the southeast fairfax development...
TRANSCRIPT
www.sfdc.orgThe Southeast Fairfax Development Corporation is a 501(c)3 non-profit, dedicated
to promoting the redevelopment and revitalization of the Richmond Highway corridor of U.S. Route 1 from the Beltway to Fort Belvoir.
www.sfdc.org
Annual Report 2016
The Southeast Fairfax Development Corporation
"Progress By Design"
03Your Company Name SFDC
Above: Penn Daw, approximately late 1970's at the intersection of Richmond Highway and North Kings Highway. Left, a map of the Penn Daw Community Business Center by Bowman Consulting. Above and left: 1) The Shelby, 2) South Alex, and 3) Novus Kings Crossing
In Focus: Penn Daw..............................................................Page 2
Our Mission.........................................................................Page 4
Greetings..............................................................................Page 5
Our Community..................................................................Page 6
Snapshot 2016......................................................................Page 8
SFDC in the Lead.................................................................Page 9
Transformation..................................................................Page 10
Fort Belvoir and BRAC......................................................Page 10
Embark Richmond Highway..............................................Page 11
Economic Development: Dollars & Sense..........................Page 12
On the Horizon...................................................................Page 13
Operations..........................................................................Page 14
Governance & Sponsors......................................................Page 15
Table of ContentsThe Shelby, left, completed in 2014, was developed by Insight Property Group. It was sold to Passco, an institutional investor, in 2016 for $70 million.
Penn Daw is increasing in density, due to its proximity to Metro and the Capital Beltway. The first multifamily development, The Shelby by Insight Property Group, was completed in 2014. Two more multifamily developments are on the way: South Alex by Combined Properties, right and number two above, in the old Penn Daw Plaza and Novus Kings Crossing by Cafritz, number three above, but not pictured.
There are 11 wayfinding signs along Richmond Highway
In Focus: Penn Daw
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04 SFDC 05 SFDC
Our MissionTo develop, implement and support projects designed to stimulate economic growth in the Richmond Highway Corridor by working closely with business owners, developers and local residents.
Southeast Fairfax Development Corporation (SFDC) is a 501(c)(3) nonprofit economic development organization dedicated to promoting the redevelopment and revitalization of the Richmond Highway Corri-dor of U.S. Route 1 from the Beltway to Fort Belvoir in Fairfax County, Virginia. Since 1981, SFDC has helped direct nearly $2 billion of private investment to the Richmond Highway corridor. As southeast Fairfax County continues to grow with more residents and new businesses, our organization serves as a helpful resource for business owners, developers, property managers, and members of the community.
On behalf of the Southeast Fairfax Development Corporation’s Board of Directors, it is my pleasure to present the Fiscal Year 2016 Annual Report.
The past year has seen a continuation of economic development activity in the Richmond Highway Corridor, includ-
ing new multifamily and commercial development. The Richmond Highway Corridor is the second-busiest area of development in Fairfax County. In the last five years alone, new projects have increased real estate tax revenues by more than $3 million annually, benefitting all county services and reducing pressure on residential real estate taxes. One of SFDC’s especially successful initiatives has been our quarterly Summits. The summits are business resource events that connect the community with experts to talk about various topics pertaining to the revitalization of Richmond Highway. We are also delighted to report that our Business Roundtable Speaker Series, which provides speakers focusing on topics such as education, networking, business diversity, and other issues affecting small businesses, has been sustained through three years with private grant and sponsorship funding.
I welcome the opportunity for our investors and Board members to carry on our proactive role in talking to col-leagues and business associates about the mission of the SFDC. As President, I am humbled by our board members’ attendance at our events and their investment in redeveloping and revitalizing the Richmond Highway Corridor.
I am grateful for the opportunity to serve as your President; I appreciate all your support for a better community, and look forward to working with you for the benefit of the Richmond Highway Corridor.
Walter Clarke
PresidentSoutheast Fairfax Development Corporation
The Southeast Fairfax Development Corporation functions through a network of essential stakeholders in addition to our Board of Directors and professional staff. This network includes area elected officials, Fairfax County staff, the development industry, other organizations, and our neighborhood
residential community. We have been deliberate and strategic in our approach to marketing the attributes of the Richmond Highway Corridor, always keeping in mind we are funded mainly by taxpayer dollars. We appreciate our strategic business partners (see page 15), who are instrumental in helping SFDC continue to market and promote the advantages of the Corridor, and to host quality programs that assist small businesses, the development industry and local residents. We take seriously our fiduciary responsibility to use all funds in an efficient and effective manner.
