Surry County OKs agreement framework with YMCA to develop new community facility, keeps ownership and sets $400,000 annual programming commitment

The Surry County Board of Supervisors on the June 2025 meeting authorized the county administrator and county attorney to finalize and execute a development and operations agreement with the YMCA of the Virginia Peninsula to design, construct and operate a new YMCA facility on county-owned property at the Parks and Recreation site on Enos Farm Road.

County Attorney Perkins summarized the agreement as a partnership in which "the YMCA will design, develop, construct, and operate the facility," and the YMCA will be responsible for project contracting, fixtures, equipment and day-to-day operations. Perkins told the board the YMCA will serve as project manager and provide regular updates to the county.

Why it matters: the agreement frames how the county will contribute public funds and how the facility will be owned and operated. Under the terms discussed, the county will retain ownership of the land and take ownership of the building once constructed; the county also agreed to annually appropriate $400,000 to the YMCA to support programming only, while facility operation and maintenance costs will be 100% the YMCA’s responsibility.

Key provisions described to the board include a required master development plan prepared by Grow Development (a firm the county and YMCA identified as a specialty vendor for YMCA projects), competitive procurement for an architect, and a construction contract negotiated at a guaranteed maximum price. Perkins said the master development plan is “an essential first step” because it will define siting, scope and cost and noted that Grow qualifies as a sole-source provider for this planning work under the procurement rationale used in the draft agreement.

Perkins said the planned facility would be a fully enclosed building with programming space for wellness, youth, senior and family activities, exterior and interior signage, paved parking and a year-round pool. The YMCA also may construct additional exterior amenities — walking trails, outdoor fitness stations and extended playgrounds — at its sole cost, subject to county approval. The YMCA will provide special benefits to county residents: "For the first year, from the date the project is open, Surry County residents shall receive a 50% discount on the joining fee," Perkins said, and county residents who are members will receive preferred advanced registration on certain programs for the duration of membership.

Financial and process details: Perkins told the board that because the master development plan has not been completed, the full project cost is not yet known and the agreement leaves flexibility for the county to pursue financing options (including lease financing) with advice from Davenport and bond counsel. The agreement recognizes the county’s authority to appropriate public funds to charitable institutions under Virginia law; Perkins cited that authority in presenting the funding framework. The county will disperse funds to the YMCA following a process in the agreement requiring invoices and documentation tied to project plans; in the event the county does not appropriate financing, the agreement contains termination provisions and requires payment only for work already invoiced to Grow, the architect or contractor.

County Administrator Rollins told the board the county has directed its financial advisers to issue an RFP for interim financing at a smaller amount than previously discussed; the RFP issued was for either $3 million or $5 million rather than the $10 million figure that had been discussed in earlier work sessions. Rollins said any appropriation beyond the initial planning funds will come back to the board for approval.

Board members asked several procedural and timing questions. Perkins said the YMCA intends to begin the Grow master development plan work once the development and operations agreement is executed and that the YMCA expects to use best efforts to commence construction within 18 months of the executed agreement. The lease of the site to the YMCA and the county’s relinquishment of an interest in county property — including the building footprint — will require a future public hearing under state law before the lease is finalized.

The board voted to authorize the county administrator and county attorney to complete negotiations and execute the development and operations agreement with the YMCA. The motion passed by voice vote. The board will see the master development plan, the lease and any required appropriations at later public meetings.

Next steps: the county and YMCA will proceed with the Grow master development plan, the county will continue exploring financing options with Davenport, and a lease agreement and any construction contracts will return to the board for public hearing and approval.