Amazon

New Bill Would Let County Waive Fees for Affordable Developments, A Key Change Sought by Advocates

By Alex Koma

A new bill just passed by state lawmakers could soon allow localities like Arlington to start waiving many fees for new affordable housing developments, a change that advocates expect could have big impact on the county’s housing crunch.

New legislation backed by Dels. Lamont Bagby (D-74th District) and Alfonso Lopez (D-49th District) would let officials across the state pass ordinances to do away with any building permit fees or other local levies on affordable housing plans, in a bid to ease the construction of such projects.

The bill unanimously passed the state Senate last week, after earning similarly swift approval in the House of Delegates, and now heads to Gov. Ralph Northam’s desk for his signature. The legislation was designed as part of a broader package of bills aimed at bringing housing costs down, due not only to rising concerns about Amazon’s impact in Northern Virginia, but also to new research showing the Richmond and Virginia Beach areas with some of the highest eviction rates in the entire country.

“Every Virginian deserves a safe place to call home,” Bagby wrote in a statement. “By supporting more affordable housing, we can address the devastating impacts of Virginia’s high eviction rates.”

Michelle Winters, the executive director of the Arlington-based Alliance for Housing Solutions, told ARLnow that the county doesn’t currently waive fees for affordable developments, but could well embrace such a tactic in the near future.

She points out that a coalition of affordable housing advocates called for the county to take just such a step in a 2017 report outlining potential strategies for officials to meet their own goals for building more reasonably priced homes.

Arlington officials have already struggled to meet those goals for creating homes guaranteed to remain affordable to renters of modest means, known as “committed affordable” units, prompting housing advocates to pen the report and press for progress. And with Amazon bringing its 25,000 (or more) highly paid workers to the county, Winters believes its conclusions are all the more important for leaders to consider.

“The report estimated that waiving ‘permit and tap fees’ for affordable housing projects would save $1.4 million per year, or allow the addition of 16 more committed affordable units each year,” Winters said.

That would only be a small change in the grand scheme of the county’s housing needs — the county created or preserved 515 affordable homes last year, short of the 585 homes officials hope to produce each year — but housing researchers still expect waiving such fees would make a meaningful difference.

“Although the total amount of fees imposed by local governments during the development review process can vary by locality, affordable housing developments operate under extremely complex financing mechanisms and tight margins,” said Andrew Clark, vice president of government affairs for the Home Builders Association of Virginia, wrote in a statement. “Reduction or elimination of these local fees could be a significant incentive for a private-sector development considering an affordable housing development and could also help incentive the private-sector developer to re-invest those savings into amenities, building materials or labor.”

The report, titled “Fulfilling the Promise: Meeting the Production Goal of Arlington’s Affordable Housing Master Plan,” uses the recently completed “Columbia Hills” project backed by the Arlington Partnership for Affordable Housing as an example of how county fees impact such projects.

APAH spent about $91.1 million on the project in all, but that included close to $701,000 in fees including building permit fees, sewer and water levies and zoning review costs.

“If all of these fees had been waived for this affordable project, it would have reduced the costs of development, freeing up resources for the development of eight (8) additional [committed affordable units],” the advocates wrote.

The report also notes that other cities around the country have already adopted such a strategy. In Austin, Texas, for instance, the city waives fees on a sliding scale based on what portion of a development’s homes are priced to be affordable to people making less than 80 percent of the area median income.

Of course, it might be a tough pill to swallow for county leaders to forego any revenue while times are tough for Arlington financially.

But officials have seen some reason for optimism about the upcoming budget recently, and Winters says county workers have already assured her that they plan to examine the impacts of waiving affordable development fees as part of a broader study of Arlington’s permitting process.

Photo via @APAH_org

Morning Notes

By ARLnow.com

Rabid Raccoon in Tara-Leeway Heights — “On Wednesday, February 13, 2019, a raccoon was reported in the area of 1500 block of N. Greenbrier Street acting lethargic. The raccoon was captured and removed from the community. It was later found to be carrying rabies.” [Twitter, AWLA]

Crash Knocks Out Traffic Signals — Traffic signals at at least three intersections in the Clarendon area were rendered inoperable over the weekend due to electrical transformer damage following a single-vehicle crash at Wilson Boulevard and 10th Street N. Power to the signals was reported to have been restored Monday night. [Arlington County, Twitter]

