The Mosaic Development project is an approximately 31 acre
mixed-use development located in the community of Merrifield
in Fairfax County, Virginia. The development, with nearby
access to the Merrifield metro station, Capital Beltway and
Route 66, is proposed to include 853 Class-A multifamily rental
units, 114 Class-A townhomes, two hotels (300 total rooms),
65,000 square feet of Class-A office space and 504,100 square
feet of retail spaced anchored by an approximately 168,900
square foot Target store.
Despite its great location, the site consisted of underutilized
real estate in the heart of Fairfax County, lacking in infrastructure
and offering little benefit to the community or the tax base.
Additionally, the redevelopment planned called for high density
development, requiring surface parking to be replaced with
a significant amount of structured parking. The Mosaic Project
is a realization of the County's long term strategic plan
to revitalize the Merrifield community.
Tax increment financing functioned as a redevelopment and
revitalization tool, facilitating the transformation of the
site into a lively walkable town center. It also acted as
a source of financing for the extraordinary infrastructure
development costs including structured parking, park improvements,
and major road and pedestrian infrastructure improvements.
In 2011, the Mosaic District Community Development Authority,
as created by the County of Fairfax, issued Special Obligation
Revenues Bonds in the aggregate amount of $65,650,000, consisting
of two separate series: (i) $46,980,000 Revenue Bonds, Series
2011A (Tax-Exempt), and (ii) $18,670,000 Revenue Bonds, Series
2011A-T (Federally Taxable). The Bonds were issued to finance
public infrastructure, including, but not limited to, portion
of roads and streetscaping, parks and open space, stormwater
and other utility infrastructure, educational facility improvements,
and public parking facilities. Security for both series of
bonds include tax increment revenues and backup special assessment
revenues. Other sources of financing for the project include
developer equity and proceeds from parcel sales.
Prior to the issuance of bonds, MuniCap, Inc. served as the
financial consultant to the County, and assisted the County
in developing guidelines and principles for public investment
to ensure a disciplined approach to investing public funds
in Mosaic and other future projects. To that end, MuniCap
assisted the County in reviewing the TIF plan of finance and
feasibility analysis and assisted in determining that the
planned development met the guidelines and principles established
for public investment. Once bonds were issued, MuniCap, Inc.
transitioned into the role of administrator to the Mosaic
District Community Development Authority. As administrator,
MuniCap, Inc. helps provide management, surveillance and monitoring
on the district.
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