Chincoteague council authorizes negotiations for $2.25M South Main waterfront purchase

The Chincoteague Town Council on Nov. 20 adopted an ordinance authorizing town staff and legal counsel to negotiate a purchase agreement for a roughly 2.5-acre waterfront parcel on South Main Street with a listed purchase price of $2,250,000.

Town staff told the council the appropriation would come from town reserves and that signing a negotiated purchase agreement would not itself obligate the town to close. ‘‘Proposed purchase price is $2,250,000. There will be no additional tax increases to pay for this property. It will be funded from town reserves and the project is shovel ready,’’ Mike, a town staff member, told the council during the public presentation.

The timeline read into the record calls for a $50,000 escrow deposit to be transferred within five days of a signed purchase contract, a 90-day due-diligence period to include an environmental assessment, title search and survey, and a potential closing roughly 30 days after the due-diligence period ends. Staff said execution of a purchase contract could be delayed past the Dec. 18 target if negotiations continue.

Speakers at the public hearing were sharply divided. Stewart Baker urged delay until the town completes cost estimates for development and ongoing maintenance, citing possible bulkhead repair, utility work, permitting and annual upkeep. Tina Zoller, by contrast, said buying the lot would preserve public waterfront access and prevent dense private development that could block sunset views. Public commenter Donna Leonard said workforce housing should be a priority and questioned why the public first learned of the letter of intent via social media.

Council members discussed the parcel’s long-term value and potential costs, repeatedly urging thorough due diligence on the bulkhead condition, soil and permitting constraints before any closing. After discussion, Councilmember Bott moved and Councilmember Ellen seconded proceeding with the ordinance to authorize negotiation and appropriation; the motion was carried by voice vote, allowing staff to begin negotiations and the due-diligence process outlined in the ordinance.

The ordinance references the town’s authority under the Virginia Code as read at the meeting and directs the town manager, after consultation with council, to negotiate and execute the purchase agreement and closing documents as appropriate. The council emphasized that executing a negotiated contract is a separate step from completing the purchase and that the town may terminate during the due-diligence period under the terms described in the timeline.

Next steps: staff will obtain a formal environmental assessment, title report and survey during the 90-day due-diligence period and will return to council with findings; any decision to close will follow those reports and additional council action.