Summary

City staff proposed a City Council initiative to bolster transparency and avoid perceived and/or real conflicts of interest in land development and transactions.

New Council initiative proposed

At the end of a broad discussion on June 24, 2024, of City Council priorities for the next two years, City staff recommended including an initiative to address the appearance of conflicts of interest. The initiative, added under the“Good Governance” priority, would “build upon current practices for transparency in City land development processes.”

Presented by City Manager Wyatt Shields with support from City Attorney Sally Gillette, the initiative appeared to respond to requests from some members of the City Council that the Economic Development Authority (EDA) be more sensitive to public concerns about perceived conflicts of interest and that the City Attorney provide guidance that would ensure the City meets the highest standards in this area. [See Pulse post, Council Members Seek Sensitivity to, Guidance on Conflicts of Interest Following Economic Development Authority Annual Report; EDA Vice Chair Calls Comments “Potshots”, June 3 and 11, 2024.]

Department teams, public engagement, and key actions involved

The initiative, discussed by the Council’s Government Operations Committee, would “develop additional procedures for City officials that promote transparency and avoid perceived and/or real conflicts of interest in land development and land transactions,” Mr. Shields said. The effort would involve the City Attorney’s Office, Community Planning and Economic Development staff, and boards and commissions liaisons. The public would be kept informed of steps taken.

Three key suggested actions and the timelines for completing them are:

Review the current “Disclosure of Real Parties in Interest” form completed by developers at the outset of all land development applications; consider expansions to this form; consider use [of] this form also for City land purchases or sales. (1Q FY2025 – by the end of September 2024)
Clarify policy regarding such disclosures; train staff, elected officials, and board and commission members on how to disclose or report any relationship with the subject property or an interested party. (2Q FY 2025 – by the end of December 2024)
Forward all reported relationships to the City Attorney for evaluation and advice. (Ongoing)

Considering process improvements as the City grows

In introducing the initiative, Mr. Shields said, “The City currently has policy and practices to avoid conflicts of interest… in our budgeting functions, our purchasing functions, and in our regulatory roles, our tax collection roles, and, importantly, in land use and real estate transactions. Those last two are really important as the City has been engaged, particularly in the last five years, in very significant land transactions, including the Virginia Tech site, the West Falls site, and very significant land development cases, which are under construction right now.”

“To my knowledge,” he continued, “when City officials throughout the City’s history and over the past five years…have had a conflict, they have sought advice, they have recused themselves, and have provided disclosure of their role or their relationship.” This initiative is proposed, Mr. Shields said, in the context of considering process improvements as the City grows.

Assurance for the public, protection for those involved in the work of the City

Council Member David Snyder responded to the announcement of the initiative. He said of the entire list of initiatives in support of Council priorities for calendar years 2024-2025 (approximately FY 2025-FY2026), “I think this is a good set, including [the last number] 25.” Of this effort, he added, “It seems doable, and I think…provides good assurance for the public, but also good protection for the people [who] are active and doing things for the City.”

Additional questions

Presumably, the initiative’s reference to “City land purchases or sales” includes parcels held by the EDA, such as the land along South Maple Avenue that would be sold to the developer if the proposed 7-story Maple/Annandale project moves forward as well as lots now owned by the City in Virginia Village that could become part of a mixed-use development.

Further, the initiative does not refer specifically to zoning changes, such as the proposed update in parking requirements for commercial buildings, and how properties held by individual City officials/EDA members might benefit – and so require disclosure and potential recusal from discussion and decisions about those changes. [See Pulse post, Initial Update to Off-Street Parking Being Considered by the City, June 16, 2024].

The Pulse has asked City officials to comment on these issues and is awaiting a response.

Proposed initiatives to support City Council priorities

The discussion of the additional Good Governance initiative occurred during the Council’s June 24, 2024, work session on the staff’s proposed initiatives to support the Council’s five strategic priorities adopted in March 2024. Staff sought feedback from the Council in preparation for additional work sessions on specific actions planned to fulfill each of the five key priorities – Environmental Sustainability, Transportation, Economic Development, Housing, and Good Governance.

These priorities, their desired outcomes, and the initiatives staff have proposed accompany them are summarized below.

Priority Area	Desired Outcome	Initiatives
Environmental Sustainability	The City models leadership in creating environmental sustainability and resilience in both our natural and built environments.	(1) Implement the Government Operations Energy Action Plan (GOEAP); (2) Implement the Community Energy Action Plan (CEAP); (3) Identify and prioritize open space acquisitions and provide funding through the CIP; (4) Recommend potential code amendments to increase canopy coverage standards in the City; (5) Develop options to pay for solid waste services that incentivize waste reduction and promote equity
Transportation	A safe, comfortable, and efficient way for all to get here and get around.	(6) Advocate for regional, state, and federal long-term solutions for Metro funding; (7) Complete Bicycle Master Plan; (8) Complete the Americans with Disabilities Act (ADA) Transition Plan; (9) Embrace the principles of Complete Streets and Vision Zero; (10) Implement adjustments to streetscape standards through engineering and administrative solutions
Economic Development	Successfully recruit/attract, maintain support for, and expand businesses within the City to achieve the ideal of being a 15-minute City, and to diversify the City tax base.	(11) Update permits process, leveraging technology to improve the customer experience; (12) Update payments process, leveraging technology to improve customer convenience; (13) Complete and maintain City features that help deliver an attractive sense of place; (14) Develop a plan for the Gordon Road Triangle that includes a long-term solution to the City’s Property Yard; (15) Provide parking requirement relief for existing commercial buildings
Housing	The City has a range of diverse, attainable, and sustainable housing options for all.	(16) Preserve affordable housing for no net loss of units in the City; (17) Place eligible persons into the 99 new Affordable Dwelling Units; (18) Form the Virginia Village Redevelopment Planning Workgroup; (19) Develop Affordable Living Policy for Council adoption; (20) Develop zoning code amendments for consideration that would allow for Accessory Dwelling Units
Good Governance	The City Government organization is well managed, efficient, flexible, trusted, and proactive and fosters an engaged organizational culture valuing growth and development for the benefit of employees and the community.	(21) Refresh and update the City of Falls Church website; (22) Update the Utilities and Facilities chapter of the Comprehensive Plan; (23) Develop a City-wide customer service program; (24) Develop changes to the compensation system that foster workforce development and provide employee growth and opportunities; (25) Build upon current practices for transparency in City land development processes