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Herndon is preparing for mediation—and potentially a lawsuit—after developer Comstock failed to return a 4.675-acre downtown property following the collapse of a redevelopment project that never reached construction.
The town transferred the parcel to Comstock Herndon Venture, LC, in December 2020 as part of a public-private partnership formed in 2017. The plan called for a mixed-use development in Herndon’s historic downtown and arts districts.
After years of delays and five amendments to the original agreement, the property remains largely vacant behind a fence.
Comstock sent Herndon a formal Notice Not to Proceed on Dec. 6, 2024, electing not to begin construction and asserting that it had no further obligations under the agreement. In January 2025, the town exercised its contractual right to reclaim the property.
Herndon said Comstock was required to sign documents returning the parcel, including its title, but had not done so as of the town’s Feb. 28 update. Comstock has not publicly explained why it has not returned the deed.
The reversal came months after Comstock Chairman and CEO Chris Clemente expressed optimism at an Aug. 13, 2024, Town Council hearing.
“We’re excited to be in a position by the end of this year to get this thing started, and we’re excited to deliver a world-class project for the downtown,” Clemente said at the hearing.
Mediation Could Give Way to Litigation
Herndon has demanded nonbinding mediation under the dispute-resolution provisions of the comprehensive agreement. The process is expected to take place in Herndon, be administered by the McCammon Group and last no more than 90 days.
The town said mediation offers the parties an opportunity to resolve the dispute with a neutral mediator and avoid a lawsuit. If Comstock does not reconvey the property during that period, however, Herndon said litigation may follow.
The town has also terminated Comstock Herndon Venture’s interest in the downtown property. A declaration documenting that termination was filed with the Land Records Division of the Fairfax County Circuit Court.
Under the agreement, Herndon transferred its interest in the land on the condition that Comstock develop it. If development did not proceed, the property was to be returned to the town.
A town spokesperson said Feb. 28 that Herndon had nothing further to share. Comstock did not respond to a request for comment.
Arts Herndon’s Future Remains Unclear
The failed project also leaves uncertainty for Arts Herndon, which expected to occupy space in the planned development.
The nonprofit has held a temporary sublease for a town-owned building and surrounding property at 750 Center Street. That agreement was scheduled to expire March 31, 2025.
An October 2024 email from acting Deputy Town Manager for Operations Scott Robinson described the building as being used for retail and assembly. He estimated its market value at about $44,800 in annual rent after discounting the rate because of the property’s poor condition, including a leaking roof, a sanitary sewer needing replacement and unreliable heating and air conditioning.
Arts Herndon’s actual annual rent was $1, matching leases for 10 other town-owned properties. The town did not say what the redevelopment dispute would mean for the organization.