WATER WAR: VA Supreme Court Panel Denies City’s Appeal

By GEORGE BROMLEY
Falls Church Times Staff

September 2, 2010

A three judge panel of the Supreme Court of Virginia has turned down Falls Church’s appeal of a ruling of the Fairfax Circuit Court, which found the City’s practice of transferring water system profits to its general fund unconstitutional.

“The City is disappointed with this decision and will be filing a Petition for Rehearing for consideration by all members of the Supreme Court,” said Wyatt Shields, Falls Church City Manager.  While the City’s petition is pending, the stay of the Circuit Court’s ruling against the City will remain in effect until a final order is entered by the Supreme Court.  If the petition is rejected, Falls Church must return $2.2 million to the water fund in compliance with the decision of the Circuit Court.

On January 6, 2010, Judge R. Terrence Ney held that the City’s practice constituted an “extraterritorial” tax on Fairfax County ratepayers, who comprise 92% of the water system’s customers.  Falls Church filed an appeal on April 6 and presented its case to the Virginia Supreme Court’s writ panel in Salem in mid-July.  The  panel ruled on September 1that it found no reversible error in Judge Ney’s decision and so rejected the City’s appeal. 

Appellants generally do not prevail in civil cases.  An analysis conducted several years ago found that petitioners had less than a one in five chance of obtaining a writ (the odds in criminal cases are far worse).  However, Falls Church had little alternative than to appeal, given that it can ill afford the transfer of over $2 million from its general fund.  According to the study, the odds on obtaining a rehearing before the full, seven member Supreme Court are 1 in 23. 

Phil Allin, Chairman of the Board of Fairfax Water, said, “We are delighted to do our share to help bring tax relief to Fairfax County customers.  ‘No taxation without representation’ still means something in Virginia .  We are glad this litigation is behind us and look forward to restoring the cooperative relationship we enjoyed with the City before it sued us in February 2007.”

Falls Church sued and lost in U.S. District Court in Alexandria.  The City appealed the ruling, but the U.S. Court of Appeals in Richmond affirmed the decision in April 2008.     

Fairfax Water sued Falls Church on five counts in December 2008.  The City counter-sued Fairfax Water and the Board of Supervisors, but this suit was dismissed in August 2009.

One count of Fairfax Water’s complaint was thrown out and the remaining four were split and tried separately.  Count V, the subject of the City’s appeal to the Supreme Court, was tried Judge Ney in September 2009.  The remaining three counts were tried before Judge Ney in February 2010, but the parties reached a settlement before conclusion of the proceedings.

A copy of Fairfax Water’s April 26 response to the City’s appeal is available here.  Additional documents are available at the City’s and Farifax Water’s websites.

CITY MEETINGS: August 30 – September 3

Monday 8/30:  School Board – City Council Liaison Committee, 2nd Floor conference Room, 800 W. Broad St., 7:45 pm. 

Tuesday 8/31: School Board Work Session.  Central Office Conference Room, 800 W. Broad St., 7:00 p.m.

Wednesday 9/1: Recreation and Parks Advisory Board.  Falls Church Community Center, 7:00 pm.

Architectural Advisory Board.  Council Chamber, 7:45 pm.  Agenda.

Thursday 9/2: No meetings scheduled.

Friday 9/3: No meetings scheduled.    

Meeting notices are obtained from the City and School Board on-line calendars and from the notice board at the east entrance of City Hall.  Meetings may be subject to re-scheduling or cancellation.  Meetings are held in City Hall, 300 Park Avenue, unless otherwise indicated.

Kaylin & Barry Deny Receiving GOP Endorsement

By GEORGE BROMLEY
Falls Church Times Staff

August 27, 2010

City Council members Ira Kaylin and Johannah Barry have denied reports that they received Republican endorsement in last May’s municipal election.  They have issued the following statement in response to several articles in the current edition of the Falls Church News Press:

We neither asked for, nor received, an endorsement from any party. Frankly, and to the credit of Falls Church City residents, very few voters cared about national political affiliation.

We received support from those voters who are concerned about the continued independence of our City.  We do believe in fiscal accountability. We also believe that we were supported by voters, of both parties, who shared our views, and are deeply appreciative to all those who voted for us on May 4^th.

