Fairfax Circle Market & Fiscal Impact Analysis
RKG Associates’ client was seeking to obtain zoning special exceptions to redevelop the existing 105,000-square-foot shopping center at the intersection of Highway 29 (Lee Highway) and Highway 50 (Fairfax Boulevard). The proposed Fairfax Circle project includes a mixture of multifamily residential (approximately 396 luxury apartment units), retail (approximately 43,000 SF), and a 54,000 SF grocer. In an effort to provide the City a full understanding of the benefits this change will allow, the client sought information that confirm market support and would detail the economic and fiscal impacts of the proposed project from a professional, independent analysis.
The findings of the market analysis showed support for an upscale grocery store (Harris Teeter, Trader Joe’s, Whole Foods, Wegman’s) at this location, as well as strong market support for the proposed residential component. The objective of the fiscal impact analysis measured the projected net difference in applicable tax revenues that will be generated from the new development. The analysis concluded that the Fairfax Circle development would generate approximately $2.2 million in annually recurring tax and fee revenues to the City of Fairfax in 2013 dollars, at full build-out and stabilization. The net new taxes from the proposed development were estimated at $1.5 million annually.
The project is currently under review by the City Council. Project planners expect another 6 months of work and negotiation to finalized the project.