Urbanization

Urbanization of Innsbrook

In 2010, the Board of Directors and the Henrico County staff successfully developed an Urban Mixed Use (UMU) zoning ordinance and a corresponding master plan for the Innsbrook Corporate Center, referred to as “Innsbrook Next”.

Innsbrook Next involves densification within Innsbrook through infill development of various property types including multifamily (apartments), retail, hotels, and office.  New UMU development within Innsbrook is already underway with several other projects in the Plan of Development phase.

Innsbrook Next and the urbanization of Innsbrook is expected to increase the need for additional services throughout the park.  For example; expansion of security services, improvements to infrastructure of trails and bridges, improved signage for pedestrian and bicycling, security and wellness stations on the trail system, park lighting, and other amenities benefiting the Live/Work/Play atmosphere of Innsbrook.


Future Dues Assessments Methodology for Innsbrook Next

With incremental needs and services come incremental annual operating costs. The incremental operating costs of these expanded services may be allocated equitably amongst the Property Owners using a modified annual dues assessment methodology as outlined below:

  • In 2013, prior to any new UMU projects entering the park, the Board of Directors established an “as-is, pre-UMU” baseline for annual operating expenses for Innsbrook (referred as the Expense Stop). The official Expense Stop established by the Board of Directors was $900,000.
  • Annual dues assessments will continue to be calculated in accordance with the Net Acreage method as outlined above, however only for those expenses less than or equal to the Expense Stop ($900,000).
  • Any operating costs in excess of the Expense Stop are then allocated equitably amongst all Property Owners using the following millage rate methodology:
    • Overage Calculation
      • Actual Operating Expenses (current year) – Expense Stop
    • Millage Rate
      • Overage ÷ Total/Aggregate Assessed Value of All Innsbrook Properties (current year)
    • Additional Dues Assessment per Property
      • Millage Rate Property × Property Tax Assessment (current year)
    • Additional Dues Assessment per Net Acre
      • Additional Dues Assessment ÷ Total Net Acres for subject property

EXAMPLE: 7 net acre property in Innsbrook, $10,000,000 Henrico Tax Assessment

  • Step 1: Overage Calculation
    • $950,000 (actual Operating Expenses for fiscal year) – $900,000 (Expense Stop) = $50,000 (over Expense Stop for fiscal year)
  • Step 2: Millage Rate Calculation
    • $50,000 (over Expense Stop for fiscal year) ÷ $700,000,000 (current calendar year aggregate tax assessment for all Innsbrook properties) = 0.0071429% standard Millage Rate for fiscal year
  • Step 3: Total Additional Dues Assessment per property
    • 0.0071429% (Millage Rate) × $10,000,000 (current year tax assessment) * = $714.29 Additional Dues Assessment
  • Step 4: Total Additional Dues Assessment per Net Acre per property
    • $714.29 Additional Dues Assessment ÷ 7 (Net Acres for subject property) = $102.04 Additional Dues Assessment
  • Step 5: Total Dues Assessment per Net Acre
    • Base Dues Assessment per Net Acre = $1,584
      • $1,254/net acre = Operating
      • $330/net acre = Reserve Fund/Capital Improvements
    • Additional Dues Assessment in excess of Expense Stop = $102.04
    • Total Dues Assessment per Net Acre = $1,686.04
  • The Board of Directors has the sole authority to elect whether or not to implement the Expense Stop and Additional Dues Assessment methodology for any given Fiscal Year. This methodology would apply to all owners of Commercial Offices, Retail Shoppes, Hotels and Residential Units within Innsbrook Corporate Center.
  • For a specific example of allocation of expenses in excess of the Expense Stop.
* New development (especially higher density UMU) will presumably experience higher annual tax assessments and will therefore pay a higher allocation of the annual expenses in excess of the Expense Stop. Existing (non-UMU) properties will presumably experience less volatility with increases in annual tax assessments and will therefore pay a lower allocation of the annual expenses in excess of the Expense Stop.

Innsbrook’s Urbanization Development Fee Structure:

As we enter a new era for development within the Innsbrook Corporate Center we face increased costs in operation and capital investment within our complex. With increased density comes increased use of our infrastructure including our lake system. To be prepared for these future uses, The Innsbrook Owners Association adopted a New Urbanization and Development fee schedule as of May 24. 2017. These fees apply to all new development that occurs within the complex on any re-zoned land. These fees would not apply to any development on property whose zoning is not being altered.

The fee schedule is as follows:

  • All new office, retail, residential, or hospitality development will be assessed a one time fee of one dollar ($1.00) per square foot of Construction Gross Building Area, as defined by ANSI/BOMA Z65.3-2009, excluding structured parking.
  • All new structured parking will be assessed a one time fee of $75 per structured parking space.
  • One half of the assessed fee will be due and payable within thirty days of commencement of physical work on the site and the second half will be due and payable prior to issuance of a Certificate of Occupancy by the County of Henrico.