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Board approves temporary lease-with-option for LaShell Place sale to Vidar pending council action
Summary
The VBDA approved an amendment allowing Vidar to lease 2656 LaShell Place (up to two years at $12,000/month, triple net, with rent credited to purchase price) while the property owner resolves a civil matter; approval was contingent on City Council extending the reverter date.
The Virginia Beach Development Authority on Aug. 12 approved a resolution to amend terms of the sale for 2656 LaShell Place, allowing the buyer, Vidar, to transition to a lease with an option to purchase while the seller resolves a personal civil legal matter.
Staff described the property as roughly 16,410 square feet of light industrial space in District 3. Under the amended terms presented by staff, the lease would run for a maximum of two years at $12,000 per month on a triple-net basis, with rent proceeds credited to the purchase price if the sale later closes. Paige (staff) said the $12,000 monthly figure was based on an $8.77-per-square-foot appraisal value.
Paige summarized Vidar’s Project Optic as proposing 40 new jobs at approximately $75,000 average annual salary and about $2,690,000 in capital investment. Staff recommended approval of the resolution contingent on City Council approval to modify the transfer terms and extend the reverter date; council was scheduled to meet Aug. 19.
Board member Franklin moved to approve the staff-recommended amendment; Weisensteel seconded. The board approved by voice vote ("That motion carries"). The board’s action was explicitly conditioned on subsequent City Council action to modify the reverter date and finalize transfer terms.
Staff emphasized that proceeds from any final sale must be transferred back to the city, with half directed to the CIP and half refunded to the Commonwealth of Pennsylvania (as described in staff remarks). The amendment allows Vidar to continue pursuing site-based operations while the ownership transfer pathway is clarified before a final sale.
