Commission discusses franchise to limit city liability over Rosedale culvert while allowing development to proceed

City planning staff and elected officials at the April 8, 2025 Lynchburg Planning and Development Commission meeting discussed a proposed franchise agreement that would allow private parties to retain ownership and responsibility for a stormwater culvert and plate arch that crosses the main entrance to the Rosedale development while environmental questions are resolved.

The commission discussed the measure to clear the way for road dedication, subdivision approvals and commercial development — including an expected second Wawa — without the city taking ownership of infrastructure that the U.S. Environmental Protection Agency may later determine was installed improperly. City staff said the arrangement is intended to limit municipal liability while allowing development to continue.

Tom Martin, a city planning staff member, described the issue as arising after construction work on the Rosedale property shifted a stream and prompted an EPA inquiry. Martin said the altered culvert crosses Rosedale Boulevard at the development entrance and has delayed dedication of the road to the city and related subdivision approvals. He said the franchise would let the city accept the street into its right-of-way for addressing and circulation purposes while the culvert remained under private responsibility until environmental concerns are resolved.

City Engineer Lee Newland and other staff members explained that the franchise would cover stormwater infrastructure located in the city's right-of-way and that the city would consider taking the culvert into its stormwater system once EPA matters were settled and the installation met the city's standards. Staff described uncertainty about the timing of EPA clearance and said they could not predict whether the agency would require reconstruction, a consent decree or other corrective action.

Staff identified the proposed franchise parties as the property owners association and the current or former individual owner, Thomas Bell; staff said Matt Freeman drafted the agreement. Commissioners asked procedural questions about how the agreement would operate if a named individual were to die, how long the franchise term would be, and whether the city has previously issued similar franchises. Staff said the maximum franchise term available under local limits is 39 years, with a month-to-month continuation thereafter.

Officials said the need to resolve the culvert issue has delayed development in the area for at least two years and that the franchise is intended to enable commercial projects and residential subdivision to proceed. Staff said they plan to advertise bids tied to the franchise; bids will be considered at the next work session and the council will take up any required vote at a subsequent business session. Staff recommended approval of the franchise language, but no formal vote on the franchise occurred at the April 8 meeting.

Commissioners described the proposed agreement as the product of work by the city manager's office, the city attorney's office, public works and community development and said the draft strikes a balance between protecting the city's financial interests and allowing private development to move forward.

Pending steps include the public bid process, receipt of bids at the next work session, and final council action at a later business meeting. Staff emphasized that the city does not intend to assume liability for any corrective work the EPA might require until the installation is inspected and formally accepted into the city's stormwater infrastructure.