STAFFORD — Stafford County leaders may not be feeling as generous as they once did when it comes to tax breaks.
On Tuesday, the Board of Supervisors will discuss whether or not to rescind an offer of up to $6.5 million in tax breaks for the owners of Aquia Town Center, Baltimore-based Mosaic Property Group – Maryland Financial Investors.
The Board approved the tax breaks in 2015 contingent upon new tax revenues generated by the mixed-use development. To get the tax breaks, that would have meant something, anything would have had to have been built at the center which, in turn, would have generated taxes.
“…throughout 2018, county staff has attempted to negotiate with Mosaic, in good faith, to find a viable and mutually beneficial development scheme for the property… to date, those attempts to find a mutually beneficial path towards developing this key commercial center have failed,” states a resolution that will go before the Board Tuesday.
To date, nothing new has been built and the county has paid zero dollars in incentives to the property owners, who told Potomac Local on January 18 it had no comment on the matter.
Stafford Field House
The tax break repeal discussion comes as the Stafford County Board of Supervisors continues to talk about the location for a new field house. Multiple sources tell Potomac Local that Aquia Town Center could be a preferred location for a new public-private partnership that would pave the way for a 108,000 square-foot sports facility.
Dubbed the “Stafford Field House,” it would host gymnastics, basketball, volleyball, field hockey, and soccer.
A total of 35,000 square feet of the building would be used for gymnastics and would replace a 26,000 square-foot warehouse currently leased by the county for a gymnastics program in southern Stafford County.
The county last year published a request for proposals from companies that would finance, construct, operate, and maintain the field house.
It’s possible the county’s Economic Development Authority could provide some financing for the deal. The county will not provide regular recurring funding for the operation, but it would give a half-million dollars during the first year of operation to help get the facility up and running, and then $233,450 in annual rent each subsequent year for the gymnastics program.
The RFP listed multiple pieces of county-owned property to include a parcel of land behind the Rappahannock Regional Jail on Route 1, and 11 acres across from Mountain View Elementary School.
The county-issued RFP document estimates the new facility would draw about 40,000 annual visitors per year all attending special tournaments and events, all spending about $40 million per year in hotels, restaurants, and shops. The county estimates about $1 million will be generated annually in sales, meals, and hotel taxes.
Stafford Marketplace killed Aquia Town Center
Mosaic owns 25 acres of what is largely a parking lot at Aquia Town Center, that, under a different owner 20 years ago, was once a vibrant shopping center. All the old store buildings but a Rite Aid Pharmacy have been demolished and the land divided up. An office building a and a residential development called “Aquia Fifteen” flank the town center property, but are not owned by the Maryland firm.
The old Regal movie theater that once sat on the property — the only one of its kind in Stafford County — was demolished in 2016.
The opening of nearby Stafford Marketplace in 2003 — located on Route 610 just west of Aquia Town Center, and now the most successful shopping center in county history — effectively killed the town center. Shoppers Food Warehouse relocated from the town center to the marketplace.
Aquia Town Center owners in 2017 tried to lure Harris Teeter to the property, to replace Shoppers. But parent company Kroger wanted nearly $20 million in additional tax breaks.
With so many other nearby grocery options, officials balked and negotiations ended.
Stafford County Deputy Supervisor Mike Smith is expected to brief the Board about the now stale tax incentive offer. Officials could decide to act in February.
Prime location
It’s not for a lack of potential customers that Aquia Town Center remains dormant. It sits next to the Aquia Harbour neighborhood of some 7,000 residents who pass by the property daily.
It’s also located at the intersections of Interstate 95, Route 1, and Garrisonville Road. The few shops that are there — a pharmacy, dry cleaner, and Subway restaurant pick up a fair amount of business from Harbour residents.
“Those shops are always busy,” said Jo Knight, an Aquia Harbour resident, and commercial Realtor in Stafford County. “It’s right on the way, so many people go to the pharmacy to get their prescriptions filled, and to pick up milk and bread.”
A clause in Rite Aid’s lease contract with which makes it the only pharmacy allowed in the center is what is keeping out larger grocery stores with pharmacies inside of them. And, smaller grocers like Aldi and Lidl, both of which don’t have pharmacies in their stores, are accustomed to paying lower rents than what they would pay if they were to build at Aquia Town Center, she adds.
“Whatever goes in there will do well. It comes down to making the right deal,” said Knight.
Action at “The Garrison” expected by March
There may also may be some good news on the horizon for another long-dormant county economic development project: “The Garrison” on Route 610 in North Stafford. That’s where Regal Cinemas says it will build a 12-screen movie theater, in a mixed-use development that will include retail stores, restaurants, located underneath condominiums and apartments.
Garrisonville District Supervisor Mark Dudenhefer says talks between property developer Reston-based The Pence Group and Regal Cinemas have gone well, and that a groundbreaking for the project could occur by March 1.
“This is very exciting news,” said Dudenheffer. “I’m a supporter of this development.”
