2018.12.04 Yi to Capstone re Fairfax City Project

1. CITY OF FAIRFAX
COMMONWEALTH OF VIRGINIA
THE HONORABLE SANG YI
COUNCILMAN
FAIRFAX CITY HALL Ÿ 10455 ARMSTRONG STREET
FAIRFAX, VIRGINIA 22030
(703) 385-7850 Ÿ TTY 711 Ÿ WWW.FAIRFAXVA.GOV
December 4, 2018
Mr. Rob Howland, Principal
Mr. John Vawter, Principal
Mr. Ben Walker, Principal
Capstone Collegiate Communities, LLC
431 Office Park Drive
Birmingham, AL 35223
Dear Messrs. Howland, Vawter, and Walker:
Capstone Collegiate Communities, LLC (C3) is seeking to amend the City of
Fairfax’s (City) Comprehensive Plan1
and sections of the Zoning Ordinance2
to build two
apartment buildings marketed to George Mason University (GMU) students near the
City’s geographic center.3
According to initially submitted documents, C3 hoped to rent
individual rooms in these buildings to approximately 750 to 800 GMU student tenants.4
Subsequent documents indicated that C3 would pursue approximately 800 student
tenants.5
Ultimately, and most recently on October 29, 2018, C3 stated that the project, if
approved, would house no more than 825 student tenants.6
The number of proposed
parking spots originally ranged from 636 to 786 spots to the current proposal of 737
spots, of which a minimum of 680 would be housed in an above-ground garage, while 57
would be on-street and surface parking.7
As the contract purchaser of approximately 6.15 acres in the northeast quadrant of
University Drive and Democracy Lane, C3, is proposing to amend the Comprehensive
Plan’s Future Land Use Map of the subject property from its current business use to the
highest residential category of “High Density Residential.”8
Concurrently, C3 is
1
According to the latest Comprehensive Plan adopted by the City Council on Apr. 10, 2012, “The City of
Fairfax has a strong sense of community and an attractive small town atmosphere. Th[e] Comprehensive
Plan, as the City’s official guide to future development, seeks to protect and enhance those distinctive
qualities of the City.”
2
In part, the purpose of the Zoning Ordinance is to implement the Comprehensive Plan.
3
Statement of Justification, Capstone Collegiate Communities, LLC (Feb. 16, 2018),
https://www.fairfaxva.gov/home/showdocument?id=11421.
4
Id. at 2.
5
Statement of Justification, Capstone Collegiate Communities, LLC (June. 27, 2018),
https://www.fairfaxva.gov/home/showdocument?id=11721.
6
Statement of Justification, Capstone Collegiate Communities, LLC (Oct. 29, 2018),
https://www.fairfaxva.gov/home/showdocument?id=11971.
7
Id. at 3.
8
The Comprehensive Plan establishes five land use categories within a “Resident” designation. A “Very
Low Density” residential category seeks residential development at up to 2.0 dwelling units per acre. “Low
Density Residential” supports 2.01 to 4.0 residential dwelling units per acre. “Low-Medium Density

2. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 2
proposing to rezone the subject property from a Commercial Retail District to a Planned
Development Residential, and to receive special exceptions to requirements for the
Fairfax Transition Overlay District.9
As an elected member of the City Council, one of my foremost duties is to ensure
that my fellow residents are amply heard and thoroughly represented. Accountability and
transparency in the decision-making process are indispensable to serve the approximately
24,000 City residents.10
I take seriously my obligation to diligently review and analyze
as much information as practicable on all matters before the City Council. Therefore, I
write to you to seek further information and clarification in anticipation of the scheduled
7:00 p.m., December 11, 201811
public hearing and City Council action relating to C3’s
requests to amend and receive special exemptions from our City’s most important
development guidelines and ordinances.
Transparency
Given the importance of transparency in the City’s decision-making process, it is
noted that C3’s efforts to meet with segments of the City’s communities are appreciated.
For example, C3’s representatives have held at least three meetings open to City
residents.12
The accuracy of some information disseminated in public by C3, however, is
disconcerting. In the latest of these three public meetings with City residents, on October
11, 2018, a representative of C3 announced, “We’ve had meetings with the Police Chief
and the Fire Chief, and they think this will be a very good project.”13
This statement
erroneously suggested a form of endorsement for the project by two City department
heads. While the City’s police and fire departments may have had preliminary meetings
with C3 regarding the proposed project’s fire, safety, and security aspects, it has been
verified that neither department head provided an overall endorsement of C3’s proposed
project.
