Loudoun Intertech Development Corporation, or LIDC, failed in its attempt to persuade the board of supervisors last week that it should not be held responsible for a $2 million road proffer it made in the early 1990s. Supervisors appeared to be surprised at the ease with which they were able to find in favor of the zoning administrator's ruling.
The attorney representing LIDC said the developer had no idea there was an outstanding debt to the county because the state constructed the projects the proffer was intended to cover. LIDC has since sold most of its property and those new landowners are legally responsible for the shortfall.
"It came as a shock in 2006 that we were asked to pay money on this proffer," said Andrew Burcher, LIDC's attorney, referring to an October 2006 letter requesting the money. The development of the land triggered the payment. Burcher presented an earlier letter from a zoning administrator that stated that portions of the agreement had been fulfilled.
The proffers call for construction of two half-mile segments of a third eastbound lane along Rt. 7 in front of the property, just east of Ashburn Village Boulevard. In addition, the proffers lay out the financial component of those projects.
The Virginia Department of Transportation began constructing the projects identified in the proffers, which were approved as part of the Ashbrook development along Rt. 7 in 1996, just a few months after the project was approved. VDOT finished its work in 1998.
LIDC then sought a determination about its proffer requirements. A letter sent to the developer stated that two proffers had been completed, namely the two that specifically identify the road projects. However, the letter does not refer to the third requirement regarding the funding for those projects. County zoning staff argued that the letter Burcher presented was not an official determination.
Supervisors were puzzled about LIDC's position, which seemed to be clear to them.
"This was clearly a proffered condition," said Supervisor Lori Waters (R-Broad Run). "I see nothing that shows me the board of supervisors should overturn the zoning administrator. The public has not received their benefit and the public is due $2 million, in my opinion. Letting a developer off the hook for a proffer is offensive."
Burcher said he would need more time to dig up the necessary evidence to prove his client's case.
"I'm arguing that there was evidence in the record that this was completed and there was nothing else [required]," Burcher said.
Burcher asked the board, which was functioning as a quasi-judicial panel in the appeal, to forward the item to a Transportation/Land Use Committee meeting so he and his client could do more research and because it could mean more money for the board, ultimately, he said.
"By allowing us to go to committee, I believe you stand a better chance of collecting more of the money," he said, pointing to the costs and risks of a legal battle.
"I sure don't understand that logic," said Supervisor Stephen J. Snow (R-Dulles).
Supervisors said they did not believe that LIDC really felt it did not owe the county money for the road improvements. Several supervisors, even having listened to others ask the same question, asked Burcher to again explain why LIDC believes it does not have to pay the proffer.
"What's obvious to me is you do not want to honor your commitment," said Supervisor Bruce E. Tulloch (R-Potomac). "We let you develop in this county. This is just in really poor faith."
Tulloch accused Burcher of sounding "like a guilty man who's done a crime and wants forgiveness."
"I will be looking for all monies due," Tulloch said.
While supervisors sympathized with those who purchased property from LIDC, County Attorney John R. Roberts said the county could do little to force LIDC, rather than subsequent landowners, to pay. LIDC retains only about 41 acres of its initial 277-acre tract. Anyone who purchased land from LIDC is legally responsible for any proffers associated with the development of that land. The issuance of some zoning permits has been delayed because of the unpaid proffer.
Roberts said current owners would have to take the matter up with LIDC.
The board voted unanimously to uphold the zoning administrator.
The next level of appeal from the development and the landowners would be to Circuit Court.
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Lori Fan wrote on Jan 24, 2007 3:16 PM: