The developer of Rocketts Landing is proposing to buy or lease the Richmond Intermediate Terminal for a marina that it would develop and operate for the public.

WVS Companies pitched the idea last week to Mayor L. Douglas Wilder and the Richmond City Council as a way to break a stalemate over using public money to develop a marina and buy adjacent property for public parkland along the tidal James River.

"What we're trying to do is basically accommodate what we think is a shared vision for the Intermediate Terminal and Rocketts Landing area, and the tremendous economic development benefits for everybody," Rocketts Landing attorney Ralph L. "Bill" Axselle Jr. said yesterday in response to questions by the Richmond Times-Dispatch.

The developer is proposing to buy or lease the terminal property, along with the purchase of adjacent lots owned by the city and the Richmond Redevelopment and Housing Authority that would be used to expand the Village of Rocketts Landing development.

The proposal would generate for the city about $735,000 from the sale of the adjacent lots, as well as either $819,000 from the sale of the Intermediate Terminal or about 8 percent of the property's appraised value in annual rent.

With either option, the proposed deal would generate enough money to partly offset the $2.2 million cost of purchasing the adjacent Lehigh Cement Co. property to turn into parkland and extend the Virginia Capital Trail along the north bank of the James.

Key members of the City Council said yesterday that they are awaiting communication with the mayor's office about the proposal.

"I think City Council is very interested in pursuing the Rocketts Landing proposal further," Council President William J. Pantele said last night.

"We think this will get us a public marina, put it on the tax rolls, preserve public access and do it at a much lower cost to the city, or at no cost to the city," Pantele said.

Wilder's office had no reaction last night, but city officials have said the mayor's proposal for a public marina wouldn't cost taxpayers anything.

They have said the estimated $6 million cost would be covered by a voluntary contribution from Rocketts Landing in lieu of paying water and sewer connection fees to Henrico County for its portion of the development.

Richmond is providing water and sewer service for the project for tap fees substantially lower than the developer would pay in Henrico. Axselle said yesterday that the money from the savings could be used for realigning state Route 5 or other infrastructure improvements around Rocketts Landing.

In a May 7 letter obtained by The Times-Dispatch, Axselle said the developer supports Wilder's proposal for a public marina, but he added, "We are . . . also not unmindful of the fiscal restraints facing the city and also reservations about the city spending funds for a public marina when there are many other priorities in the city."

Axselle said the developer has no position on whether Richmond should buy the Lehigh property.

However, he said the purchase would benefit the city by developing a public park next to the James, removing the cement company silos that block the view from the proposed marina site, and allowing construction of the Capital Trail along the railroad spur that serves Lehigh.

"Our proposal . . . may perhaps influence your decision in the sense that it provides funds that the city, may at its choice, use towards the purchase of the Lehigh property," Axselle wrote.

Late Monday night, the council gave preliminary approval to the proposed Lehigh purchase, but required that the final price and terms be submitted to the council for approval. The amended proposal is due before the council on May 27.

Contact Michael Martz at (804) 649-6964 or mmartz@timesdispatch.com.