VIRGINIA BEACH, Va. (WAVY) — A city-owned property next to Tidewater Community College in Virginia Beach could be turned into affordable housing for lower-income earners and those with mental illness.

The 3.18-acre undeveloped site at Princess Anne Road and Community College Place, across from the currently under construction Homes 2 Suites hotel, was originally acquired by the city back in 2004 for a proposed expansion of TCC.

However it was later determined the property wasn’t needed for the expansion after all, per city Planning Director Kathy Warren, who briefed Virginia Beach City Council about the site in council’s informal session on Tuesday afternoon.

The property’s currently assessed for $1.9 million, and the city received two different purchase offers between 2021 and 2023 from commercial developers, but ultimately council directed city planning staff to explore using the site for affordable housing.

Warren said the property could have 60 multi-family units at a five-story height or 37 residential units at a three-story height if council rezones it for residential or mixed use. About 10-15% of units could be used for those with mental illness, and the rest would be for people making up to 80% of of the median area income.

That would meet the criteria for an affordable housing/mental health housing site first sought nearly two years ago by the Virginia Beach Community Development Corporation (a public-private entity appointed by city council) and the National Alliance for Mental Illness (NAMI).

Council has been trying to select that site, but so far hasn’t been able to find consensus.

The VBCDC/NAMI partnership was one of three possible options shared by Warren on Tuesday. She also suggested the city could also solicit requests from private developers to create affordable housing and/or mixed use at the site instead of working directly with VBCDC for the NAMI site, or decide to do something else with the property.

Councilman Michael Berlucchi wants council to move forward with VBCDC and NAMI, saying that the site checks all the boxes on what they’ve been looking for, including space for NAMI’s regional headquarters.

“We know we need affordable housing and workforce housing, we know we need permanent supportive housing for those with mental illness and we know we need expanded resources for mental health services. So this is a checkmark in every way,” Berlucchi said. “It’s a big win for the city and a lot of people have been working really hard to identify the site.”

“[VBCDC and NAMI] were the ones that brought this concept to us, they’re the ones driving this discussion, they are non-profit partners with track records of success in our city,” he added.

Berlucchi acknowledged that he thinks 10-15% of housing for those with mental illness is not enough, but says it’s inline with best practices for community development.

“We’re not concentrating people with mental illness into one area …” Berlucchi said.

Councilman Worth Remick was among several council members who were vocal about moving ahead with the project, which he says would put VBCDC’s properties above 500 city-wide.

“It’s a very value piece of a real estate, but we control its destiny … I think this does check so many boxes with NAMI’s regional headquarters and affordable, workforce housing.”

No council members objected to Tuesday’s direction, which was for the city to work with VBCDC and NAMI to develop the site. Any rezoning or additional support for the project could come before council in the future, City Manager Patrick Duhaney says. WAVY’s working to find out additional details about the project, including how much it could cost the city.

This all comes after city council said mental health and affordable housing were among their top priorities going forward, along with stormwater management, schools and public safety. They’ve also been discussing the best ways to help the city’s homeless population.