Second Amazon Bill Advances in State Legislature — “On the same day that Amazon’s plan to move 25,000 workers into a distressed area of New York City was imploding, the Virginia General Assembly gave the online giant another in a series of welcome-to-the-commonwealth valentines.” [InsideNova]

Hitt’s Home for Sale — Now-convicted fraudster Todd Hitt has listed his north Arlington home for sale for $1.75 million. However, the home’s back deck is currently the subject of a Board of Zoning Appeals case. [Washington Business Journal, Arlington County]

Booz Allen Staying in Crystal City — “Booz Allen Hamilton Inc. will remain in Crystal City, inking a lease extension and expansion for its space at 1550 Crystal Drive, building owner JBG Smith Properties announced Thursday. The lease, which commences in September, brings Booz Allen’s space at 1550 Crystal to 84,000 square feet, about 10,000 square feet more than it currently occupies.” [Washington Business Journal]

Take Our Reader Survey — Once a year, we ask readers to take a couple of minutes to weigh in on the future of ARLnow. This year, we’re asking about ideas for new emails, features, approaches and events. Your feedback would be greatly appreciated. [SurveyMonkey]

Photo courtesy Dennis Dimick

BREAKING: Amazon Cancels NYC HQ2 Plans, But Leaders Say ‘Nothing Has Changed’ for Arlington

By Alex Koma

(Updated at 2:45 p.m.) Amazon is cancelling plans to build half of its “HQ2” in New York City, citing mounting criticism from local officials and activists in its reasoning for abandoning its other proposed location for a new headquarters outside Arlington.

But Amazon said in a statement announcing the change that it does not intend to re-open the HQ2 search and will “proceed as planned in Northern Virginia and Nashville.”

County Board Chair Christian Dorsey says the company told local officials that “nothing has changed” when it comes to Amazon’s plans for Arlington, and that the county isn’t likely to suddenly see jobs bound for New York head here instead.

Amazon originally announced plans to bring 25,000 jobs to Crystal City and Pentagon City in November, though the terms of the state incentive deal recently approved by Gov. Ralph Northam do allow for the company add another 12,850 jobs to the Arlington headquarters after that.

Dorsey told reporters on a conference call Thursday afternoon that the chances of the company reaching that larger number have likely increased with today’s news. However, he added that the county does not plan to try to lure any of the jobs originally set for New York to Arlington instead. Spokespeople for JBG Smith, Amazon’s future landlord in some buildings and development partner for others, declined to comment on Amazon’s New York City changes.

“If they want to occupy more square footage, that will be contingent on the community plans we already have in place for any business,” Dorsey said. “But at this point, there is no reason to speculate about that.”

Amazon pointed to a lack of “positive, collaborative relationships with state and local elected officials” in explaining its decision to abandon its New York plans. Rumors first started circulating that the tech giant could spurn the city once New York lawmakers appointed a vocal Amazon critic to a state board that would have oversight over the state’s incentive package for the company, and a coalition of lawmakers and left-leaning activists have been intensely skeptical of Amazon’s plans for the city.

But Dorsey says this development has done little to change his opinion of Amazon as a partner for the county, praising the company’s executives as “collegial and collaborative” thus far.

“They’ve been a completely honest broker and we feel good about our relationship with them,” Dorsey said. “I can’t speculate about what went wrong in New York… we’re just trying to treat Amazon as they’ve treated us: by being transparent, honest and forthright. They’ve not only accepted who we are and our values, but embraced it.”

Amazon’s skeptics in the county think it’s foolish for local leaders to view today’s news so charitably. Roshan Abraham, an outspoken Amazon critic and a leader of the progressive group Our Revolution Arlington, thinks the company’s sudden decision to pull out of New York should give county officials “significant pause” in dealing with Amazon.

“This demonstrates Amazon’s need for control,” Abraham told ARLnow. “Amazon wants things to go their way, and if it doesn’t, they’ll leave. They’ll hold the county hostage with that threat. They’re clearly not afraid to use that to their advantage.

Abraham hopes the company’s decision to leave New York demonstrates “the power of activists and what activism can achieve,” and emboldens the tech company’s opponents around the county. Though anti-Amazon sentiment has been a bit more muted in the county than in New York, activists have raised concerns ranging from affordable housing to labor and environmental practices to the use of public funds to benefit one of the world’s largest companies.

But local leaders say they aren’t worried about any sort of major community backlash derailing Arlington’s own incentive deal for Amazon, just yet.

