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The Town of Herndon and Comstock Venture LC are set to enter mediation in June as officials seek the return of 4.7 acres tied to their collapsed downtown redevelopment project.
The town is not currently involved in litigation over the project, Chief Communications Officer Brent M. Heavner said in mid-April. Mediation could determine whether a costly court fight follows.
Comstock notified Herndon on Dec. 6, 2024, that it would not proceed with construction. Under the parties’ agreement, the developer was then expected to complete documents transferring the property back to the town. Herndon says that has not happened.
In January 2025, the town invoked its contractual right to reclaim the land and demanded nonbinding mediation in hopes of resolving the dispute without filing a lawsuit.
A town update posted as of April 28 said the process would involve a neutral mediator and last no more than 90 days. If Comstock does not reconvey the property, both sides could face litigation expenses.
Years of setbacks preceded the collapse
Herndon transferred the town-owned parcel in its historic downtown and arts overlay district to Comstock at no cost in December 2020. The transfer was governed by a comprehensive agreement between the parties, which had selected the mixed-use project in 2017 as a centerpiece of downtown revitalization.
The redevelopment encountered repeated challenges. In 2018, three neighboring property owners appealed the Heritage Preservation Review Board’s approval of certificates allowing buildings at 770 Elden Street and 750 Center Street to be demolished.
Comstock withdrew its development plan and submitted a revised version, which the board approved in May 2019.
More delays followed as construction costs rose, supply chains were disrupted and COVID-related problems continued. Economic uncertainty prompted a two-year pause beginning in April 2022.
Demolition and a closing bookstore remain part of the aftermath
The abandoned project left visible changes downtown. Comstock demolished the former Stohlman Subaru building at 770 Elden Street and installed a construction fence around part of the property. The fence remains in place.
A Thousand Stories, a bookstore at 750 Center Street, announced on Dec. 4 that it would close because the building was expected to shut down for the redevelopment. The business said it had been unable to secure another location.
The bookstore closed, and two days after its announcement, Comstock formally told the town that the redevelopment would not move forward.