We understand the importance of building coalitions and leveraging resources to increase the viability of the Richmond Highway Corridor as a strategic location for doing business. As separate entities we can only do so much, but together we can become a powerful voice for encouraging quality development, generating new job opportunities and attracting new investment. In addition to our private partners, our public partners include the U.S. Small Business Administration, the Virginia Department of Business Assistance, the Fairfax County Office of Community Revitalization, the Fairfax County Office of Public/Private Partnerships, Visit Fairfax and the Fairfax County Economic Development Authority. All of these partnerships have been instrumental in helping SFDC to continue to market and promote the Richmond Highway Corridor as a place to live, work, and play.
Edythe Kelleher Executive Director Southeast Fairfax Development Corporation
Greetings
07 SFDC
6 CBCs
The nine-mile stretch of Richmond Highway covered by SFDC is a designated Community Revitaliza-tion District (CRD), which allows for expedited land-use and zoning review. The CRD contains six Com-munity Business Centers (Right, depicted in yellow), defined by Fairfax County as: "Areas where redevelopment should encourage a mix of uses focused around a core area of higher intensity, such as a town center or main street in a pedestrian-oriented setting. Transitions in intensity and compatible land uses should protect surrounding stable residential neighborhoods."
9 Miles
SFDC covers nine miles along the Richmond Highway Corridor of US Route 1 in Fairfax County from the Capital Beltway (I-495) to the Fairfax County Parkway.
112,774 Corridor Population
43,017 Households
37 Median Age
71% Retail 17% Office 12% Lodging
Our Community 40,000
Employees on Fort Belvoir 3 Historical Sites: 1) George Washington’s Mount Vernon Estate 2) James Madison’s Woodlawn Manor 3) George Mason’s Gunston Hall
$95,680 Median Income
Sources: US Census, Table S1903, American Community Survey, 2009-2013 5-yr Estimates; Urban Analytics, Inc., "A Sample of Public Revenues and Economic Impacts of Various Land-Uses Along the Richmond Highway Corrdior in Fairfax County, Virginia: 2009, 2013, and 2014
Sources: US Census, Table S1903, American Community Survey, 2009-2013 5-yr Estimates; Urban Analytics, Inc., "A Sample of Public Revenues and Economic Impacts of Various Land-Uses Along the Richmond Highway Corrdior in Fairfax County, Virginia: 2009, 2013, and 2014"
SFDC 06
09 SFDCSFDC 08
9Multifamilyprojects have been completed, are under construction, or have been planned and approved for construction.
Below: In 2016, MRP Realty completed The Parker, a four to six story, 360 unit, multifamily building adjacent to Huntington Metro Station.
17 Hosted Events by SFDC, including:
6 Business Roundtable Speaker Series (Educational events for local businesses, such as government contracting for small businesses and digital marketing)
4 Summit Series Events
(Educational summits with a focus on macro topics, such as transportation and trends in the restaurant industry)
Snapshot 2016 7 Hotels have been completed, are underconstruction, or have been upgraded.
Above: Baywood Hotels completed its fourth hotel on Richmond Highway in 2016, a TownPlace Suites by Marriott, in Woodlawn, near Fort Belvoir.
SFDC in the LeadA Conduit for Change:
Embark Richmond Highway is the project name for Fairfax County's widening of Richmond Highway, construction of Bus Rapid Transit (BRT) along the corridor, and reconfiguration of the area Comprehensive Plan. Six SFDC board members serve on the Advisory Group, which is the body that advises county staff on project development, execution, and community outreach.
The Embark Richmond Highway Advisory Group
SFDC, and Mount Vernon and Lee Chamber of Commerce, hosted the Economic Outlook Summit (Photo, left), featuring the nation's leading economists along with regional and local academics and experts, to give the more than 150 attendees a multi-layered and comprehensive portrait of the economy in Southeast Fairfax County.