“Some things could change a little bit in our performance agreement with Amazon… and this is likely to contribute to some increased heat over the next six weeks,” County Board member Matt de Ferranti told ARLnow. “I don’t want to underplay it, but we’re certainly not panicked by it.”

The Board is still mulling that agreement, which will work out to about $23 million in grant money for the company over the next 15 years. The cash will be drawn only from a projected increase in hotel stay tax revenues that Amazon is expected to generate.

A vote on that deal was delayed after originally being targeted for this month, and Dorsey says the Board is currently eyeing March 16 for the big decision.

“We are excited that Amazon’s plans for Virginia remain in place and that we can continue working together to position Virginia’s dynamic tech sector for healthy, sustained, statewide growth,” Stephen Moret, the president and CEO of the Virginia Economic Development Partnership (which helped broker the Amazon deal) wrote in a statement.

Here’s the full Amazon statement about its Valentine’s Day breakup with NYC:

After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.

We are disappointed to have reached this conclusion — we love New York, its incomparable dynamism, people, and culture — and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staffs, who so enthusiastically and graciously invited us to build in New York City and supported us during the process. Governor Cuomo and Mayor de Blasio have worked tirelessly on behalf of New Yorkers to encourage local investment and job creation, and we can’t speak positively enough about all their efforts. The steadfast commitment and dedication that these leaders have demonstrated to the communities they represent inspired us from the very beginning and is one of the big reasons our decision was so difficult.

We do not intend to re-open the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.

Thank you again to Governor Cuomo, Mayor de Blasio, and the many other community leaders and residents who welcomed our plans and supported us along the way. We hope to have future chances to collaborate as we continue to build our presence in New York over time.

Activists Use Life-Sized Amazon Echo to Protest Company’s Energy Practices in Crystal City

By Alex Koma
1/2

Crystal City commuters were greeted by a bit of an unusual sight this morning at the neighborhood’s Metro station: a human-sized Amazon Echo.

Environmental activists with the group Greenpeace USA invited people at the station to ask questions to their very own “Alexa” Thursday, and posted a variety of signs around the area proclaiming it as “National Landing,” the name chosen by local officials pitching the trifecta of Crystal City, Pentagon City and Potomac Yard for the tech giant’s new headquarters.

It was all part of a demonstration designed to draw attention to Amazon’s practices for powering its data centers scattered across the Northern Virginia area.

Though much of the opposition to the company’s move to Arlington has centered on its labor standards or the incentive money flowing to the massive firm, this morning’s demonstration accused Amazon of falling short of its commitments to use renewable energy to fuel its 55 data centers scattered across the region.

“We asked Alexa if she thought Amazon would be a good neighbor to Virginians and she replied, ‘that depends how much you like breathing clean air,'” Elizabeth Jardim, a Greenpeace USA senior corporate campaigner, wrote in a statement. “Amazon’s cloud including Alexa is powered largely from Northern Virginia, where it uses 88 percent dirty energy — meaning every question to Alexa is driving carbon emissions.”

Activists invited commuters to ask questions of “Alexa” about Amazon’s energy practices, and the life-sized Echo (voiced by local improv instructor Donna Steele) was ready with plenty of snarky replies.

Amazon committed years ago to someday using 100 percent renewable energy at its data centers, run as part of its lucrative Amazon Web Services cloud computing division.

But Greenpeace is accusing the company of abandoning that effort, even as other tech companies in Virginia like Google and Microsoft make progress.

The tech giant responded to the report by saying it’s “firmly committed” to that goal, and claimed that Greenpeace is using “inaccurate data” that “overstate both AWS’s current and projected energy usage.”

The activists stand by their numbers, however, insisting that the company address the issue if it’s to be a good neighbor in Arlington.

“Before Amazon breaks ground on its HQ2 in Virginia, Jeff Bezos needs to take responsibility for Amazon’s already massive energy demand in the state and follow through on its commitment to use 100 percent renewable energy,” Jardim said.

Arlington officials have said in the past they’ve had their own conversations with Amazon executives about the best ways to ensure that the company’s new office buildings across “National Landing” are energy efficient, but those discussions won’t proceed in earnest until the county formally signs off on the incentive package designed to bring the company to Arlington.

Amazon Signals It Could Sign Agreement with Local Unions to Govern Arlington Construction

By Alex Koma

Amazon is showing an increasing willingness to sign a collective bargaining agreement with local unions before it sets to work building new office space in Arlington, perhaps meeting a frequent demand of activists concerned about the tech giant’s labor practices.

