Report: Robert Bobb Group will assist with, not lead, upcoming Petersburg real estate project
PETERSBURG – The real-estate evaluation project that the Robert Bobb Group is coming back to help the city with is being facilitated, not led, by that group, according to a document obtained by The Progress-Index.
The project will be led instead by Jones Lang LaSalle Americas Inc., a global real-estate investment advisory firm with an office in Richmond. In a report prepared last February, JLL proposed a four-phase project to identify city-owned properties downtown and strategize on how to make them more marketable. The project would cost Petersburg about $277,000 to begin the process.
In that presentation, JLL would take the lead and be assisted by RBG.
Last month, Petersburg City Council authorized City Manager March Altman to sign a contract with the Bobb Group to start the process, but one month later, that contract has apparently not been created. The Progress-Index submitted a Virginia Freedom of Information Act request for a copy of that contract and was told by Petersburg’s FOIA office that as of July 13, “there is no existing contract agreement between the City of Petersburg and the Robert Bobb Group pertaining to 'real estate services.’”
However, The Progress-Index was given a copy of the portfolio and economic analysis JLL drew up and gave the city on Feb. 24. The document spelled out each of the four phases and included an itemized list of costs for the services.
“Our knowledge of the local market, along with extensive experience in analyzing large complex portfolios, and bringing assets to market, will enable the city to make well-informed decisions efficiently,” JLL vice chairman Herman Bulls wrote in a letter accompanying the portfolio and analysis.
The four phases of the project
The first phase, according to the analysis, will be a “getting-to-know-you" meeting with the city to lay out the expectations and goals of the project. Through a series of workshops and other presentations, JLL will create what it called “a short list” of up to 10 downtown city-owned properties that could be targeted for development based on criteria such as age of the property, its physical appearance and estimated market value.
Once a more detailed analysis of those properties is complete, the list will be whittled down to between 3-5 spots. JLL said all of these presentations will be made to Petersburg “and key stakeholders.”
Once the list is finalized, JLL proposes a two-pronged second phase focusing on development promotion strategy and market outreach. If Petersburg likes the promotion strategy, the next step would be gauging developers’ interest in those properties.
For the third phase, Petersburg would look at the interest generated by the properties and select the one with the most attention. JLL and RBG would then act as the liaison between the city and interested buyers, vetting the proposals and making recommendations on the chosen developer.
The final phase would be the negotiation and finalized transaction.
How much will it cost?
JLL proposed a first-phase cost to Petersburg of $277,500 that covers all four steps of the phase:
$75,000 for the portfolio screening;
$30,000 to determine the current state of transactions;
$85,000 for the due diligence and short-listing the properties;
$30,000 to present the findings and recommendations; and
$2,500 for reimbursement expenses such as travel and presentation preparations.
According to the proposal, the ideal timeframe to complete the first phase would take about four months, or one month for each step in the phase.
JLL’s website lists many public-sector, private-sector and non-profit clients around the world. Its U.S. headquarters is in Chicago. In addition to Richmond, the company also has offices in northern Virginia and Hampton Roads.
The Robert Bobb Group is no stranger to Petersburg. It came to the city in 2016 when Petersburg was on the verge of fiscal distress and essentially took over City Hall to help get Petersburg's ledger back in good shape.
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Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at batkinson@progress-index.com or on Twitter at @BAtkinson_PI.
This article originally appeared on The Progress-Index: Petersburg newspaper asks for details on Robert Bobb Group project
