City Council to Vote on Falls Church Housing Corporation’s City Center South Proposal August 11th

The Falls Church City Council will vote on a proposal for affordable housing to be built by a partnership of the Falls Church Housing Corporation (FCHC) and developer Atlantic Realty Monday night August 11 at 7:30pm in Council Chambers at City Hall.

 The hearing can be viewed live on television on the following channels on cable: RCN Cable Channel (2), Cox Cable Channel (12), and Verizon Cable Channel (35).

This is the wording of the request that will be voted on by the Council Monday, August 11:
“The applicant is requesting a Comprehensive Plan Amendment and two Special Exceptions to allow the redevelopment of the two existing office buildings at 350 and 370 South Washington Street as a new mixed-use project consisting of a 174 unit, seven-story affordable residential apartment building with ground floor non-profit – office/service/program/amenity/common space.”

Specifically, the applicant has filed applications requesting:

• Comprehensive Plan Future Land Use Map Amendment from “Business” to “Mixed Use”
• Special Exception for Mixed Use (Residential use in a Business District)
• Special Exception for Height (80 feet rather than 75 feet max. allowed in B-2)”

In addition, the Council will consider an accompanying zoning code change:
Zoning Code Text Amendment (Exemption allowed from special Exception Primary criteria related to net new commercial square footage and revenue.) The City staff estimates a 25-space parking deficit for the project. According to the City memorandum, the applicant proposes to remediate the parking deficit by an off-site parking agreement. Specifically, the affordable housing project’s Wednesday evening peak deficit would be ameliorated by a shared parking agreement with the new office building on 360 S. Washington Street, which would have available parking on evenings and weekends.

The proposal regarding 360 S. Washington Street has not yet been officially reviewed by the Planning Commission or City Council. A memorandum of understanding, between the City, FCHC, and the owner of the 360 S. Washington property, Educational Options is also being voted on. The proposal entails tearing down the existing building and constructing a 4-story above-ground parking garage and a 3-story office building that would house the offices of Educational Options.

Issues raised by the Planning Commission and some members of City Council concerning the City Center South proposal include the following:

• lack of consultation with independent affordable housing experts
• concentration of a stand alone affordable housing development in an already affordable area of the City
• removal of senior citizens from easily accessed homes to a high rise amidst dense traffic and business mix
• possible conversion of the Winter Hill Apartments to first-time affordable homebuyers condominiums
• lack of adequate parking for the number of residents and office workers
• special exceptions to the Zoning code for mixed use, height, and a text amendment

A City memorandum notes that the development cost for the project has increased from $37 million to $46 million since November 2007. The City is being asked to use the $2 million CIP fund that is to be used for affordable housing in the City and is also requesting that the optional $4.2 million proffer set in place by Atlantic Realty in the City Center project be used to fund the FCHC’s City Center South project, as opposed to including 36 units in the approved City Center project.

The City’s cost for the project including direct (i.e. debt service on the bond and uncollected real estate tax revenue) and indirect costs (i.e. schools and services costs) will be $1 million plus per year during the loan period, which has yet to be determined. Financial projections for the loan period have been based on a 15 year schedule. The figure will escalate every year. Additionally, the indirect costs to the City may continue throughout the life of the building, not just during the life of the loan.

The memo goes on to note, “It is anticipated that the development and operating budget will further change once binding construction bids are received. FCHC has formally committed, in April 2008, to bear the costs of future changes if beyond the request to the City for the $2M CIP [capital improvement] funding and the real estate tax abatement.”

-Sally Brett