,100 cash for each new dwelling unit that results in a mix of affordable units below the fifteen percent (15%) threshold.  Such cash contribution shall be intended for funding affordable housing programs.  The cash contribution shall be paid at the time of the issuance of the Building Permit for such new unit.

 

The Owner may “carry-over” or “bank” credits for affordable units in the event an individual subdivision plat or site plan designates affordable units that in the aggregate exceed the twenty percent (20%) minimum for such subdivision plat or site plan, and such additional affordable units may be allocated toward the twenty percent (20%) minimum on any future subdivision plat or site plan, provided however, that the maximum number of affordable units that may be carried over or banked shall not exceed twenty percent (20%) of the total units on any subdivision plat or site plan. 

 

The Owner shall convey the responsibility of initially constructing the affordable units to the subsequent owners of lots within the Property.  Therefore this proffer concerning affordable units will not apply to a plat of subdivision for a sale in bulk to the builder(s) and or developers of the housing units contemplated hereby, so long as this proffer is disclosed to such buyers at the time of sale. The actual owner at the proposed time of construction shall offer units affordable to households with incomes less than eighty percent (80%) of the area median income such that housing costs consisting of principal, interest, real estate taxes and homeowners insurance (PITI) do not exceed thirty percent (30%) of the gross household income. 

 

A.        For-Sale Affordable Units.  All purchasers of the for-sale affordable units shall be approved by the Albemarle County Housing Office or its designee.  The actual owner at the proposed time of construction shall provide the County or its designee a period of ninety (90) days to identify and prequalify an eligible purchaser for the affordable units.  The ninety (90)-day period shall commence upon written notice from the then-current owner/builder that the unit(s) will be available for sale.  If the County or its designee does not provide a qualified purchaser during this ninety (90)-day period, the then-current owner/builder shall have the right to sell the unit(s) without any restriction on sales price or income of the purchaser(s).  This proffer shall apply only to the first sale of each of the for-sale affordable units.

 

B.         For-Rent Affordable Units

 

(1).       Rental Rates.  The initial net rent for each for-rent affordable unit shall not exceed the then-current and applicable maximum net rent rate as published by the County Housing Office.  In each subsequent calendar year, the monthly net rent for each for-rent affordable unit may be increased up to three percent (3%).  For purposes of this proffer statement, the term “net rent” means that the rent does not include tenant-paid utilities.  The requirement that the rents for such for-rent affordable units may not exceed the maximum rents established in his paragraph 1B shall apply for a period of five (5) years following the date the certificate of occupancy is issued by the County for each for-rent affordable unit, or until the units are sold as low or moderate cost units qualifying as such under either the Virginia Housing Development Authority, Farmers Home Administration, or Housing and Urban Development, Section 8, whichever comes first (the “Affordable Term”).

 

                        (2).       Conveyance of Interest.  All deeds conveying any interest in the for-rent affordable units during the Affordable Term shall contain language reciting that such unit is subject to the terms of this paragraph 2.  In addition, all contracts pertaining to a conveyance of any for-rent affordable unit, or any part thereof, during the Affordable Term shall contain a complete and full disclosure of the restrictions and controls established by this paragraph 1B.  At least thirty (30) days prior to the conveyance of any interest (other than for the securing of a mortgage or deed of trust) in any for-rent affordable unit during the Affordable Term, the then-current owner shall notify the County in writing of the conveyance and provide the name, address and telephone number of the potential grantee, and state that the requirements of this paragraph 1B(2) have been satisfied.

 

                        (3).       Reporting Rental Rates.  During the Affordable Term, within thirty (30) days of each rental or lease term for each for-rent affordable unit, the then-current owner shall provide to the Albemarle County Housing Office a copy of the rental or lease agreement for each such unit rented that shows the rental rate for such unit and the term of the rental or lease agreement.  In addition, during the Affordable Term, the then-current Owner shall provide to the County, if requested, any reports, copies of rental or lease agreements, or other data pertaining to rental rates as the County may reasonably require.

 

 

2.         Road Improvements.   The Owner shall cause design, construct and dedicate to public use the following:

 

Notwithstanding the following, the road proffers described in this paragraph 1 shall be satisfied if plans for all such road improvements have been submitted for review by VDOT and, although such improvements are not accepted by VDOT for public use within one (1) year from the date of approval of ZMA-07-0001 sufficient bond has been supplied to satisfy all costs to complete such improvements in accordance with plans approved by VDOT.

 

The road improvements listed herein shall be constructed in accordance with the NMD Code of Development as approved as part of ZMA-07-0001, and with road plans submitted by the Owner and approved by the Virginia Department of Transportation (“VDOT”). 

 

All of the foregoing improvements shall be i) constructed to VDOT design standards pursuant to detailed plans agreed to between the Owner and VDOT, and ii) accepted by VDOT for public use or bonded for VDOT’s acceptance as a condition for issuance of any certificate of occupancy for the NMD portion of Area A improvements.

 

A.        Meeting Street from the boundary of the PDMC zoning district across Powell    Creek to the southern boundary of the property line. 

 

B.         Town Center Drive (Previously Access Road A) from the Eastern edge of the NMD zoning boundary at the intersection of Meeting Street to its intersection with State Route 606, also known as Dickerson Road. Construction of this section of Town Center Drive shall be completed for acceptance of VDOT for public use and dedication of a minimum of 60-foot-wide right-of way.  This section of Town Center Drive shall be constructed to accommodate two travel lanes (one in each direction).

