By FALLS CHURCH TIMES STAFF

July 15, 2011

Yesterday, Mayor Nader Baroukh and other City officials participated in the groundbreaking of the Northgate.  First proposed by Hekemian & Company over seven years ago, the project is located at former site of the Pearson Funeral Home at the corner of N. Washington and E. Jefferson St.

“After enduring – we all hope – the worst days of the recession, we can celebrate the start of construction and the transformation of this property, which is important to the City’s image and its economic health,” said the mayor. 

The Northgate is intended to help enliven the North Washington area of Falls Church City.  The project is a short walking distance from the East Falls Church Metro Station and regional access that will connect the City to Dulles Airport via the new Silver Line.  As a transit-oriented development, the Northgate will produce 95 new apartments and 10 rental town homes.  Seven of the units will be designated as affordable dwelling units. 

The project also offers 15,000 square feet of office space and nearly 23,000 square feet of retail and restaurant space.  “We all have a stake in seeing the Northgate become a hub of commercial activity with appeal to both the immediate neighborhood and customers from outside the City,” Mr. Baroukh said.

The mayor expressed his gratitude to the residents of the East Jefferson Street neighborhood and to all City residents who participated in the evolution of the project by providing input during each phase of its review and approval process.  He also thanked Chris Bell of Hekemian and City staff under the direction of City Manager Wyatt Shields and the late Dan McKeever in guiding the Northgate from concept to reality.

City Council members Johannah Barry, Lawrence Webb, and Ira Kaylin, Economic Development Authority Chairman Dave Tarter, Planning Commission chair Melissa Teates, and many other officials also attended the groundbreaking ceremony.

The Northgate was approved by the Planning Commission and the City Council in 2007.  Construction is scheduled to be completed in 2013.  

The architecture of the Northgate will be unique in the City.  The design, by MV+A Architects of Bethesda, will reflect materials and features common in buildings along Connecticut Avenue in NW Washington, DC.

The site is the location of a presidential visit to Falls Church.  Exactly one hundred years ago next week, President William Howard Taft spoke on the stairs of the former home of Dr. Tunis Quick to a gathering of about 300 Falls Church residents.  The president was on his way to the site of the first battle of Bull Run to commemorate the 50th anniversary of that event. 

His visit will be reflected in an historic marker on the site.  There also will be a marker that explains the history of the site from its colonial origins through its most recent function as a long-standing Falls Church business location.

January 4, 2011

The Falls Church City Council held a brief public work session Monday evening, then withdrew behind closed doors to discuss legal matters pertaining to the City’s water system. This was the third time in less than a month that the Council has convened in camera  on the subject.  Several claims for overcharges have been filed against Falls Church by Fairfax County customers in the wake of a judicial decision that the system’s rates constituted an unconstitutional tax.

Most of the open session was devoted to aspects of affordable housing.  City staffers Pam Doran and Kevin Denton briefed the Council on the proposed Moderate Income Home Purchase Program (MIHPP), which would provide loan assistance to qualified first-time home buyers of up to 20% of the purchase price towards the purchase of a home.

Gateway project developer Akridge has offered Falls Church either  a cash contribution of $1.3 million or eight affordable dwelling units.  According to Ms. Doran, the cash would enable the City to provide loans for at least 14 to 20 households.  This assumes that not all of the loans would require the maximum loan amount. 

Ms. Doran cautioned that implementation of the program would be dependent upon the availability of sufficient staff resources.  Potential staff cuts would force Housing and Human Services employees to focus on existing programs.  Details of the MHIPP are available in this memorandum. 

The Council also discussed the FY 2012 budget calendar.  Town hall meetings were scheduled for Saturday morning, January 29, and Monday evening, January 31. 

Vice Mayor Dave Snyder chaired the meeting in the absence of Mayor Nader Baroukh.  Councilwoman Robin Gardner also was absent Monday evening.

October 28, 2010

Lacking a quorum for a regular meeting, the Falls Church City Council held a work session with members of the Planning Commission last Monday evening during which they discussed voluntary concessions for the 200 unit Gateway project (500-520 N. Washington St.).  Project developer Akridge, which is seeking rezoning and two special exceptions for the site, is proposing 10 concessions.  The City officials and staff reviewed each draft proposal in conjunction with Akridge’s Mike Gill.

