The planned redevelopment of the Huntington Club, a condominium community in Fairfax County, is set to jumpstart revitalization efforts in the area. The complex, which currently comprises 364 garden-style units across 10 buildings that were constructed in the 1960s, is located near the Yellow Line’s Huntington Metro station and has been proposed to be redeveloped over the course of 10 to 15 years. The project includes 200 two-over-two townhomes, a multifamily building over retail, office, hotel and senior living space totaling up to 2.6 million square feet.
In order for the redevelopment project to move forward, however, the condo association is still in need of financial help from both private and public sources. Private financing will be used to buy out current owners, while tax increment financing is being sought for the approximately $45 million in publicly issued bonds required to complete the project.
The Fairfax County Board of Supervisors has been supportive of the redevelopment plans, as a similar arrangement was established in 2009 for the Mosaic District in Merrifield. However, Board Chairman Jeff McKay has asked for more assurances from the condo association that its members are aware of the risks involved with this project and that there is a sufficient rainy-day fund ($5 million) set aside to cover any unforeseen costs.
Jefferson Apartment Group has officially taken over contract ownership of one of the land locations, which will be the future home of a 333,000-square-foot multi-family building with a retail component. Meanwhile, Dream Finders Homes out of Jacksonville, Florida, is in charge of the other three plots and plans to construct townhomes. The remaining three land bays are still up for grabs, and IDI Group is expected to develop two while the third will go to a senior living development. Those who opted in as condo owners would remain part of a Tenancy-in-Common overseen by a board, even after the condo association dissolves in 2021.
Phase One of the redevelopment will be funded through a combination of the land bay sales and public infrastructure. The Public Sector will play an integral role in financing this project as private funds are not sufficient to cover all of the development costs. Construction is expected to begin in 2023, and with the help of public funds, the development will be able to move forward as expected.
The future of this redevelopment is looking bright and promises a new beginning for the community. With an updated infrastructure, new multi-family residences, retail shops, and senior living accommodations, these land bays will be able to provide a diversity of housing and business options for the area.
The development relies on a combination of private and public money, including the county’s use of CDA bonds which is based on an innovative financing model that uses tax increment as collateral for bond repayment. This means that the county would not assume any financial risk if the project fails to generate sufficient extra revenue to cover debt service payments — all risk would fall to the bondholders, and therefore the project’s success or failure relies on its ability to generate a high enough tax increment.
It remains to be seen how successful this project will be, but its innovative financing model is an interesting example of public-private partnerships in action. Ultimately, if all goes according to plan,
Fairfax County could stand to reap great rewards from the development and its residents could benefit from a more vibrant community with improved access to amenities. In the meantime, the county is keeping a close eye on the project to ensure it drives long-term economic growth for all involved. Stay tuned for updates as this project moves forward!
This is a summary from a Washington Business Journal article which you can find HERE.