County, Magnolia Green work toward compromise
By Greg Pearson STAFF WRITER

Stegmaier

The Chesterfield Board of Supervisors has authorized the county to firm up an agreement with Magnolia Green Development (MGD) that calls for making significant improvements to Woolridge and Otterdale roads, alleviating some transportation problems in that area. The proposed Commercial Development Authority (CDA) would widen Otterdale Road to four lanes divided from Route 360 to Woolridge Road and Woolridge Road to the Swift Creek Reservoir, a distance of about four miles.

"It's a dramatically better option for Chesterfield County because the $25 million [for the road improvements] is upfront," Deputy County Administrator Jay Stegmaier told the board last week.

The CDA will place a tax lien on all residential and commercial properties in lower Magnolia Green for up to 30 years, according to County Attorney Steve Micas. Property buyers could pay off the lien immediately or pay it off over time. The amount of the lien will be apportioned among all residential, retail and office parcels.

Stegmaier said it will take four years to complete the road improvements after the CDA is set up, and he expects the road improvements will be completed by 2012. The county will have to revise its CDA ordinance, which tentatively requires that residential CDAs have at least 2,000 home sites that were approved before cash proffers were enacted.

Located on Hull Street Road five miles west of Route 288, lower Magnolia Green is zoned for 3,550 homes. Build-out is expected to take 15-20 years. MGD also plans 200-plus acres of retail fronting on Hull Street Road and three 20,000 square-foot retail centers inside the community.

The upper half of Magnolia Green is owned by Leesburg developer Sal Cangiano and is zoned for about 1,300 additional homes and considerable retail and office space. As currently envisioned, his portion of Magnolia Green would not have enough homes to qualify for a similar CDA, though the county board instructed staff to study how the CDA policy might affect other developments.

 

Chesterfield will not be legally liable for the CDA, but bond rating services do consider CDAs when determining the ratings they give to local governments. The county doesn't want CDAs to account for more than 10 percent of its indebtedness, ensuring that Chesterfield can borrow at the most favorable rates.

The agreement also requires Chesterfield to pay an estimated $8 million for improving the causeway over the reservoir on Woolridge Road, which has been maintained by the county since it doesn't meet the standards of the Virginia Department of Transportation (VDOT). The county will also have to payout another $4 million for right-of-way, mitigation and permitting for the road improvements. Chesterfield plans on using a VDOT refund for improvements the county made to Route 360 to pay much of this cost.

The agreement between MGD and the county came about when the county proposed a transportation district that would have added 25 cents to the real estate tax rate on all properties in Magnolia Green. The district would have raised $43.7 million to extend the Powhite Parkway through the planned community from its current end at Charter Colony Parkway to Route 360 near Grange Hall Elementary School. But that plan would take much longer for residents of the area to see any benefits. The complete nine-mile extension, if built, is anticipated to cost $300 million.

Soon after Chesterfield announced its initial plans for the Magnolia Green transportation district, MGD officials met with the county to propose an alternative and work out the details of the current agreement.

Last December, MGD announced plans to break ground later this year on phase one of the development, which will include 686 single-family homes situated on 315 acres. Until an entrance on Hull Street Road is built, the primary entrance will be at the intersection of Woolridge and Otterdale roads. Last month, MGD announced the community's main feature will be a Jack Nicklaus-designed, 18-hole championship golf course.

Magnolia Green was rezoned in late 1991 just ahead of a proffer system enacted by the county, though the developer did make cash proffers of $2,800 per home and donate land for roads and public facilities. The current maximum proffer is $15,600 per home.