Affordable Housing  -  The developer’s contribution will be 8 affordable dwelling units (ADUs), $1.3 million in cash, or a combination of the two.  The proposed value of the individual ADUs would be $162,500 if the City were to select a mix of units and cash.

Mayor Nader Baroukh noted that clarification was needed as to how many of the ADUs would be either one bedroom or two bedroom.   Planning Commission chairman John Lawrence advised that it was the City’s option as to the mix.  Mr. Gill said that the projected ADU mix would follow that of the project, which is 70% studio/one bedrooms and 30% two bedrooms. 

If rented, the rents for ADUs would be based on 60% of the HUD median income as determined by the Housing Commission for the next 15 years.   If sold, the developer would agree to sales prices of $187,410 for one bedrooms and $221,173 for two bedrooms in accordance with the 80% HUD median income.

Pedestrian Oriented Design Elements  -  Akridge will provide streetscape improvements along a dedicated 20 feet right-of-way including brick sidewalks, lighting, landscaping, refuse and recycling receptacles, stormwater management, street furniture, utility undergrounding, and other features set forth in the adopted N. Washington streetscape plan.  The mayor asked the Commission to review the details of the developer’s proposal to assure sufficient pedestrian width.  Commissioner Melissa Teates advised that the 20 feet width had been “really vetted out.”   

Transportation Improvements  -  Gresham Place will be widened to two lanes to facilitate right turns.  After the issuance of building permits the developer will provide a $150,000 contribution to upgrade the traffic signal at Gresham and N. Washington and to improve stream and stream bank on Four Mile Run.  Contingent on VDOT approval, Akridge will provide a raised median running along the centerline of N. Washington from Gresham to E.  Jefferson St.  Mr. Gill noted that this was a City request.  The developer also will effect various repairs and improvements to Gresham and E. Jefferson at the end of construction.

Mr. Lawrence referenced the issue of two parking spaces on Gresham.  City manager Wyatt Shields advised that they were not currently part of the concession and that the issue was still to be discussed between the City and the Gresham HOA.

The mayor noted that there previously had been a contribution assigned to the now terminated GEORGE bus system and suggested that the developer consider a cash proffer for transportation improvements, ideally toward the west gateway/entrance to the Metro station.   Commissioner Lindy Hockenberry concurred and suggested other developers along N. Washington be encouraged to offer similar support.  

Stream Improvements  -  In order to reduce the pollutant load on the adjacent Four Mile Run the developer will remove any contaminated soil from the site and provide stormwater management which is currently lacking.  The office building will have a green roof and the residential building will utilize cisterns.   Mr. Shields stated that all the recent mixed-use projects have provided improved stormwater management but that the concessions provided here “raised the bar” even higher. 

Underground Parking  -  Officials expressed strong interest in keeping the commercial part of the garage open to public access after business hours. 

School Capital Cost Contribution  -  The developer will offer $6,746 for each sale condominium unit and $7,511 for each rental apartment unit.  Mr. Shields stated that payments should be made at issuance of certificate of occupancy, rather than via installments.  The mayor recommended studying whether there should be adjustments in the model used to derive these figures.

LEED (Leadership in Energy and Environmental Design) Criteria  -  Akridge agrees to a design that will enable the office building to receive LEED Silver status for the office building and LEED certified for the residential building.  This would be guaranteed by a performance bond as LEED certification isn’t achieved until two or three years after project completion.   Mr. Shields said the developer has resisted attempting to achieve LEED Gold for the office building or LEED Silver for the residential.  Mr. Gill stated that there are very few structures achieving these levels of certification in Virginia.  

Phasing  -  This assures that no certificate of occupancy (CO) for residential units will be issued until the CO for the office building has been issued by the City.  The mayor asked the City attorney to see if there was a way to “shore up” the language of this concession and that on residential ownership structure.  

Residential Unit Ownership  -  Each unit will be taxed as a separate lot of real estate.   The developer and future condo unit owners will have the right to rent each unit.  Mr. Shields noted that the value of rental versus condominium properties can ebb and flow over time and that there was no guarantee that condos would always achieve a higher value.

Street Level Retail Uses  -  Akridge agrees to reserve 4,000 gross square feet in the office building and 2,000 gross square feet in the residential building for retail and service uses.   CommissionerTeates felt the frontage space should be dedicated to retail, with service space off to the side.  Commissioners Lawrence and Hockenberry expressed concern about the developer’s listing of prospective uses for the space.   Mayor Baroukh agreed that the uses need to be better defined and encouraged the Commission and City planning staff to provide guidance to the Council.

The project’s request for special exceptions will need a resolution which will require one Council reading.  The zoning change application will require an ordinance which will involve two readings.   The mayor observed that the earliest date of a first reading would be November 8, but said he did  not want to have a second reading during the holidays.  Mr. Lawrence advised that the Commission could hold a project work session on November 15 and a public hearing on December 6.      

Councilwoman Johannah Barry reiterated her view that some of the concerns of E. Jefferson St. residents had not been satisfactorily resolved.  She advised that the E. Jefferson neighborhood association will be meeting with Mr. Gill in the next couple of weeks. 

Video of the meeting is available on the City website.

October 20, 2010

The City Council and the Planning Commission discussed plans for the East Falls Church metro area (EFC) and the Gateway project at Monday night’s joint work session.  The Council then held a separate session on financial and legislative issues.

City staffer Elizabeth Perry briefed the officials on Arlington’s ongoing EFC planning efforts.  A draft of the County’s plan for the area is scheduled for release in February 2011. 

Mayor Nader Baroukh cited three major concerns for the City:  the design for the west entrance to the station on N. Washington St. (Lee Highway), the availability and access to parking, and the coordination of traffic flow around the site.  The mayor stressed that Falls Church should continue its dialogue with Arlington, share its concerns, and start developing positions on the key issues.

The Gateway discussion followed on that of the previous joint session of October 5.  City manager Wyatt Shields identified three significant areas for review:  affordable housing opportunities, the fiscal impact of the project, and the extent of first floor retail.

Akridge has increased its cash offer to the City from $1.17 to $1.3 million, but has reduced the number of affordable dwelling units (ADUs) from 13 to 8.  Based on yesterday’s discussion the City appears to be looking either for a mix of cash and units or straight cash.  No consensus emerged, however officials recognized that it would be better to secure cash as early as possible, given the greater potential it would have in the current market.  If the cash were received later in the course of development then an escalator clause would be necessary for the City to achieve equal value.

The ownership structure of the Gateway will affect its fiscal impact. Condominiums are preferred, but under the developer’s proffer it would retain the right to rent all units, including ADU’s, an arrangement similar to that now in place at Pearson Square (410 S. Maple Ave.).  Tax revenue would thus vary from $535,000 to $690,000, exclusive of current receipts.    

Mr. Shields said that some office building tenants might be unwilling to accept retail on the ground floor for security reasons, especially if they were to occupy the entire office space.  However, all members of the Planning Commission felt that first floor retail was essential for the Gateway, given its proximity to EFC.  The mayor and other Council members who spoke on the issue concurred.  Two of the commissioners cited a need for visible surface parking, possibly along Gresham Place.

After the joint session the Council was briefed on the FY 2011 budget.  Acting CFO Melissa Ryman reported that BJ’s, which has now opened, is expected to generate $330,000 in sales and cigarette tax revenue during the remaining nine months of the fiscal year.  However, if the tax rate were held at the current $1.24 for the full year, there would be a potential shortfall of $1.4 million.  The current year end projected fund balance would be $4 million.

Councilwoman Johannah Barry stated that later billings will reflect a tax rate several cents higher than the current one and that this had not been made clear to Falls Church residents by the previous Council.  However, Mayor Baroukh said that a graduated approach to the rate had been the proper way to proceed last spring and that the potential for another increase was built into the budget, though no firm figure could be set at this time.  Mr. Shields said that the City would not know until November if it would be necessary to increase the rate.  

The Council quickly reviewed Falls Church’s legislative program for the 2011 General Assembly session.  The City’s three  priority positions are dangerous weapons in City facilities, non-discrimination based on sexual orientation, and photo red traffic signal monitoring systems.  All likely will face an uphill fight in Richmond.

