Citing concerns about the clarity of the information provided as part of the initial Invitation to Bid to lease public property on which the City would have constructed a public concrete pier, the City has decided to reject the two bids it received and re-advertise the opportunity.
The bid process the City used to advertise the lease is the exact process it has used numerous times over the years for leases of City property longer than five years. However, in most of those cases, terms outlining criteria and expectations for the project were identified prior to issuing the Invitation to Bid. That did not happen in this case and as a result, City Council has directed City Manager Dave Hansen to re-advertise the project using specific bid criteria and provide a better explanation of the project scope.
This news release initiates the advertisement period. Additional ads will be placed in The Virginian-Pilot over the next two weeks. The solicitation also will be posted to www.VBGov.com. This second round of sealed bids must be in writing and will be accepted until 5:00 p.m., Monday, May 14, 2018.
The City proposes to lease an area approximately 250 feet wide (north/south) extending from the eastern edge of the boardwalk to the eastern boundary of City-owned property in the Atlantic Ocean. The City will accept bids for any parcel of the specified size on the sandy beach between 5th and 40th streets at the Oceanfront. The term of the proposed lease will not exceed 40 years.
Said parcel shall be used for the construction of a new concrete pier. The City is pursuing the construction of a pier as part of the bidder’s larger development that will create a new destination at the City’s resort and provide new amenities for tourists and residents of the City. The important elements that will be considered by the City in evaluating the bid include:
- Bidders may make proposals either as a direct tenant or may propose a structure in which the City of Virginia Beach Development Authority (VBDA) is the tenant and the bidder is a sub-tenant. For information about the VBDA’s participation, contact Warren Harris, Economic Development director, (757) 385-6464.
- A connection from the new pier to Atlantic Avenue, coordinated with adjacent landowners, sufficient to allow pedestrian access from Atlantic Avenue, across the boardwalk and onto the new pier.
- A new pier of at least 880 feet in length (measured from the boardwalk) designed to accommodate fishing and pedestrian use. The City will consider paying up to $21.5 million for the pier structure.
- At a minimum, the City expects private development of entertainment, restaurants and retail amenities as part of the overall project sufficient to justify the public investment.
- A plan to operate the new pier in a manner to provide free public access to the end of the pier and fishing from the pier for a fee.
- New parking spaces within three (3) blocks of the new pier sufficient for the uses on the new pier and any associated development proposed. The City will consider paying up to $3.5 million for the construction of public parking, in addition to that provided by developer.
- The City will consider a request for TDFP (“Gap”) financing.
- The City expects associated private development adjacent to the new pier sufficient to maximize and justify the public investment. Favorable consideration will be given to proposals demonstrating a return on the City’s investment within eight years.
- The ability of the bidder and its team to successfully deliver on the elements of its proposal. Past development experience will be favorably considered.
Sealed, written bids should be delivered to Public Works/Facilities Management Office, Attn. Barry Shockley, 2424 Courthouse Drive, Room 228, Virginia Beach, VA, 23456. Bids shall be opened at the informal meeting of City Council on May 15, 2018 and summaries of the bids shall be read by the presiding officer at the regular meeting of the City Council in the Council Chambers, City Hall – Bldg. 1, Virginia Beach Municipal Center, on May 15, 2018, at 6:00 p.m. After the reading of bid summaries, at a subsequent meeting, Council will obtain public comments on the proposed lease and any attendant sublease. The right to reject any and all bids is hereby expressly reserved.