ARLINGTON, VA—Earlier this month, the Arlington County Board approved a proposal giving Virginia Hospital Center the option to purchase the site at 1800 North Edison St, a parcel of land next to the hospital that the county owns.

The payment for the land, per an agreement outlined in an earlier non-binding letter of intent between the County and the hospital, will be either "cash, one of more specified VHC-owned properties, or a combination thereof." As for the purchase price itself, the LOI established it will be the fair market value of the property determined at the time VHC exercises the option to purchase. The earliest date that it can do so is 30 months after the effective date of the agreement.

At a minimum, the purchase price will be $12.45 million, which is the land's current appraised value.

One of the properties the county is considering as payment, or partial payment, for Edison Complex is 601 South Carlin Springs Rd., whose total lot size is 503,989 square feet. The hospital also has land holdings at 5267 and 5275 Lee Highway, with a total lot size of 42,474 square feet and at 5226 and 5232 Lee Highway, where the lot size totals 57,079 square feet.

The approval is an important step for the hospital, which approached the county in April with the land swap proposal for the 5.5-acre site, which is also known as the Edison Complex. It had become clear by that point that the hospital's operations had grown to the point that an expansion would be necessary. Now that it has the option to buy the land, VHC will begin work on a master plan to expand its North George Mason Drive campus.

A Very Long Process

Besides developing master plans, the hospital must also file a proposed Site Plan or Phased Development Site Plan. To state the obvious, the planning process will take several years. Both the county and state must give approval to the master plans and special exception site plans.

There will be public hearings and review by county staff and the community of, well, just about everything associated with the project from the design and architecture, to the signage and landscaping, the construction management and staging, and traffic and parking impacts on the affected streets.

The local community has voiced initial approval of the project with letters of support provided by local civic associations of Waycroft-Woodlawn Civic Association, Tara-Leeway Heights Civic Association, and the High View Park civic association.

With construction not likely to begin for years, the hospital will want to have a temporary use assigned for the land, assuming that it does buy it. That too will require consultation with the community and the usual county approval process.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.