At 10:30 PM on July 14, the Middleburg Town Council agreed to annex the 340-acre Salamander Inn property under terms outlined in a three-page "Memorandum of Understanding" between the Town and Dr. Sheila Johnson's Salamander Development, LLC.

The annexation will nearly double the town's land area, and will include Salamander's proposed 120-room inn, and as many as 49 new residences. Salamander, in return, will build a new sewage treatment plant to serve the entire town. By some estimates the annual taxes and fees paid by the new Inn and Spa will amount to as much as half the Town's current operating budget.

The 4-3 approval followed three hours of public debate, and came only after Councilmember Mark Snyder forced last-minute amendments to two key provisions of the "Memorandum of Understanding."

Mark Snyder, Betsy Davis, Darlene Kirk, and Eura Lewis voted in favor of the "understanding." Helen Hyre, "Bundles" Murdock, and Margaret New voted "no."

Mayor Tim Dimos, who could only vote in case of a tie, approved of both the deal and the hard work by all parties that led up to it. "I think this is good for Middleburg," he said. "The process is working."

The "Understanding"

In brief, the Town and Salamander Development, LLC, agreed on Thursday only to draft and sign further formal agreements incorporating the following mutual commitments.

Town Commitments

If proper zoning changes and exceptions can be obtained from the Loudoun County government, Middleburg promises to move swiftly to annex the entire Salamander property, and provide appropriate water and sewer services to the planned Resort and Spa at standard rates. At Council Member Mark Snyder's insistence, special reduced tap-fees for up to 49 houses in the planned resort were eliminated from the agreement.

Pending further design and review, the Town also agreed, in principle, to approve access to the development from Pendleton Street.

Salamander Commitments

Salamander, in return, promises to:

1) replace the town's waste water treatment plant and provide other duly-noted wastewater and fire-fighting upgrades to the water system at "no cost to the Town" and "to standards approved by the Town." Estimates of the cost of the new plant run as high as $4 to $5 million. Salamander agreed to spend whatever was required.

2) turn over to the Town the new water system, and associated potable-water wells newly dug on the Salamander property, "upon completion" of the improvements to the water system.

3) agree to the assignment of an existing easement from the County to the Town; expressly prohibiting the building of a golf course on it; and, if plans should require changes in the easement boundaries, to guarantee than no less than 75% of it would be designated as "open space."

Because the town would be supplying water and sewer services to the resort, Salamander also agreed to add the land that would otherwise have been required for septic fields to the designated as "open space."

To further ensure that the open space would be protected from a future, and possibly more "development-oriented" Town Council, the parties also agreed that the Town could designate the Virginia Outdoors Foundation" as "an additional beneficiary" of the easement. At Council Member Mark Snyder's insistence, Salamander further agreed, on the spot that the assignment would take place, at a date certain, ideally no later than June 1, 2006. Rather than "upon completion of the Resort."

4) limit development on the entire 340-acre property (which includes the 88 acres already within town limits) to the 120-room resort and its associated facilities, and to no more than 49 new "residential dwelling units"

The Debate

A standing room only crowd had gathered at the Town offices well before Mayor Dimos gaveled the meeting to order at 7:30 PM.

After a short presentation and plea for support against high-density development south of Dulles Airport by Laura Tekrony and Cheryl Hutchinson of "Citizens to Save the Transition Area" Mayor Dimos opened the floor, for the last time, for public comments on the proposed "memorandum of understanding."

There were more than twenty speakers, the vast majority of them Town residents or business owners. Most of them favored the proposal. A significant minority spoke in opposition. Several speakers counseled further delay, reconsideration or refinement of the "memorandum." Though he had requested that speakers observe a three-minute time limit, Mayor Dimos declined to enforce it, noting that the issues being discussed were too important to not discuss fully.

Highlights "Pro"

Those who favored a "yes" vote by the Council nearly all emphasized that the Salamander Resort would be built one way or another, no matter what the council's decision. They argued in favor of the "memorandum of agreement" by pointing to the crying need for a new water treatment plant, the high cost of building a new one, and the health dangers and high rates associated with the existing system. They noted the benefits of additional tax and fee revenues that would accrue to the Town, rather than to the County if the Inn were part of Middleburg. Several argued that the Inn would attract new and desirable customers for local businesses as well. Retaining Town "control" over the project, they argued, was better than leaving such matters entirely to the County.

Trowbridge Littleton, a twenty-year Council veteran, argued that the Council should consider their vote as a "moral decision" that would produce profound and long-lasting effects on the town. In a veiled reference to rumors that some members opposing the Inn would be leaving the area soon, Littleton insisted that "those who will not be here in two or three years" should abstain. "Without Salamander," he said, "our water bills will soon be higher than our mortgages."

Sonny Underwood argued that if the Council voted no, "the town becomes Lovettsville."

