ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of May 16, 2015

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1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of May 16, 2015 DATE: May 18, 2015 SUBJECT: Disposition of a Limited Portion of the Real Property and Improvements at 400 North Manchester Street (RPC# ) in Bluemont Park C. M. RECOMMENDATIONS: Authorize the County Manager to take the following steps regarding a portion of the real property and improvements at 400 North Manchester Street (RPC# ): 1. Create a separate parcel for the former Reeves Farmhouse and a limited portion of the surrounding park land that conforms to zoning requirements, subject to necessary Board approvals. Once the new parcel is created, pursue the sale of the property to private owner subject to Board approval of the sale. 2. Preserve the historical integrity of the Reeves Farmhouse, consistent with the designation of the house and Reevesland property as a Local Historic District. 3. Use the remaining balance of FY 2013 closeout funds (approximately $410,000 of the original $500,000 remains available) towards transaction costs related to creating a conforming parcel and enhancing urban agriculture activities on the portion of the parcel the County will retain for Bluemont Park. 4. Maintain the continued use and recently approved expansion of the raised planting beds by the Reevesland Learning Center. ISSUES: Over the past five years, the County has pursued several attempts to determine the final use of the historic Reeves Farmhouse at Bluemont Park, including guidance from a County Board-appointed task force and through public requests for information and requests for proposals. For the past several years, the Boulevard Manor Civic Association and Reevesland Learning Center have expressed their hope that the County would fully fund the cost of restoring the Reeves Farmhouse and make it available to the Reevesland Learning Center to be used by Arlington children and adults as a place to learn about growing, eating and preparing healthy foods and build collaborative relationships. The estimated cost of the approach to restore the house and bring it up to code for public use is estimated to be approximately $2.5 million in capital costs and an unspecified amount for ongoing maintenance and operating costs. During County Manager: ##### County Attorney: ***** Staff: Lisa D. Grandle, Department of Parks and Recreation 34.

2 the recent adoption of the FY 2016 budget, the Board did not provide funding towards restoration of the Reeves Farmhouse beyond the original $500,000 made available as part of the FY2013 closeout. SUMMARY: After repeated efforts to determine the final disposition of the historic Reeves Farmhouse, staff is recommending that the best approach to maintain the integrity of the farmhouse structure is to create a new legal parcel for the limited portion of land surrounding the house and pursue the sale of that parcel that could ensure the historical integrity of the structure and leave the majority of the land available for Bluemont Park. BACKGROUND: The Reevesland property, which consists of the historic Reeves Farmhouse, an historic milk shed, a modern garage and open space, is located at 400 North Manchester Street. The County purchased the 2.4 acre property for $1.8 million in 2001 to expand Bluemont Park. At one time the 168-acre Reeves farm included all of the land which now includes the Boulevard Manor neighborhood and a large portion of Bluemont Park. The farm was operated by one family for almost 100 years. It was the last dairy farm to operate in the County, closing its operation in The 2001 purchase allowed the County to preserve a much-loved community sledding hill, an opportunity to provide a variety of recreational opportunities and the ability to preserve the last remaining 2.4 acres of the farm. The property was purchased in as is condition. In 2003 the County engaged a consultant, John Milner Associates, Inc. to develop an historical, architectural and archeological survey of the property and explore potential reuse of the farmhouse. Following the conclusion of that work, the County Board designated the entire 2.4 acre site as the Reevesland Local Historic District in In 2011, the County reengaged the consultant to prepare an updated condition assessment and code review for adaptive reuse options for the Reeves Farmhouse. The County issued a Request for Proposals (RFP) for adaptive reuse proposals in The County did not receive any proposals which met the requirements of the RFP. In spring 2013 the County issued a Request for Information (RFI) requesting proposals for potential readaptive use of the house based on the guidance of the County contributing towards the cost of basic capital renovation and seeking a partner who would bring the balance of the capital costs necessary to bring the house to a level for programmed public use and provide the full spectrum of annual operating costs. Five responses were received and the staff team subsequently met with each of the respondents. Staff concluded that four of the five respondents were not a good fit for the project objectives. Staff has continued to meet with the final respondent, the Reevesland Learning Center, in an attempt to develop a partnership that meets the intent of the RFI. Since the purchase of the property in 2001, the County has made repairs to the farmhouse structure to protect its integrity and keep it from deteriorating further while the final use of the property was being determined. These include painting the house exterior, replacing the roof, installing chimney caps, replacing the front and back porches, repairing gutters and downspouts, replacing damaged windows, and improving drainage away from the house. In early 2015, staff performed an infrared inspection of the house interior and basement for leaks and made several additional repairs to seal and protect the house from water damage