The session concluded with a review of the Council’s various work plans for the current term.

Councilmen Dave Snyder and Ron Peppe were away Monday evening, as was commissioner J. Robert Meeks.  Next Monday’s Council meeting probably will be limited to a work session as not enough members will be present for a quorum.

October 5, 2010

Last night the Falls Church City Council held a sometimes contentious discussion on the issue of moving the date of local elections, long held in May but recently switched to November.  In January 2010 the Council voted, 5-2, to approve an ordinance which shifted the election to the fall, starting in 2011.  However, the majority of the current members yesterday voiced their support for a public referendum on the question and the possible repeal of the ordinance.

Councilwoman Robin Gardner, who voted for the change, was the sole voice in opposition.  The former mayor vigorously defended the previous Council’s decision to make the switch, citing the advantages of higher voter participation and lower administrative costs.  She stated that 32 Virginia jurisdictions had made such a change.  May turnout in Falls Church has declined in the last decade from percentages in the low 30s to 24 percent last spring.  It costs approximately $18,000 to hold the bi-annual election.

Ms. Gardner said that the City had already received approval for the change from the U.S. Deparment of Justice (DOJ) and would have to resubmit any subsequent change.  Vice Mayor Dave Snyder, who opposed the move, did not see this as a problem and saw no point in speculating as to how DOJ would react.

Undaunted, Ms. Gardner maintained that the Council had been elected specifically to make such decisions and that a reversal would ”let down a whole group of constituents in the community.”  She later stated that the City had “done a bad job in communicating to minority voters” and asked, “Have you seen information in Vietnamese?  In Spanish?”       

Mr. Snyder countered, saying that the question was better decided via a referendum than by the Council and that the previous action had “usurped the right of the people.”   He saw no substance in suggestions that May elections had resulted in anyone being disenfranchised and stated, “I think democracy is worth $18,000.”

Mayor Nader Baroukh, who also voted against the change, dismissed Ms. Gardner’s charges of  disenfranchisement, calling them “a strawman or a red herring.” Newly elected members Johannah Barry, Ron Peppe, and Ira Kaylin leaned in favor of resolving the issue via referendum.  Councilman Lawrence Webb, who voted for the switch, was not present yesterday.

Ms. Barry advocated repealing the previous ordinance and rejected Ms. Gardner’s characterization of the DOJ as “the elephant in the room.”  Mr. Peppe said that he was surprised that Virginia law allowed the Council to change the date via ordinance.  He agreed with Ms. Barry and Mr. Kaylin that any referendum should be held in November.  Mr. Kaylin stated he did not believe voting rights issues should be delegated to elected officials. 

Any change in the date also would affect School Board elections.  The mayor asked City Manager Wyatt Shields to obtain feedback on the issue from the Board.  Mr. Peppe, who was its past chairman, said the School Board members had not been consulted during the previous change process.  

Two public hearings would be required before the Council could repeal the January 2010 ordinance.  A referendum on the issue could be held within a few months.  City attorney John Foster will determine if a November 2011 referendum could be scheduled nearly a year in advance.

Gateway Project

Prior to the election date discussion the Council held a joint work session with the Planning Commission on the Gateway mixed-use development.  An Akridge project first proposed in 2005, the Gateway would consist of two five-story structures at 500-520 N. Washington St., a 73-foot-tall office building and a 55-foot-tall condominium. 

The residential building will offer 200 units, about 140 studio/one-bedrooms and 60 two-bedrooms.  Akridge’s Michael Gill stated that the residential units likely will be sold in the $300,000-$400,000 range.  At an average of 825 square feet, the units will be considerably smaller than those in buildings such as the Byron (513 W. Broad St.), where the average residence is 1,600 square feet.  The lower price would not put the units in competition with single family homes and would be representative of the demographic expected to purchase in the Rosslyn-Ballston corridor.

The project would have a 31 percent commercial, 69 percent residential ratio.  Parking would be below the entire site and contain 513 spaces.  The project would require a zoning change and approval of special exceptions for mixed use and building height.

