City council approves multiple budget and land-use measures; Halifax data-center sale tabled

PETERSBURG, Va. — The Petersburg City Council on March 18 approved a package of budget and land‑use measures and agreed to several administrative actions, while tabling a separate Halifax Road property option tied to a proposed data‑center.

The council approved amendments to the FY2025 Petersburg City Public Schools budget and to the city’s FY2025 General Fund operating budget, adopted a rezoning to allow construction of eight single‑family homes on Commerce/Dunlop streets, authorized a commercial lease for a riverfront event field and approved administrative steps to convey VDOT right‑of‑way for a data‑center site. Council also passed a concurring resolution to allow issuance of revenue bonds for Southside Regional Medical Center. A separate ordinance to authorize an option agreement for 3501 Halifax Road was tabled for further review.

Why it matters: The measures fund near‑term operating and capital work, advance infill housing and enable planned private investment — including hospital capital projects and an event lease that the city says will support the Armed Forces Day celebration. The tabling of the Halifax parcel keeps a question about wetlands and parcel boundaries open pending more detail from staff and the developer.

Key actions and formal votes - Consent agenda (minutes and routine items): approved unanimously (roll call: Cuthbert Aye; Jones Aye; Myers Aye; Westbrook Aye; Smith Lee Aye; Vice Mayor Hill Aye; Mayor Perrin Aye). The motion carried. - Amendment to FY2025 Petersburg City Public Schools budget, $1,900,000 (moved by Mayor Samuel Pam with specified uses including capital improvements, five additional slots at Appomattox Regional Governor’s School, two CodeRVA slots and an assistant athletic director position): approved (roll call: Cuthbert Aye; Jones Aye; Myers Aye; Westbrook Aye; Smith Lee Aye; Vice Mayor Hill Abstain; Mayor Perrin Aye). - Amendment to FY2025 General Fund Operating Budget, +$2,193,168 for one‑time projects (public works/utilities, general government, non‑departmental): approved unanimously. - Rezoning request by Capital City Homes LLC (multiple Commerce/Dunlop parcels from B‑2/M‑1 to R‑2 with proffers to limit development to eight single‑family detached homes): approved (motion carried by roll call; Council voted Aye). - Ordinance authorizing the city manager to execute a commercial lease with Wiles LLC for 277 River Street (for Armed Forces Day event and related uses): approved (unanimous roll call). - Resolution requesting VDOT convey right‑of‑way within city corporate limits to the city (to facilitate ingress/egress for the Wagner Road data‑center project): approved (unanimous roll call). - Concurring resolution with Henrico County EDA to permit issuance of conduit revenue bonds for Bon Secours Mercy Health / Southside Regional Medical Center (estimated allocation to Southside up to $20 million): approved (unanimous roll call). - Ordinance authorizing the city manager to execute an option agreement to convey property at 3501 Halifax Road (94.131 acres, wetlands discussion): motion to table carried (roll call: unanimous). Council directed staff to provide additional details before the matter returns.

What council discussed but did not vote on at length - Use of additional general fund revenue for one‑time public works and utility projects. - Details of the hospital financing (Bon Secours representative explained proceeds will be used to refund prior debt, reimburse capital expenditures and fund improvements; bonds are conduit obligations and not city debt).

Next steps: Staff will return with follow‑up materials on the Halifax Road option and additional detail requested by council. The city also plans further work on the developer agreements and utility easements tied to the Wagner Road data‑center project.