If the editor of the News Press would like to politicize City elections that is his prerogative.  We strongly believe that the vision for the City should be non-partisan and that achieving the broadest possible City-wide support should be the objective Read more

EDA Chair Says City Must Revitalize Commercial Areas

By FALLS CHURCH TIMES STAFF

August 24, 2010

The Falls Church Times recently interviewed Economic Development Authority chairman David Tarter regarding his organization’s role and his thoughts on the state of development here.  Tarter’s responses reflect his personal views, not an official position of the EDA.

FCT:  Dave, thanks for taking time to interview with us.  Let’s start with the basics.  What is the EDA?

Tarter:  In general, Economic Development Authorities are created and authorized by state code to perform a number of functions relating to economic development, particularly ones that cities and counties are constrained in doing themselves.  For example, EDAs can buy and sell land, construct and lease buildings, finance projects, grant development incentives, and do so in creative ways that local governments often cannot do directly with taxpayer funds.

An additional function of the Falls Church EDA is to advise the City Council on proposals and issues related to economic development.  Proposed new projects are routinely referred by the City Council to the EDA (and other City boards and commissions) for review and recommendation.  In connection with these proposals, the EDA also examines the estimated net fiscal impact of proposed new projects, the impact on the local business community, and many other factors.

The EDA also generally promotes business within the City.

FCT:  So how does one become a member of the EDA?   And how long is the term?

Tarter:  EDA members are appointed by the City Council.  Member terms are four years, but positions are often filled to complete unexpired terms.   Individuals who reside in the City or an adjoining jurisdiction or who live outside the City but have a business interest in the City of Falls Church may apply to fill an open seat on the seven-member board.  There are currently two openings on the EDA.  The process requires the completion of an application form that is available on the City web site.  Applicants are required to attend at least one board meeting prior to consideration for appointment.  The City Council’s Appointments Committee conducts interviews of EDA applicants and makes recommendations to the City Council for new appointments.

FCT:  How long have you chaired the EDA?

Tarter:  Since 2008.

FCT:  What’s your background?

Tarter:  I was born and raised here in Northern Virginia.  I attended college and law school at the University of Virginia.  I moved to Falls Church almost seven years ago and live here with my wife and three children.  I am a commercial real estate attorney and work mostly with builders and developers primarily in Arlington.  In connection with this work, I have been exposed to high quality planning and development which I think Falls Church can, in many instances, emulate.

FCT:  What kind of activities has the EDA been involved in recently?

Tarter:  The Falls Church EDA has been active on many fronts.  The EDA sponsors a number of events throughout the year designed to attract business and visitors to the City, including First Fridays, Watch Night, Tinner Hill, Creative Cauldron, and the Washington Area Music Association’s annual Wammies award event at the State Theatre, among others.  We also co-sponsored the development and periodic update of the City’s fiscal impact model.  The EDA has hosted numerous “developer forums” to raise community awareness about issues such as Smart Growth principles, the economics of mixed use and commercial development, retail recruitment strategies, “green” development, the Eden Center, the dynamics of the hotel/hospitality industry, affordable housing, among many other public presentations.

Over the past two years, the EDA has also retained a former senior planner with Arlington County as a consultant to provide guidance with the revitalization of some of the key commercial areas of the city.  This effort has led to the involvement of Virginia Tech’s graduate urban planning program in undertaking focused studies of the City’s Eastern Gateway, the N. Washington St./W. Jefferson Corridor, and most recently, the 100 and 200 blocks on the north side of W. Broad Street.  This fall, Virginia Tech students will examine the redevelopment potential of the City’s West End.

FCT:  How is the EDA funded?

Tarter:  Our funding is generally separate and distinct from the City’s general fund and is essentially funded by EDA activities.  At present, our income comes predominantly from administrative fees generated by the EDA’s issuance of Industrial Revenue Bonds.  In the past we have also received money from the rental of EDA owned property, such as the former Two Sisters’ site on Broad Street.  In addition, we have a reserve accumulated from prior surpluses which we use to fund special projects such as the EDA’s Branding Initiative.

FCT:  Interesting.  Property in Falls Church City does not come cheap.  Where did the EDA get the money to buy the property?  And how much property does the EDA own?

Tarter: The EDA owns the former Podolnick (Two Sisters) property at 255 W. Broad Street, which contains about three-quarters of an acre of land.   The City provided the funds for the purchase of the property in 2000 and then transferred ownership to the EDA to land bank and hold for future redevelopment.

