This is an op-ed by new Reston Association President Ellen Graves. It does not reflect the views of Reston Now.

Reston Association was approached by Tetra Partners, the owner of the old Reston Visitor Center property at Lake Newport, asking if RA was interested in purchasing the property for $2.7 million. The owner indicated that the price was firm (he is in the commercial real estate development and brokerage business) and that he was going to make a decision in June regarding whether to sell the property (to RA or another entity) or continue to use it for his own purposes.

This 3.147-acre property strategically connects two larger RA common-area properties. RA has non-exclusive parking rights as well as trail easements in the property. Many members now enjoy portions of the property not within the RA easements. A considerable number of members have been concerned for years about the spectre of more intense commercial use of the property.

For these reasons, the RA Board was interested in discussing favorable but fair contingent contract terms with the owner. The RA Board did not secretly decide to initiate the acquisition of this property. The seller initiated these discussions. The seller’s original price was not based on any RA appraisal. When the RA Board became convinced that the offer from the owner could present a rare opportunity to expand the common area and childrens’ programs within Reston, it voted to decide this issue the “Reston way.”

The “Reston way” is to let the members decide, providing them with as much accurate, factual information as possible. That is why the Board directed staff to initiate a referendum, so that all RA members can vote whether the purchase and reuse of this property as common area, on the best terms and conditions that the seller will allow, is an opportunity that should be taken.

We are not a local government or municipality that can condemn property. We can purchase property only on such terms as the seller will agree. An appraiser within Reston, Stephanie C. Reger, stated “Given that the subject property is even available to purchase (at nearly any price) is a rare opportunity.”

This opinion is shared by many board members. However, the RA Board did not want to undertake a referendum if reasonable terms could not be negotiated with the seller. Staff first sought to determine if the $2.7 million selling price was reasonable. A written appraisal report (complying with the Uniform Standard of Professional Appraisal Practice) was commissioned by RA to answer this question. Read More

This is an op-ed by Reston resident Terry Maynard. His opinion does not represent Reston Now.

I am voting “NO” on RA’s referendum to purchase the Tetra property at Lake Newport and, having reviewed the available materials, official and otherwise, I believe it may be useful to share with you why I have made that decision. I apologize in advance for the length of this letter, but I believe it is important to present evidence for my position, not just assertions.

The $2.65 million price is waaaay too high! In fact, the County puts the property’s assessed value at $1.2 million, down $50,000 from last year. The difference, as directed by RA and stated in the RA-funded appraisal ,is largely the “market value of the subject, assuming restaurant uses are permitted and any deferred maintenance has been corrected, as of Jan. 23, 2015, is estimated to be” $2.65 million. In fact, there is no restaurant on the property nor will there ever be. The property condition analysis points to at least a quarter-million dollars in needed repairs. At most, this property is worth one million dollars–if we really need it.

That $2.65 million price will cost Restonians more than $3.8 million in loan payments over the next 20 years and, even with RA’s optimistic revenue forecasts for rental of the small Tetra building, mean net cash outflows totaling nearly $2 million that RA members must pay over two decades. To pay off that shortfall, RA will have to add over 20 percent to the average annual increase in RA fees over the timeframe if its fees grow at a 3-percent inflation rate. (See attached 20-year financial chart.)

There will be no development there because of planning, environmental, and easement restrictions. An alleged key reason to buy the property is to prevent others from building a 6,900-square-foot restaurant there (hence, the appraisal assumption) under a 2001 zoning determination or expanding “Lake Newport convenience center” as the Tetra building property is characterized in the current Reston Master Plan. Neither of these will happen.

First, as part of the six-year effort to revised Reston’s Master Plan, it is being altered within the next few months to preclude that from happening. Read More

This is an op-ed by Eve Thompson, who represents Lake Anne/Tall Oaks on the Reston Association Board of Directors. It does not reflect the views of Reston Now.

By now, Reston Association members have begun to receive their ballots on the question of whether or not we as a community should move forward with the purchase of the Tetra Property.