The site currently generates $122,000 in annual tax revenue.  The Gateway is expected to provide net tax revenue of  $631,000 to $786,000 annually (inclusive of the current receipts).  According to Mr. Gill, the site would generate revenue sufficient to reduce the average City resident’s  property tax bill by $125.   

The question of affordable dwelling units (ADUs) versus a cash contribution remains at issue.  Members of both the Council and the Planning Commission stated they favored 13 ADUs over a cash contribution of $1.2 million.  In response to a question from Mr. Kaylin, the city manager stated that the cash could be used as part of a “buy-down program” which would enable people to buy the units at a reduced price.

Commissioner Melissa Teates suggested that some above-ground parking be available for commercial use.  Commissioner Michael Kearney recommended that the garage be open after hours to allow for potential retail or theater parking.

Most of the officials were pleased with the changes made since the project’s inception. However, Ms. Barry stated that the revisions seemed more substantial on the side facing Gresham Place than the one facing E. Jefferson Street.  Mr. Gill noted that the latest version eliminated any egress onto Jefferson, but Ms. Barry maintained such an exit had never been a viable option.   

Engineering Issues 

After the joint session, City engineer Bill Hicks briefed the Council on a plan to install approximately 2,500 feet of fiber optic communication lines through the City from Arlington County, along Roosevelt Avenue to Wilson Boulevard, and into Fairfax County.  Once the contractors complete their work, ownership of the lines will transfer to the U.S. Army Corps of Engineers.  

Falls Church will receive approximately $9,000 annually for five years for granting this license.  Mr. Foster advised that the amount the City can receive is limited by state law.  The conduit dedicated to Falls Church is expected to be used in the City’s traffic signal system currently under development.

Mr. Hicks also recommended adoption of a resolution to direct Washington Gas to relocate the gas utility in the eastern side of the 400 block of North Washington Street (between Columbia Street and Jefferson Street) in order to install streetscape.  This would be done at no cost to the City. 

Council Retreat Follow-up

The work session concluded with a brief review of the work plans developed at the recent retreat.  The mayor asked City staff to work with the appropriate Council committees on the plans and asked Mr. Shields to develop a schedule for discussions at future work sessions. 

Due to the observance of Columbus Day, the next Council meeting will be held Tuesday evening, October 12, in the Council Chamber at City Hall.

September 14, 2010

Last night the Falls Church City Council voted, 3-2, to strike $2 million in affordable housing funds from the FY 2011 Capital Improvements Program.  The funds, originally appropriated in FY 2008, had been encumbered in March 2010 through the City’s financial committment to the Wilden project, which was subsequently cancelled.   Mayor Nader Baroukh and Council members Johannah Barry and Ira Kaylin supported the measure.  Vice Mayor David Snyder and former mayor Robin Gardner dissented.

Ms. Gardner viewed the vote as a defining moment as to where the Council stood on affordable housing, but Ms. Barry and Ms. Kaylin did not concur, citing the City’s fiscal situation as the reason for their votes.  Mayor Baroukh agreed with the newcomers, noting that “preliminary [financial] numbers do not paint an optimistic picture.”  The mayor, Ms. Barry, and Mr. Kaylin all stated their votes should not be construed as opposition to affordable housing programs.  Prior to the final vote, Mr. Snyder moved to keep the funds in the budget, but this measure was defeated, 3-2, with only Ms. Gardner supporting.     

Carol Jackson, executive director of the Falls Church Housing Corporation, Michelle Crocker of the Nothern Virginia Affordable Housing Alliance, and Don Brobst, chairman of the Falls Church Housing Commission, all spoke in favor of retaining the funds in the budget.   Mr. Brobst recommended deferring a decision until the next Council session on September 27.  Ms. Gardner later introduced a motion to postpone action until that date but it was not seconded.

In other business the Council unanimously upheld a decision of the Historic Architectural Review Board (HARB) to deny an application to demolish a house at 311 Grove Avenue.  After reviewing the case the Council determined that the Board’s decision was not contrary to law and was supported by the preponderance of evidence.  The structure was designated historic in 1988.

