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City staff recommends sale of Business Development Center to Framatome; tenants offered relocation help
Summary
City staff recommended authorizing a sale of the city-owned Business Development Center at 147 Mill Ridge Road to Framatome for $2 million with an estimated $6 million private reinvestment; staff said tenants have been notified and relocation assistance and commercial-market options are being offered.
City staff told the committee that a single proposal was received in an RFP process for the city‑owned Business Development Center at 147 Mill Ridge Road and recommended council authorize the city manager to execute a contract for sale following the required public hearing.
Staff said the building, acquired with Economic Development Administration funding in 1988 and comprising roughly five acres and about 42,250 square feet, has functioned as a small‑business incubator. According to the presentation, Framatome Inc. proposed to purchase the property for $2 million and plans to invest roughly $6 million to redevelop the facility to support office and administrative functions, light manufacturing, workforce training, and research and development tied to its Lynchburg operations.
Staff said Framatome has been in Lynchburg more than 50 years and remains a major local employer. The company’s proposal projects the redeveloped facility could accommodate roughly 40 to 80 employees, including permanent staff and visiting personnel for training and technical operations.
On tenant impacts, staff said existing incubator tenants have been notified consistent with lease terms and that many tenants have been offered relocation assistance and introductions to available commercial spaces in the city; several tenants have already secured new locations. Staff noted the incubator previously operated with one-year leases and that private co-working models and other providers exist in the local market; the city and Economic Development Authority have also been helping identify alternatives.
Why it matters: the sale would move a city-owned property into private ownership with an expectation of private capital improvements and continued local employment gains, while requiring tenant transitions and city oversight of relocation assistance. The item is scheduled for public hearing before Council (staff said the sale will come before council this evening as a public hearing) and, pending council approval, the city manager would be authorized to execute the sale contract.