The RA Board voted unanimously to put this question to the membership. The opportunity to add to Reston Association’s common areas are far and few between. This particular parcel provides a unique opportunity to create a multi-purpose venue that we believe, based on staff and committee research, would be much in demand and would add to the types of recreational opportunities we are able to offer our members.

Based on the appraisal, we believe we’ve arrived at a reasonable market price. I think it’s safe to assume that based on the development that will be taking place around Lake Anne the price won’t be going down; and that I think brings us to the real crux of the question.

The RA Board has a responsibility to investigate these kinds of opportunities. We are not empowered to act unilaterally, but we are empowered to gather enough information to determine if an opportunity makes potential sense for the community.

That is what we’ve done here — the rest is up to you. For some it will make sense to add to the band of 90+ acres that runs along Barron Cameron. For others it will make sense to make sure that the property is not able to be developed — now or ever; and for others it won’t make sense at all.

What is critical is that you had the opportunity to decide.

Something on your mind? Send a letter to [email protected]. Reston Now reserves the right the edit letters for spelling, style and clarity.

Voting is now open in the member referendum on Reston Association’s Tetra building purchase.

RA member households should have received their ballot by email this morning or by mail later today.

The referendum asks RA members if RA should :

1. Purchase the 3.47 acre Tetra property (formerly the Reston Visitors Center), inclusive of land and improvements, located at 11450 Baron Cameron Avenue, Reston, VA 20190 in the North Point District as an addition to Common Area pursuant to Article IV, Section IV.10 of the Reston Deed;

2. Renovate and repurpose the existing building and land for community and recreation program uses; and,

3. Borrow up to $2,650,000 on behalf of the Association to make the purchase?

RA’s fact sheet on the purchase is also available with the ballot. The fact sheet details why RA wants to purchase the building and revenue is expects to earn from programs and event rentals; items uncovered in a recent inspection that need to be fixed; and current zoning.

The building, built in 1983, served as Reston’s Visitors Center for 20 years. Since 2003, it has served as office space for its current owner Tetra Partners.

The building sits on the shores of Lake Newport and is adjacent to other RA properties such as Brown’s Chapel Park and Lake Newport Tennis. Acquiring the property would give RA 98 contiguous acres of open and community space and would guard against commercial development of the property, which has zoning authorizing an addition of 6,900 square feet.

Detractors of the purchase say there is little chance of commercial development as there are dozens of easements on the property and the parking lot serves as the spillway for Lake Newport. Opponents are also concerned that the building, whose tax assessment was $1.2 million the last two years, is not worth $2.65 million.

Balloting is open through May 8 at 5 p.m.

Reston Association staff began looking into the purchase of the former Reston Visitors Center in the fall of 2014, long before the RA Board of Directors voted unanimously to move forward with a member referendum on the purchase.

After a lengthy executive session during its regular meeting on Jan. 22, where the board was presented with details on the 3,128-square-foot building owned by Tetra Partners, the board voted to pursue a voter referendum for April.

But according to documents released by RA, the board signed an appraisal agreement with The Robert Paul Jones Company in December 2014 that said the appraisal would be performed by Jan. 12, 2015. The fee for the appraisal would be $5,000.

RA CEO Cate Fulkerson said the early appraisal agreement was done so RA staff would be as prepared as possible when presenting the idea to the entire board. She said she first informed the board leadership team (Ken Knueven, Ellen Graves and Michael Sanio) of the opportunityto purchase the building last fall.

“The leadership team asked me to earmark time during the Jan. 12 Board Planning Committee to discuss the opportunity during executive session and also be ready to discuss the matter further during the Jan. 22 Board meeting in both executive and open session,” Fulkerson said.

“In preparation for those meetings, they asked that I be prepared with as much information as possible to discuss the matter, including an appraisal of the value of the property. As with any item presented to the Board, staff provides as much back up information and documentation as possible to enable the board to make an informed decision.”

