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Winchester council approves bond authorization as developer and some councilors spar over cost increases at Ward’s Plaza
Summary
After heated public comment and council concern over a jump from earlier estimates, Winchester City Council approved an ordinance authorizing up to $15.5 million in general obligation bonds to finance capital projects including a parking garage at Ward’s Plaza; the developer said financing commitments are in place and the garage is budgeted with a guaranteed maximum price of $12 million.
Winchester — The Winchester City Council on May 26 approved a second-reading ordinance authorizing the issuance and sale of up to $15,500,000 in general obligation public-improvement bonds, a package that includes financing for a parking garage connected to the Ward’s Plaza redevelopment.
The funding authorization drew extended public comment and council debate about shifting cost estimates. A member of the public urged the council to delay action until building financing for apartments and retail is secured, calling issuing bonds beforehand “speculative and possibly reckless.”
John W. Gray Jr., managing partner of Winchester Acquisition Partners, told the council he has “a fully ratified purchase and sale agreement for the Publix grocery store,” and said he has secured “a loan commitment from an institutional lender to finance everything that we need to construct that Publix grocery store.” Gray said the developer will provide equity and expects to close the land bay and proceed with grading and rock removal in coming weeks.
Council members questioned the increase in the reported cost for the parking garage compared with earlier estimates. The city attorney had described an $8 million figure as a 2022–23 guesstimate; staff and the applicant said bids, inflation and procurement mechanics have pushed project estimates higher. City staff told the body the project uses a design–build procurement and that a guaranteed maximum price for the garage construction has been set at $12,000,000, while the $15,500,000 bond figure includes capitalized interest and other financing costs.
Councilors and speakers raised concerns about who ultimately pays the bonds if revenues fell short. Staff and the applicant said the garage is expected to operate as an enterprise and to cover debt service through parking revenues and anticipated uses from adjacent multifamily development; lenders and the Virginia Resources Authority reviewed the financing and signaled willingness to lend. Councilors also noted the city’s history of self-sustaining parking garages downtown.
After discussion, the council voted to approve the ordinance on second reading. The council later approved a companion resolution to proceed with the sale of the bonds.
What happens next: With the council’s authorization and the accompanying sale resolution approved, staff and the city’s financial advisors will finalize bondsale documentation and the developer has indicated it will move toward site work and closing the land-bay sale. The council’s approval does not itself guarantee contractor performance; city staff said project costs and claims of financial commitments will be monitored as the project proceeds.
