The Falls Church City Council voted 6-1 on an interim agreement Monday night with the team of EYA, PN Hoffman and Regency Centers group to economically develop 10 acres at the City’s West End. Earlier Monday evening, the group’s proposal was announced as the unanimous choice of the City’s special evaluation team to spearhead the dense economic development over a second finalist, Rushmark.
The new development includes around 126,400 sq. ft. of retail space, 390,000 sq. ft. of Class A commercial space and an acre of public open space dubbed “The Little City Commons” at the center of the project, according to a press release. The project also calls for 150-200 units of senior housing, 245 condo units, 288 multi-family apartment units and a “high quality hotel with conference space.” The release also states the project will plan to coordinate with a potential Virginia Tech redevelopment located immediately adjacent to the development.
“Over the past four years, the City held dozens of public meetings to develop a vision for the 10 acre West Falls Church site as a vibrant commercial district that will generate revenue to help us pay for our new high school,” said Mayor David Tarter in a statement. “After a thorough and exhaustive selection process, I am confident that the team of EYA, PN Hoffman, and Regency Centers will be an outstanding partner to work with the City over the coming years to achieve that vision.”
Monday night’s agreement establishes a six-month process timeline for approval of the Comprehensive Agreement, Special Exception Entitlement, and the first payment for the land.
Terms of the interim agreement includes the following:
- Ground lease for 99 years
- Five payments in Phase 1: $6.5M in May 2019, then $7.0M each in 2021, 2022, 2023, and 2024
- One payment in Phase 2: $10M or appraised value, whichever is higher
- Total base land payments of $44.5M
- Additional potential land payments of up to $8.3M, depending on options related to the creation of a Community Development Authority and the location of parking, which City may choose prior to Comprehensive Agreement.
- The City will benefit from a Capital Event Administrative Fee for the term of the 99 year lease, when the property is sold or refinanced.