City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 6, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES F. PARAJON, CITY MANAGER /s/
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Discussion of a Conversion of 5001 Eisenhower Avenue Office Building to Residential Use, to Include Possible City Financial Participation to Induce the Conversion.
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ISSUE: Facilitating economic use of a long-vacant office building and a portion of a 9.73-acre site located at 5001 Eisenhower Avenue.
RECOMMENDATION: That City Council direct staff to undertake community engagement and prepare an ordinance for First Reading on December 10, 2024, and for Public Hearing, Second Reading, and Adoption on December 14, 2024, defining possible City financial participation to induce redevelopment of 5001 Eisenhower Avenue.
SUMMARY: 5001 Eisenhower Avenue is a large, outdated office building, originally constructed in 1973 for the U.S. Army Material Command. Since that agency's move to
Ft. Belvoir in 2003, the 600,000+ SF building has been vacant. Despite the efforts of two owners over 21 years to identify and secure federal tenants, the most likely user of an office building of this size and orientation, no lease was ever executed. The building's chronic vacancy has significantly raised Alexandria's total office vacancy rate and is a contributing impediment to significant Eisenhower West redevelopment activity.
Most recently, in 2019, in an effort to induce commercial activity, the City granted the owner, an affiliate of Stonebridge, a partial real estate tax abatement to make the site conducive to office redevelopment and leasing. Similar to a previous partial real estate tax abatement granted for the site, these proposed projects were not realized because office tenants never leased the facility.
The City has also granted development requests and Development Special Use Permits to improve the bui...
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