City plans to recoup money spent on reservoir land
By FRANCES HUBBARD
Staff Writer

KING WILLIAM — The City of Newport News is aiming to recoup all of the $4 million it spent on the land for the former reservoir project, disputing claims it will lose hundreds of thousands of dollars in the resale process.

“We expect to recover 100 percent. That’s our goal,” said Dave Morris, a leader on the former project for Newport News Waterworks.

The city paid a total of nearly $4 million for 785 acres in King William County.

“The market is always changing,” Morris said. “We paid about $5,000 an acre… you can’t find land like that for that price down here.”

The city began purchasing the first 10 parcels for the project in 1998, when Morris said at the time the market in the county was for growing timber.

When the city came back for more purchases, beginning in 2006, Morris said the market had changed and was mostly directed towards the development of subdivisions, sending the price per acre up.

Prior to the abrupt ending of the project in late 2009, Morris said the city had made four large purchases that year, including 310 acres for $1.5 million, 188 acres for $677,000, 28 acres for $273,000, 25 acres $175,000 and six acres for $167,000.

Last month, the King William Board of Supervisors, per an agreement, informed the city they did not want to retain any of the property purchased when the project was still viable and would agree to sell it.

While the county is listed as the owner of the property, Newport News paid for the purchases using bond funds, Morris said.

Now, it is up to the county to sell the property. Newport News will play a role, having the right to refuse sale if the price is too low.

Based on the King William Reservoir Interim Project Finance Agreement, the county has three years to sell the property, at which time, if not sold, it will be turned over to the city to continue the process.

“It’s not a rush to go out and take any price,” Morris said. “It’s just the beginning. We are looking to the county now to be in charge of it and we’ll do our role.”

The city is also currently addressing the $8 million spent on land for wetland mitigation and wetland credits in several counties including King William, Hanover and Caroline. Morris said the sale of these properties is a different story because the market is different for land specifically needed for mitigation.

“We are looking for ways to best recoup the money for that,” Morris said. “There is no timeline.”

The city and the county are currently working on a process to sell the property, including offering it back to its original owners. The property is expected to be sold, as it was purchased, at fair market value.