Authority amends sale terms for Acoustical Sheet Metal after reservation removal would increase usable acreage

The Development Authority approved revised sales terms for Acoustical Sheet Metal's planned expansion after staff explained how removing a Southeastern Parkway reservation would increase usable acreage and change the purchase price.

Natalie Yumes and Emily Archer explained that the company's proposed 21‑acre parcel in Innovation Park had been reduced to 17.4 usable acres because of a Southeastern Parkway reservation and utility easements. Lenders informed the company the reservation would impede financing. Staff worked with planning and transportation departments and recommended seeking an amendment to the master transportation plan (planning commission and city council actions required) to remove the reservation for this parcel. If the reservation is removed, staff said usable acreage would rise from 17.4 to about 18.6 acres and the purchase price would increase from $2,500,000 to $2,700,000 (a $150,000 change), with other term‑sheet conditions remaining the same.

Staff emphasized that the reservation alignment is not finalized in the city master transportation plan, that active‑transportation facilities (trails) could still be accommodated, and that the change is intended to help retain the company's expansion in Virginia Beach. Board members asked detailed questions about how the acreage, discount and incentive calculations interacted; staff said incentive amounts would not change but the per‑acre discount would be adjusted to keep total incentives intact. The authority moved, seconded and unanimously approved amending the sales terms in anticipation of future planning and council approvals.