Vibe Properties wants to purchase 179 square feet of Town parking lot

On June 12, 2017, Town Council approved an encroachment license for the benefit of Vibe Properties, LLC. This encroachment license authorized a portion of the proposed loading dock (including steps and a roof) to encroach within the Town’s Peyton Street Parking Lot. As with all private encroachments onto public property, they can’t be issued indefinitely, and therefore, the encroachment license was authorized for 5 years. The loading dock is now constructed and is in use by a brewpub, Front Royal Brewing Company.

An encroachment license was pursued instead of selling the property because the encroachment license could be issued more expeditiously than the sale of the property. This was important to Vibe Properties, LLC at the time, because they were in the development process and had deadlines for completion to meet. However,during discussions between Vibe Properties and Town Council, it was agreed that the Town would consider the sale of the property in the future when a survey was completed, and the restoration project completed.

At this time, Vibe Properties desires to proceed with the sale of the property as previously discussed with Town Council. Vibe Properties submitted a survey, dated January 29, 2019, prepared by Joseph G. Brogan, Jr.. It illustrates a transfer of 179 square feet of the Town’s Peyton Street Parking Lot to the property owned by Vibe Properties.

Chapter 1, Section 1, Subsection A, of the Town Code, specifies that “No real estate owned by the  Town shall be sold unless the following requirements have been complied with:

1. The Town Council shall hold a public hearing upon the question of the sale after two (2) publications in a newspaper published or having general circulation in the Town.
2. The Town Council shall authorize by resolution the terms of the sale.
3. Bids shall be accepted by the Purchasing Agent on the date such property is advertised for sale.
4. The Town Council shall authorize the acceptance, or rejection, of the best bid at the first available regular Town Council meeting.”

BUDGET/FUNDING: No impact to the budget. The assessed land value of the applicant’s property is $11.93 per square foot ($198,100/16,602 SF). Based on this value per square foot, the 179-square foot tract is valued at $2,135.47. Direct expenses to the Town would include the cost of the legal advertisement. Direct expenses to the Applicant include the cost of the survey, recordation of the survey, and any attorney and/or legal fees associated with the process. The brewpub is currently in the exemption process for BPOL tax related to the Tourism Zone, but the use does pay the Town meals tax, personal property tax, sales tax (VA), and real estate tax.

TOWN STAFF RECOMMENDATION: The 179-square foot tract appears to have minimal public value. Staff recommends proceeding with the required advertising, public hearing and bidding of the 179 square feet. Town Council should evaluate the request and negotiate an expected sale price for the property.

Royal Examiner’s camera was at the Town Council Work Session where this was discussed:

Click here to download additional information from Vibe Properties. [spacer height=”10px”]