Re: Dollar Tree on Maple Avenue in Vienna is now open!
Posted by:
seven figure city...
()
Date: October 01, 2022 01:08PM
Actual JP Morgenthau Wrote:
-------------------------------------------------------
> And by the way, the scheduled auction of the FCC
> water system was upended by the COE’s conclusion
> that it would only be able to provide water to a
> publicly held system. The actual transfer to
> Fairfax Water was completed under mediation at
> which one side was in a simply terrible position.
Your own precious Virginia Places is fucking you with the long hard facts again.
In early 2012, Falls Church decided to escape the legal fight with Fairfax County by auctioning the city's water distribution and sewer system to the highest bidder. The city obtained an appraisal that valued the water distribution system at $40-$53 million, assuming new owners would be able to maintain the income levels based on current water rates, and set a minimum sale price of $44 million.
So, looking to sell the system because they could no longer use water profits to supplement their general fund, Falls Church had the system appraised. It was valued somewhere between $40 and $53 million. The city set a minimum price of $44 million.
"Negotiations failed to arrange a direct sale to the Fairfax County Water Authority (Fairfax Water), because the county would not commit to paying anything for the infrastructure. According to Fairfax County, the 92% of utility customers living in the county had already paid 92% of the cost to construct the city's system. The county would assume responsibility for the utility, but would not give Falls Church a $44 million cash payment - or any cash, for that matter."
So, Fairfax offered nothing. Zero. Zilch. Nada. At that time they were refusing to pay for infrastructure, or anything for that matter. They simply offered to take control of the system.
In July, negotiations for a transfer/merger/sale between Fairfax Water and Falls Church failed to resolve the dispute.
It appears neither side was budging.
The water distribution system, and the rate for water sold in the county by utilities other than Fairfax Water, could be resolved only after a court ruled on the county's utility rate control ordinance - or Plan B. The attempt at Plan B - resolution of the city/county differences through mediation led by a Federal judge - was announced on October, 2012.
A federal judge stepped in to get both sides to come to an agreement.
Mediation was successful. An agreement for Falls Church to sell its water sytem to Fairfax County was announced on November 20, 2012. Falls Church voters ratified the deal in the November, 2013 election with 88% voting in favor. The county water system paid $40 million for the city water system in January, 2014, but did not assume the city's debt and pension obligations (approximately $30 million). The deal required that the high city water rates be lowered to county levels within two years, benefitting the 90% customers of the city water system who lived in the county as well as the 10% who are residents of Falls Church.
So, after offering nothing for the system and refusing to pay for infrastructure, Fairfax agreed to pay over 90% of the minimum sale price set by Falls Church. The sale of the system included the infrastructure that they once vowed they wouldn't pay for. What an about face.
But wait! Fairfax wasn't done handing over stuff to Falls Church just yet!
As part of the bargain, the City of Falls Church got to annex nearly 40 acres of land near the West Falls Church Metro station currently occupied by two city schools. The agreement required that 70% of that annexed land stay dedicated to school uses for the next 50 years, limiting the economic competition with nearby properties in Fairfax Couunty. The city was allowed to develop immediately a 12-acre parcel next to the Metro station. Though Falls Church lost the annual subsidy from its water system, in the Plan B mediation the city obtained a great opportunity to generate revenue from property incorporated into the city limits.
So, on top of the $40 million paid to the city, Fairfax also signed over nearly 40 acres of valuable land. A portion of those land parcels are now being developed as part of the West Falls project. When fully built out, the project’s tax revenue alone (not including ground rent payments) will be over $5 million per year according to reporting from FCNP.
So, which side was in a terrible position?
If Falls Church was in such a terrible position, how did they walk away with $40 million and 40 acres? Fairfax fucking caved and looked foolish at the same time. No wonder you want to pretend differently.