RA, which entered to a conditional contract in late March, is seeking to buy the building, which sits on 3.48 acres adjacent to Lake Newport and Brown’s Chapel Park, in order to maintain open and community space and fend off any interested developers who could turn the spot into a commercial enterprise, which is allowable under zoning rules and the Reston Master Plan. The building is approved for additions that could extend it 50 feet into Lake Newport and add nearly 7,000 square feet of space.

RA is seeking to borrow up to $2.65 million for the purchase of building, which could be used for a variety of community programs and special event rentals, its says. The appraisal, completed in late January, values the building at that amount. Recent county tax assessments value it at $1.2 million. RA says the difference is due to estimating the building’s highest-and-best use, and not just space.

Renovations and repurposing of the building are estimated to cost $250,000, RA says. It is also expecting $650,000 from a developer contribution.

Meanwhile, RA documents show that Tetra Partners wanted $2.7 million for the building or they are not selling. Tetra also said several restaurants had toured the building, but there were no current commercial offers.

RA will hold a community meeting on the planned purchase on April 21, 6 p.m. at Brown’s Chapel.

The referendum starts Monday and runs through May 8. The results will announced May 11. The referendum needs votes from 1,751 households (10 percent of eligible households) to be valid.

See more Tetra-related documents on RA’s website.

This is an op-ed by Reston Association Board of Directors President Ken Knueven. It does not represent the opinion of Reston Now.

A lot has been discussed recently in the blogosphere regarding the Reston Association Board’s unanimous decision to send to member referendum the question of borrowing up to $2.65 million for the purchase and renovation of the old Reston Visitors Center and the associated open space on which it sits.

This 3.47 acre parcel is located at the southeast end of Lake Newport and sits between the Association’s Lake Newport tennis court complex on one side, and the cherished park area known as Brown’s Chapel Park on the other.

Here’s why we’re trying to save this building and the open land it sits on:

Ownership of this property would create a contiguous band of 98 acres of Common Area property, parkland and recreational amenities so desperately needed by our growing community.

Development All Around Us

During the past 50 years, Reston has seen substantial growth and expansion and there’s no denying more development is on the way.

We’re all seeing it happen right in front of us. Tower cranes, chopped-up roads, detour signs, and those yellow county sandwich-boards are everywhere, announcing public hearings regarding new development/redevelopment projects.

Just look at the recent efforts already underway: Reston Station, Lake Anne Redevelopment (just across the street from the former Visitors Center), The Harrison Apartments, Reston Heights, Fairway Apartments, Reston Town Center North, the proposed redevelopment of Tall Oaks, and now St. Johns Woods.

Impact

In each instance, the owners/developers are doing everything they can to maximize their property rights — pushing the limits on size and density. This will have an impact on our existing facilities and natural resources.

Our Actions

We have taken steps to ensure our founding principles are upheld, while also striving to maintain a balance of sustainability and progress. We recently passed two Land Use Resolutions in coordination with the County, the Reston Planning & Zoning Committee as well as developers to be involved early in the process — and they’re working. Read More

Reston Association will hold a community meeting on Tuesday, April 21 (6 p.m. at Brown’s Chapel) to answer questions about the planned purchase of the Tetra Building.

RA announced in January it wants to purchase the building at 11450 Baron Cameron Ave. The 3.48-acre property, which features a 3,128-square-foot-building and parking, sits on Lake Newport and served for 20 years as Reston’s Visitors Center.

The 32-year-old building is currently owned by Tetra Partners, a commercial real estate company, as serves as its office space. It is currently zoned convenience center and an addition of more than 6,900 square feet would be permitted to be added if a business bought it.

RA wants to use the building for community and recreational space in general and camp programs, after school care and classroom space in particular. It also forecasts revenue of more than $100,000 annually from event rentals such as weddings, parties and corporate retreats.

RA has put in a conditional contract on the property for up to $2.65 million, but the price could change based on repairs (including a new HVAC, roof and water damage) that need to be done per a recent inspection.

