Bowman Towne Court Project Canceled; Costs Grew 24%: Foulger-Pratt

RESTON, VA — Foulger-Pratt Development, LLC, the company who was working with Fairfax County on a deal to develop an affordable housing project that would include a new Reston Regional Library, has terminated the deal amid rising costs, according to a statement released by the county on Wednesday.

In a letter dated Feb. 2, the developer cited higher than expected construction costs and interest rate hikes as its main reason for ending its agreement with the county. [Read the full text of the letter below.]

Thomas Fleetwood of the Fairfax County Redevelopment and Housing Authority signed the termination agreement on Tuesday, which said, in part:

“FCRHA and Developer agree that due to the increased development costs and delays to the originally proposed timeline, among other things, it is in their best interest at this time to terminate the Agreement and release each other from any and all obligations and claims arising from the Agreement."

The 4.45-acre project site consisted of a 2.89-acre parcel owned by the FCHRA and the 1.56-acre parking lot of the Reston District Police Station. If the project had gone forward as planned, FCRHA and the Board of Supervisors would have transferred ownership of the two parcels to the developer.

Related: Interim Agreement On Bowman Towne Court Project Approved By FCHRA

“The withdrawal of the unsolicited proposal under [the Public-Private Education Facilities and Infrastructure Act] provides an opportunity for the public sector to better define the redevelopment approach for this site — instead of reacting to a developer’s ideas for highest and best use," Hunter Mill District Supervisor Walter Alcorn told Patch in an email. "Our pressing public needs have not changed — starting with a new regional library, a new shelter, updated and more affordable housing.”

In its letter to the county, the developer said the project's cost had increased by about 24 percent above its original estimates. The original plan was to construct two, five-story buildings with up to 350 rental units and a new regional library.

The development would have replaced the 30-unit Bowman Towne Court affordable housing complex, which is owned by the FCRHA. Now that the agreement has been terminated, the housing authority will need to find other county-led redevelopment opportunities to replace the aging townhouse community, according to the release.

Related: Reston Town Center Residents Get First Look At Bowman Towne Court Plan

A task force charged with setting priorities about development in Reston Town Center North held its first meeting at the end of January. Started by Alcorn and led by former Fairfax County Board Chair Kate Hanley, the group is comprised of residents representing 13 homeowner and community associations in Reston Town Center North.

The task force's area of focus is a 47-acre site extending from Baron Cameron Avenue on the north and Bowman Town Drive on the south. The site includes the FCRHA and county-owned properties included in the Foulger-Pratt project proposal.

At its meeting in January, the task force learned that it would be providing feedback to Alcorn on which facilities should be included in planning for county-owned properties within the site.

Proposed facilities include a new Reston Regional Library, an expanded Embry Rucker Shelter with supportive housing, a human services center, affordable housing units, and Fairfax County Park Authority recreational facilities.

Alcorn told task force members that Fairfax County Public Schools might need space to build an elementary school depending on how much residential development is added to the Reston Town Center area.

Related: Task Force Begins Process Of Planning For Reston Town Center North

Foulger-Pratt originally pitched the project to the county in October 2021 under PPEA to redevelop two county-owned properties to offer "a variety of educational, workforce development, and civic resources," according to the proposal.

Information about the PPEA proposal came to light when the FCDHCD issued a Notice of Receipt with a Request for Competing Proposals on March 17, with a deadline of May 16. At the time, few details were released about the developer's unsolicited proposal. In fact, the name of the developer was not made public until the following July.

The following is the full text of the Feb. 2 letter from Foulger-Pratt notifying Anna Shapiro, FCDHCD's deputy director, of the project's termination:

Ms. Shapiro,

As you are aware Foulger-Pratt entered into an “Interim Agreement” with Fairfax County Redevelopment and Housing Authority (FCRHA) on October 28, 2022. The intent of the agreement was to redevelop a property at Bowman Towne Court according to the unsolicited proposal submitted by Foulger-Pratt in October of 2021 and awarded by the Fairfax County Department of Procurement and Material Management in July of 2022. Since entering the Interim Agreement, Foulger-Pratt has engaged closely with Fairfax County Officials to draft a development milestone schedule and community outreach program.

Recently we reassessed the financial viability of the proposed development program due to fluctuating macroeconomic conditions. We found total development costs have grown by nearly 24% compared to our original proposal. The increase in total expenses is directly correlated with the historic rise of construction materials/labor over the last 12 months and recent capital market interest rate hikes imposed by the U.S. Treasury Department. Based on current financial metrics the prospect of executing the project successfully as outlined by the milestone schedule is unlikely. In addition, we fully understand the necessity to evaluate the future location of the public library with the recently formed citizen task force before design plans progress.

Therefore, we believe it’s in all stakeholder’s best interest for Foulger-Pratt and Fairfax County to terminate the interim agreement. We remain incredibly interested in reviewing this site and other development opportunities with FCRHA in the future. If you have any questions, please feel free to contact me.

Sincerely,

Josh Etter
Senior Vice President
Foulger-Pratt Development