2016 Economic Outlook SummitMarketing and Thought Leadership:
Left to right: Ed Long, County Executive, Fairfax County, VA; Edythe Kelleher, Executive Director, SFDC; Dr. Ann Battle Macheras, Director of Research, The Federal Reserve Bank of Richmond; Dr. Lawrence Yun, Chief Economist, National Asso-ciation of Realtors; Dr. Mark White, Deputy Director and Economist, Center for Regional Analysis, George Mason University (Pictured); Dr. Terry Clower, Director and Economist, Center Regional Analysis, George Mason University(Not pictured); Jane Gandee, President, Mount Vernon-Lee Chamber of Commerce; Michael Neibauer, Reporter, The Washington Business Journal; Scott Stroh, Vice President, Mount Vernon-Lee Chamber of Commerce; Dr. Jerry Gordon, President and CEO, The Fairfax County Economic Development Authority.
$91m New construction
$15mRenovations & upgrades
79 Highway
Beautifiers(Mary Thonen Beautification
Award Participants)
In the past five years:
In the past three years:
11 SFDC10SFDC
TransformationRichmond Highway is on the cusp of change. The growth of Fort Belvoir, the opening of MGM Casino at National Harbor in Maryland, and the relocation of the National Science Foundation to the Eisenhower Valley have all contrib-uted to development along the corridor. Furthermore, Fairfax County is planning what is perhaps one of the most unique transportation and land-use initiatives on the East Coast: Embark Richmond Highway. The project will widen Richmond Highway from the Beltway to Fort Belvoir, include a fully dedicated Bus Rapid Transit (BRT) line, and plan a new grid of streets in each of the corridor's six CBC's.
BRAC and Fort Belvoir
Embark Richmond Highway"Embark Richmond Highway is a multi-year effort involving land use, transportation planning, design and construction, which will result in a bus rapid transit system to operate primarily on dedicated lanes along Richmond Highway. The stations will run initially from the Huntington Metrorail Station to Fort Belvoir and will include a possible future extension of the Metrorail Yellow Line to Hybla Valley." Fairfax County website, http://www.fairfaxcounty.gov/news2/embarking-on-the-future-of-richmond-highway/
$400,000A $400,000 competitive grant was awarded to Fairfax County Department of Transportation (FCDOT) for land-use planning by the Federal Department of Transportation.
SFDC proudly partnered with FCDOT on the grant application.
What is BRT?BRT is an acronym for Bus Rapid Transit. According to the National BRT Institute, BRT "is an innovative, high-capacity, lower-cost public transit solution that can achieve the performance and benefits of more expensive rail modes. This integrated system uses buses or specialized vehicles on roadways or dedicated lanes to quickly and efficiently transport passengers to their destinations..."
Above: A map of the proposed BRT line and stations. The map also includes the corridor's CBCs.
Belvoir Square (pictured, above and below), a joint venture between Chesapeake Realty Partners and Eastwood Properties, is a 283 unit, mixed-use, multi-family development adjacent to Fort Belvoir's Tulley Gate.
Rapid growth. By 2030, Fort Belvoir will employ 55,000 service members and civilians. The Base Realignment and Closure Commission (BRAC) has consolidated agencies and organizations within the Department of Defense onto Fort Belvoir. The result has been a growth of development along the southern end of Richmond Highway, such as Belvoir Square, a mixed use project adjacent to the base, and three new hotels.
Above: Fort Belvoir Community Hospital, completed in 2013. Above background: Fort Belvoir Community Hospital under construction
$57million Insight Property Group, through joint ventures, aquired
two apartment complexes near Fort Belvoir in SFDC's coverage area, for a total of $57.45m.