Fairfax County’s most recent tax assessment values the land and building at $1.2 million. RA says in its fact sheet on the purchase that the assessment is different than an appraisal value of $2.65 million, which looks at the “highest and best use of the property.”

The purchase plan needs votes from a member referendum to proceed. The referendum begins April 13 and will run through May 8.

At the meeting, RA staff will address current zoning of the site vs. RA preferred zoning; potential community recreational uses and interior renovations; conditional contract and appraisals; and the building condition based on property inspections, both from Criterium Engineers and RA Covenants administration.

RA members will have a chance to vote on the referendum at the meeting.

Meanwhile, RA has added more information on the building to its Tetra page on the RA website. Among the new files: zoning information, Criterium Engineering’s property condition report, and renderings of past restaurant proposal, which features a large addition overlooking Lake Newport.

Also, a group of Tetra purchase opponents have started a blog called Say No To Tetra and a Twitter feed StopTetraNow!

This is an op-ed by Reston resident Terry Maynard. It does not represent the opinion of Reston Now.

In the debate over Reston Association purchasing the Tetra property at Lake Newport, a major source of frustration has been RA’s refusal to release the Feb. 4, 2015 appraisal until seven weeks later.

RA released the report only after two public hearings were held, the referendum question and fact sheet were finalized and approved by the RA board, and the $2.65 million dollar conditional sales contract was signed on March 27.

Appraisals like this are prepared to aid in assessing the value of a property, its condition, and any constraints its use or development may face. They can be an excellent tool in deciding whether a purchase contract ought to be signed and at what price, but Restonians did not have the opportunity to see this appraisal until the sales contract was already signed.

Had the Tetra property appraisal been made public immediately, thus providing RA members with a meaningful opportunity to comment before RA signed the sales contract, I believe we would not be having this debate or a referendum. There are so many major problems identified in the appraisal even RA’s single-minded board would probably not have decided to move forward.

The $2.65 million valuation is the obvious place to start.  As RestonNow reported, based on comparable sales, the County assesses the value of this property at $1.25 million, less than half the sales price. The appraisal obtained by RA explains the large discrepancy: Their $2.65 million valuation is based on an RA-directed assumption of its “best and highest use” as a lakeside restaurant extending into the lake, which, of course, does not reflect the current state of the property.

Yet the appraisal also includes two “as is” Tetra property valuations, one based on comparable sales ($1.45 million) and one based on an income approach ($1.1 million). Both of these prices reflect the true current market value of the property and the price Restonians should be willing to pay.  Moreover, they are consistent with the county’s assessment. Read More

This is an op-ed by Reston resident Irwin Flashman. It does not represent the opinions of Reston Now.

I have several major concerns about the proposed RA purchase of the Tetra Property. These include: The price for the property based on the appraisal report and RA’s rush to purchase without full information being made available to members and the RA approach on this matter.

The appraisal is said to be the source of the price of $2.65 million for the Tetra Property. The report actually has three different appraisal prices, using two different appraisal methodologies.

The $2.65 million price assumes the so-called highest-and best-use (retail, commercial) and further assumes that a restaurant of some 6,900 square feet would be built over a portion of the property that is under Lake Newport.

These assumptions favor the seller, not the buyer.There is no basis offered in the appraisal to support the feasibility of such assumptions.The basis for the restaurant assumption is the carefully phrased statement: “Building plans were prepared in 1981 indicating that it was possible to extend out into the lake further construction of a restaurant building.”(Report, p. 13)

While it may have been possible in 1981, it is not legally possible today. The proposed area of restaurant construction is within the Resource Protection Area under the Chesapeake Bay Protection Act, where nothing can be built. (See the corresponding map of the site, Report Appendix.)

So, how can this approach serve as a basis for the price? The use of this assumption as a basis for the $2.65 million in the face of these facts in my opinion is outrageous. Read More

Reston Association is expecting the repurposed Tetra building will bring in about $122,000 of revenue annually from rentals.