FCT:  Is the EDA taxpayer funded or not?  Are the administrative fees on Industrial Revenue Bonds paid by the taxpayers?

Tarter:  The EDA is a volunteer group of residents, while the EDO is the City’s full time professional staff.  We work closely with each other.  The EDO currently has two staff persons, Rick Goff and Becky Witsman, who provide a broad range of services for the City and the EDA, including the day-to-day, in-the-trench work of business assistance and development support.

Business assistance is directed at attracting new businesses and retaining and expanding existing ones.  This entails reaching out to prospective businesses, providing information about available space and other opportunities, hosting business development workshops such as the Franchise and Entrepreneur Express, preparing regular reports on the City’s business and commercial leasing and sales activity, preparing business attraction materials such as the City’s restaurant guide, and general business development visits and follow-up work.

Development support involves assistance and promotion of new ventures such as BJs Wholesale Club, the Mad Fox Brewpub, and financing of the Tax Analysts Building.  EDO staff analyzes the potential impact and, later, the performance of new City developments in terms of tax generation, fiscal impact, and other criteria.

FCT:  Does EDA have any authority over EDO employees or functions?  Or are you strictly an advisory organization?

Tarter:  The EDO staff assists the EDA, but are City employees and report directly to the City Manager.

FCT:  What is the EDO’s annual budget?

Tarter:  The EDO’s 2011 budget is approximately $345,000, a 16% decline from FY 2010.

FCT:  One recent EDA project was the development of a city motto, which ultimately resulted in “The Little City.”  Are you happy with the process and result?

Tarter:  I am.  The project entailed much more than the creation of a motto, however.  The Branding Initiative was generated by a comment at a business roundtable co-hosted several years ago by the EDA and City.  The initiative seeks to establish a more distinct identity for the City of Falls Church from the broader Fairfax County area of Falls Church.  We retained the Falls Church firm of Smith Gifford to assist us with the effort.  We have one of the most affluent and educated communities in America with market demographics that appeal to many retailers and other businesses, yet most people do not realize we are a separate jurisdiction and community.  In many ways the wonderful community we have here is one of the area’s best kept secrets.  The initiative has also included the creation of a restaurant guide and publicity in connection with a number of City events.  I believe the branding effort is catching on and will continue to do so as people become more familiar with it.  It is, and remains, a work in progress.  I would like to see additional implementation by the City government itself.  The branding effort is a small piece in the puzzle.

FCT:  What, in your view, is the most pressing problem facing Falls Church City?

Tarter:  In my opinion, the most significant challenge for the City is how to revitalize and transform our aging and underperforming commercial areas into vibrant, attractive, income producing ones.  Many of the buildings in our commercial areas and main streets are fifty plus years old and auto centered, such as car lots and dealerships, repair shops, car washes, u-haul and other rental, etc.  Nearly a million cars pass through Falls Church a month, yet only a small percentage of them stop to patronize our businesses.  As a result our tax base is heavily skewed to the residential tax base.  We have two Metro stations with our name on them, yet we have not effectively connected and used them for our economic benefit.  If the City is to remain economically viable and independent we must create a better balance to the City’s tax base, with the ultimate goal of a balanced commercial and residential tax base.  I believe that the first step in this effort is for the City to clearly articulate its own long range vision for these areas and the City as a whole.  This requires the City to engage in more detailed long range planning of its commercial areas than has been done to date.  The best way to get desired development is to let the development community know what you want.

FCT:  So you’re referring to “sector planning”?  How does that work?

Tarter:  Yes.  A sector plan – or an “area plan” — is a detailed long-range plan with a design framework and revitalization/redevelopment plan for a particular area.  It generally involves establishing building heights and mass, uses such as mixes of office, retail, hotel, or residential uses, and a myriad of other details such as locations of crosswalks, on-street parking, loading docks, open space, and building setbacks.  Sector plans have been used successfully by many communities.  Growing up in this area, I have seen Arlington use them to transform areas such as Clarendon, Shirlington, and Ballston from industrial, suburban, and/or auto-oriented areas to walkable, urban villages, which in turn have generated the revenue to provide excellent schools and other services with substantially lower property taxes.

Sector planning does not necessarily mean tall high rise buildings.  Quite the contrary, this form of planning requires context and sensitivity to existing neighborhoods.  I would argue that there are few places in the City where buildings taller than 5 or 6 storeys would be appropriate.

