Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Eda Finance topic
No spam. Unsubscribe anytime.
Economic Development Authority seeks return of $925,000 contributed to Virginia Village acquisitions; offers targeted small-business work plan
Summary
The EDA asked council to reimburse $925,000 previously contributed to the Virginia Village acquisition effort, proposing to keep part of the remainder in the strike fund on a low-interest basis and use funds for small-business and placemaking support if returned.
Ross Littgenhaus, chair of the Economic Development Authority (EDA), asked Falls Church council April 7 to consider reimbursing the EDA for $925,000 previously contributed to the Virginia Village acquisition effort. The EDA’s request follows a shift in development partners and the pause of the previously anticipated Wesley Housing transaction.
Background: The City and the EDA previously partnered to pool funds for a revolving Acquisition Strike Fund aimed at preserving affordable housing in the Virginia Village area. The EDA provided approximately $925,000 from proceeds earlier held in the EDA (proceeds associated with the city’s prior property sale). Littgenhaus told council the EDA now has limited capacity to deploy that capital in the near term and requested reimbursement on terms staff outlined — including returning $400,000 immediately to the city’s capital balances and treating a $525,000 balance as a low-interest (CPI + 100 bps) loan that would remain in the acquisition fund so the EDA could continue its work.
Proposed alternative use and EDA 2025 plan: Littgenhaus outlined how the EDA would use reimbursed funds: a combination of storefront activation, small business support, and tactical placemaking to support local merchants and adapt to near-term economic stress in the wake of federal contracting uncertainty. Littgenhaus emphasized the EDA’s intent to remain a partner in affordable-housing acquisition if council desired, and noted the EDA’s small operating budget and limited ongoing revenue (transient-occupancy-tax receipts are modest).
Council reaction and timeline: Councilmembers expressed appreciation for the EDA’s work and recommended formalizing the transfer in the upcoming budget process. Staff indicated the reimbursement could be included with the May budget actions or via a budget amendment; council asked staff to prepare enabling language. No final action occurred at the work session.