Reggie Dawson came prepared with a "show and tell" presentation, in the form of brown-bags of comparative sprawl. With Dawson's "Salamander Lunch Special" one got a little sprawl, but alongside it, more open space, town control, a guarantee of no air traffic and no golf course, a free waste water plant and fresh-water wells, a relationship with an organization that would work with the town, and a large increase in revenue.

Dawson's "Developers Delight" came with "65 to 90% land-use saturation, traffic, crime, unsightly sprawl, septic system pollution, and no wells, no water system, no guaranteed open space, and no revenue windfall for the town.

Noting that public comment at the Council's Friday special session was 3 to 1 in favor of annexing the Salamander project, he demanded that any Council Member who voted "no" come up with a plan to fund the infrastructure that would be required to handle the "blight" that would follow.

Howard Armfield argued that a "no vote" made "no sense" given the jobs the Inn would generate and the water treatment facility it would provide.

Kim Hart, speaking on behalf of many of the residents of Windy Hill, urged a "yes" vote because the jobs provided by the Inn, and the economic stimulus it would provide for the rest of the town, would be especially good for the poorest citizens of Middleburg.

Richard Kirk argued that, as "senior citizen" he could simply not afford to keep paying $500 per quarter for sewer and water services. If Salamander didn't build the new water treatment plant, he noted, the town would have to foot the bill and its fixed-income senior citizens simply couldn't afford it.

Hump Astorga argued that the Inn would attract the kind of people he needed to attract to his restaurant.

Colonel Brady argued that "poor development" would do more damage to Middleburg than the Union Army.

The President and CEO of the Loudoun County Convention and Visitors Association, Cheryl Kilday, cited survey data showing that even visitors who already loved Middleburg were overwhelmingly in favor of adding amenities like the Inn and Spa.

Pauline Wisdom, noted the decline of the "quality of visitor" over the sixteen years she's been in business in Middleburg. She urged a "yes" vote to promote a better class of tourist.

Highlights "Anti"

The minority who spoke against approval included those who opposed any development of the Salamander property at all, those who were opposed to what they perceived as a project grown too large, and those who were simply opposed to one or more of the detailed terms outlined in (or omitted from) the memorandum of agreement.

Richard Strother expressed concern that the Memorandum, as written, didn't offer enough "protection" for the town, especially given the broad range of possible uses for the land allowed under the zoning requested by Salamander. He cited the lack of specific and detailed pledges NOT to use the land for many of those purposes. He urged the council to vote "no" but to continue discussions with Salamander.

Valerie Kelly expressed doubts about whether or not the owner of the Salamander project could be relied upon to do what's best for Middleburg. She, like Strowd, argued that the memorandum of agreement lacked detail and did not offer enough formal protection for the town. She took the Town Council to task particularly for its failure to pursue alternate sources of funding to upgrade the Town water treatment facility.

Former Redskin Sam Huff was more personal in his attacks. Noting that in Middleburg, unlike New York, one knew the people one "ran into in the Post Office," he nodded toward Dr. Johnson and quipped that he'd never seen HER in the Middleburg Post Office. Arguing that a large facility like the Salamander Inn would be more appropriate for Leesburg, he asked Mrs. Johnson why she didn't take her Inn there. Then, noting that he'd recently attended a charity fund raiser with "forty hall-of-famers" at Lansdowne, he argued that "she'd never get forty hall-of-famers to come here." He accused the Council of preparing to "sell the town to Salamander" and warned them that his old friend, Paul Mellon, would be "turning over in his grave" if they voted in favor of the agreement. "Don't sell out Middleburg," he shouted, to vigorous applause from the minority who shared his views.

Cheryl Hall asserted that Middleburg didn't really need a $4 million water treatment plant, and that the money required for a smaller facility could and should be acquired though bond sales or other sources of revenue. She agreed with Sam Huff that what Salamander was proposing was a "huge facility" inappropriate for Middleburg and noted her personal regret that the "Harriman property" had been purchased by Dr. Johnson rather than by the Piedmont Environmental Council. Characterizing Salamander's assertion that a failure to reach agreement with the Town about annexation would give them no choice but to pursue options under existing zoning laws as "blackmail", she, quoting Huff, urged the council not to "sell out."

Nancy West noted that she had supported the Salamander project when it was described as a 40-room country inn with a world-class restaurant attached, similar to the Inn at Little Washington. The "new" development, she said, was simply "too big" and included "too many new houses."

Roxine Hill cast doubt on the size of the estimated revenue stream that the Inn would generate. Using independently collected data from what she termed "comparable" facilities (among them the 170-room Boar's Head Inn in Charlottesville, the 143-room Mansion on Turtle Creek, in Dallas, and the 161-room Lodge at Pebble Beach) she argued that occupancy rates would average closer to 55% than 70%. She agreed with Sam Huff that "we shouldn't sell out Middleburg" but noted pointedly that "Dr. Johnson loves this town too." She "challenged" Dr. Johnson to "do more work" and "give us more time to tidy up the agreement."