Good sector planning starts with substantial community involvement to set the economic and redevelopment goals for the area’s future.  It is a collaborative effort that includes the Planning Commission, City staff, and others, and may also include changes to the Zoning Ordinance to facilitate and encourage desired development.  Once the community vision for an area has been established, and the plan approved, the City Council needs to hold its ground and wait for redevelopment to occur in the prescribed manner.  Falls Church will not and should not redevelop overnight.  The redevelopment of areas such as Shirlington and Clarendon each took 20+ years.  At times we may need to pass up new development that is inconsistent with long-term goals.  For example, some years ago, the Arlington County Board rejected a Home Depot that would have brought in immediate tax dollars in order to achieve what are now the Clarendon Market Commons, Whole Foods, and related development.

FCT:  Which areas of Falls Church City should be our focus for property development?  Which single area would you start with?

Tarter:  I believe that there are a number of nodes where redevelopment can occur and provide substantial fiscal benefit to the City and yet have a limited impact on the immediate neighbors.  One such area is the Eastern gateway to the City, including the Syms and Koon’s sites.  The area is close to transportation such as Route 50, Wilson Boulevard and the East Falls Church Metro station and a portion of this area is buffered from the residential neighborhood by the adjacent cemetery.  However, the nearly 7 acres currently occupied by the car dealership generates relatively little per acre tax revenue to the City because almost all sales tax revenue from the sale of cars is sent directly to Richmond.  By contrast, the twin First Virginia Bank towers located just outside the City’s boundary would generate approximately 1.2 million dollars in tax revenues, or the equivalent of approximately four cents on the City property tax rate if located within the City.  It is unclear whether this type of development would work on any of these sites, but certainly this area could support more intense development.

FCT:  What else should Falls Church City be doing to improve its economic development?

Tarter:  I talked about sector planning. That’s only a start to the long term revitalization of our commercial core.  Without Metro stops immediately within our City, high quality commercial redevelopment is more difficult to attain than it is for some of our neighbors.  This means that the City needs to be more creative and nimble than others, but we can do that.  The tax sharing agreement with the BJ’s Warehouse Club developer, in which the EDA played a major role, is a good example.  The EDA participated in its negotiation and acts as a conduit for the distribution of tax proceeds.  The BJ’s deal ended up being the second largest (by square footage) retail transaction in the Washington, DC Metropolitan Area in 2009. The return to the City on its investment is tremendous and is expected to increase the City’s sales tax by ten percent.  The City also has a Technology Zone tax abatement program that approximately 60 businesses have utilized.   Many of our immediate neighbors including Fairfax County do not provide direct financial incentives for business, which can also give us an advantage.  New incentives also could include a popular tool used frequently around the nation – tax increment financing – to help pay for special public improvements such as a parking deck financed with the incremental increase in tax revenue from new development investment.

More broadly and longer term, the City should invest in its own infrastructure to make our commercial areas more attractive and accessible, including improvements to the streetscape, pedestrian and bicycle access, and undergrounding utilities, particularly through grants or in connection with new development.  Even longer term, the City should plan for and seek to participate in regional transportation improvements such as the streetcar service which is already being planned through Arlington to Skyline.  Expansion of this service from Baileys Crossroads to Tysons Corner or to the East and West Falls Church Metro stations seems a natural extension and could provide the catalyst for substantial economic development on a scale appropriate for the City.

FCT:  How about business recruitment?  How are we doing there?

Tarter:  I believe we are doing pretty well in that area but it is obviously a challenging economic time.  In addition to the previously mentioned BJs deal, I would point out that the Economic Development Office had a major role in attracting the Mad Fox Brewery which looks like it is going to be a major business success story.   Back in 2008, EDO staff came across an article in the Washington Business Journal about a brew master who was seeking to open his own brewpub and restaurant somewhere in Northern Virginia.  Staff acted quickly to bring this prospect to the attention of the commercial broker for the Spectrum, who, in turn, began aggressively pursuing the lead.

The EDO assisted in interpreting parking requirements for the proposed use and provided important demographic, traffic count and other site-specific information that helped persuade the business owner of the desirability of this Falls Church location.  The City Manager reiterated the City’s interest in the business and let the owner know that the City would cooperative in making the proposed use work in the building.  This was an important point in Mad Fox’s site location decision.

