Centex abandons Warrenton plan
By Staff
In yet another sign of abysmal times for the residential housing market, Centex Homes has abandoned plans for a high-end, seniors-only community along Warrenton’s southwestern edge.
Two weeks ago, the Dallas, Texas-based company terminated its contract to buy 370 acres from Arabelle Arrington on U.S. 29, adjacent to The Home Depot store.
"The economics of the project simply didn’t work in the current market conditions," Centex Division Manager Joe Ricketts said in an e-mail. "The land costs and expense structure for this project are not viable considering today’s housing market."
For largely the same reasons, Centex last summer walked away from its 349-home Freedom Place project at U.S. 17 and Route 28 near Bealeton before turning a spade of soil.
Centex’s decision to kill the Arrington Knolls concept, which included a vineyard, winery, restaurant and shop, surprised no one.
"I was disappointed, but not shocked," said Arrington, who learned the news from her lawyer, George Mayhugh of Warrenton. But, "I’ll weather the storm. And my land isn’t going anywhere. I’ll be OK."
Mayhugh "has several inquiries" from developers interested in her farm, Arrington said.
Centex needed access to the Town of Warrenton’s wastewater treatment plant to make the project work. Warrenton officials said they would extend sewer to the property only if they could annex the site’s dense, residential portion.
Incorporation would give the town greater control over the development.
Annexation requires town council and county board of supervisors’ approval. Both panels appeared prepared to authorize a plan to take the property into Warrenton.
However, even with annexation, Centex faced daunting utility challenges that ultimately may have done in the project.
For example, Warrenton contends its wastewater treatment plant lacks the capacity to serve the project. Centex offered to effectively patch the old, porous system to "recapture" treatment capacity to meet the project’s demands.
The developer also struggled to find on-site wells that would provide Arrington Knolls an adequate supply of drinking water.
Chris Pearmund of Pearmund Cellars near Broad Run agreed to develop the winery, vineyard, restaurant and shop components for Arrington Knolls.
Last spring, Pearmund planted 4,000 grapevines along the ridgeline that overlooks U.S. 29. His plan ultimately called for 40,000 vines.
But Centex’s scrapping the project probably will be fatal to Pearmund’s vision.
"If Centex can’t do it, I can’t go along, either," he said.
Pearmund struck a deal with Centex, not Arrington, to plant the vines.
He paid Centex nothing to use the land then under contract to the company.
Pearmund said the vines in place would not generate the revenue necessary to justify the cost of leasing Arrington’s land.
The property’s development future remains uncertain, Pearmund said. For that reason, it would be unwise of him to invest substantial sums in leased land that someday could become a subdivision or a "mall," he said.
So what will become of the vines at Arrington’s farm?
"That’s up to Mrs. Arrington," Pearmund said. "If she wants me to take out the vineyard, I will take it out."
Her lawyer will resolve the matter, Arrington said.
Meanwhile, if she allows, Pearmund wants to continue to maintain the vines for two or three years, with the hope that the housing market will rebound and a developer with deep pockets will pick up where Centex left off.
E-mail the reporter: ddelrosso@timespapers.com