Though the company cautions that nothing is set in stone until county officials formally sign off on an incentive deal to bring the tech giant’s new headquarters to Crystal City and Pentagon City, Amazon is sending signals that it’s open to the prospect of striking a “project labor agreement” with construction workers who could someday erect the company’s future home in Arlington.

Should the company someday strike such a deal, commonly known as a “PLA,” the agreement would set out the employment conditions for all workers involved in Amazon’s construction efforts (whether or not they belong to a union) before the company starts accepting bids for the project. The PLA could govern everything from pay rates to workers’ compensation claims, and the agreements are generally designed to ensure labor peace during a major project while also improving conditions for workers.

“We’re definitely open to it,” Amazon spokeswoman Jill Kerr told ARLnow. “But this is all still pretty early. We really have our heads down, focused on working with the community on this initial package for approval before county officials.”

Kerr says that company has already held an initial meeting on the topic with representatives from the Baltimore-D.C. Building Trades, a coalition of unionized construction workers, and JBG Smith, the company’s future landlord at some existing buildings and development partner for other properties.

A spokesman for JBG Smith declined to comment on the deliberations, but Kerr stressed that discussions were “all hypothetical” and remain very much in the earliest possible stages of debate. Amazon plans to both build new offices in Pentagon City and renovate others in Crystal City, and Kerr believes it’s too early to say how any future PLA would apply to that range of projects.

However, Steve Courtien, the D.C. field representative for the building trades, came away from the meeting cautiously optimistic about the prospects of someday striking a deal with Amazon.

During a Feb. 3 town hall on Amazon convened by Arlington Democrats, he said the company seemed generally “positive” about the idea, particularly because the tech firm has worked out PLAs for some of its other projects around the country — Kerr said she was unable to confirm that latter assertion.

As for JBG Smith, Courtien said the idea of a PLA was more of a “mind bend” to them, but he fully expects the development firm to follow Amazon’s lead, given the size of the company’s investment in the area.

“That’s what they have to get past,” Courtien said. “Amazon basically has to tell JBG, ‘this is what we want,’ then they say ‘OK’ and negotiate the PLA with private contractors.”

The County Board is signaling that it’s broadly supportive of those efforts, and members have said in the past that they’ve encouraged Amazon to strike a PLA before moving into Arlington.

But Virginia law prohibits government agencies from requiring PLAs as a condition of allowing new construction (in keeping with the state’s tradition of pro-business, anti-union regulations) and county officials are cautioning that they’ll only have a limited role to play in the discussions.

“I think I speak for the whole Board in saying it’s something we’re all supportive of,” County Board member Erik Gutshall said during the town hall. “But it’s not something we can legally mandate from them.”

Anti-Amazon activists have been similarly enthusiastic about the idea of a PLA for the company’s construction work, considering the frequent concerns raised about how the tech giant treats its warehouse workers.

Stories of employees being unable to take bathroom breaks without risking their jobs or warehouses filled with boiling heat in the summer and freezing cold in the winter have spooked many county residents. Roshan Abraham, a leading Amazon critic as part of his leadership role with the progressive group Our Revolution Arlington, also points out that the company has pledged to oppose any unionization efforts it encounters at its other new headquarters in New York City.

That’s why Abraham believes it will be crucial for Arlington workers to secure a PLA before Amazon comes to town, though he fears it might not be enough to combat the huge company’s power.

“We shouldn’t stop just at a PLA,” Abraham said during the town hall. “We should be pressuring them even further to stay out of their union-busting behavior, which has been pretty well documented elsewhere.”

Ultimately, Abraham is so skeptical of the company’s business practices that he believes it’s a poor fit for Arlington’s values (even though he is “not that deluded” to believe that the county will turn down the company’s new headquarters).

Board members say they have their own concerns about Amazon’s ethics, whether it signs a PLA or not, but they don’t believe they’re substantial enough to justify barring the company from moving in.

After all, Gutshall pointed out that Arlington is also home to Boeing, a major military contractor, and while he may not like that they “manufacture equipment that is designed to kill people all over the world,” he hasn’t tried to chase the company away.

“We’ve not made it a condition of a corporation locating here or a resident locating here to abide by our progressive values for how you conduct your business,” said County Board member Katie Cristol. “Some 10 or 15 percent of Arlingtonians voted for Donald Trump. I’m not a fan of that, but I’m not going to try to kick them out of Arlington County or say they can’t live here.”