City staff members are not authorized to provide official endorsements of
proposed development or redevelopment projects. Moreover, in my personal discussion
Residential” supports from 4.01 to 7.99 dwelling units per acre. “Medium Density Residential” supports
from 8.0 to 12.0 residential dwelling units per acre. “High Density Residential” supports residential density
greater than 12 units per acre.
9
Capstone Feb. 16, 2018, supra note 3.
10
Demographics and Statistical Profile, CITY OF FAIRFAX, VA.,
https://www.fairfaxva.gov/government/community-development-planning/demographics-and-statistical-
profile (last visited Dec. 3, 2018).
11
Major Development Projects Status Report as of Oct. 30, 2018, CITY OF FAIRFAX, VA.,
https://www.fairfaxva.gov/home/showdocument?id=8328 (last visited Dec. 3, 2018). See also Future City
Council Agenda Items, CITY OF FAIRFAX, VA., https://www.fairfaxva.gov/government/mayor-city-
council/future-city-council-agenda-items (last visited Dec. 3, 2018).
12
Meeting Notice from Lynne J. Strobel, Shareholder, Walsh, Colucci, Lubeley & Walsh, P.C. (July 2,
2018) (on file with author). See also Lynne J. Strobel, Remarks at the Mason/Community Forum (Oct. 11,
2018).
13
Lynne J. Strobel, Remarks at the Mason/Community Forum (Oct. 11, 2018).

3. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 3
with the Fire Chief, I discovered that he was not present at the meeting referenced by the
C3 representative. As you may be aware, my concerns about the misstatement were
verbally conveyed to C3 and its representative at the conclusion of the October 11, 2018
community forum. It is my hope that C3 publicly clarifies the misleading nature of its
statement.
C3 also made efforts to meet with the members of the City Council. It appears
that C3 has met individually with each member of the current City Council on at least
two occasions. In my first meeting with C3 on July 15, 2018, I was accompanied by our
City Attorney. Interestingly, an owner of a local real estate leasing business, seemingly
on behalf of C3, submitted the request for the meeting. This individual and his associate
accompanied C3 and its representative at the July 15, 2018 meeting in City Hall. During
the meeting, the individual stated that he was not an agent of C3, that no contractual
relationship existed, and no remuneration would exist between the individual or his
company and C3 or its representatives.
It is unclear who arranged subsequent individual meetings between other
members of the City Council and C3, which excluded me, on or about a time period
spanning the third week of October 2018. During a telephone call with C3, which I
initiated on October 30, 2018, C3 confirmed that I was the only member of the City
Council whom the developer failed to provide a second meeting prior to C3’s final
submission of its building architecture and site design package to the City on October 29,
2018.
C3 offered an explanation on the telephone that the company was uncertain of my
contact information and that time restraints prohibited a meeting with me during the third
week of October.14
In addition to a direct link to my email address of
Sang.Yi@fairfaxva.gov on the City’s webpage,15
I have received emails to that address
from C3’s representatives dating back to July 2, 2018.16
Receiving evolving and
requisite information on the proposed project is important in the decision making process.
Nevertheless, I appreciate that C3 was eventually able to provide me with a second
meeting on November 19, 2018, the morning of the Planning Commission’s public
hearing and vote on C3’s proposed project.
Construction Quality, Delivery, and Maintenance
As an initial matter, it is unclear how many student housing development projects
C3 has constructed. Formed in January 2012, C3 was one of four new entities created
14
Telephone conversation with Angie Rawie, Executive Vice President – Development, Capstone
Collegiate Communities, LLC (Oct. 30, 2018).
15
Councilmember Sang H. Yi, CITY OF FAIRFAX, VA., https://www.fairfaxva.gov/government/mayor-city-
council/councilmember-sang-h-yi (last visited Dec. 3, 2018).
16
Email from Kelly A. Ellis on behalf of Lynne J. Strobel, Shareholder, Walsh, Colucci, Lubeley & Walsh,
P.C. to Sang H. Yi, Councilmember, City of Fairfax (July 2, 2018, 18:29 EST) (on file with author).

4. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 4
during Capstone Development Corporation’s restructuring.17
While C3’s website
advertises 53 student housing communities it has “developed, constructed, and
managed,” 31 of these projects were actually delivered prior to C3’s formation in 2012.18
One project not advertised on C3’s website is Valentine Commons in Raleigh, North
Carolina, a 928 bedroom student apartment complex. According to a failed proposal for
development filed by C3 with Fairfax County, however, C3 claims that it manages
Valentine Commons, which was delivered in 2012.19
Of the listed projects delivered in 2012 or later, cursory research reveals some
concerning information. Several similar complaints appear on reviews written by student
tenants about maintenance issues regarding cleanliness, elevators, and fire alarms in
addition to concerns about poor construction of walls, floors, and parking garages at
various C3 developed, constructed, or managed properties.20
In one example last year, a
local news outlet investigated a story about a bedbug infestation at Valentine
Commons.21
When student tenants complained, they reportedly received an email from
the property manager that they “can still remain living in the apartment [and that the
bedbugs are] not harmful in any way.”22
In 2017, C3 failed to fully deliver Fremont Station in Flagstaff, Arizona on time.23
At Fremont Station, more than two months after construction was scheduled for
completion, construction continued even after all 808 bedrooms-worth of tenants
occupied the property. Initially, only 518 of 808 bedrooms were completed on time,
which displaced nearly 300 student tenants for seven weeks after their scheduled move-in
17
About us, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/about/ (last visited Dec. 3, 2018). See also Capstone
Companies Announces New Leadership Structure, BUSINESS WIRE (Oct. 14, 2011),
https://www.businesswire.com/news/home/20111014005621/en/Capstone-Companies-Announces-New-
Leadership-Structure.
18
Communities, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/# (last visited Dec. 3, 2018).
19
Capstone Collegiate Communities, LLC, PPEA Proposal One University, 25 (Jan. 10, 2018),
https://www.fairfaxcounty.gov/procurement/sites/procurement/files/assets/documents/rfp_w_changes.pdf.
See also Valentine Commons, CAPSTONE DEVELOPMENT PARTNERS,
https://capdevpartners.com/portfolio/valentine-commons/ (last visited Dec. 3, 2018).
20
E.g. Review of Northpoint Crossing, FACEBOOK.COM,
https://www.facebook.com/krafttaylor/posts/10208580124006262:1 (last visited Dec. 3, 2018); Review of
Northpoint Crossing, FACEBOOK.COM,
https://www.facebook.com/permalink.php?story_fbid=1828353117381283&id=100006198361411&substo
ry_index=0; Review of The Lodges of Colorado Springs, YELP.COM, https://www.yelp.com/biz/the-lodges-
of-colorado-springs-colorado-springs-2.
21
Monica Laliberte, College Students Told to Continue Living in Apartment with Bedbugs, WRAL.COM
(Aug. 31, 2017), https://www.wral.com/college-students-told-to-continue-living-in-apartment-with-
bedbugs-/16918764/.
22
Id.
23
Corina Vanek, All Students Move in as Construction Continues at Fremont Station in West Flagstaff,
ARIZONA DAILY SUN (Nov. 7, 2017), https://azdailysun.com/news/local/all-students-move-in-as-
construction-continues-at-fremont-station/article_fb582f36-9de1-54f4-bfff-417f1b2e32f8.html.

5. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 5
date.24
Another C3 project, 13th & Olive, a 1,308 bedroom apartment in Eugene,
Oregon, was delivered in two phases by 2014.25
13th & Olive student tenants
complained to local media and eventually filed a lawsuit over concerns about unfinished
and faulty units covered in dust and stained carpets with broken appliances, pipes, and
fire alarms.26
Reportedly, student tenants who moved in during the first phase in 2013
faced similar problems.27
In another case, delivery delays of a C3 project spurred larger legal action. In
2013, a class action was filed by student tenants against C3 because of delays at The
Cottages of Boone in Durham, North Carolina.28
Student tenants claimed that C3
engaged in “unfair and deceptive trade practices”29
and believed that the company
“exploited their inexperience in collecting certain fees from them they should not have
been asked to pay.”30
Management of C3 Properties
Lawsuits against C3 by its tenants are not isolated to construction related and
delayed delivery issues. In 2012, C3 delivered an 803 bedroom project named, The Lofts
of Kennesaw, in Kennesaw, Georgia.31
While one student tenant offered positive reviews
stating, “I love the lofts. When we first moved in it was really crazy, it was new to
everyone. The only way to really describe it was like spring break, every single night,”32
not all tenants felt welcome. On October 5, 2012, a resident who moved into The Lofts
of Kennesaw with her two-year-old child, reportedly faced the threat of eviction.33
The
plaintiff tenant alleged violations of the Fair Housing Act and U.S. Department of
Housing and Urban Development standards.34
24
Id.
25
Oregon, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#or (last visited Dec. 3, 2018).
26
Tran Nguyen, Leaks, Ongoing Construction Drive Four Tenants from 13th & Olive Apartments, DAILY
EMERALD (Nov. 23, 2014), https://www.dailyemerald.com/news/community-news/leaks-ongoing-
construction-drive-four-tenants-from-th-olive-apartments/article_08494352-6bdd-5227-aaf9-
f43422496bce.html.
27
Id.