Source: Washington Business Journal
Map: Fairfax County Government
12SFDC
2009
Single Family 807 $479,000 $386,553,103 $108,000 $87,317,400
Town Homes 498 $198,567 $98,886,556 $48,600 $24,202,800
Condominiums 292 $167,561 $48,927,870 $41,300 $12,059,600
Total 1,597 $534,367,529 $123,579,800
Weighted Average $334,604 $77,382
Total Units
Average Real Estate
Market Value
Total Real Estate
Market Value
Average Imputed
Houshold Income
Aggregate Imputed
Household Income
2013
Single Family 827 $587,421 $485,796,889 $122,400 $101,224,800
Town Homes 355 $325,157 $115,430,648 $71,900 $25,524,500
Condominiums 228 $217,143 $49,508,544 $49,200 $11,217,600
Total 1,410 $650,736,081 $137,966,900
Weighted Average $461,515 $97,849
2014
Single Family 734 $634,435 $465,675,357 $134,600 $98,796,400
Town Homes 381 $336,005 $128,017,932 $75,700 $28,841,700
Condominiums 277 $252,041 $69,815,320 $58,100 $16,093,700
Total 1,392 $663,508,609 $143,731,800
Weighted Average $476,538 $103,256
2015
Single Family 535 $587,456 $314,288,883 $121,000 $64,735,000
Town Homes 211 $348,368 $73,505,752 $75,900 $16,014,900
Condominiums 135 $237,302 $32,035,761 $52,900 $7,141,500
Total (3) 881 $663,508,609 $87,891,400
Weighted Average $476,538 $99,763Source: County of Faifax, VA; Long & Foster; Burke & herbert Bank; Urban Analytics, Inc Note: 1 Reflects actual units sold. Does not include units not-for-sale or units listed for-sale.2 Through June 30, 2015.3 In current year dollars.
10 SFDC
The Richmond Highway Corridor is second only to the Tysons Corner-Silver Line Corridor in economic development in Fairfax County. The corridor serves as a gateway to the growing areas of Fort Belvoir, the Eisenhower Valley and Old Town in Alexandria, Arlington, Washington DC, and the National Harbor in Maryland. Demand for walkable and pedestrian-friendly multifamily build-ings will continue to add residents to the Richmond Highway Corridor.
The table below displays residential sales data1 in 2009, 2013, 2014, and 20152, in zip codes 22303, 22306, 23307, 22308, and 22309. Sales prices have increased by 42% since 2009, and reflect growing demand for housing. The decline in imputed household income from 2014 to 2015 is primarily attributable to a national decline in 30-year fixed rate mortgate funding
Economic Development Dollars & SenseOf the total 5,514,512 non-residential square footage along the corridor, 71% or 3,915,008 sq ft is retail, 17% or 936,799 sq ft is office, and 12% or 662,325 sq ft is hotel and lodging. Assessed values remained flat in 2015, however, once a property had been redeveloped, its valuation increased substantially. Since January 2011, there have been over 20 private developments along the Richmond Highway Corridor, that resulted in an additional $3 million in annual real estate tax revenue for Fairfax County. The table below displays non-residential real estate data along the Richmond Highway Corridor for 2009, 2013, 2014, and 2015
The Parker, built by MRP Realty for $80m, opened in May of 2016
The Shelby, built by Insight for $60m, opened in August 2014
Richmond Highway Economic Development Facts: Fairfax County is an attractive place to live. Property values are driven by the county's location and services it provides, such as the school system, parks and recreation, and transportation.
Year Total Assesment Value Percent Change2009 $1,181,987,5302013 $1,254,939,720 6.17%2014 $1,268,104,450 1.05%2015 $1,280,752,030 1.00%
The Multiplex Cinema became Costco in 2013
On the HorizonThe Richmond Highway Corridor is also home to many unique development projects. The corridor's age and early development, relative to most other areas in Fairfax County, requires creative applications of land-use to meet area and regional demand. Among the unique projects are the re-use of the Original Mount Vernon High School, a structure built in 1939, atop 22 acres. In 2016, the Islamic Saudi Academy exited the Original Mount Vernon High School, where it had been a tenant since 1985. A citizen task-force made suggestions for the structure's future use. Another project is the the North Hill development. The Fairfax County Redevelopment and Housing Authority (FCRHA) owns a vacant 33-acre parcel on the east side of Richmond Highway at the intersection with Dart Drive. The developer, CHPPENN, a partnership between Virginia-based Community Housing Partners (CHP) and Pennrose, has proposed 278 units in six multifamily buildings, structured parking, and 195 for sale town homes.