Photo via JBG Smith

Morning Notes

By ARLnow.com

More Rumbles of More Amazon — “John Boyd, principal of the Boyd Co. Inc., a private site selection firm in Princeton, N.J… said he wouldn’t be surprised if Amazon decided to add more jobs to its operations in Crystal City.” [Washington Business Journal]

ACFD Rescues Stuck Puppy — Arlington firefighters helped to free a 9-week-old puppy whose head got stuck while being a bit too curious. “She thanked the crew with many kisses,” the department said. [Twitter]

Caps Player Joins Bash — New Arlington-based fitness business Bash Boxing has gained an investor and partner known for throwing a few punches: Washington Capitals winger Tom Wilson. [Washington Business Journal]

Middle School Project May Be Delayed — “The surroundings may prove a bit cramped for a while, but county school officials say they are working up contingencies if the expansion of Dorothy Hamm Middle School isn’t ready in time for the start of classes in September.” [InsideNova]

Favola vs. Merlene Preview — “Has a longtime member of the Arlington Democratic establishment solidly represented Northern Virginia at the state legislature in Richmond, or is there need for new blood?” [Greater Greater Washington]

Civic Federation Diversity Efforts Hit Snag — “Duke Banks hopes one of his legacies will be a commitment to bringing in a younger and more diverse group of leaders… Efforts to bring in new faces at the venerable organization have seen successes, but took a recent step backward with the resignation of two members of the board’s leadership.” [InsideNova]

Nearby: Affordable Homes Disappearing in Alexandria — The number of single-family homes in Alexandria valued at less than $500,000 dipped below the number priced higher last year. [Washington Business Journal]

Plans Taking Shape for Large New Mixed-Use Development on Amazon’s Doorstep in Crystal City

By Alex Koma
1/6

JBG Smith is starting to sketch out its plans for a major redevelopment of a Crystal City property that will drop hundreds of new apartments and thousands of square feet of retail space directly adjacent to some of Amazon’s new office space in the area.

The developer has now filed preliminary plans with the county detailing the future of a vacant office building at 1900 Crystal Drive. The company has already started some demolition work for the current structure, and previously announced plans to build two new mixed-use buildings in its place, accelerating the project now that Amazon is on the way.

The tech giant plans to lease space at two of JBG’s properties on the same block, buildings at 241 18th Street S. and 1800 S. Bell Street, so this new development could offer Amazon workers with apartments within easy walking distance of the new headquarters.

Developers throughout the area have been racing to build new housing across Pentagon City and Crystal City since the company announced its plans in mid-November, though the neighborhoods do have slightly higher than average residential vacancy rates, for now.

JBG kicked off the redevelopment process in earnest in late January, asking for a slew of county zoning changes and a “site plan amendment” to key the full redevelopment of the block. The plans call for the construction of two large towers, holding a total of 790 apartments. One will be 26 stories tall, the other 25 stories.

Each one will also have space for ground floor retail: 19,390 square feet of space in one tower and 16,800 square feet in the other, according to documents filed with the county.

The developer is envisioning a “pedestrian plaza” in between the two buildings, with room for just under 9,000 square feet of retail in the plaza. The plans even allow for a park to be built nearby, though the documents don’t specify where, exactly, it will be located on the block — but if it is built, a “grand staircase” will connect it to the pedestrian plaza.

When it comes to parking, JBG plans to partially rely on the existing underground garage on the site. The developer plans to demolish part of the garage, but leave 306 spaces unchanged. Then, it hopes to add a new section of the garage with 290 new spaces for a total of 596 available in all.

The project is a long way from being approved, however — the county’s Site Plan Review Committee will now scrutinize these plans, before they head to the Planning Commission and County Board. Vornado/Charles E. Smith previously secured permission to build a 24-story building on the property, but that approval lapsed in 2015. The company spun off its local property holdings in a merger with JBG the next year.

This is far from the last redevelopment JBG is planning in the neighborhood in the coming years. In addition to its large “Central District” project (bringing a new movie theater, grocery store and office space to the area), the company previously told its investors that it could look to redevelop properties including 2001 Jefferson Davis Highway, 223 23rd Street S., 101 12th Street S., and the RiverHouse Apartments (1400 S. Joyce Street).

Though JBG is by far the largest property owner in the area — controlling about 71 percent of the market’s office buildings — county officials hope other landlords take similar steps to refresh nearby buildings.

