After judge voids lease, TSA move to Alexandria from Arlington in jeopardy
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Version 0 of 1. A federal court decision blocking the lease for the Transportation Security Administration’s new headquarters in Alexandria has city officials worried about the future of its southwest area, where the relocation of the federal agency was expected to launch lucrative redevelopment. Last month, Judge Charles Lettow of the Court of Federal Claims voided the lease that the federal government signed with the owner of Victory Center, a vacant complex near Metro’s Van Dorn Street station. Lettow said the agreement was invalid because the General Services Administration, the federal government’s real estate arm, had leased more space than Congress had authorized. The negation of an already-awarded federal lease was unexpected and unprecedented, and could raise questions about the validity of other major federal leases. GSA officials refused to comment on Lettow’s order, citing “pending litigation.” It was unclear whether the agency will challenge the decision. [TSA moving its headquarters to Alexandria] The order, which was first reported by the Washington Business Journal, came as a result of a lawsuit brought by Boston Properties, which submitted an unsuccessful bid offering a site in Springfield, Va., for the TSA lease. The judge agreed that although Congress authorized a lease of up to 625,000 square feet for the TSA, the owners of the Alexandria site offered 665,000 square feet, including about 24,000 square feet that the agency would get free and an annex to be built next to the existing building. The GSA knew the Alexandria site exceeded the authorized size, according to the ruling. An internal GSA memo cited by the judge said disqualifying that site would lead to a bid protest, which might delay the TSA’s planned 2018 move, while a protest lodged after the lease was awarded would not cause a delay. At the time the lease was announced, the GSA said it expected to save $95 million over the course of the 15-year lease because it was paying $36 per square foot — 25 percent below going rates in the area. Alexandria City Manager Mark Jinks pointed to that savings this week, calling Victory Center “the best site for the best economic value” and said the city is hopeful that the GSA will either appeal the order or negotiate a settlement that will allow the TSA headquarters and its 8,300 employees to come to Alexandria. When the lease was announced in August, the city said it expected the move would create about 640 temporary construction jobs and decrease the city’s overall office vacancy rate to 13.5 percent. Alexandria promised a $23.4 million real estate tax abatement over 15 years, which it has already partially provided, Jinks said. Jinks said Lettow’s ruling is a setback to the city’s hopes of turning the West Eisenhower Avenue area into a lively mixed-use commercial and residential hub. |