An explosive new report from the City of Falls Church Economic Development Office has found the City’s top eight mixed use projects constructed since 2001 have brought net tax revenues of $4,086,853 into the City’s coffers to relieve the burden on residential real estate taxpayers.
The number adds up to almost nine cents on the real estate tax rate.
The City’s Becky Witsman made the report to the monthly meeting of the City Council’s Economic Development Committee which met online this afternoon.
The net annual yields (after costs were excluded) are $1.190,000 for 301 West Broad, $1.150,000 for the Spectrum, $719,000 for the Byron, $684,000 for the Broadway, $457,000 for the 455 at Tinner Hill, $186,000 for the Read Building, $106,000 for Northgate and a net loss of $406,000 for Pearson Square.
The unique case of Pearson Square was explained as due to the large rental units there appealing to families with school aged children, with 70 percent of the units, originally built to be condos but converted to rentals during the last Great Recession.
It was noted that 122 of the 229 pupils in the local schools who live in the eight projects come from Pearson Square.
F.C. Councilman Phil Duncan, the chair of the committee, noted that the contribution of the eight projects adds up to a savings of $600-$700 annually for the average City residential taxpayer.
The City Council is currently debating the tax rate for the coming fiscal year, having voted this Monday to set the advertised rate a penny-and-a-half lower than the current rate of $1.355.
Pending more details on the contribution the City will get from the federal $1.9 trillion American Rescue Plan, which may be as high as $13 million, the rate could go even lower by the time the City’s FY22 budget is adopted in late April.