Status of the City Center Development

I’ve been asked by a number of friends over the past few weeks, “What is the status of the City Center development in Falls Church?” The simple answer is that it seems to be on hold at least until the country starts to climb out of the recession. The credit markets are still “frozen.” Retail establishments, including hotels, are not committing to new leases, anywhere, as far as I can tell.

Atlantic Realty, the developer of the project, was given 3 years to break ground under its contract with the City. So they have two years still to go. They have a lot invested in this. I don’t think they want to scrap it. But they need financing, and in order to get financing they will probably need pretty solid lease commitments from major tenants. And then there is site plan approval, and the need to complete all their land consolidation, including Bowl America, which is under option, but that option will likely have to be extended. In short, it’s not easy.

I was also asked about the City’s contribution of City-owned property to the project. There is no danger that the City will forfeit its property. If the project does not go forward, the transfer of City-owned property does not go forward.

I know some people would rather the project not go through. I have my criticisms too, but perfect being the enemy of the good, I think it is the best Falls Church could get right now, even if the economy had not tanked, and it would be a good start to developing more of the downtown.

I hope this clarifies the situation, at least somewhat. I would certainly welcome more facts and feedback from all involved in the process. I’m looking forward to more discussions about developing our downtown. By the way, a good resource for those who are interested in the city’s development activities is the website of the Economic Development Authority. There you will see a fairly comprehensive explanation of its activities, studies, programs and services. 

[Full disclosure: I served on the Board of EDA from 2001 to January 2009.]