State agency wriggles off a contractual hook

A rendering of the new Department of Game and Inland Fisheries headquarters. (Courtesy of DGIF)

A rendering of the new Department of Game and Inland Fisheries headquarters. (Courtesy of DGIF)

As it waits for its new $10 million headquarters to rise out of the ground in Ashland, a state agency has abruptly parted ways with the project’s original developer.

The Virginia Department of Game and Inland Fisheries in July terminated its contract with Richmond-based General Land Companies to build a 45,000-square-foot home base at Northlake Park off Interstate 95 in Hanover County. Although the move severs the relationship between the agency and the developer, the project is still a go, said DGIF chief operating officer Matt Koch.

Matt Koch

Matt Koch

“DGIF is still committed to the same location,” Koch said. “We bought the land, and we are going to be developing our headquarters on that site.”

The department, which oversees the management of hunting, boating and wildlife in the state, will manage the development of the 14.5-acre project, Koch said.

Koch declined to comment on why the contract with General Land Companies was terminated. The move comes after a ceremonial groundbreaking at the site in June.

He said DGIF exercised a clause in the contract for a “termination of convenience.” The convenience clause allows the agency to make a change without giving a specific reason.

“We’re not going to go into details,” Koch said, adding that the department did not terminate the contract related fault on either side.

Koch said that the department believes it is within its rights to exercise the convenience clause and that it consulted the Attorney General’s office before making the decision.

Regarding the termination, Tom Kinter, a principal at General Land Companies said, “We would prefer not to comment.”

DGIF contracted with General Land through Northlake DGIF LLC, an entity created for the project.

Koch said that DGIF has employees with experience managing development projects and that the contractor, architect and engineering firm that had worked with General Land would continue to work for DGIF.

DGIF's current headquarters.

DGIF’s current headquarters.

Those groups include construction firm Kjellstrom + Lee, local architecture firm Baskervill, and Timmons Group as civil engineer.

The development is being funded with a $10 million budget that was approved by the General Assembly.

Eliminating the developer from the mix will likely save some money on the project, Koch said.

“There is certainly a potential for some savings. That wasn’t the reason for the change,” he said.

The money will come from several sources. A portion is revenue generated by hunting and fishing licenses, boat registration fees, and licensing.

Money will also come from the sale of its current headquarters, an aging complex at 4010 W. Broad St. That property will be put up for sale, Koch said. DGIF is working with the state’s General Services division, which oversees government buildings.

DGIF will also look to sell a six-acre property it owns near Virginia Center Commons that was originally slated for the new headquarters. The state granted the department that land several years ago.

DGIF ultimately changed plans and spent $1.48 million in late 2012 to acquire the Ashland property from developer Gibson Wright. The site is across Lakeridge Parkway from a planned 392,000-square-foot outlet mall.

The department has about 425 employees, although it is budgeted to have up to 460. About 150 will work in the new headquarters.

A rendering of the new Department of Game and Inland Fisheries headquarters. (Courtesy of DGIF)

A rendering of the new Department of Game and Inland Fisheries headquarters. (Courtesy of DGIF)

As it waits for its new $10 million headquarters to rise out of the ground in Ashland, a state agency has abruptly parted ways with the project’s original developer.

The Virginia Department of Game and Inland Fisheries in July terminated its contract with Richmond-based General Land Companies to build a 45,000-square-foot home base at Northlake Park off Interstate 95 in Hanover County. Although the move severs the relationship between the agency and the developer, the project is still a go, said DGIF chief operating officer Matt Koch.

Matt Koch

Matt Koch

“DGIF is still committed to the same location,” Koch said. “We bought the land, and we are going to be developing our headquarters on that site.”

The department, which oversees the management of hunting, boating and wildlife in the state, will manage the development of the 14.5-acre project, Koch said.

Koch declined to comment on why the contract with General Land Companies was terminated. The move comes after a ceremonial groundbreaking at the site in June.

He said DGIF exercised a clause in the contract for a “termination of convenience.” The convenience clause allows the agency to make a change without giving a specific reason.

“We’re not going to go into details,” Koch said, adding that the department did not terminate the contract related fault on either side.

Koch said that the department believes it is within its rights to exercise the convenience clause and that it consulted the Attorney General’s office before making the decision.

Regarding the termination, Tom Kinter, a principal at General Land Companies said, “We would prefer not to comment.”

DGIF contracted with General Land through Northlake DGIF LLC, an entity created for the project.

Koch said that DGIF has employees with experience managing development projects and that the contractor, architect and engineering firm that had worked with General Land would continue to work for DGIF.

DGIF's current headquarters.

DGIF’s current headquarters.

Those groups include construction firm Kjellstrom + Lee, local architecture firm Baskervill, and Timmons Group as civil engineer.

The development is being funded with a $10 million budget that was approved by the General Assembly.

Eliminating the developer from the mix will likely save some money on the project, Koch said.

“There is certainly a potential for some savings. That wasn’t the reason for the change,” he said.

The money will come from several sources. A portion is revenue generated by hunting and fishing licenses, boat registration fees, and licensing.

Money will also come from the sale of its current headquarters, an aging complex at 4010 W. Broad St. That property will be put up for sale, Koch said. DGIF is working with the state’s General Services division, which oversees government buildings.

DGIF will also look to sell a six-acre property it owns near Virginia Center Commons that was originally slated for the new headquarters. The state granted the department that land several years ago.

DGIF ultimately changed plans and spent $1.48 million in late 2012 to acquire the Ashland property from developer Gibson Wright. The site is across Lakeridge Parkway from a planned 392,000-square-foot outlet mall.

The department has about 425 employees, although it is budgeted to have up to 460. About 150 will work in the new headquarters.

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