City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 8, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Amend Section 3-2-192 to Provide a Performance Based Partial Real Estate Tax Abatement to Induce Economic Development at 5001 Eisenhower Avenue.
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ISSUE: Facilitating economic use of a long-vacant 16-acre office site at 5001 Eisenhower Avenue.
RECOMMENDATION: That City Council approve on First Reading and schedule for Public Hearing and Second Reading, and Adoption on May 18, 2019, an ordinance amending section 3-2-192 of the City Code to provide a performance based partial real estate tax abatement to induce economic development 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SUMMARY: 5001 Eisenhower Avenue is a large, outdated office building, originally constructed in 1973 for the U.S. Army Material Command.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 building has sat vacant for 16 years, and has been the subject of numerous failed federal agency lease attempts and has been passed over for purchase by many real estate investors. The owners since 2004, Prudential Real Estate and its related successor, have not proven successful in the pursuit of federal tenants. As a result, the building has sat vacant, significantly raised Alexandria's total office vacancy rate, and has been an impediment to any significant Eisenhower West redevelopment activity.
A local major real estate investor and developer, Stonebridge, is now under contract to purchase the 5001 Eisenhower building, and has requested a partial real estate tax abatement to make the site conducive to office redevelopment and leasing. Stonebridge is the developer of the Oakville Triangle and the Wegmans-anchored Hoffman Town Center sites. The partial real estate...
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