The Mosaic
Fairfax, Virginia

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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