Stafford’s Board of Supervisors voted at their meeting this week to amend and restate the Memorandum of Agreement (MOU) with Mosaic Realty Partners to allow Mosaic another opportunity to achieve development at Aquia Town Center. The amendment removes the escalator clause for tax revenue incentives from the original 2015 agreement and requires Mosaic to clean up the site. Faced with no significant development at the site over the last three years, the Board considered rescinding the agreement but decided an amended agreement with a three-year term was a better way forward.
Key points of the amended MOU are below:
- Eliminates the escalator clause, keeping the Incremental Tax Revenue at $6.25M.
- Mosaic will clean up the site until development takes place, with details of the required cleanup outlined in an agreement after consulting with environmental staff.
- The Incremental Tax Revenue (ITR) payback starts upon a Certificate of Occupancy for at least 15,000 square feet of new commercial space.
- The Agreement may be transferred, and all terms will continue with the new owner of the property if the transfer takes place within the three-year initial term.
Mosaic’s original Memorandum of Understanding with Stafford County called for the company to develop the center and receive $6.25 million in Incremental Tax Revenue, with an escalator clause that would have multiplied the return over time. With no significant development on the project and no agreement with Mosaic on options for development in 2018, the Board considered a resolution to rescind MOU at their February 5, 2019, meeting. A representative from Mosaic spoke and offered to remove the “escalator” and consider other terms that would set timelines for the development. The Board decided to delay rescinding the agreement for 60 days to give County staff time to continue to negotiate on an amended MOU with Mosaic. The newly amended agreement is the result of those negotiations.