Despite the difficult economic climate, Mad Fox signed a long term lease for the prime commercial space that they now occupy.  The City estimates that gross tax revenue from this popular new business will exceed $350,000 per year, which is more than the entire annual budget of the EDO, or the equivalent of more than one cent on the City’s property tax rate.

FCT:  You’ve given us a lot of information.  We appreciate it and look forward to following these issues.  Thank you very much for taking the time.

Community Development and Housing Program Grants Available

The City of Falls Church expects to have available approximately $82,000 of federal Community Development Block Grant (CDBG) funds and approximately $47,500 of HOME Investment Partnerships (HOME) program funds, as of July 1, 2011, to assist City residents with low- and moderate incomes. These funds may be used for housing development, rental assistance, social services, economic development, and public services.

The City is soliciting proposals to be considered for funding. Proposals for funding must be submitted in the format provided by the City of Falls Church in order to be considered. Proposal packets are available by calling (703) 248-5005; TTY 711 or by visiting the City’s website at http://www.fallschurchva.gov (click on News & Announcements).

All proposals must be postmarked and received by the Housing and Human Services Division, 300 Park Ave., by noon Friday, September 17.

City staff and the Housing Commission will review submitted proposals. Final funding recommendations will be announced at a City Council Public hearing in late November 2010. For more information, call 703-248-5005 (TTY 711).

CITY MEETINGS: August 23 – 27

Monday 8/23: City Council Special Meeting.  CANCELLED.

Tuesday 8/24: School Board – City Council Liaison Committee.  Administrative Conference Room, 8:00 p.m.

Wednesday 8/25: No meetings scheduled.

Thursday 8/26: No meetings scheduled.

Friday 8/27: City Council Economic Development Committee with Planning Commission and Economic Development Authority.  Administrative Conference Room, 7:30 a.m.  

Meeting notices are obtained from the City and School Board on-line calendars and from the notice board at the east entrance of City Hall.  Meetings may be subject to re-scheduling or cancellation.  Meetings are held in City Hall, 300 Park Avenue, unless otherwise indicated.

CBC President Deb Gardner Resigns

By FALLS CHURCH TIMES STAFF

August 14, 2010

Citizens for a Better City (CBC) president Deb Gardner announced her resignation this evening via an email to the organization’s members.

Ms. Gardner stated it had been an honor to serve as president and extended her thanks to Sally Ekfelt and Gordon Theisz for their efforts to ensure that CBC maintained high standards and the continued success of the City.  She noted it was sad to leave “with so much polarization within the organization, but change and growth often demand such periods.”

The CBC has been the dominant political organization in Falls Church for 50 years, but elected only one of its four candidates for City Council in last May’s municipal election.  CBC’s four candidates for School Board were unopposed.  Currently there are three CBC-endorsed members on the seven member Council.

Ms. Gardner, whose resignation is effective August 30, was elected to a two year term in November 2008.  CBC’s by-laws state that if a vacancy occurs the president is succeeded by the first vice president, which is Ms. Ekfelt, according to the organization’s website.

The email states that she and her husband, former mayor Dan Gardner, will miss living in the community, its wonderful people, and the good friends they  have made.   The family has resided in the City for 23 years.    

The Falls Church Times interviewed Ms. Gardner prior to the CBC nominating convention last February.

CITY MEETINGS: August 16 – 20

Monday 8/16: City Council Government Operations, Administration, and Evaluations Committee.  Administrative Conference Room, 4:00 pm. 

Planning Commission.  CANCELLED.   

Tuesday 8/17:  Planning Commission to Honor Sue Cotellessa.  Mad Fox,  444 West Broad Street, 6:00 pm. 

Historical Commission.  CANCELLED. 

Wednesday 8/18:  Library Board of Trustees.  Mary Riley Styles Public Library, 7:30 pm.  Agenda.

Tree Commission.  Training Center, 7:30 pm.

Thursday 8/19:  Advisory Council.  Administrative Conference Room, 7:30 pm.    

Friday 8/20: City Council Economic Development Committee.  Administrative Conference Room, 7:30 am.  

Meeting notices are obtained from the City and School Board on-line calendars and from the notice board at the east entrance of City Hall.  Meetings may be subject to re-scheduling or cancellation.  Meetings are held in City Hall, 300 Park Avenue, unless otherwise indicated.

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