28
Jesse Wood, Class-Action Lawsuit Filed against Developers of The Cottages of Boone, Two More
Plaintiffs Added on Sept. 20, HCPRESS.COM (Sept. 23, 2013), https://www.hcpress.com/news/class-action-
lawsuit-filed-against-developers-of-the-cottages-of-boone-two-more-plaintiffs-added-on-sept-20.html.
29
Id.
30
The Cottages Class Action Update, CAPUA LAW, http://capualawfirm.com/the-cottages-class-action-
update/ (last visited Dec. 3, 2018).
31
Georgia, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#ga. While located in Kennesaw, Georgia,
C3’s website erroneously lists The Lofts of Kennesaw in Kennesaw, Florida.
32
Lofts Grapple with Crime, THE SENTINEL (Oct. 9, 2012), http://ksusentinel.com/2012/10/09/lofts-
grapple-with-crime/.
33
Id.
34
Id.

6. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 6
In the same month, on October 25, 2012, American Campus Communities, Inc., a
competitor of C3, announced its intent to purchase The Lofts of Kennesaw as part of its
broader acquisition strategy.35
Selling its newly developed properties or divesting from
the management of its properties within a short time period is seemingly a common
practice for C3. Of the 22 projects delivered in 2012 or later, C3 currently manages only
nine of these properties with one of them not fully yet delivered.36
In another example, 13th & Olive, finally delivered in 2014 and described as
“Eugene’s largest and most controversial student housing complex,” was sold in 2016 by
C3 to a Singapore-based investment company.37
In 2014, C3 also delivered Hannah
Lofts & Townhomes, a 702 bedroom project in East Lansing, Michigan.38
By October
2014, C3 sold the project to another competitor in the student housing market, Campus
Advantage.39
While the identity of the new owner or manager of Fremont Station in
Flagstaff, Arizona is not immediately clear, C3 apparently no longer manages this
property, which was just recently delivered in 2017. According to a failed proposal for
development filed by C3 with Fairfax County, Fremont Station was listed as one of the
properties under C3 management as late as January 10, 2018.40
In one case, C3 or its predecessor company appears to have sold one property,
The Cottages of Lubbock, in Lubbock, Texas, and then subsequently built another
competing project, similarly named, Capstone Cottages of Lubbock, nearly 3.7 miles
away from the first property. Delivered in 2017, C3 currently operates and manages
Capstone Cottages of Lubbock,41
which presumably offers newer amenities and
marginally higher rent prices. In East Lansing, Michigan, after the second delivery phase
of The Lodges of East Lansing in 2013, C3 built a competing property, Hannah Lofts &
Townhomes, approximately 0.5 miles away in 2014. Neither of these properties are
currently managed by C3.42
Similarly, the second phase of The Cottages of College
Station in College Station, Texas was delivered in 2013, but C3 constructed a delivered
another property in 2014, Northpoint Crossing, just 4.2 miles away. C3 appears to have
35
The Lofts Bought by American Campus Communities Inc., THE SENTINEL (Nov. 13, 2012),
http://ksusentinel.com/2012/11/13/the-lofts-bought-by-american-campus-communities-inc/.
36
Communities, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/# (last visited Dec. 3, 2018). Inspire on
22nd in Austin, Texas, has a projected delivery date year of 2019.
37
Christian Wihtol & Elon Glucklich, Capstone Sells for $104 Million, THE REGISTER-GUARD (Nov. 29,
2016), https://www.registerguard.com/rg/news/local/35036187-75/eugenes-capstone-student-housing-
complex-is-sold-to-singapore-investment-company-for-104-million.html.csp.
38
Michigan, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#mi (last visited Dec. 3, 2018).
39
Press Release, Campus Advantage, Campus Advantage Sets Company Record with Acquisition of
Michigan Student Housing Property (Nov. 11, 2014) available at https://campusadv.com/campus-
advantage-sets-company-record-acquisition-michigan-student-housing-property/.
40
PPEA Proposal One University, supra note 19.
41
Texas, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#tx (last visited Dec. 3, 2018).
42
Michigan, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#mi (last visited Dec. 3, 2018).

7. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 7
sold its interests in The Cottages of College Station, but currently manages Northpoint
Crossing.43
Traffic, Transportation, and Density
As Northern Virginians in the Washington Metropolitan area, City residents face
some of the worst traffic congestion problems in the nation. In 2015, one report
“identified the Washington, D.C. urban area as the most congested city in the country.”44
It was estimated that the typical commuter in our region lost 82 hours in a year due to
traffic delays, which was even more than what commuters in Los Angeles suffer.45
Beyond the frustrations to quality of life, our traffic woes also come at an economic cost.
