Highlights of the Proposed Amendments
At the December 14, 2020 City Council meeting, this PowerPoint presentation was shared. It shows the highlights of changes to the project's Comprehensive Agreement, as proposed by the developer, Falls Church Gateway Partners (FCGP).
"The pandemic has caused a constriction in commercial real estate markets for new investments in hotel, office, and retail," said City Manager Wyatt Shields at the meeting. "The developer, Falls Church Gateway Partners, requests changes to terms of the Comprehensive Agreement in order to be able proceed with obtaining financing for the project."
Please view this PowerPoint Presentation for the full details of the amendments.
What Stays the Same with the Amendments
- The project will continue to move forward with the proposed program as detailed below on this project website.
- The hotel, office space, civic space, senior housing, and condos and apartments ratios will remain.
- The developer will demolish the old high school, as planned.
- The City will be able to cover debt service for the high school.
- The City will be able to maintain adequate capital reserves.
What Changes with the Amendments
- Delivery date delayed by approximately six months.
- Reduction in capitalized ground lease payments.
- Increase in ground rent payments over 99 year term.
- New/revised profit share provisions.
Conditions of the Amendments
The amendments would be subject to certain conditions:
- Completion of the demolition and rough grading of the high school property by the end of May 2021 with an obligation to diligently pursue remainder of demolition scope.
- The developer would also agree to complete the negotiation of transactional agreements with the grocer, office developer, and senior component developer on or by March 1, 2021.