Virginia Beach City Council gives LifeNet more time to buy land

VIRGINIA BEACH

The City Council has agreed to give LifeNet Health more time to buy 6-plus acres along Princess Anne Road.

The deal gives the biomedical company until July 2010 to secure the land at a discounted price.

Founded in 1982, LifeNet describes itself as the nation’s largest full-service, nonprofit tissue bank.

LifeNet has had an option for five years to purchase 6.57 acres adjacent to its corporate headquarters on Concert Drive, but the price was to expire last month. The council approved a 30-day extension that day so talks could continue, and on Tuesday night, the discounted price of $125,000 per acre was extended to 2010.

With annual cost escalators, the actual price is likely to be around $150,000 an acre. After July 2010, the land would sell for market value.

In exchange for the time to shore up development plans, LifeNet agreed to invest roughly $5 million into any expansion. The company also agreed to construction timelines.