According to the 2015 report, traffic delays cost each commuter in our region
approximately $1,834 annually in the form of lost productivity and excess fuel
consumption, and cost the region $4.6 billion.46
It is important to understand that the City’s 6.3 square mile footprint occupies the
near geographical center of Fairfax County,47
one of the most populous counties in the
nation. Therefore, the City is particularly vulnerable to Washington Metropolitan area
traffic. Additionally, the City’s proximity to major highways and roads used to commute
to and from Washington, D.C., leaves our City susceptible to commuter traffic
approaching our City from nearly all directions. Lastly, our City’s main and most central
north-south roads include Chain Bridge Road, University Drive, and Old Lee Highway,
all of which almost converge at the site of C3’s proposed student housing project.
C3’s proposal to develop an 825-bedroom student housing apartment with parking
spaces for 737 cars and the unpredictable volume of guests the student tenants may attract
are notable activities. In addition to vehicle traffic to and from GMU’s campus
throughout the day based on student tenants’ class and school activities schedules, these
737 cars could also join commuters heading east toward Washington, D.C. and other
destinations.
The Traffic Impact Study submitted by C3 to the City, however, appears to have
analyzed just eight intersections most proximate to the subject property of C3’s proposal,
and the site’s entrances.48
While the eight intersections most proximate to the subject
property are important to analyze, it is unclear how various routes to GMU’s campus
through the City may be affected. Student tenants could also drive the approximately 1.3
miles to and from GMU’s campus and the proposed C3 property multiple times a day
43
Texas, supra note 41.
44
Thomas C. Frohlich & Sam Stebbins, 10 Cities with the Worst Traffic, USA TODAY (Sept. 5, 2015),
https://www.usatoday.com/story/money/2015/09/04/24-7-wallst-10-cities-worst-traffic/71701622/.
45
Id.
46
Id.
47
CITY OF FAIRFAX, VA., Draft 2035 Comprehensive Plan Fact Book, 3 (Nov. 2016),
http://www.fairfaxva.gov/home/showdocument?id=8166.
48
Wells + Associates, Capstone Collegiate Communities, LLC: Democracy Lane Proposal, Traffic Impact
Study, 4 (Feb. 16, 2018), http://www.fairfaxva.gov/home/showdocument?id=11423.

8. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 8
pending class and school activities schedules. Of course, vehicular traffic from the
proposed C3 property would not be limited to and from GMU’s campus.
In an effort to mitigate some of the resultant vehicular traffic from the proposed
development, C3 proposes the “encourage[ment] of CUE bus ridership by its [student
tenants] . . . .”49
C3 also proposes to “coordinate with the City’s CUE bus service to
reroute existing CUE bus routes” to better accommodate student tenants at C3’s proposed
development.50
While C3 is willing to commit a $30,000 contribution to the City for the
installation of two bus shelters at the new bus stops, it is unclear what costs the City’s
taxpayers would incur based on increased CUE bus ridership by GMU students, who are
exempt from paying CUE bus fares.51
Another commitment by C3 includes the contribution of $20,000 to the City “to
be utilized for the installation of a bikeshare station . . . on University Drive.”52
Additionally, C3 hopes to encourage bikeshare use by providing its tenants with a one-
time voucher, gift card, or bikeshare membership in the amount of $20. C3, however, is
relieved of any of these obligations pending the City’s implementation of a bikeshare
program.53
It is unclear what obligations C3 would maintain in regards to a future City
bikeshare program if C3 sells its ownership or management of the subject property, or
what obligations a future purchaser of the subject property would incur.
Safety and Security
According to C3’s October 29, 2018 “Narrative and Statement of Commitments,”
the student housing project “shall be professionally managed by a staff that maintains a
24/7 presence on site.”54
C3 is unclear whether “professional management personnel”
will be full-time or part-time. C3 does indicate that “student leasing assistants” will
reside on site. Additionally, there will be a minimum of “two (2) off-duty police officers
or other emergency services personnel who serve as resident ‘courtesy managers’ within
the community.”55
While it is unclear if C3 maintains “courtesy managers” at all of its properties, or
the exact role of “courtesy managers,” C3 properties have experienced a series of security
concerns. For example, Valentine Commons, a C3-managed property that was delivered
in 2012, was the subject of a news article when an altercation involved three student
roommates sustaining minor cuts after one of the students weaponized a broken bottle.56
49
Capstone Oct. 29, 2018, supra note 6 at 11.
50
Id. at 11-12.
51
CUE Bus Rider Information, CITY OF FAIRFAX, VA., https://www.fairfaxva.gov/government/public-
works/transportation-division/cue-bus-system/cue-bus-rider-information (last visited Dec. 3, 2018).
