City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 5, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: HELEN S. MCILVAINE, DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
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Consideration of a Resolution Designating the Potomac Yard Landbay G-G Site a Revitalization Area.
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ISSUE: Consideration of a Resolution Designating the Potomac Yard Landbay G-G Site a Revitalization Area.
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RECOMMENDATION: That City Council:
1) Approve designating the Potomac Yard Landbay G-G site a Revitalization Area pursuant to § 36-55.30:2.A of the Virginia Code;
2) Authorize the City Manager to execute any necessary documents related to this resolution in support of Wesley Housing’s application for Low-Income Housing Tax Credits
BACKGROUND: Wesley Housing received development approvals in December 2025 for Landbay G-G, an 89-unit affordable housing project located at 601 East Glebe Road. The proposed six-story building will include predominantly family-sized two- and three-bedroom units serving households earning between 30 percent and 80 percent of the Area Median Income (AMI). On average, rents will be affordable to households earning up to 60 percent of AMI. Planned amenities include a multipurpose community room, a leasing office, bicycle storage, and other resident-focused spaces.
The proposal to incorporate an affordable rental building into JBG Smith’s revised development concept for Potomac Yard was critical to its approval. To accomplish this, JBG Smith entered into a partnership with Wesley Housing to donate the Landbay G-G site-valued at approximately $2.5 million by the Office of Real Estate Assessments in 2025. The value of the land donation will help support the project’s tax credit application. JBG SMITH has also committed to address the affordable housing project’s financing gap, if that is necessary, and has identified approximately $2.3 million to be contributed at a later phase.”
Wesley Housing is preparing a March 2026 application for competitive (9%) low income housing tax credits. Both the City Council Resolution and the proposed rental subsidy meet critical scoring criteria that strengthen the competitiveness of Wesley’s G-G application and support Alexandria’s strategic housing goals.
DISCUSSION: In consultation with the the Alexandria Economic Development Partnership, the City Attorney’s Office and Office of Housing staff have concluded that while PY is experiencing robust economic growth, production of new housing offering a full range of affordability levels to attract and retain a diverse workforce, particularly individuals needed to fill lower-wage occupations, is not likely to occur without government assistance like low income housing tax credits and below-market financing such as that offered by Virginia Housing.
The project is being advanced with minimal City financial resources; however, its feasibility is highly dependent on securing competitive 9 percent tax credits from Virginia Housing. The land donation from JBG Smith provides significant leverage in the competitive funding round, and the City’s support through the Revitalization Area designation and rental subsidy grant will further enhance the project’s viability and competitiveness.
FISCAL IMPACT: None
ATTACHMENTS:
1. Resolution Designating the Potomac Yard Landbay G-G Site as a Revitalization Area
2. Potomac Yard Landbay G Block G Site Map
STAFF:
Emily A. Baker, Deputy City Manager
Christina Zechman Brown, Deputy City Attorney
Aspasia Xypolia, Deputy Director, Office of Housing
Tamara Jovovic, Housing Program Manager, Office of Housing