The City of Alexandria and the federal government are set to take to court later this month a disagreement over the value of the property where the Patent and Trademark Offices headquarters is located.

LCOR Alexandria LLC, the owner of the property, on behalf of the General Services Administration, said the city overstated the value of the property in its 2004 real estate assessment by about $500 million dollars. The city claims the assessment was correct.

“At the time … they said it was a billion dollar project,” assistant city attorney Karen Snowe said. “They’re alleging it’s worth only half of that. We not only assessed it at fair market value, it’s worth at least that much.”

LCOR did not return calls for comment on the lawsuit. A spokesman for the General Services Administration said he could not comment on an ongoing legal matter.

This story continues below
Advertisement

Real estate assessments determine how much the owner of a property pays in real estate tax. If the city overestimates the value of property, the owner pays extra taxes.

Businesses and citizens have the right to challenge real estate tax assessments, although it is unusual for a challenge to make its way to court.

LCOR was selected to build the Patent’s Office new headquarters at the Dulany Street location in 2000, with the General Services Administration signing a 20-year lease with the company. The 2.5- million-square-foot project carried an $885 million estimated cost.

The Dulany Street site was chosen because of its accessibility from the King Street and Eisenhower Metro stops. It also provided room for more than 3,000 new parking spaces.

The Patent Office moved into its new headquarters shortly after its completion in 2003. The office was expected to spark redevelopment in the area, drawing new businesses and making the land more valuable.

The redevelopment hasn’t happened. Alexandria Economic Development Commission Acting Executive Director Stephanie Landrum said because her group was not named in the lawsuit, she could not comment on the matter.

In 2005, LCOR filed a lawsuit challenging the property assessment. It will go before a judge at the end of this month.

dfrancis@dcexaminer.com