The Council approved first reading of an ordinance on traffic fines, which includes an increase in the maximum penalty for handicap space violations from $250 to $500.  The Council passed a resolution to apply for approximately $300,000 in Regional Surface Transportation Program funds which will help implement the pedestrian plan now in preparation.  Also approved was a resolution authorizing $43,500 for the purchase of a triangular strip of land behind Sherrow Avenue to improve flood control and drainage in Hamlett/Rees Park.  All three measures passed unanimously. 

Two East Columbia Street residents spoke against the City’s practices in implementing traffic calming measures in their neighborhood.  City Manager Wyatt Shields stated that the normal Citizens Advisory Committee on Transportation process had not been followed in the instance cited.  The controversy centered on the re-installation of speed humps.  Mayor Baroukh recommended referring the matter to a Council work session for review.       

Dr. Gordon Theisz charged that City’s zoning department is “broken”, citing several instances where code violations had been ignored.  Mayor Baroukh referred the matter to Mr. Shields for action and also asked the Council’s Government Operations Committee to assist the city manager to see that the zoning code is properly enforced.   

Treasurer Kathy Kaye encouraged residents to pay personal property taxes on-line at the City website.  She reported that $16,000 had been collected using this method since Friday.  There is a 40 cent charge to effect a funds transfer (less than a stamp) and a 2.9 percent credit card convenience fee. 

Mr. Shields announced that a regional drought watch now is in effect and recommended residents “take common sense measures to reduce water usage.”  Mr. Shields noted that the Falls Church City farmers’ market had been ranked No. 1 in the nation for markets of its size and the best market in Virginia.   He invited everyone to attend the Property Yard open house this Saturday, September 18.

Councilmen Lawrence Webb and Ron Peppe were absent from last night’s session.

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).

August 5, 2010

Falls Church Housing Corporation Executive Director Carol Jackson issued the following press release today:

Topic:  United decision by contract Owners to end their combined project, The Wilden/McKeever Mixed Use, Affordable Housing Development, actively readying for construction start early September

Location:  City of Falls Church, VA, Combined Site Plan at 350/360 S. Washington Streets

Background:  On Thursday, July 29, 2010, City of Falls Church City Council convened a Special Meeting to consider an early release of City of Falls Church loan funds previously set aside in March 2010 by City Council Resolution for use as local government match funds by The Wilden Senior Apartments in its plan to develop and operate permanently affordable rental housing for seniors. The funds release request Thursday night was made by The Wilden Partners, LP, the entity established by Falls Church Housing Corporation (FCHC) and The Community Builders (TCB) for the purpose of developing, owning and operating The Wilden.  That meeting ended with a motion to table the requested action until the City Council’s regularly scheduled public hearing on Monday, August 9, 2010, where The Wilden Partnership’s request to release $1 million (50% of the currently approved $2 million City loan) will be discussed again on the Agenda.

The purpose for the request of the advance was to enable The Wilden to contribute the project’s share of the acquisition and development cost of the parking required for the development.  The decision to locate parking on the adjacent 360 parcel in a structured facility that would also be developed as an office tower was a direct result of input and negotiations with the City Council and economic development and planning officials last winter to determine that an enhance commercial development spanning a combined 2 parcel site would be the best path to pursue to obtain united City Council and staff support.

Current Events:  Since Friday morning, no written confirmations have been received from any sources currently involved in providing the variety of public and private equity and debt sources of financing for the total development cost, @$17 million, for The Wilden Senior Apartments, including its land and parking.  To date, The Wilden partners have heard verbally from their liaison at Virginia Housing Development Authority (VHDA) the following:

