Manassas is preparing to tap into $700,000 in state funding to clean up petroleum-contaminated soil beneath the former Manassas Ice and Fuel Company, Inc. (MIFCO) site. This will pave the way for a second public parking garage and a long-sought hotel development in the heart of downtown.
City leaders recently purchased the former MIFCO property next to City Hall for $3.1 million. Once home to an oil company, the site will eventually house a new multi-level parking garage—a critical component in revitalizing the city’s hotel plans following the 2023 demolition of the Old Towne Inn, which the city acquired for $5.75 million.
“The DEQ funding is available to the individual/entity identified as the ‘Responsible Party’ for property cleanup,” said City Manager Steve Burke. “The ‘Responsible Party’ is currently the current property owner. Following closing on the property, the city would submit the necessary documentation to transfer status that would then allow the city to access funding.”
Burke added that if the city finalizes a redevelopment deal that includes transferring the property to a hotel developer, the “Responsible Party” status could also be conveyed to that developer, allowing them to utilize the cleanup funds.
City officials view the new parking garage as vital to attracting a hotel developer to the now-vacant Old Towne Inn site. A previous hotel deal fell apart in late 2024 when developers determined insufficient parking was available to support the project. While the city continues to court new developers, Mayor Michelle Davis-Younger declined to say when Potomac Local News asked when a new deal might be reached on March 19.
The new garage would be the second in downtown Manassas, following the existing structure on Prince William Street. In the meantime, the city will spend $168,000 to improve the lot on which the Old Towne Inn stood, for use as a temporarily parking lot for city employees during construction of the new parking garage. That work will displace existing staff parking, but officials say residents will be able to use the nearby Old Towne Inn site for overflow parking when not in use by employees.
Burke said leveling and preparing the sites now is key to coordinating long-term redevelopment plans. “This work is necessary to facilitate redevelopment of the Old Town Inn and MIFCO sites by providing an alternate parking facility when the parking garage would be built on the MIFCO lot and the City Hall parking lot,” he said.
The Virginia Department of Environmental Quality (DEQ) is coordinating with the city to ensure proper soil remediation. The $700,000 in state funds would help remove petroleum-contaminated soil from the MIFCO property. Additionally, DEQ determined that contamination under the City Hall parking lot can be safely contained during garage construction, avoiding costly excavation and reducing project expenses.
A construction timeline for the new garage has not yet been announced.
