A Family That Plays Hardball

"We happened to be early into the Tysons Corner situation. We were able to secure the zoning when most people weren't interested in Tysons Corner and that general area," he said. If he and his partners hadn't built a mall there, "someone else would have."

Thomas Hanchett, a consumer historian, agrees, saying Lerner and his partners were simply following the trend. Not only were the suburbs expanding rapidly, but a 1954 change in tax laws also made it much more profitable to build malls on the outer rim.

Lerner's larger role in the transformation of Tysons came later, in his decision to differentiate Tysons II by taking it upscale, said broker John McEvilly, who assisted Lerner and his Tysons II partner, a Sears, Roebuck and Co. subsidiary.

The Galleria mall that opened in 1988 was like nothing the Washington region had seen, with spacious walkways and premier anchors in Neiman Marcus and Saks Fifth Avenue, all of it behind a mauve facade accented with Napoleon Red Swedish granite. Flanking it were a Ritz-Carlton hotel and Tysons' first high-end office towers, which now hold tenants including PricewaterhouseCoopers LLP and Deloitte & Touche.

The luxury tilt was a bold move: Washington was mostly a government town, and the Galleria struggled in its early years. But as Northern Virginia's private economy began to boom and serious money poured into Fairfax, Tysons II helped transform Tysons into a nexus of high-end commerce. "It's probably the crown jewel in our portfolio," said Lerner's son, Mark, 53. "There's no place in this entire area you'll find development of that quality."

More recently, though, the Lerners have found themselves in a conflict with Fairfax officials over a large, undeveloped section of Tysons II.

With the planned arrival of Metrorail in the area, Fairfax officials hope to transform Tysons from a car-clogged, outsize office park into a walkable downtown. The county says focusing growth, particularly housing, around transit will ease congestion, reduce sprawl and help Tysons compete with rival employment centers.

The large open swath remaining at Tysons II is crucial for this transformation because its central location next to a proposed Metro station makes it ideal for high-density housing.

But the eight high-rise buildings the Lerners proposed in 2001 fell far short of county hopes. Planners cited the absence of ground-floor retail, an excess of parking and, most of all, a lack of residential space, just enough for 300 apartments, which would leave Tysons II even more dominated by offices.

This was despite county rules letting the company build more square footage in exchange for creating housing -- an incentive that other landowners have embraced.

"They had a business plan, essentially, that said, 'This is what we're building now, and in so many years we'll build another building,' " said Supervisor Linda Q. Smyth (D-Providence), who represents Tysons and opposed the Lerner plans. "They wanted to keep going on with their business plan." Fairfax officials approved the plans in 2003, after the Lerners agreed to more than double the residential space, enough to produce 530 apartments. But last year, the Lerners told the county they would divide the square footage among many fewer and larger units -- roughly the 300 they were planning to build in the first place, only now they'd be far more expensive.

Officials said they felt taken: They thought they had agreed to more apartments, but the only thing in writing was square footage. "We were all chagrined," said Board of Supervisors Chairman Gerald E. Connolly (D). "They should build the units we discussed."

The Lerners dismiss the criticisms, saying they preferred office buildings as a better long-term investment. "It's not the planning board people's job to focus on economic viability," Tanenbaum said. "We wish it was, but it's not. It's our job."

The family has a charitable foundation, he added, "but the development company is not the charitable arm of the family. The development company borrows money and has to pay it back."

Different Visions

The debate around the ballpark is taking on similar tones. What the Lerners describe as attention to economic realities, some city officials view as narrow self-interest.

"Clearly, the idea of using the ballpark to be a catalyst for urban development along the waterfront is an idea that it appears they haven't bought into," said Eric W. Price, the city's former deputy mayor for planning and economic development and a board member of the Anacostia waterfront group.

To counter this perception, Lerner notes that the family has invested in the area, in the form of a 10-story office tower it is building on M Street SE.

Still, the Lerners and the city have had several disagreements in the past five months. Before the sale of the team, officials criticized the family for waiting until the last minute to name African Americans to their ownership group.

In July, D.C. Mayor Anthony A. Williams (D) labeled the Lerners' approach to the parking talks "condescending." Last week, Williams joked that the Lerners are now the "problem" of the likely new mayor, Adrian M. Fenty, who voted against the ballpark as the D.C. Council member representing Ward 4.

Looming over everything is the city's commitment to have the ballpark ready on time, which requires it to pay damages "without limitation" to the Lerners, if there is a delay.

Contractors say they are on schedule, but the pressure to beat the clock is driving cost overruns, which must be covered by the city unless they are caused by Lerner requests.

Nationals President Stan Kasten warns of dire consequences if the stadium isn't done on time. "It's a big number, millions and millions, that it will cost the team," he said. "There are massive amounts of damages."

Family members stop short of such warnings for now. "We think there are certain things that are required for the stadium, and we're going to keep pushing those ideas forward," Cohen said. "Obviously, there is time, money and different things to consider. We'll put that all into the mix, and we hope to come out with the best answer for us, for the city and for the fans."

Staff writers Ray Rivera and Tom Jackman contributed to this report.