- Option agreement allows hospital to buy 5.5 acres of County-owned land
- Fair market value purchase price – minimum of $12.56 million
- Purchase may include cash, land
- Paves way for hospital expansion
The Arlington County Board today approved an agreement that will grant Virginia Hospital Center (VHC) an option to purchase County-owned land at 1800 North Edison Street. The agreement will allow VHC to move forward with developing a master plan for expanding its North George Mason Drive campus onto the 5.5 acre land known as the Edison Complex.
“Virginia Hospital Center is an integral part of the County, providing valuable medical services to Arlingtonians and the region for more than 70 years,” said County Board Chair Mary Hynes. “Our community continues to grow and we need to work with VHC to ensure they have the capacity to maintain and increase the availability of high-quality healthcare services that our citizens and those across the region have come to expect.”
The Board voted 5 to 0 to approve the Option Agreement.
The Option Agreement is generally consistent with the terms of a non-binding Letter of Intent between VHC and the County that the County Board approved on September 19, which provided the framework for negotiations. The significant provisions include:
- VHC will be required to pay the County Board a non-refundable $100,000 fee as consideration for the option to purchase. The payment will be applied against the purchase price, if VHC elects to exercise its option to purchase.
- The earliest date VHC can exercise the option to purchase is 30 months after the effective date of the Option Agreement.
- If not exercised by VHC, the option to purchase will terminate 48 months after the effective date of the Option Agreement.
- VHC must complete its master planning of the hospital expansion, and obtain all necessary County land use and state regulatory approvals before exercising the option to purchase.
- The purchase price will be the fair market value of the property determined at the time VHC exercises the option to purchase. The minimum purchase price will be $12.56M (the current appraised value).
- The County, at its option, may receive cash, one of more specified VHC-owned properties, or a combination thereof, for the purchase price.
Carlin Springs site
One of the VHC-owned properties the County may acquire as partial consideration for the Edison Complex property is located at 601 South Carlin Springs Road. The Option Agreement requires the County to notify VHC within 18 months of the effective date of the Option Agreement that the County intends to include acquisition of the Carlin Springs property as part of the compensation for the Edison Complex property.
The County Board directed the County Manager to report back in February 2016 on a proposed public process that would result in a report to the Board at its May 2017 meeting. The public process would provide recommendations on whether the County should acquire the Carlin Springs site and if acquired, what purpose(s) the site should be used.