• The Wilden 2009 award of $4 million from Tax Credits Assistance Program (TCAP) funds is officially withdrawn as of the July 30, 2010 deadline, identified to all parties at last week’s hearing;
• The VHDA tax credits division chief has been working hard the last 4 days to locate and create a package of funds that will be a dollar for dollar substitute match to replace the TCAP funds withdrawn;
• The exact nature of those funds will be worked through between VHDA and the tax credit investor representatives;
• Whatever precise combination of $4 million in funds from low income housing tax credits (LIHTC) to be now made newly available to The Wilden, eligible uses will remain restricted as currently regulated by VHDA, HUD and IRS compliance divisions; timing will yet be of the essence to begin construction early fall 2010
• As was true Thursday night when the request was made to City Council, $1 million of the City’s approved loan funds are the only available source of eligible funds to get The Wilden fully underway.  Using the funds to provide for the parking needs of the senior housing development are an allowable expenditure within the City’s existing commitment, and this amount has been included in all approved project budgets.  The need for the change to the timing of the funds relates to the current economic climate in which the funds were needed by the developer of the McKeever office building in advance  to secure the site and proceed with construction financing, rather than to be used as a reimbursement of acquisition and construction costs after the garage has been completed.  The Wilden partnership did its best to explain and clarify answers to complex sources of funds regulations, found routinely in LIHTC deals, but understandably complex to all who have not worked in this arena.

Consequently, Falls Church Housing Corporation Board President, Steven Rogers, DVM, in an interview today with Nicholas Benton, Editor/Publisher, Falls Church News Press, issued the following statement,

In cooperation with our partners, The Community Builders (TCB) and Jefferson Investment Group led by our friend and supporter, Bob Young, I regret to inform you that today we have ended our efforts to redevelop and build the combined mixed use development for affordable residential and commercial office on properties currently located at 350/360 S. Washington Street in the City of Falls Church.

On behalf of the Board of Directors for Falls Church Housing Corporation (FCHC) and our partners, we are deeply saddened that we have not been able to achieve majority support among the members of the City Council who have made it clear that they will vote down our reasonable and necessary request to advance the timing of funds release for a portion of the City of Falls Church loan, currently approved to The Wilden.

The FCHC Board of Directors is not willing to risk as collateral, Winter Hill Senior Apartments, which, we have been told by our lending sources, is our only potential option to bypassing the City’s advance of funds. FCHC has stewarded and carefully used its specifically designated project development funds, long directed to the mission-driven risk and rewards of non-profit affordable housing development.  We can not justify Winter Hill collateral to be at risk to assist the development of an office building that has become the linchpin for The Wilden, mandated by some on the Council as the “only desirable” product of the senior housing combined development.

We know we have made it clear to City Hall staff and City Council members that the City loan funds are THE necessary source within the regulated timing available to get The Wilden and its parking underway.  We honestly thought in making a cogent request to Council last week that those who state their priorities to be in support of commercial development as the way to a good future for our city would have provided a majority of members in favor of the $1 million release request that was identified as the surest way by which to begin development of the McKeever property.  Our Wilden partnership deeply regrets that our specific and reasonable request instead set off a reprise of the same objections to The Wilden/McKeever development heard in March.

With all due respect, admiration and gratitude for our partners and supporters who have stood with us during this long and now thwarted journey, we must now see what is true.  We are fighting an uphill fight in a vocal community that is ambivalent at best, and hostile at worst, about its need for affordable housing inside its City of Falls Church borders.  The Wilden is ready to go forward now and must be in the ground in a matter of a few short months or lose its state and federal funding. We have no other sources to explore within the timeline required of our land purchase commitments and public funds regulations.

This is the hand we have been dealt.  We will no longer ‘ fight City Hall’ to continue The Wilden at a social fabric cost now too great to our fragile community.

Today we withdraw The Wilden partnership request for the advance of funds.  While the current City Loan terms will remain in place, our partnership will release their purchase options for the properties upon which the City Loan is conditioned.  We will no longer pursue this project begun in 2007.

Our thoughts at this turn of events haves no adequate words at this time.  It is a sad day for FCHC, our many dedicated partners and financing agencies, and our collective community.  In coming days, we will try to express our grateful thoughts to our friends and supporters over these many eventful years.  We are deeply sorry the tide turned before FCHC and our partners could have sailed into safe harbor where The Wilden and McKeever development would have been a light house to many.  Now we will never know.  Good people will be free to debate, as yet another ‘what might have been’ opportunity has left the scene unfulfilled.

Thank you sincerely,
Steve Rogers,
FCHC President

August 5, 2010

The Falls Church News-Press reported Wednesday evening that the Falls Church Housing Corporation (FCHC) has announced an end to its efforts to build a senior affordable housing project, “The Wilden,” on South Washington Street.

