Subject:
Title
9:15 - 9:45 PM Navy federal Credit Union Proposed Advance Funding Agreement with the Town of Vienna for Design and Engineering for the Aquatics and Fitness Center
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
10/20/25 - Town Council Work Session #2 - CIP Improvement Plan 2026-2042
9/15/25 - Town Council Work Session #1 - CIP Improvement Plan 2026-2042
EXPLANATION AND SUMMARY:
Request:
The Department of Parks and Recreation (DPR) seeks Town Council approval to authorize an agreement between the Town of Vienna and Navy Federal Credit Union (NFCU) for a $3,000,000 advance. These funds will enable the Town to hire a construction management consultant and architectural/engineering professionals to develop and complete design and construction documents for the proposed Aquatic and Fitness Center at 301 Center Street South. DPR also requests the Mayor’s signature on the attached agreement.
Project Description:
In 2023, the Town of Vienna engaged residents to gather feedback on the potential development of a recreational Aquatic and Fitness Center at 301 Center St., S. This led to the creation of conceptual designs for a modern, 24,500-square-foot facility, complete with ample parking. The envisioned center aims to serve a broad spectrum of recreational and fitness needs, offering an inclusive and accessible environment for individuals of all ages and abilities.
Currently, no funding has been formally allocated for the project. The Town plans to finance the estimated $25 million cost through a combination of municipal bonds and alternative revenue sources, including the meals tax. The cost to develop the necessary design documents is estimated at $3,000,000.
To help accelerate the project timeline and in recognition of the community benefits the facility will provide, NFCU has offered to temporarily advance the funds required to begin and complete the design phase. The Town will fully reimburse NFCU as outlined in the agreement, with repayment anticipated through the FY2026 Capital Improvement Plan (CIP), which includes $7.5 million proposed for the 2028 bond year and $20.5 million proposed for the 2030 bond year to support the design and construction of the Aquatic and Fitness Center. The $3 million design advance from NFCU would be paid back during the 2030 bond year cycle, with an anticipated close date of December 2029.
The Town will oversee all aspects of the design process, including project management and construction oversight, in accordance with applicable local and state regulations.
Expected Completion Time Frame:
The design development and preliminary planning are expected to occur during fiscal year 2025-2026, with final design documents projected for completion in fiscal year 2026-2027.
Next Steps:
Once approved by Council, the Mayor will execute (sign) the agreement attached.
Departmental Recommendation: Recommend approval.
Finance Recommendation: Recommend approval.
Purchasing Recommendation:
Town Attorney Recommendation: The Town Attorney and legal counsel for NFCU have reviewed the proposed Advance Funding Agreement (AFA) and the parties are in substantial agreement as to the proposed terms. The Town has received advance funding from NFCU in the past for the Follin Lane reconstruction and turn lane expansion project and the ability to receive advance funding for that project helped expedite the project’s commencement and completion. The Town Council may approve the proposed AFA in its discretion.
Town Manager's Recommendation: I recommend the Town Council approve the advance of funds agreement for the Aquatic and Fitness Center design between the Town of Vienna and Navy Federal Credit Union, as presented.
Cost and Financing: $3,000,000 interest-free advance
Account Number: Fund 300 Capital Improvement Plan
Future Funding: CIP Budget 2028 and 2030 Bond Issue
Decision Needed by This date: Oct. 27, 2025
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve the advance of funds agreement for the Aquatic and Fitness Center design between the Town of Vienna and Navy Federal Credit Union."
And
"I move to authorize the Mayor to execute the advance of funds agreement between the Town of Vienna and Navy Federal Credit Union for the design of the Aquatic and Fitness Center."
Or
Other action deemed necessary by Council.