Small Tax District #5 Not Solely Responsible For Funding Arts Center

RESTON, VA — Residents of Small Tax District #5 in Reston would not be solely responsible for funding the performing arts center being considered for Reston Town Center's Block J property.

Joseph Lahait, a debt coordinator with the Fairfax County Department of Management and Budget, told a group of about 50 people at a town hall meeting Tuesday night that all county taxpayers would be responsible if such a project were approved by the Board of Supervisors.

Hunter Mill District Supervisor Walter Alcorn called Wednesday night's town hall meeting at South Lakes High School after some in Reston expressed concern that residents in Small Tax District #5 would see an increase in their taxes if the project was approved.

As part of the next phase of development at Reston Town Center (Block J), developer Boston Properties has a proffer agreement with the county to provide a space for the performing arts center.

The county has two choices for how Block J can be used, according to a June 13 release from Alcorn's office:

"One athletic field that could be located elsewhere – either on Park Authority property (Option 1), on top of the 'Freedom Garage' also owned by Boston Properties (Option 2), or to give the Park Authority funding to build a field somewhere else in the Reston area (Option 3). All of these sub-options are detailed in proffer 34. Or,

"A community-based performing arts facility to serve Reston and Fairfax County of up to 60,000 gross square feet in 'Block J' of the approved development on Sunset Hills Road, as detailed in proffer 36."

After the Reston Community Center presented its Reston Arts Feasibility Report at a public meeting in June, some in the community questioned how the project was going to be funded. They worried that approving the project without an identified source of funding would obligate Small Tax District #5 residents to pay for any future bonds taken out to fund the project.

At Alcorn's request, Boston Properties agreed to extend the deadline for a decision by six months to allow Reston residents more time to provide feedback on the project. The original deadline was July 31, so the new deadline is Jan. 31, 2023.

What Alcorn and Lahait explained on Tuesday night was that the performing arts center was the same as any other public facility in the county, such as library or recreation center. Reston residents were providing feedback on which proffer they preferred, either an arts center or athletic fields, because whichever the chose would be located in Reston.

If Alcorn came to the board and said the Reston community wanted the 60,000-square-foot arts center being proffered by Boston Properties, the project would move forward as a general obligation bond for all county voters to consider, according to Lahait.

"General obligation bonds are paid back by the entire county, the entire full-facing credit of the county's $4 billion-plus general fund," he said.

The county would not go after a small tax district to pay for a project the size of the arts center, because it would not be something that could be feasibly sold to investors, according to Lahait. Putting forward the best possible financial plan translates to the lowest potential interest rate on the bond for the county.

"The lowest debt service, so that, ultimately, everyone in the county is paying much lower, taking advantage of the best possible bond rate agreement to put forward to the county voters," he said.

While Lahait admitted a referendum could be passed to make a specific tax district responsible for a project, he said such an action would be a decision of the entire Board of Supervisors.

If the proffer for the arts center moved forward as planned and became part of the county's long-term plan, issuing a general obligation bond for all county voters to approve would be the first priority, he said.

"Let me ask this question," Alcorn said, after Lahait had finished speaking. "Who in here wants Small Tax District #5 to pay for the construction of this?"

No one raised their hand.

"OK, thank you very much. All right. We can go home," Alcorn said. "Just kidding. Just kidding. That's very helpful. Thank you."

Most of the rest of the town hall was focused on which proffer would be chosen.

Those who supported the athletic field proffer expressed skepticism about locating the facility on top of a parking garage.

Representatives from various local arts groups, including the Reston Chorale, the Reston Community Players, and Arts Fairfax, advocated for the performing arts center. They stressed the need for more rehearsal and performance facilities in the county.

At the end of the meeting, Alcorn said he planned to host an additional town hall meeting about the proffer, possibly a virtual meeting, but did not give a specific date.

Related:

Reston Performing Arts Center Town Hall A Chance To Provide Feedback