CHEVY CHASE, MARYLAND – JBG Rosenfeld Retail (“JBGR”) and the City of Falls Church, Virginia recently finalized an innovative deal with BJ’s Wholesale Club for 6607 Wilson Boulevard.  In an effort to generate increased tax revenues in the midst of a slow economy, the City Council of Falls Church presented a rare opportunity to the shopping center leasing, management, and development company, JBGR.  The City entered into an agreement with JBGR to share a portion of the future taxes as an incentive for JBGR to bring a big box retailer to this site. 

This is the first time that the City of Falls Church has offered such an incentive to a developer to bring in a big box retailer.  And the agreement illustrates how cities can work with developers to achieve a win-win for both parties.  The agreement also illustrates a shift in some local government officials’ perception of big box retailers.

A few years ago, when the economy was strong, many cities and counties adopted ordinances that discouraged the construction of new big box retail stores.  Now that the economy has weakened and many local governments are struggling with budget deficits, some cities and counties are now actively courting big box retailers because of their potential to generate tax revenues.  The new BJ’s Wholesale Club in Falls Church, for example, is expected to increase the City’s entire sales tax revenue base by an estimated twelve percent (12%). 

“The BJ’s development project is the City’s number one economic development priority.  In addition to providing a needed shopping amenity for the residents of Falls Church, the new BJ’s club will enhance the City’s tax base and that is extremely important in the current economic climate,” said City of Falls Church Director of Economic Development, Rick Goff.  “We see the BJ’s development project as a great way to generate needed tax revenues, contributing to our efforts to maintain our City’s high standards for education and other services that our government provides to its residents.”  

“This project is the result of a mutually beneficial partnership between the City of Falls Church and JBGR.  The City has worked closely with our firm in virtually every aspect of this development project.  Our firm is interested in working with other local governments on similar projects,” said JBGR’s Vice President of Acquisitions & Development, Tom Sebastian.  JBGR and BJ’s expect to begin construction in November of 2009.  The new BJ’s Wholesale Club is expected to open for business in mid-2010.

JBGR acquired the 8.3 acre site located at 6607 Wilson Boulevard in January, 2008.  The site is prominently situated in a densely populated area of Falls Church, Virginia.  It is also located only 1 block away from Seven Corners, one of the most heavily trafficked intersections in the region. 

More about BJ’s Wholesale Club:  The Company is dedicated to providing its members with high-quality, brand name food and merchandise at prices that are significantly lower than the prices found at supermarkets, supercenters, department stores, drug stores and specialty retail stores.  BJ’s offers low BJ’s Member Pricing on a huge selection of groceries, top-brand apparel and accessories, small appliances, consumer electronics, fine jewelry, and other quality merchandise.  Headquartered in Natick, Massachusetts, BJ's Wholesale Club, Inc. is a leading operator of warehouse clubs in the eastern United States.  The Company currently operates 184 clubs and 103 gas stations in 15 eastern states.  Learn more about BJ's Wholesale Club or shop online at www.bjs.com.

More about JBGR:  Based in Chevy Chase, Maryland, JBG Rosenfeld Retail specializes in the leasing, development, acquisition, construction, and management of retail properties throughout the mid-Atlantic region.  Currently, JBGR holds more than 30 shopping centers, nine freestanding store sites, and numerous mixed-use retail sites in its portfolio.  For more information on the full scope of the Company’s services, call (301) 657-0700 or visit www.jbgr.com.   

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