$1.34M Deal Returns FXBG EDA Property To Private Sector: Report

FREDERICKSBURG, VA — Fredericksburg Economic Development Authority finalized a $1.34 million purchase and sale deal on May 31 with Jarrell Properties for the 700-706 Caroline St. property.

The dear returned the property to the private sector thereby creating more tax revenue to the city, according to the EDA's Fiscal Year 2024 Annual Report, which was released on Monday. The new fiscal year begins on July 1.

EDA originally purchased the Caroline Street property for $1.26 million from the City of Fredericksburg in December 2022. The property is the current home of the city's visitor center.

From the proceeds of the sale, approximately $600,000 was used to paid off the remainder of the EDA's loan balance for the property, about $400,000 was put into an interest-bearing account, and $300,000 was loaned to the purchaser through owner financing, according to the report. No decision was announced on how the remaining $440,000 will be spent.

Ever since EDA purchased the property, it has rented it back to the city while the new visitor center and economic development office are being built out at 601 Caroline St. The rental agreement generated $120,000 for the EDA in FY24, according to the report.

Read: EDA's Fiscal Year 2024 Annual Report.

One of the EDA's goals has been to diversify its revenue streams. Here are the other revenue streams EDA identified in its annual report:

• Loan payments from borrowers through the InvestFXBG program (approximately $100,000).
• Funds from the City of Fredericksburg to invest in sports tourism initiatives ($100,000).
• The final full year of funding from a loan made to the City of Fredericksburg to facilitate an economic development project at 900 Princess Anne Street (approximately $70,000)
• Interest income on funds held in savings (approximately $20,000).
• Ever since it purchased the Caroline Street property,
• An insurance payment from the City of Fredericksburg related to the agreement with the Fredericksburg Nationals ($5,000)

As the name might suggest, the EDA is dedicated to promoting economic development in Fredericksburg. Two of the initiatives the EDA supported in FY24 included loaning $250,000 to the Fredericksburg Convention Center in upfront investment in the facility and working with city staff to implement the new sports tourism initiatives.