52
Capstone Oct. 29, 2018, supra note 6 at 12.
53
Id.
54
Id. at 10.
55
Id.
56
Raleigh Police Department Responds to Student Altercation, TECHNICIAN (Dec. 2, 2015),
http://www.technicianonline.com/news/article_e28dbe9c-98b4-11e5-a321-77db712f724d.html.

9. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 9
According to C3, incidents at Valentine Commons were the source of 112 calls to “local
emergency management services” from August 2015 until July 2018.57
These calls
included categorized concerns about “Disturbance/Loud Noise/Party,” “Assault/Sexual
Assault/Fight/Threat,” and “Drug/Alcohol Related,” among others.58
Although The Lodges of Colorado Springs is not currently managed by C3, the
company delivered the property in 2014.59
In April 2016, a 19-year-old man and 23-
year-old-man were arrested for “attempted aggravated robbery and illegal discharge of a
weapon into a dwelling” at The Lodges of Colorado Springs.60
It is unclear whether C3
owned or managed the property at the time of the shooting.
In some cases, security concerns appear far less dangerous than attempted
aggravated robbery and gun violence. At The Lofts of Kennesaw, one student tenant
reported that “[t]he only problems we have are those immature college students that like
to kick in fire extinguisher cases [and] break the exit signs.”61
The same student added,
“One person decided to drive into the sensor gate to get into the parking deck.”62
A female resident of The Lofts of Kennesaw was, however, a victim of sexual
assault in September 2012, less than one month after the project was delivered.
According to the then-property manager, there were “detectives and heightened patrol”
with an estimated “20-something officers” the day after the assault and following
weekend.63
Eventually, American Campus Communities, the nation’s largest student housing
developer,64
appears to have acquired The Lofts of Kennesaw, and renamed the property
as U Pointe Kennesaw. In 2016, two men, one a student at the local university, and
another who was a recent graduate, were charged with multiple counts of rape and
aggravated sodomy against a single female student victim, which allegedly took place at
U Pointe Kennesaw.65
57
Memorandum from Capstone Collegiate Communities to City of Fairfax, July 10, 2018, Review of
Capstone Properties in Five Communities, 5
58
Id.
59
Colorado, CAPSTONE COLLEGIATE COMMUNITIES, LLC,
https://www.capstonecollegiatecommunities.com/communities/#co (last visited Dec. 3, 2018).
60
Angela Case, Two Arrested After Shots Fired at Northern Colorado Springs Apartment Complex, FOX 21
NEWS (Apr. 26, 2016), https://www.fox21news.com/news/crime/police-investigating-after-shots-fired-in-
northern-colorado-springs/837497779.
61
Lofts Grapple with Crime, supra note 32.
62
Id.
63
Id.
64
The Most Active Developers in Student Housing, StudentHousingBusiness.com, Mar./Apr. 2017, at 70,
https://studenthousingbusiness.epubxp.com/i/803643-mar-apr-2017/70?m4=.
65
Alexis Stevens, Duo Charged in Rape Cases Involving Kennesaw State Students, THE ATLANTA
JOURNAL-CONSTITUTION (May 9, 2016), https://www.myajc.com/news/local/duo-charged-rape-cases-
involving-kennesaw-state-students/BGrdEEP490cNylZUUJH4yO/.

10. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 10
The City’s Housing Strategy
Housing is one of the most important factors in our City’s future development and
redevelopment. For several years, the City has acknowledged GMU’s potential student
housing problems. The City’s Comprehensive Plan includes a goal to find “solutions to
George Mason University’s student housing problems, including potential shortages,
overcrowding, excessive parking demand, traffic and noise in residential
neighborhoods.”66
Specifically, the Comprehensive Plan calls for a strategy to
“encourage[] the University to add student residences to campus, as a more residential
campus would benefit both the University and the City.”67
Further, the Comprehensive
Plan states that “the City should assist in identifying and addressing” GMU’s housing
problems “with an emphasis placed on providing adequate on-campus housing.”68
C3 highlights the Layton Hall Apartments project across the street, north of C3’s
proposed site, as an example of why the C3 project location is compatible with a high
density residential designation.69
Currently, the proposed site for the C3 project is
designated for commercial business use.70
C3’s argument that the mere existence of an
adjacent high density residential designation allows for the compatibility, and therefore
appropriateness for more high density residential designations is flawed. While the
already approved Layton Hall Apartments project is expected to yield 360 units, or more
than triple the number of units than currently in the location,71
C3’s argument for
increased density disregards seeking a balance between residential and commercial uses.