As for Amazon itself, the company won’t file any plans with the county until the Board signs off an incentive package to formally bring the headquarters to the area. The Board won’t take up that issue any earlier than March.

Morning Poll: Would You Support Amazon Shifting New York’s Half of HQ2 to Arlington?

By ARLnow.com

Update at 11:45 a.m. — The Washington Post is now reporting that Amazon is “reconsidering” its New York City plans.

Earlier: There is some local opposition to Amazon’s forthcoming Arlington presence and incentive package, but it’s nothing compared to the public protests and opposition from elected officials in New York.

“Amazon doesn’t care about locals who live in Long Island City,” said a key New York state senator who’s among the leading critics of the incentive package offered to the tech giant. “All they care about is how much they can squeeze out of the public till in New York.”

That lawmaker, state Sen. Michael Gianaris, has been appointed to an oversight board that has the power to torpedo the deal. Meanwhile, Virginia’s incentive package for Amazon was signed into law this week.

Should Gianaris or other NYC Amazon critics manage to turn up the heat on the company to a boiling point, it’s possible that Amazon’s plans for a huge new office and 25,000-40,000 additional jobs in New York could fall apart.

Should that happen, hypothetically, might Arlington be the beneficiary? Amazon could opt to make Arlington its full “HQ2,” as originally proposed during the HQ2 search.

If that were to happen, would you support Amazon doubling its presence in Arlington? Or should they look elsewhere?

GOP Ditches Proposal for More Affordable Housing Cash, Angering Advocates Concerned About Amazon

By Alex Koma

Republican lawmakers have scuttled Gov. Ralph Northam’s proposal to ramp up state funding for affordable housing, a move that’s irked advocates hoping for more state help as Amazon starts to move into Arlington.

GOP leaders in both the state Senate and House of Delegates have now put forward budget proposals without the $19.5 million spread across two years Northam had hoped to see flow into the Virginia Housing Trust Fund, a program offering low-interest loans for developers hoping to build reasonably priced housing.

Though the fund would be available to applicants across the state, the governor’s effort to massively ramp up cash flowing into the fund was broadly seen as a small way the state could prepare for Amazon’s expected impacts on the housing market across the Northern Virginia region.

“We are outraged that selected members of Virginia’s money committees stripped this critical support for housing for Virginia families,” a coalition of 40 affordable housing advocacy groups wrote in a statement. Signatories include the Arlington Partnership for Affordable Housing, the Arlington Housing Corporation, the Alliance for Housing Solutions, the Arlington Street People’s Assistance Network and the Northern Virginia Affordable Housing Alliance.

“At a time when the state is approving $50 million in subsidies to Micron and $750 million to Amazon, it is wholly appropriate and necessary to invest $19.5 million in housing,” they wrote.

The Senate’s proposed budget includes just $1 million for the fund over the next two years, while the House proposal includes no cash whatsoever.

Northam had planned to fund the increase as part of a suite of proposals to use $1.2 billion in new revenue generated by the federal tax reform passed in 2017. But Republicans, who hold narrow majorities in both chambers in the General Assembly, have been steadfast in removing those spending proposals from the budget as part of a broader fight over the tax revenues, arguing that the state would be better served by sending the money back to some middle-class taxpayers.

“We started building our budget with guidelines to remove from consideration any revenue based on the federal tax changes and to eliminate any spending based on that revenue,” said Del. S. Chris Jones (R-76th District), the head of the powerful House appropriations committee. “We are continuing our multi-year efforts to responsibly invest in a stronger economy, provide more funding and flexibility to local schools and make college more affordable.”

Del. Alfonso Lopez (D-49th District) was hoping for an even larger, $50 million influx into the fund on a one-time basis, yet that push is seemingly facing an uphill battle given the latest GOP budget proposal. He’d also proposed a bill to establish a permanent funding stream for the fund to avoid yearly appropriations battles, but that died on a party-line, 4-3 vote in a House subcommittee.

The budget is still a long way off from being finalized, however. The House and Senate still need to reconcile the differences between the two proposals and, ordinarily, Northam would have a chance to negotiate for his spending priorities with Republican leaders.

But with the governor still facing pressure to resign, and Virginia’s two other top elected officials now engulfed in scandal, there’s no telling just how the remainder of the General Assembly session will play out. It’s currently set to wrap up on Feb. 23.