The association has put in a conditional purchase contract on the 3.48 acre property for up to $2.65 million. The 3,128-square-foot building, which served as Reston’s Visitors Center for 20 years, has been the offices of its owner, Tetra Partners commercial real estate, since 2003.

RA members will be asked to vote in a referendum in order for the contract to go forward. The referendum, which will ask is RA should go forward with the purchase of the building at 11450 Baron Cameron Ave.; renovate and repurpose the existing building and land for community and recreation program uses; and, borrow up to $2.6 million for the purchase.

The referendum starts April 13 and runs through May 8. The results will announced May 11. The referendum needs votes from 1,751 households (10 percent of eligible households) to be valid.

RA officials said one reason for the purchase is to add indoor recreational and community use space to RA’s offerings. The association currently has conference rooms at its headquarters at 12001 Sunrise Valley Dr., Walker Nature Education Center, and Brown’s Chapel (limited use) for indoor usage.

“RA’s current year-round indoor programming spaces are limited,” RA President Ken Knueven said at the South Lakes District Meeting last week. “RA staff believes there are many opportunities to conduct a variety of community based programs for all ages at the property, in the building and on the grounds. By keeping the existing building foot print and reconfiguring the building’s interior, RA would have the ability to provide a venue for instructional, art, health and wellness programs and events.

“In addition, the space will offer an attractive venue for corporate and event rentals, as appropriate in a residential neighborhood. “

RA says it will put hourly use limitations in place “so as to mitigate possible noise pollution to the surrounding neighborhoods during weekday and weekend evenings.”

RA says it will ask members what programs they would like to see added at the new building, should they acquire it.

Meanwhile, with some basic usage categories in mind, RA staff has developed “a conservative rental and programming plan” to project potential revenues from the use of property, which could include:

• Youth holiday and break. Full-day program for three weeks serving 30 children — $17,850
• After camp child care — $4,700
• After school programming for 30 children for the full school year — $46,900
• General programming for children, family, seniors and one-time programs — $4,055
• Instructional & educational programming for all ages — $15,100
• Corporate/community rentals, 65 annually, 2-hour minimum — $8,500
• Weddings and Celebrations, 15 weddings or celebrations in key months May/June, September/October — $25,500

See more income and expense forecasts for the building on the updated Tetra Fact Sheet on RA’s website.

The owner of the former Reston Visitors Center said he has had talks with several local restaurant owners about purchasing the building for nearly $3 million, according to an appraisal done by Reston Association.

Reston Association is also seeking to buy the 32-year-old building, currently owned by Tetra Partners commercial real estate and used as its office space. RA will hold a referendum in April where it asks members whether it should borrow up t0 $2.65 million to obtain the building and repurpose the 3.48 property at 11450 Baron Cameron Ave. for recreational and community space.

In a Feb. 4 appraisal report, by W. Scott Gudely and Kathleen Moist of The Robert Paul Jones Company, the appraisers noted the competition for the building on the banks of Lake Newport, even though the property is not formally listed on the market.

From the appraisal:

It is our understanding that the clients [Reston Association] are interested in purchasing the subject property. The property contact, Mr. Bill Lauer, reports that the property has not been listed for sale, but that he has had discussions with [RA land use attorney John] McBride and the Reston Association about the Association’s potential acquisition of the subject.

He reports that his asking price is $2,700,000 and that he would not be interested in selling unless his price is met. He also reported that he had met with Clyde’s Restaurant and that a price of $3,000,000 for the entire property was discussed, but that the restaurant entity decided it did not fit their business plan. He also reported that a restaurant in Tysons, Woo Lae Oak, had been interested in the property.

RA released the appraisal and conditional contract on its website Sunday. There had been criticism by some RA members about a lack of transparency relating to the transaction thus far.

Purchasing the property, which is adjacent to other RA recreation space such as Brown’s Chapel Park, would give the association 98 continuous acres of open space and protect against overdevelopment, RA says in its revised fact sheet on the subject. RA also expects to earn revenue from event rentals at the building. However, members would see a potential rise in their assessments beginning in 2018, RA CEO Cate Fulkerson said at RA’s regular meeting last week.

