Riverfront Land Deal Collapses

County Remains Optimistic, but Owner Stops Negotiations

The proposed North Tract sports complex, in an artist's rendering, would offer Potomac River and monument views. (Arlington County Department Of Parks, Recreation And Cultural Resources)

The expanse of land just south of the 14th Street Bridge in Arlington -- with its sweeping view of the Potomac River and monuments -- is one of the most coveted pieces of undeveloped land left in the region.

Officials in Arlington County have long been convinced it should be a park, their park, perhaps the last chance to snatch a rare swatch of Washington's dazzling riverfront for the county.

Last year they appeared close to realizing that dream, inking a deal with a local developer to acquire the seven-acre swath of land just east of Interstate 395 in an unusual swap.

Before the sale was final, the county moved ahead with plans to put the main building of a $135 million sports complex there. An airy, glass-walled swim center and health club, it would overlook a wildfowl preserve and acres of new soccer fields. They even hoped to sell the naming rights to a big corporation, taking advantage of the site's prominent location -- where a half-million drivers pass by daily.

But the deal has fallen apart -- another victim of the region's flagging real estate market -- raising questions about the future of the sports complex, known as the North Tract. It has been delayed more than two years and is $40 million over budget for its first phase.

County Manager Ron Carlee said yesterday that the purchase negotiations have simply hit a snag. He said the county is so committed to getting the water-view property that it will buy it outright -- or move to seize it through eminent domain.

A court would then decide whether the land could be taken for a public use and how much it is worth. The owner, Monument Realty of Northwest Washington, is asking about $45 million, more than twice its assessed value.

"This project is very visible and it's a big deal, but the underlying issue is straightforward: It's about fair market values in a changing market," Carlee said.

F. Russell Hines, executive vice president of Monument Realty, said the firm backed out of the deal because of the downturn in the local condominium market. Monument was to pay $25 million and swap its prized water-view parcel for a five-acre county tract a few blocks south, where it would build a 600-unit condominium building.

The company decided to pull out of the deal last week after several months of negotiation, Hines said.

"The market has changed substantially in the last year and a half since we cut this deal," Hines said. "We said, 'Look, this can't go on forever. We're going to terminate the contract.' "

But, he added, "We're not going to hang up the phone on them. We can certainly keep talking."