TIF district established for Broadway Garden Estates project in Alexandria

ALEXANDRIA — A tax increment financing district has been established for the Broadway Garden Estates project, which is a two-phase 130-unit, multi-family housing facility.

The action was taken at the regular meeting of the Alexandria City Council on Monday, March 27.

Broadway Garden Estates would be located at 3509 South Broadway and 20% of the units would be restricted to households with incomes at or below 50% of the area median income.

"It is a project intended for occupancy in part by persons with low to moderate income, and the property must satisfy those income requirements," said Nicole Fernholz, executive director of the Alexandria Area Economic Development Commission.

With TIF, the taxes on the property are frozen at the current amount for a certain period of time.

The developer, INH Properties, had requested this period be 26 years, but the council voted instead for 13 years, which is the time generally assigned to housing projects.

"The total project cost is estimated at $25 million, and upon total completion, taxes will be in the estimated $285,000 annually. The increment available to the developer would be approximately $248,000," Fernholz said.

The first phase of the project will involve the construction of a 50-unit, three-story building that will be senior living-specific, Fernholz said.

The second phase will be an 80-unit building that will be for multi-family use, she said.

It is hoped that construction will start by June of this year, with the first building substantially completed by the end of 2024, and the second by the end of 2025, Fernholz said.

"(The developer) will submit paid invoices in the amount of the TIF note, and they will annually certify that at least 20% of the project is occupied by families meeting those TIF income guidelines," she said. "In return, the city will provide pay-as-you-go TIF financing, meaning the developer pays their taxes twice annually, just like you and I, and then if the project is performing, meaning they are meeting those income and rent guidelines, the increment is paid back to the developer minus the 10% city administration fee."

The council also granted a conditional use permit for Sacred Journey Academy, which will allow the construction of the K-8 school.

Last fall, Sacred Journey Academy applied for a conditional use permit to build the school on land between County Road 46/McKay Avenue and Rosewood Lane, just south of 18th Avenue East near VIE Church.

However, the city council tabled the permit at its Oct. 24 meeting so it could have more time to study the traffic flow in that area, along with drainage issues.

The academy is now planning to have the school in the existing Indigo Plaza building at 4133 Iowa Street, about 460 feet west of Apol’s Harley Davidson in the Heritage Industrial Park. There is also a vacant lot north of the site.

Last month, the council approved the academy’s rezoning request from industrial business to general business and to amend the city’s comprehensive plan, if necessary.

The conditional use permit was approved based on the following conditions:

• Off-street parking as per city code.
• Sidewalks to be installed on all three street frontages.
• A liquor license of an existing tenant to sunset on July 31.
• Any exterior lighting to be hooded and directed away from residential uses and public streets.
• Final drainage plan to be reviewed by city engineer.