The property is zoned for commercial or office space and is permitted to add up to 6,930 square foot more to the 3,128-square-foot building, RA says in the fact sheet.

Other notes from the appraisal:

The subject property is currently vested in the name of Lake Newport, LLC, who acquired title from Westerra Reston, LLC, for $750,000 on Dec. 22, 2003.

Overall, the subject building is an above-average quality office building assumed to be in average condition for its age. The building is functional and able to compete with the similar buildings in the area, although it is somewhat isolated from other complementary commercial uses and is hampered by its lack of visibility from major transportation arteries.

The 2014 Fairfax County tax assessment is $1,248,370 (Land: $845,840; Building: $402,530). That represents a decline of 4 percent from 2010, when the assessment was $1,300,870, and a 20.9 percent decline from the 2009 assessment, when the total assessment was $1,577,450. The appraisers said the decline is primarily attributable to the land since the improvements assessment in 2010 were $381,720. The land was assessed for $1,175,670 in 2009 and $919,150 in 2010.

See the entire appraisal and conditional purchase contract on RA’s website.

A building inspection performed on the former Reston Visitors Center has revealed elements and systems that will need to be replaced in the next 5 to 10 years. Among them:

• Major elements of the HVAC system are in need of replacement
• The roof needs replacement
• Exposed trusses and supports on the exterior need to be replaced
• Some windows and siding need to be replaced
• Some minor exterior drainage issues need to be addressed
• Minor water damage on the interior needs to be repaired

RA land use attorney John McBride says the seller of the building, Tetra Partners, knew about the roof and HVAC on the 32-year-old building already and has agreed to pay for replacement. The rest of the list, compiled by Criterium Engineers this week, will be further examined and may be open to negotiation on the $2.65 million purchase price, McBride said.

RA announced in January it is seeking to purchase the 3.48-acre property that features a 3,128-square-foot building on the banks of Lake Newport. The building will be used for community and recreation space, as well as available for event rentals.

Purchasing the property, which is adjacent to other RA recreation space such as Brown’s Chapel Park, would give the association 98 continuous acres of open space and protect against overdevelopment, RA says.

The purchase cannot go forward until it is put to a member referendum in April.

On Thursday, at the second of two public hearings on the purchase, the RA Board of Directors heard from a half-dozen members in person and several more via emails read by President Ken Knueven. Reaction was mixed — some members, including Reston founder Bob Simon (via a phone conversation with Knueven) — said they approve of the purchase, but still need more information. Others said they did not understand the rush to acquire the property and questioned whether the expense of even putting the idea to referendum ($20,000 to $30,000) was necessary.

Much of the meeting centered on changes to the fact sheet on the purchase. See the revised fact sheet on RA’s website.

One of the changes: RA has factored in snow removal and landscape maintenance costs, which were originally left off because they will be done by RA staff. The additional annual expense of more than $15,000 means RA members will see an impact in their assessment a year earlier (2018) than originally forecast.

RA forecasts a $2.57 impact in 2018, $4.55 in 2019 and $4.43 in 2020, though RA CEO Cate Fulkerson said with new properties being added to the association by then, the increases may not happen at all.

The board narrowly approved the changes to to the fact sheet. South Lakes Director Richard Chew was the lone dissenter (two directors abstained and one was absent).

Said Chew: “Our support was contingent on a fact sheet that made a compelling case to our members. As presented tonight, the fact sheet fails to do so. It fails to spell out that there is a full develpment plan. … I am not convinced our failure to purchase will result in overdevelopment. It does not say how much it will cost RA to increase and enhance green space.”

Chew also said the fact sheet does not discuss how the $8.50 increase per member (in 2018-2020) may be mitigated.

The board voted to approve the conditional purchase contract and release the property appraisal once the contract is executed. It also voted to hold at least one community meeting in April for additional member comments.