 

 

     

                  3.  Public Transit Stop Construction.  Owner shall cause completion of two (2) public transportation stop within the Project in a location mutually accepted to the Owner and the County.  This transit stop will include no less than 200 sq. ft. of paved surface and two benches. 

 

 

4.  Cash Proffer.     Owner proffers to contribute cash on a per dwelling unit basis for the purposes of funding other County infrastructure, transportation, school, parks and library improvements. The cash contributions shall be: $11,900 for each attached/townhouse/condominium dwelling unit, other than an affordable dwelling unit (“Market Rate Unit”), and $12,400 for each multifamily/apartment dwelling unit other than an affordable dwelling unit (“Market Rate Unit”). Such cash contribution shall be paid at the time of the issuance of the Building Permit for each new unit.  The following credits will be applied to the cash proffer contribution:

           

             a.        Dedicated open space and Greenway: $950,000 based on 7.6 acres at the assessed value of $125,000 per acre

 

             b.        Community Park: $125,000 based on 1 acre at the assessed value of $125,000 per acre

 

            c.         Recycling Center Site: $375,000 based on 3 acres to accommodate a 35,000 square foot facility

 

            d.         Route 29 Infrastructure Improvements: $2,600,000 based on the prorate share of Area A land area (78 of 180 acres) served by the $6,000,000 in improvements spent to date.    

 

            e.         Sanitary Sewer Line Extension: $650,000 based on the prorate share of Area A land area (78 of 180 acres) served by the $2,000,000 in improvements spent to install privately install 10’ sewer line serving area developments, including the Charlottesville Airport

           

            f.          Expansion of Meeting Street: $1,000,000 based on the increased land right away of 3 acres (3 X $125,000 = $375,000) and increased construction cost (installation of additional through lane in each direction, $625,000) to increase the carrying capacity in conjunction with Places 29 Master Plan.

 

            g.         Expansion of Town Center Drive: $500,000 based on the increased land right away of 2 acres (2 X $125,000 = $250,000) and increased construction cost to build to an urban standard offsite.

 

            h.         Mixed Use Development Credit: The per unit cash proffer will be reduced by 10% based on the phased development that includes 640,000 square feet of non-residential uses which will generate an estimated $1,000,000 per year in tax revenue.

 

i.                     Neighborhood Model Credit:  The per unit cash proffer will be reduced by 5% based on the integrated uses and pedestrian elements of the project which will alleviate vehicle traffic.

 

             j.         Green Building Credit:  The per unit cash proffer will be reduced by 5% for       each residential unit that achieves LEED or Energy Star designation based on reduced utility consumption and reduced waste

 

Beginning January 1, 2009, the amount of each cash contribution required herein shall be adjusted annually until paid, to reflect any increase or decrease for the preceding calendar year in the Marshall and Swift Building Cost Index (“MSI”).  In no event shall any cash contribution amount be adjusted to a sum less than the amount initially established by these proffers.  The annual adjustment shall be made by multiplying the proffered cash contribution amount for the preceding year by a fraction, the numerator of which shall be the MSI as of December 1 in the year preceding the calendar year most recently ended, and the denominator of which shall be the MSI as of December 1 in the preceding calendar year.  For each cash contribution that is being paid in increments, the unpaid incremental payments shall be correspondingly adjusted each year.  

 

 

 

5.         Greenway.   The Owner shall dedicate a fee simple 7.6 acre “greenway” to Albemarle County for public use.  The dedication is identified on the Application Plan as “Greenway Area dedication to Albemarle County”, and shall include a strip of land parallel to Powell Creek with a minimum width of 50 feet on the each side of Powell Creek, subject to the limitations of the property boundary.  The dedicated area will also include all flood plain area along Powell Creek within the Property boundary. The owner shall complete the improvements shown on the Application Plan and shall dedicate the Powell Creek Greenway to the County upon the first site plan approval.  After it is dedicated to public use, the Greenway Area shall continue to be included in the total area of open space and amenities within the Property.

 

 

6.         Community Park.  The Owner shall offer for future dedication to the County approximately 10,000 square feet of community park to be located in any of the following blocks as shown on the Development Plan: A-1, B-3, B-4, or C-6.  After its dedication to public use, the Community Park shall continue to be included in the total area of open space and amenities within the Property.

 

7.         Recycling Center.  The Owner shall dedicate an approximately 35,000 square area for use by the County as a Recycling Center to be located in an area most appropriate for such use as reasonably agreed by the County and Owner.  After its dedication to public use, the Greenway Area, Recycling Center, and community park shall continue to be included in the total area of open space and amenities within the Property.

 

8.         Recreational Facilities.   Owner proffers to contribute $500.00 per residential unit, paid at the time of building permit, for the purpose of funding the expansion or new development of regional outdoor recreational facilities as determined by the County Parks and Recreation Departments. 

 

9.         Phasing Plan.    Prior to the issuance by the County of a building permit that would authorize the construction of any square feet of gross floor area (aggregate) of commercial, office and hotel gross floor area within the Project, building permits shall be issued by the County to at least 100 dwelling units.  Prior to issuance by the County of a building permit that would authorize the construction of more than 200,000 square feet of gross floor area (aggregate) of commercial, office and hotel gross floor area within the Project, building permits shall be issued by the County to at least 600 dwelling units.

           

 

            Witness the following signature:

                                               

                                                            HM Acquisition Group, LLC

                                                            By: HM Capital Group, LLC, Manager

                                                           

                                                                   By: Octagon Partners, LLC, Authorized Agent

 

                                                                        By: __________________________

                                                                                 Manager

 

 

 

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