According to the News-Press story, FCHC Board President Steve Rogers issued a statement blaming the project’s demise on the Falls Church City Council’s failure to accelerate half of a $2 million loan agreed to in March. Under the terms of the loan agreement, the money was to be provided after funding from other sources was secured, but the parties involved in The Wilden were unable to secure all required funding.

In a four hour session last Thursday night, it became clear that three members of the Council, Mayor Nader Baroukh and Council members Ira Kaylin and Johannah Barry, opposed providing the early money, while three others, Vice Mayor David Snyder and Council members Robin Gardner and Ron Peppe, favored it.  The swing vote, Council member Lawrence Webb, decided to neither approve nor reject the FCHC request, instead sponsoring a motion to delay consideration of the early loan request until August 9.  With Snyder, Gardner and Peppe siding with him, Webb’s motion passed, putting the decision on hold for a week and a half.  Kaylin’s earlier motion to deny the FCHC request, which Webb initially said he would support, failed 3-4 when Webb changed his mind in favor of a delay.  Baroukh and Barry voted for Kaylin’s motion, and Webb, Snyder, Gardner and Peppe opposed it.

The decision to delay, however, seemed too much for the project’s fragile health.  A few days after the vote, City Manager Wyatt Shields told the Falls Church Times that the Virginia Housing Development Authority had recommitted $4 million in federal funding originally dedicated to The Wilden.  Some hope existed that the $4 million could be made up with additional tax credits, but the FCHC’s decision to end the project moots that possibility.

The “dagger” to the project, according to the News-Press, was Councilman Lawrence Webb’s comment on the Falls Church Times web site stating that he had “made it clear to [FCHC] that if they are unable to come up with their own funding source that I would not support moving funding earlier than previously agreed to.”

According to the News-Press article, Rogers said that finding other funding source was not an option, and specifically rejected the idea of  using the Winter Hill Senior Apartments, another FCHC property, as collateral.

The FCHC could face difficult financial circumstances as a result of the project’s failure. According to a document Rogers shared with City officials prior to last week’s vote, the organization has significant bills coming due, with little cash remaining after significant pre-development expenses for The Wilden.

The FCHC did not respond to the Falls Church Times’ request for comment on the loss of the $4 million federal funding.

UPDATE: See our story, ‘FULL TEXT: Why Housing Corporation Gave Up on Wilden.’

August 3, 2010

Last Friday, July 31, the Virginia Housing Development Authority (VHDA) informed Falls Church city manager Wyatt Shields that $4 million in Treasury Credit Assistance Program (TCAP) funds were being taken away from The Wilden affordable housing project at 350 S. Washington and assigned to a different development.  The reallocation was consistent with the VHDA’s prior advice to the City.  The VHDA notified Mr. Shields that they would defer re-assignment of any of the low income tax credits for the moment and would continue to work with The Wilden Partnership to determine if any other tax credits could be assigned to the project to replace the TCAP funds.

The TCAP funds were an integral part of the development’s financing.  On Thursday, July 29, the City Council met in special session to consider a request from The Wilden Partners to change the terms of a $2 million City loan for the project.  The Partners, the Falls Church Housing Corporation (FCHC) and The Community Builders, asked for the immediate release of  half of these funds in order to finance construction of a garage at an adjacent office building intended for 360 S. Washington, which would provide the required parking for The Wilden.  Approval of the revised loan was necessary by the end of July to assure retention of the TCAP funds.  However, the Council could not reach a decision on the matter and deferred action until Monday, August 9, its final session prior to a recess until after Labor Day.  

TCAP funds were authorized to states in 2009 as part of the American Recovery and Reinvestment Act (ARRA).  Originally enacted under the 1987 Tax Reform Act, the program provides a means to leverage private capital into construction or rehabilitation of affordable housing.  The 2009 Act provided for $2.25 billion in TCAP assistance, $44.25 million of which was allocated to VHDA.

TCAP funds must be used for capital investment.  State agencies (e.g., VHDA) may sub-grant the funds, but the agencies remain primarily liable for compliance with the TCAP requirements.  The funds cannot be disbursed until after there is a written agreement with the project owner and cannot be placed in escrow.