File photo

Morning Notes

By ARLnow.com

Good News for Ed Center Project — “It may not come with all the bells and whistles, but county school officials should be able to convert the Arlington Education Center building into classroom space without exceeding the $37 million budgeted for the project. Two estimates… came in slightly under budget to turn the former school-system headquarters into classroom space for 500 to 600 students.” [InsideNova]

Succession Question for Va.’s Leaders — Under fire for each of their own controversies, resignations by Virginia’s Democratic governor, lieutenant governor and attorney general could end up triggering a special election or even elevating a Republican state lawmaker into one of the top jobs. Meanwhile, the chaos in Richmond was the lead story on the national evening news this week — twice — and made the cover of this morning’s New York Post, with the headline “Virginia is for Losers.” [Politico, Twitter]

Amazon and Homelessness — “Along with the promise of 25,000 high-paying jobs will come more expensive housing, and possibly, more people priced out of homes, and some, falling through the cracks. Seattle, where Amazon is based, has a huge problem with homelessness. Will Seattle’s problems become ours?” [WUSA 9]

Possible Presidential Candidate Lives in Arlington — Sen. Amy Klobuchar (D-Minn.), who is considering a run for president, reportedly rents a three-bedroom home in Arlington with her husband, for their time in the D.C. area. The current rent is estimated at $4,500 per month. [Heavy]

Merger of Banks with Local Branches — “BB&T will buy SunTrust Banks for about $28 billion in an all-stock deal, the companies said on Thursday, creating the sixth largest U.S. lender in the biggest bank deal since the 2007-2009 financial crisis.” [CNBC]

Flickr pool photo by Kevin Wolf

Northam Signs Amazon Incentive Deal, Finalizing Key Piece of Plan to Bring Tech Giant to Arlington

By Alex Koma

Embattled Gov. Ralph Northam has signed a bill to send up to $750 million in incentive cash to Amazon, quietly sealing the oft-discussed deal to bring a new headquarters to Arlington.

Northam put pen to paper on the legislation last night, a day before it was set to become law without his signature. An identical companion bill is still pending in the state Senate, but Northam’s approval and the General Assembly’s overwhelming support of both pieces of legislation likely means its passage is a mere formality.

Unlike the massive media circus Northam convened to herald Amazon’s selection of Crystal City and Pentagon City for a massive new headquarters, the governor signed the incentives bill without so much as a press release. The governor is currently facing relentless calls to resign, after the revelation that a racist photo appeared on his medical school yearbook page and his subsequent admission that he once wore blackface during a dance competition.

But even that scandal was not enough to derail the completion of the Amazon deal, which Northam and his staffers took the lead in negotiating alongside a small group of state lawmakers.

“This is an investment in the growth of Virginia,” Amazon spokeswoman Jill Kerr wrote in a statement. “It will help diversify the economy and serve as a catalyst for drawing in other businesses and sought-after jobs. We believe the establishment of our headquarters in Virginia and 25,000 new, high-paying jobs, is a benefit to the entire commonwealth, and we are excited for what the future holds.”

Under the terms of the deal, state officials will send the tech giant $550 million in grant money to defray the company’s tax burden, so long as Amazon comes through on its promise to bring those 25,000 jobs to Arlington between now and 2030. Amazon could earn another $200 million if it adds another 12,850 jobs at the new headquarters through 2034, but it’s not committed to doing so.

The legislation just approved by Northam may be the single largest piece of the county’s offer to Amazon, but it’s far from the only sweetener state officials dangled to attract the company.

Two transportation projects promised as part of the deal — a second entrance for the Crystal City Metro station and an expansion of the Crystal City-Potomac Yard bus rapid transit system to Pentagon City — recently won tens of millions in state funds, though three remaining transportation improvements still need to find funding.

Officials also agreed to invest $800 million over the next 20 years to help state universities hand out 25,000 degrees in high-tech fields, in a bid to provide a “tech talent pipeline” that could fuel Amazon’s new headquarters. A Senate bill establishing the program passed that chamber unanimously yesterday (Tuesday), while an identical companion in the House of Delegates also passed that body on a 92-5 vote.

Finally, Arlington officials need to sign off on their own incentive deal with the company, designed to send about $23 million to Amazon over the next 15 years. The money will be drawn from an increase in hotel tax revenues expected to be driven by Amazon’s arrival.

The County Board had long planned to consider the issue at the end of the month, but has since backed off that timeline in favor of examining the deal no earlier than mid-March.

View More Stories