Herndon Sues Comstock Over Failed Development Deal

The town of Herndon is suing developer Comstock for failing to hand back a 5-acre parcel that seven months ago the local firm announced it no longer intended to develop. 

The town said in a press release Friday it filed the suit with the Fairfax County Circuit Court to “effect the return” of the site at 770 Elden St., which it had granted to Comstock for redevelopment.

In 2017, Comstock and the town reached an agreement that the developer would build a mixed-use development complete with an arts center, retail and residential on the site, which mostly houses surface parking lots.

That agreement included a transfer of the land to Comstock, with the provision that the developer would hand it back to the town if it didn't proceed with the development, according to the town. 

Comstock told the local government in December that it did not intend to develop the site, FFXnow reported at the time. 

In January, the town told Comstock that it was exercising its right to take back the property. 

A month later, the transaction had still not occurred, and the town filed a declaration to terminate Comstock’s interest in the property with the Fairfax County Circuit Court. It “demanded” the parties submit to nonbinding mediation to resolve the issue, which it said would be preferable to litigation. 

Comstock didn't provide a comment on the lawsuit by the time of publication.

The town initially selected Comstock in 2016 to develop the 5-acre site and integrate it into the fabric of downtown Herndon. The original plan was to build 281 residential units, 18K SF of ground-floor retail and an 18K SF arts center, with hopes of delivering by 2019. 

Last August, Comstock CEO Chris Clemente told community members at a Herndon town council meeting that construction could start in January, but just four months later, the company informed the town that it was ending the pursuit, saying in a letter that the project had become “economically unfeasible,” FFXnow reported.

In a statement to Bisnow after publication, Clemente said the town’s complaint “contains a number of allegations that are inaccurate and without merit.” 

Clemente said that prior to backing away from the project in December, the firm worked for “countless hours” to ensure the pieces were in place to proceed with construction this year, but that the deadlines imposed by the town gave the firm “no choice” but to issue a Notice Not To Proceed and move forward with mediation. 

“We have communicated with Town officials our continued desire to develop the project as designed, or in the alternative transfer the land to another developer once the Town selects a new developer and the timing of the cost reimbursements pursuant to the Comprehensive Agreement is determined,” he said. “We remain hopeful that an amicable solution can be reached in the near-term rather than delaying further the redevelopment with litigation proceedings.”

UPDATE, JULY 15, 3:10 P.M. ET: This article has been updated with a comment and added context from Comstock CEO Chris Clemente.