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County Eyes Legal Action to Recover $200,000 Payment Connected to Canceled Land Deal

Arlington officials could soon be headed to court to claw back $200,000 the county handed over as part of a since-canceled agreement to buy a two-acre property in Fairfax County.

The County Board agreed back in 2016 to buy several parcels of land along the 6700 block of Electronic Drive in Springfield, with plans to use the property as space for a new maintenance facility for its Arlington Transit buses.

But the Board decided to back away from the $4.65-million land deal late last year, after discovering that the county would have enough space for bus maintenance at another property officials bought in Nauck last summer. Not only did the Board hope to avoid operating a facility outside Arlington, but members expected the move would save the county as much as $10.5 million initially and roughly $900,000 in maintenance costs each year.

Yet the process could come with its own expenses. The Board voted unanimously last week to authorize county attorneys to pursue legal action against the property’s owner, Shirley Investors, LLC, to recover a $200,000 deposit the county sent to the company before the sale was finalized.

Deputy county attorney MinhChau Corr told ARLnow that she couldn’t discuss the details of the case, but that action by the Board does not mean a lawsuit pitting the county against the property owner is a certainty. But Corr did say it’s a sign that negotiations have become acrimonious enough that the county could pursue such a step in the near future.

“There’s some level of conflict that we anticipate could go to litigation,” Corr said. “But that doesn’t mean we’re 100 percent committed. The two sides could work something out before next month’s Board meeting, this just avoids us having to wait until then to ask for permission to file something.”

County court records don’t show any case involving Shirley Investors and the county as currently pending. Neither of the two men listed as contacts for Shirley Investors in the county’s preliminary sale agreement responded to requests for comment on the matter.

It’s unclear what sort of legal argument the county might mount to recover the deposit.

The terms of the land deal say that the county would’ve been eligible to win back its $200,000 if it called off the sale within 90 days of signing the agreement with Shirley Investors — that deadline is long past, however, as the agreement was signed on Dec. 7, 2016.

Furthermore, the agreement describes that deposit as “the sole and exclusive remedy available to the seller” if the deal fell through.

Photo via Google Maps

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