Community Development Authorities: The Key to Urban Redevelopment

The most under-appreciated story in Virginia today is the surge in urban redevelopment: from Arlington/Alexandria to Richmond, from Lynchburg to Hampton Roads. Developers are rediscovering the center city, and they're building or proposing an incredible range of higher-density, mixed-used developments. One reason is the increase in number of "empty nesters" who want to move from the suburbs back into the city, close to cultural amenities. Another is the increasing acceptance of the "Community Development Authority" as a financing tool.

The latest CDA proposal comes from Virginia Beach developers L.M. Sandler & Sons, who propose building New Port, a residential project of 1,600 single-family homes, townhouses and condominiums on a 208-acre on Greenwood Drive. The property needs new roads, sewers, water lines, sidewalks, streetlights and a refurbished school--something the city would be hard-pressed to finance itself.

New Port would cover the cost of installing public infrastructure by creating a CDA that issues 30-year bonds. The bonds would be repaid through a $50-a-month assessment on homeowners. That assessment will come on top of a homeowner’s association fee to pay for maintenance of the development’s public spaces and for amenities such as two pools, a fitness center and a clubhouse.