North Hill
Chipotle in the Beacon Hill Shopping Center, owned by Saul Centers, Inc, a real estate investment trust
For every $1.00 spent locally by new residents, 48 cents is added to Fairfax County. (Source: Urban Analytics, Inc)
$1.48
3 High Schools, 6651 students3 Middle Schools, 3,344 students
15 Elementary Schools, 10,935 students. (Source: Fairfax County Government)
21 Schools
Average annual ridership of Fairfax Connector routes serving Richmond Highway (Source: FCDOT, data averaged by SFDC)
112,233 Passengers
1895 Acres Of protected wetlands and park space in Huntley Meadows and Dyke Marsh.
(Source: Fairfax County Government and Friends of Dyke Marsh)
Source: County of Faifax, VA, Department of Tax Administration; Urban Analytics, Inc Note: 1) Raw data smoothed by Urban Analytics to eliminate duplicative tax map number and assessed valued entries in the database.
The Original Mount Vernon High School
14SFDC
Marketing and promotion $15,087
In-kind program space expense $3,300
Beautification and landscaping $0
Facade improvement $0
Special projects and Mary Thonen Awards $255
Total direct expenses $18,642
Fairfax County (base grant) $183,320
Private sector contributions $19,750
In-kind program space contributions $3,300
Interest income $510
Total revenues $206,880
Direct Expenses
Salaries $41,623
Employee benefits and taxes $17,793
Contracted services $90,900
Total personnel services $150,316
Personnel Services
Accounting and Legal $1,000
Information technology $2,411
Depreciation $0
Dues and subscriptions $2,044
Insurance $1,746
Meetings and seminars $1,456
Office expenses $1,417
Postage $147
Payroll service and bank fees $1,378
Professional staff development $500
Supplies and small equipment $702
Rent and utilities $10,797
Taxes and licenses $27
Telephone and internet $2,184
Travel $893
Total operating expenses $26,702
Total expenses $192,360
Net operating result $14,520
Operating Expenses
Total Expenditures
Expenditures
Revenues
Operations of SFDCWe are a 501(c)3 nonprofit that relies on financial support from grants, sponsorships, and in-kind donations. Without the backing of our private and public partners, we would not be able to provide the programs, information, and educational events that foster growth and development along the Richmond Highway Corridor. If you are interested in becoming a partner in the revitalization of the Richmond Highway Corridor, please visit www.sfdc.org or contact us directly at [email protected]
SFDC Staff Edythe Kelleher, Executive Director
Daniel Lagana, Communications DirectorEleni Goulias, Administrative Assistant
Fairfax County SupervisorsDan Storck, Mount Vernon Magisterial District Jeff McKay, Lee Magisterial District
Sponsors & Supporters of Revitalization
GovernanceSFDC 2016 Board of Directors
Executive Committee:Walter Clarke, Burke & Herbert Bank, President
John Thillman, Landmark Atlantic, Vice PresidentBruce Leonard, Streetsense, Treasurer
Karen Pohorylo, Community Volunteer, Secretary
Anthony "Tony" DeLorenzo, Fairfax County Office of Community RevitalizationKaty Fike, McEnearney Commercial Real Estate and the Mount Vernon-Lee Chamber of Commerce
Carlos Heard, Saul CentersRichard "Dick" Knapp, Community Volunteer
Tim Mulcahy, Lennar Multifamily Vik Patel, Baywood Hotels
Christopher Soule, Lee District Association of Citizens Organizations Rebecca "Becky" Todd, Community Volunteer
Mark Viani, Bean, Kinney & Korman, P.C.Ellen Young, Mount Vernon Council of Citizens Associations
Richmond Highway, 1960 Photo: SFDC Archives
The Dixie Pig, now the Rite Aid on Beacon Hill.Photo: SFDC Archives
SFDC15
The Southeast Fairfax Development Corporation 6677 Richmond Highway, Second Floor
Alexandria, VA 22306
(703) 360-5008www.sfdc.org
Southeast Fairfax Development Corporation
This annual report could not have been possible without the invaluable contributions of West Potomac High School Arts Students, Carlos Miguel Lopez Acquino and Lindsay Daffron James, who captured many of the beautiful photographs contained in this document. This report was prepared in coordination with Edythe Kelleher, Executive Director, SFDC, Daniel Lagana, Communications Director, SFDC and primary author, and Walter Clarke, President, SFDC.