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Edition of February 17, 2006

Downtown Project Hits Snag
By Erin E. Fogg Send Mail to Writer
Observer Staff Writer
High hopes of a comprehensive downtown redevelopment project incorporating a cultural arts center, public parking, retail and residential space are quickly fizzling after months of unsuccessful negotiations with a critical property owner.
Mayor Michael O'Reilly announced at the Feb. 14 Town Council public hearing that the town is facing a "log jam" in its discussions with the owner of property at the corner of Center and Elden Streets, which comprises a major chunk of land included in two development proposals.
Last July the town received an unsolicited proposal from Clark Ventures under Virginia's Public-Private Education Facilities and Infrastructure Act of 2002. By the end of September, the town had received a second proposal from Herndon Station LLC. Both plans included a unique mix of retail and residential components, as well as an area for a farmer's market, cultural arts center and public parking.
After accepting and reviewing the proposals, town staff recommended the council to move them both forward to the detailed review phase in order to learn more specifics about financing and other issues. But a resolution approving such a decision has been deferred every month since November while closed meetings on the necessary land assemblage have not worked out well.
O'Reilly said the current impasse does not mean a downtown project is hopeless. Rather, it likely means the development will be scaled back from original concepts to take out the property in question. The Town Council unanimously voted to defer the resolution to its Feb. 28 meeting to discuss with consultants what options are available. O'Reilly said the town must ensure that requesting the two development groups to submit new concept drawings would not violate any regulations in the PPEA process.
Representatives from both groups addressed the town council at the meeting, asking that the proposals not be rejected.
Mike Scott of Herndon Station LLC said his team was disappointed the town might scrap all the preliminary work they completed so far, which represents an investment of $250,000. Scott said several team members attended the meeting in a "show of solidarity" for supporting an alternative solution and requested the council defer an action for six months.
"For us this is not just about the financial investment," he said. "It is the dream of creating a project that we can be proud of 50 years down the road."
Scott said Herndon Station is prepared to phase in development so that the first portion of the project could construct the cultural arts center on town-owned land, leaving time for advancing negotiations for the remaining property.
Bill Sawicki of Clark Ventures said that if the council decides to move forward to the detailed stage of proposals without the full assemblage of land it could result in a less efficient development with less of an impact on downtown vitality. However, delaying the project will only increase its cost.
Sawicki recommended the council move forward only one of the proposals because it would provide a distinct partner in the project and enhance the negotiating strategy with the landowner.
Councilwoman Carol Bruce moved to defer the resolution until the next public hearing in order to digest the information presented by the development groups.
O'Reilly said he did not foresee delaying a decision for six months having an effect on the land assemblage given the "difficult" negotiation meetings, however "pleasant and forthright" they were. He said he expects there to be much discussion leading up to the work session on Feb. 21, at which time he will provide an update on any developments. The public hearing on this resolution is scheduled for Feb. 28.

 

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