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Developer HHHunt is seeking help from the county to finance the construction of roads and other improvements.

Money Talks

 Wilton on the James is a 1,184-acre project in Varina.

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Tom Lappas
Richmond.com
Wednesday, May 09, 2007

The developer of Varina’s first massive planned community wants Henrico County to provide a financing vehicle for infrastructure improvements for the 1,184-acre project, which will be known as Wilton on the James.

The community will be situated along the James River beneath the Pocahontas Parkway and will include 3,209 homes, a 300-acre park and 31 acres of retail property.

Developer HHHunt has asked the county to establish a community development authority (CDA) that would sell nearly $75 million in bonds to pay for the construction of roads and other improvements. The bonds would be repaid through a combination of special assessments on properties in the community as well as the redirection of a portion of tax revenue from the development.

But many county officials are staunchly opposed to setting a new precedent by authorizing the creation of a CDA to fund a mostly residential development.

To date, Henrico has created CDAs only to fund infrastructure improvements at three commercial projects – Short Pump Town Center, The Shops at White Oak (under construction at Laburnum Avenue and I-64) and Reynolds Crossing (at Glenside Drive and West Broad Street in the West End).

Those CDAs were beneficial, county officials believe, since they helped or will help attract development to the three regions that will result in a net positive financial return for the county over time.

County Manager Virgil Hazelett and other county officials are opposed to establishing a CDA for residential developments, however, since such projects typically use more county services than their real estate taxes can support. Henrico already is attracting numerous residential projects, Hazelett said, and will continue to attract more without offering incentives.

Hazelett outlined his objections in two letters to HHHunt, and during an April 24 work session, other county officials joined him in questioning the idea.

"What you’re asking us to do is accelerate your image in that area and create a faster-moving product at the expense of the person who is going to move there," Brookland District Supervisor Dick Glover told HHHunt officials. "If we do this, we’re opening the door for every development that comes in here [to request the same funding]."

The special assessments proposed by HHHunt would require owners of single-family homes to pay about $700 per year for 30 years. Owners of condos and townhomes would pay $435 annually. Each fee would increase by about two percent annually, according to Jim Crowder, a vice president for finance and accounting for HHHunt. Fees also would be attached to other property in the community, he said.

Such a plan would permit Hunt to build the entire park; Wilton Parkway (to connect Osborne Turnpike with Route 5); and an interchange at the Pocahontas Parkway near the community prior to beginning construction on homes, Crowder said. And land owners always would have the option of paying off the entire amount owed at one time. Additionally, the sale prices of new homes in the community likely would be less than comparable homes in the region as a result of the assessments, he said.

Under Hunt’s plan, by 2026 Henrico would realize $114 million in property taxes from the community – $42 million of which would be applied to pay off the bonds, Crowder said.

But Glover objected to that concept, arguing that the county should not have to surrender tax revenue for the development.

"I don’t believe that the rest of the county should bear the burden of $42 million for your project," he told Crowder.

The county has eight criteria for the creation of CDAs; the proposal for the Wilton CDA fails to meet four of those standards, Henrico Finance Director Reta Busher told the board, while more information would be required to determine if it meets the other points.

HHHunt President Dan Schmitt told county officials that the CDA was necessary because traditional methods of funding would not be available for such a large project. Without the CDA, he said, the project would have to be completed piece by piece in a less desirable manner.

"The CDA is really critical for us to realize our original vision," he said. "This community will create a standard out in the eastern part of Henrico that will raise the bar for all that follows.

"We cannot go out there and build a subdivision – we have to make a statement."

Varina District Supervisor Jim Donati urged Hazelett to re-examine the county’s criteria for the establishment of a CDA, arguing that the Wilton on the James project would provide a number of benefits to the county, including new roads and commercial sites.

But Glover wasn’t convinced that Wilton homeowners would appreciate the extra fees they’d have to pay if the plan were approved.

"After 30 years, if they looked around at their neighbor in my district or in the Tuckahoe District who isn’t paying that fee. . . what do you think they’d say about that?" Glover asked.

Supervisors are expected to consider the proposal in more detail during a future work session.

For in-depth coverage of Henrico County, pick up a copy of Henrico's hometown newspaper - the Henrico Citizen - at Ukrop's, Kroger, Wawa or any Henrico public library, or call (804) 262-1700 to subscribe.

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