Under C3’s logic, other surrounding properties designated for commercial business or
mixed use, would all be consistent with the high density residential designation. Without
reasonable adherence to the City’s Future Land Use Map in the Comprehensive Plan, the
entirety of the City can quickly become re-designated as high density residential.
Economic Development
According to submitted documents, C3 published what appear to be conclusions
from its self-conducted “fiscal and economic impact analysis.”72
C3 claims its analysis
demonstrated that the proposed project would generate up to $749,000 of annual positive
fiscal impact.73
Additionally, C3’s analysis claims that the tenants of its proposed project
66
CITY OF FAIRFAX, VA., 2012 Comprehensive Plan, 67 (Apr. 10, 2012),
https://www.fairfaxva.gov/home/showdocument?id=678.
67
Id.
68
Id.
69
Capstone Oct. 29, 2018, supra note 6 at 5.
70
Comprehensive Plan, supra note 66 at 195.
71
City of Fairfax Development Projects, Capstone Collegiate, CITY OF FAIRFAX, VA,
https://cityoffairfax.maps.arcgis.com/apps/Shortlist/index.html?appid=7d5011ed6577497fa405f44d634435
a3 (last visited Dec. 3, 2018).
72
Capstone Oct. 29, 2018, supra note 6 at 4.
73
Id.

11. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 11
“could spend up to $2.9 million per year on restaurants, retail establishments and other
businesses within the City.”74
Generally, the retail tax rate is 6 percent, with 1 percent of that amount accounting
for the City’s revenue share.75
Comparatively, the City maintains a meals tax rate of 4
percent.76
Assuming arguendo, to show the highest potential revenue generation, that all
$2.9 million spent by C3’s 825 student tenants could be at City restaurants, the City
would see a maximum annual revenue generation of $116,000. Alternatively, if all $2.9
million in expenditures by C3’s student tenants were realized at retail stores in the City,
sales tax generation would equal a minimum of $29,000. With 825 potentially new City
residents, or approximately the growth of 3.4 percent of our current population, these
consumers would contribute at maximum 1.9 percent of our meals tax revenues or 0.26
percent of our sales tax revenues.77
Notwithstanding these estimates, it is unclear what
methodology and documentation C3 used in its fiscal and economic impact analysis.
Tree Preservation
Pursuant to the Zoning Ordinance, a Planned Development Residential district
zone requires a 20 percent tree canopy.78
According to the most recent version of C3’s
Master Development Plan, there are 90 trees on the subject property.79
C3’s Tree
Preservation Schedule lists 86 onsite trees for removal, and the preservation of four trees
onsite.80
In sum, C3’s proposal provides 13.6 percent tree canopy.81
In lieu of meeting the 20 percent tree canopy requirement onsite, C3 proposes
planting trees “in the general vicinity of the Subject Property with an aggregate canopy
coverage equal to approximately 6.4% of the site area of the Subject Property.” If the
City fails, however, to identify locations for all or a portion of the off-site trees, C3 may
make a monetary contribution equal to the “estimated cost of the trees.82
Lastly, C3
absolves itself from the responsibility of ongoing maintenance of any off-site tree it
planted.83
74
Id.
75
VA Sales Tax, CITY OF FAIRFAX, VA, https://www.fairfaxva.gov/government/commissioner-of-the-
revenue/sales-excise-tax/va-sales-tax.
76
Meals Tax, CITY OF FAIRFAX, VA, https://www.fairfaxva.gov/government/commissioner-of-the-
revenue/sales-excise-tax/meals-tax.
77
The actual FY 2017 local sales & use tax revenues were $11,276,435, and meals tax revenues were
$5,972,064. CITY OF FAIRFAX, VA., FY 2019 ADOPTED BUDGET – CITY OF FAIRFAX, VIRGINIA: GENERAL
FUND REVENUE OVERVIEW, C-3, https://www.fairfaxva.gov/home/showdocument?id=11505.
78
CITY OF FAIRFAX, VA., ZONING ORDINANCE §4.5.6 (2016).
79
Capstone Collegiate Communities, LLC, Master Development Plan, 3A (Oct. 22, 2018),
https://www.fairfaxva.gov/home/showdocument?id=11973.
80
Id.
81
Capstone Oct. 29, 2018, supra note 6 at 7.
82
Id. at 14.
83
Id.

12. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 12
In order to provide transparency and clarification about C3’s referenced
application and its surrounding facts, please produce the following documents and
information to the City of Fairfax as soon as possible, but no later than 5:00 p.m. on
December 7, 2018:
1. The anticipated lease agreements for tenants and “courtesy managers” at the
student housing project Capstone Collegiate Communities, LLC (C3)
proposes to build on the subject property (tax parcel 57-2-20-006A);
2. An explanation of C3’s permissibility of subleasing and transient,
temporary, or short-term rentals (i.e. Airbnb) for the proposed project;
3. A document sufficient to show the typical anticipated rent prices at the
subject property based on the type of unit, including signing fees and move
out fees;
4. Documents sufficient to show the number of George Mason University
students who currently reside off-campus within a one-mile radius of
George Mason University’s Fairfax campus;
5. Documents sufficient to show the average monthly rent paid by George
Mason University students who currently off-campus within a one-mile
radius of George Mason University’s Fairfax campus;
6. Documents sufficient to show the number, type of incident, accompanying
charges, if any, and final disposition of all complaints the City of Fairfax
Police Department has responded to involving George Mason University
from January 1, 2013 to present;
7. Documents sufficient to show C3’s anticipated percentage of George Mason
University graduate student tenants at the subject property (tax parcel 57-2-
20-006A);
8. Documents sufficient to show C3’s anticipated percentage of non-George
Mason University student tenants at the subject property (tax parcel 57-2-
20-006A);
9. Documents sufficient to show the number of student tenants evicted by C3-
developed, constructed, or managed properties from January 1, 2012 to
present;
10. Documents sufficient to show the number of hours of volunteer work
“courtesy managers” who receive free or reduced rent are expected to work;

13. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 13
11. Document sufficient to show enumerated responsibilities of “courtesy
managers”;
12. All documents and communications, including but not limited to, emails,
referring or relating to members of the City of Fairfax Police Department, or
any other City of Fairfax “emergency services personnel”;
13. Documents sufficient to list all development projects, attempted and
completed, and accompanying details that C3, its predecessor, or partner
companies have completed in the Commonwealth of Virginia, State of
Maryland, and the District of Columbia from January 1, 2007 to present;
14. Documents sufficient to list all development projects and accompanying
details C3, its predecessor, or partner companies have completed in any
adjacent state to the Commonwealth of Virginia;
15. Documents sufficient to list the total number of C3 developments since
January 1, 2012, and the current number of C3-managed properties. For C3-
developed or constructed properties not currently managed by C3, list
corresponding names of management companies and corresponding
property information;
16. Document sufficient to show the average length of ownership C3 maintains
upon development or construction of a student housing project since January
1, 2012;
17. Documents sufficient to list any and all lawsuits filed against C3 from
January 1, 2012 to present;
18. An explanation of whether C3 will commit to fully complete construction on
the subject property (tax parcel 57-2-20-006A) prior to any tenants are
permitted to occupy the premises;
19. The complete “fiscal and economic impact analysis” referenced on p. 4 in
C3’s October 29, 2018 “Narrative and Summary of Commitments,” and all
supporting documents;
20. Documents sufficient to show all instances where C3 properties have had
ground floor leasing and management offices, fitness facilities, group study
rooms, or other common areas converted from such intended spaces to
commercial retail spaces;
21. Documents sufficient to support C3’s assertion that the proposed project on
the subject property (tax parcel 57-2-20-006A) will have no adverse impact
on surrounding home values;

14. Messrs. Howland, Vawter, and Walker
December 4, 2018
Page 14
22. Documents sufficient to show the total additional cost and any delay to the
City of Fairfax if the CUE bus service is rerouted to “establish bus stops in
proximity to the Subject Property on Layton Hall Drive and University
Drive” per C3’s October 29, 2018 “Narrative and Summary of
Commitments”;
23. Document sufficient to show the percentage of student tenants who
commute via bicycle to and from C3’s currently managed properties;
24. A list of all non-governmental entities C3 engaged with, not previously
disclosed in either the February 16, 2018 or June 28, 2018 Land Use
applications filed with the City of Fairfax in furtherance of the proposed
project on the subject property (tax parcel 57-2-20-006A);
25. Documents sufficient to show the monetary cost of the replacement trees
that will total the approximately 6.4 percent tree canopy cover that C3 will
fail to provide on the subject property (tax parcel 57-2-20-006A);
26. Documents sufficient to show the estimated annual maintenance of all off-
site trees planted by C3 to total the approximately 6.4 percent tree canopy
cover that C3 will fail to provide on the subject property (tax parcel 57-2-
20-006A);
Please deliver your response to Fairfax City Hall at 10455 Armstrong Street. If
possible, it is preferred to receive your response in electronic format. Thank you for your
attention to this matter.
Sincerely,
Sang H. Yi
cc: Residents of the City of Fairfax
City of Fairfax Mayor and City Council
Acting City Manager
City Attorney
City Director of Development and Community Planning
Executive Director of Community and Local Government Relations, George
Mason University
Walsh Colucci Lubeley & Walsh, P.C.