Michael Motion, a business owner for 15 years, argued that a smaller project would be better for Middleburg.

Susan van Wagner noted that she "doesn't let her dog drink the water" but insisted that bowing to "threats" and "selling out to Salamander" for a water plant was simply "short-sighted." Noting her successful efforts to raise funds to support the "Route 50 Traffic Calming Project" she argued that Middleburg would have little or no trouble finding funds for a new water treatment plant.

The Salamander Position

After two hours of debate, at 9:45 PM, Mayor Dimos called on Prem Devedas and Jonathan Rak, to speak for Salamander Development, LLC.

Both praised the Council for its hard work.

Rak briefly addressed some of the specific issues and misperceptions that had emerged during the preceding three hours.

Salamander, he noted, would specifically renounce many of the "rights" granted by AR-2 zoning that had caused special concern to Richard Strowd. In addition, Salamander would conform to town zoning regulations; would work with both the county and town to address traffic issues; would address any and all water-treatment issues, including radio-nucleotides; would conform to the spirit and letter of both town and county comprehensive plans; would rezone from AR-3 to AR-2 zoning, reducing impact on the land by 94%; would assign open space to the town; and would work with the town to rezone the 88 acres of Salamander property already within the town limits.

If the town voted to reject the Memorandum of Understanding, he admitted, Salamander would consider itself free to use the land outside Middleburg as it was currently zoned by the County. Current zoning would allow as many as 84 new homes to be built: one home per three-acre lot.

Town Administrator

Before giving the members of the Town Council an opportunity to speak Mayor Dimos called on Town Administrator Mike Casey for his opinion. Casey noted that the memorandum in its current form was the product of much work and many long hours of negotiation. In his opinion, it represented good value for both parties, and he urged its acceptance.

The Vote

The final vote on the "Memorandum of Understanding" would come only after a dramatic final round of closing remarks by members of the Town Council.

At 10:00 PM, with the outcome of the debate still very much in doubt, Mayor Dimos gave each member of the Council an opportunity to speak before he called for a final vote. Some had prepared formal statements.

Davis

Vice Mayor Betsy Davis spoke first. She urged approval of the agreement, citing nearly every point made by the proposal's advocates during the course of the evening.

Hyre

Helen Hyre said she'd vote no, noting in particular her opposition to the notion of "one person owning half the town."

Murdock

"Bundles" Murdock noted that the town, ". . . is at a point where restoration and preservation, rather than growth from new development" should be its primary goals. She neither liked nor fully understood the new agreement, she said, and argued that alternative sources of funding for a new water treatment facility could be found.

Kirk

Darlene Kirk called for accepting the agreement for the sake of ongoing town control. "Otherwise," she noted, "the County gets the revenue and we get the traffic." As for Dr. Johnson's good will, she said, it was certainly not is Salamander's interest to harm the town.

New

Margaret New argued that "It's not about money, it should be about values." She urged a "no" vote because, among other things, she opposed "guaranteed profits" as a matter of principle; believed developers should do "what is right for the land: and considered the "Harriman track" a "piece of hallowed ground." She said she favored a small inn, but thought 120 rooms, a "Marriott sized model," was excessive. She also feared, she said, that the Council was being "blinded by the sparkle of a windfall of cash."

Snyder

With only himself, and pro-Salamander Council Member Eura Lewis left to speak, Mark Snyder dropped a bombshell. He'd prepared no remarks, he said, and he needed some help . . . to vote yes. If he were to vote "yes", he said, two things had to be changed in the memorandum of understanding: 1) Salamander would have to give up the guaranteed, fixed-rate, discounted tap rates (the fees paid for connecting new facilities to the water and sewer system) promised for as many as 49 new houses on Salamander property; and 2) Salamander would have to promise to assign its easements to the town at a fixed date, ideally before June 1, 2006, rather than "upon completion of the Inn."

Salamander's Prem Devadas and Jonathan Rak put their heads together immediately to discuss Snyder's demands. Mayor Dimos moved on.

Lewis

Eura Lewis, the last Council Member to speak, spoke at length in favor of the agreement, citing, like Betsy Davis, nearly all the benefits outlined in the agreement and by proponents during the course of the evening.

Decisions

Mark Snyder, however, had put the ball back in Salamander's court. It was nearly 10:30 PM. The Council was split three to three. Snyder's vote would be decisive.

It didn't take long for Devadas and Rak to announce that Salamander would meet Snyder's demands.

Mayor Dimos called for a reading of the revisions to the "Memorandum of Agreement." Vice-Mayor and Council Member Betsy Davis moved that the Council accept it. Eura Davis seconded the motion.

Mark Snyder voted "yes."

Final vote: four to three in favor of annexation under the terms of the "understanding." "I think this is good for Middleburg," said Mayor Dimos. "This is win/win."