NORFOLK, Va. (WVEC) -- Tuesday night during a city council meeting, there was a unanimous vote to purchase Greenies and the Ocean View Diner for $2.35 million.
This also includes properties near Greenies on W. Ocean View Avenue.
The city is looking forward to bringing something new to Ocean View, however, a number of people are concerned the City of Norfolk may be overpaying for a project that centers around buying two longtime fixtures in Ocean View.
Mayor Kenny Alexander talked about the purchases of Greenies and the Ocean View Diner during his State of the City Address Friday. The city plans to create open space and beach access for the public.
Several residents, many of whom contacted 13News Now, wonder if those centerpieces are coming at a higher cost than they should -- more than $1 million more.
There are five properties associated with the Greenies purchase. The total assessed value of the properties, according to city records, is $969,500:
- 186 W. Ocean View Avenue: $141,800
- 192 W. Ocean View Avenue: $295,000
- 194 W. Ocean View Avenue: $90,000
- 196 W. Ocean View Avenue $281,900
- 198 W. Ocean View Avenue: $160,800
Despite the $969,500 assessed value, the council agenda asks members to endorse the purchase of Greenies and its surrounding properties for about $2 million.
For the Ocean View Diner transaction, the total assessed value is $276,000. The amount city council is asked to approve for the purchase is $350,000.
With assessed values of all properties totaling $1.2 million, but the city looking to pay $2.3 million, we reached out to city spokeswoman Lori Crouch to ask about the difference.
Crouch told 13News Now the proposed sale prices were negotiated, and a seller does not have to accept a price that corresponds to the assessed value.
Councilman Tommy Smigiel said often times, the assessed value is lower than the actual appraised value.
"We are paying market rate for this. There are existing businesses here so you're adding value when you're paying for it," he said.
Greenies, we should note, is owned by realtor Judy Boone and her husband, developer Ronnie Boone, Sr.
Ronnie Boone pleaded guilty in 2016 to bribing former Norfolk City Treasurer Anthony Burfoot while Burfoot served on city council.
► Make it easy to keep up to date with more stories like this. Download the 13News Now App.