Fairfax County Board Approves Revised Land Sale To Fairfax City

FAIRFAX CITY, VA — The Fairfax County Board of Supervisors approved changes Tuesday to an agreement with the city of Fairfax for the sale of two pieces of land adjacent to each other on West Drive. Fairfax City had requested the changes to the agreement for its purchase of the land due to financial problems facing the city from the coronavirus crisis.

In the unanimous vote in favor of a resolution, the Board of Supervisors agreed to the changes proposed by Fairfax City that would not change the value of the sale but would change the amount of money that the city must put down as a deposit for the property owned by Fairfax County.

"Since the execution of the agreement, a sudden economic downturn brought on by the coronavirus pandemic has caused the city to request an amendment to the terms and conditions of the agreement by temporarily reducing the deposit to $50,000.00," stated the resolution approved by the Fairfax County board. "The board finds that it would be in the best interest of the residents of Fairfax County to adjust the terms and conditions to sell the real property."

The land, located at 10635 and 10637 West Drive near Providence Park, is currently home to some garages, parking lots and offices for Fairfax County’s stormwater management division. The site is obsolete, so the county is moving its stormwater operations elsewhere and selling the land to the city.

On Feb. 18, the county executed a purchase and sale agreement with the city after the board approved the sale of the property to the city last December.

Fairfax City recently contacted the Fairfax County attorney's office and stated that, due to the city’s budget challenges arising from the coronavirus crisis, the city would like to amend the executed agreement to modify the amount of its deposit.

Since Fairfax City's request involved a significant change in the terms of the agreement approved by the Fairfax County Board in December, county staff believed it was necessary to seek the board’s approval before executing the amendment.

Fairfax County owns two pieces of land on West Drive totaling 4.24 acres in the city of Fairfax. The two parcels have 25,000-square-feet of industrial and office buildings with about 175 surface parking spaces. The site is currently the location of Fairfax County’s Maintenance and Stormwater Management Division facilities and provides office space and work quarters for MSMD personnel.

Due to the site’s location, age, size and condition, it no longer meets the operational needs of the county. The facilities at West Drive will be relocated to the new Stormwater Consolidation Facility to be built on nine acres of land adjacent to the 14-acre Fairfax County Wastewater Collection Division site at Freds Oak Drive. The project is scheduled to start construction by early 2021, with a three-year construction duration.

In July 2018, staff from Fairfax County and the city of Fairfax entered into discussions regarding the sale of the West Drive properties to the city after it expressed an interest in acquiring the properties. On Feb. 18, the county executed a purchase and sale agreement with the city after the board approved the sale of the property to the city last December.

The original terms of the agreement were:

• Purchase price total of $4 million for both parcels.
• The settlement date for the purchase is upon completion and occupancy of the Stormwater Consolidation Facility or 72 months, whichever occurs first.
• Fairfax County has the right to extend closing up to 24 months of additional time if the County is not yet able to occupy the new facility under construction.
• Fairfax City will pay a deposit of $400,000 that is non-refundable after the expiration

Fairfax City then made its deposit of $400,000, which is to be applied at closing to be held within 72 months from Feb. 18 after completion of the Stormwater Consolidation Facility and the County operations at West Drive have been transferred to the new site.

After further negotiations with county staff, the terms of Fairfax City’s proposed amendment were:

• The deposit is temporarily reduced from $400,000 to $50,000, amounting to a refund of $350,000 to the city.
• A second deposit of $350,000 will be paid by Fairfax City no later than July 1, 2022, essentially to restore the original deposit. Should Fairfax City default on the contract before July 1, 2022, the city would only forfeit the first deposit of $50,000.
• While Fairfax County’s Stormwater Consolidated Facility project remains on schedule, Fairfax City agreed to extend the settlement date further from 72 months to 84 months. Fairfax City will also continue to allow another 24 months beyond that initial settlement period as outlined in the original terms and conditions.

These amendments to the agreement were approved by the Fairfax County board on Tuesday as stated in the resolution.