3 DISCUSSION: 1. Sale of the Former Reeves Farmhouse: Staff is recommending that the County Board authorize the County Manager to pursue sale of the house and a limited portion of the surrounding land (designated to create a parcel that conforms to zoning requirements). Staff will determine the appropriate tool to create the new Reeves Farmhouse parcel that will conform to zoning requirements. Since the farmhouse sits at the top of the hill and the street frontage to North Manchester Street is at the bottom of the slope, the parcel that will be created will be larger than a standard lot in R-6, One-Family Dwelling Districts, which the property is zoned for. In configuring the new parcel to meet zoning requirements, staff will also factor in the need for the County to have access to Parcel A and the historic milk shed, retain the area of the Reevesland Learning Center raised beds and preserve the sledding hill. The modern garage will be removed to facilitate public access around the rear of the farmhouse to reach Parcel A. It is anticipated that a configuration that meets zoning requirements will also potentially allow for growth/addition to the house consistent with historical requirements. A new configuration, once completed, would return to the County Board at a future date for subsequent County Board action. The County s guiding principles for the use of the house have always included the need for a partnership to share in both the capital and the ongoing cost of the property. The County has many successful partnerships to draw upon as examples, including the Marymount and George Washington University partnerships for athletic fields, Arlington Arts Center and Signature Theatre for cultural space and Phoenix Bikes for non-profit program space. The County has attempted several different ways to seek a partner for the adaptive reuse of the Reeves Farmhouse, but have not received responses from partners with the necessary financial resources to bridge the $2 - $2.5 million gap in funding beyond the $500,000 the County Board has already appropriated. Another goal of the County is to preserve the history of the property. With the sale of the Fraber House at Oakgrove Park in 2013, the County has demonstrated that there are potential willing buyers with an interest in purchasing and renovating historic properties. Restoration of the house will be a requirement of the sale through the use of a performance contract. The sale will also place the parcel back onto the County s tax rolls. Once the new parcel with the Reeves farmhouse is created, the County will go through a process to hire an appropriate agent/broker to list the house for sale. Similar to the process used to list the historic Fraber House at Oakgrove Park, staff would contact the neighborhood and HALRB requesting recommendations for potential real estate agents/brokers who have experience selling historical residential property in the area. Staff would then contact the agents and request information, interview the top candidates, and select a selling agent. As part of that process, the selected real estate agent would be expected to perform a market analysis, research to the degree practical comparable recent sales activity, show the property to potential purchasers, evaluate offers to purchase the property, and perform other real estate broker services required by the - 3 -

4 County. Once a purchaser has been selected, staff will bring the sale to the County Board for formal action. 2. Maintaining the Historical Integrity of the Reeves Farmhouse The County Board designated the entire 2.4 acres of the property as a local historic district in December All of the buildings on the property, including the historic farmhouse and milk shed and the modern garage, are protected by the historic district overlay zone. Any exterior alterations to the buildings or to any portions of the grounds must first be reviewed and approved by the Historical Affairs and Landmark Review Board (HALRB) and are governed by the Secretary of the Interior s Standards for Rehabilitation, Restoration, Preservation, and Construction. The historic district zoning overlay exists regardless of who owns the property, and will remain in effect after a portion of the property is subdivided and sold to a new owner. In order to ensure that the purchaser has both the financial and technical capability to properly restore and maintain the Reeves farmhouse, the County will require a performance contract to be executed with the sale. The performance contract would bind the new owner to a reasonable timetable for the renovation, and would include specific standards about the level of renovation required. Similar to the recent sale of the historic Fraber House at Oakgrove Park, the County would review purchase offers for the farmhouse and evaluate the financial assets a purchaser could use towards the substantial level of renovation that will be required. The County also would review whether or not the purchaser has relevant experience undertaking similar historic renovations in the past, and would assess the skill level of the construction team the purchaser would engage to complete the work. The final performance contract will include a detailed scope of work, requirements for the renovation, and a project timetable. All proposed exterior work first must be reviewed and approved by the HALRB, as the property would remain a local historic district. In addition to the existing historic district overlay zone, the County would require an historic preservation easement to be placed over the farmhouse prior to the sale. This easement would allow for modifications and additions to the farmhouse, subject to approval by the HALRB through the Certificate of Appropriateness (CoA) process. While it is rarely pursued, the historic district overlay is not an absolute protection against the demolition of historic properties. The historic preservation easement, however, would preserve the property in perpetuity. 3. Use of the Remaining Closeout Funds The balance of the funds available ($410,000) would be used to support the upcoming creation of a parcel for sale. Any remaining funds could be used to restore the milk shed, create accessible paths, and enhance urban agriculture activities or create new interpretive amenities on the remaining portion of the property acquired in Continuing the Use of the Raised Planting Beds by the Reevesland Learning Center In March 2011, the Department of Parks and Recreation received approval from the Historical Affairs and Landmark Review Board (HALRB) for a CoA to construct raised beds on the farm - 4 -

5 site where Nelson Reeves originally had his garden. Since that time, the raised beds have been used by the Lawns2Lettuce4Lunch program of the Reevesland Learning Center (RLC) to grow vegetables and teach local school children about food, the history of growing food on the farm and nutrition, while at the same time strengthening cross-generational community relationships. A second CoA was approved in spring 2014 to add additional raised beds. As the scope of the collaborative project between the County and the Reevesland Learning Center grew, the project required a Memorandum of Understanding to lay out the responsibilities of the County and RLC. The MOU lays out the approved operating hours, insurance requirements, scope of programming and maintenance services. The County is committed to the continued use of this portion of the property by the RLC. Many of the Reevesland Learning Center goals for the Lawns2Lettuce4Lunch program can be achieved by enhancing the work already being done on site. With the funds noted above, the County could invest in improvements like bringing water to the site. The addition of accessible pathways, seating and picnic tables could also enhance the outdoor learning experience. The County could work with RLC to obtain approval from the HALRB of a more comprehensive CoA that would allow for the garden beds to remain in place so long as they are needed for RLC activities. The new CoA could also allow for additional improvements to the property to allow expanded programming and use of the site for agricultural and interpretive activities. FISCAL IMPACT: Estimates on potential sale value of the new parcel will be determined after a professional appraisal and formation of the new parcel containing the Reeves Farmhouse. Similar to the sale of the Fraber House at Oakgrove Park, any proceeds from the sale of the Reeves Farmhouse Property, less the costs of sale, commission, and settlement fees will be appropriated into the Park Land Acquisition Fund

6 IN T ERS T A TE 66 FARMHOUSE VICINITY MAP REEVES R ± LVD B N O WILS UR FO MI LE RU N Reeves Farmhouse Parcel arlgis.arlgis.public_parks AN C Legend HE ST ER ARLINGTON RTE 50 BLVD

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