Town Crier Articles

What’s Next with Eastern State Surplus Land Development?
Posted on August 1, 2025 6:55 AM by Mary Cheston
 
Since 2021 New Town has been anticipating the development of over 400 acres of our neighbor Eastern State Hospital’s surplus land. Each of the pending projects is updated below. (See previous Town Crier issues for the details on the design of these developments.) Any development of the Eastern State Hospital property requires legislative action by the James City County (JCC) Board of Supervisors to rezone the land from its current Public Lands category.
 
Westwood Park
 
In its April 2nd meeting, the JCC Planning Commission voted to recommend denial of the Westwood Park development plan (5-1) based largely on stormwater management concerns. The Commission discussed the poor condition of the Powhatan Creek watershed and the fact that a Stormwater Management Master Plan is only required to address the impact of an applicant’s new development and not restore any previous damage.
 
ABVA’s representatives noted that the current problems with the Powhatan Creek watershed stem from Tewning Road and Eastern State, “where water is flowing with no stormwater management.” Concern was that any downstream restoration now would ultimately be destroyed by future storms. Several Commissioners expressed concern that the environmental impacts of developing Eastern State land are still not well defined and approval without mitigation will only compound a bad watershed situation.
 
In response to the Planning Commission’s denial, ABVA has been working with the County to revise the project’s stormwater impact and applicant offers. In mid-July, ABVA submitted revised Proffers which reduced the number of units to be constructed in Westwood Park: from 86 to 82 single family homes and 90 rather than 100 total multifamily units. (The new residential total is 172 units with 35 being affordable/workforce units.) The proposed commercial space has also been reduced from 40,000 to 24,000 square feet. ABVA also reduced the amount of passive parkland from 6 to “at least 5 acres.” ABVA states that with a new residential density factor of 2.2 units per gross acre “The density has been reduced considerably from the plan originally shown.”
 
The proposed Proffers further commit ABVA to identify needed stream improvements to sub-watershed #208 on its Master Plan and to make annual contributions to a “Stream Channel Restoration Account” for restoration plans and County construction in the Powhatan watershed’s stream channel. A total contribution of $219,632 is offered adjusted for inflation, based on the new residential unit figures. ABVA has added Stantec as part of its technical team, and states “As part of this project we are proffering funds to make improvements to address existing concerns and committing to stormwater management measures that will protect the creek from future development on the property." Elsewhere in its Community Impact Statement, ABVA notes that "By proffering funds it activates the ability to tap into State matching funds and also allows the proposed improvements to be coordinated with surrounding developments.”
 
JCC Planning Staff are reviewing these applicant changes and will update their findings and staff report as appropriate prior to any Board of Supervisors hearing on Westwood Park. ABVA has up to a year following the April 2025 Commission decision to proceed to this next step in the rezoning process. 
 
[Note that as part of its March 2025 application, ABVA had proposed retrofit of three stormwater best management practices (BMPs) within the New Town area, but this is no longer included. (This BMP retrofit was a revision to its January 2025 submittal where ABVA had proposed a $250,000 payment with inflationary factors to Stream Restoration.)]
 
Since April, the condition of the watershed stream area in New Town has received additional JCC attention. In May the Board of Supervisors appropriated a $120,000 payment from the Developer for remediation of the stream separating Sections 7 and 8 of New Town (Charlotte Park and Shirley Park). This payment was required by the County because of poor results from stream monitoring as stipulated under the 2006 Proffers for those New Town sections. This payment fulfills current Developer obligations for the maintenance of this watershed section.
 
Issue remaining for the New Town community: the proposed retrofit to two deficient New Town BMPS affecting our residential areas (Casey Boulevard and the Suntrust/New Town Ave pond outfall) is no longer included in the Westwood Park application – so who will now bear the cost of this remediation and how do we ensure effective long-term maintenance?
 
Cardinal Ridge
 
The larger DR Horton development (365 acres) on the northern side of Eastern State’s property has completed its third JCC Rezoning review and will require resubmittal on several points. A formal Master Plan has been requested by staff before the application can be considered complete. The applicant must also propose “analysis and remediation” of two streams since the development lies within the County’s Powhatan Creek Watershed Management Plan. Like ABVA, DR Horton had noted that since the Eastern State Hospital complex has no stormwater management, stormwater “treatment with regards to quantity and quality from the new development will have a positive effect on the existing natural resources.” Significant comments from Virginia’s Department of Transportation regarding traffic estimates, capacity, as well as the adequacy of proposed improvements also must be addressed.
 
Land Transferred to Build Crisis Center
 
Per direction in the adopted 2023 Virginia State Budget, arrangements for new mental health facilities (initially depicted within the Cardinal Ridge DR Horton parcel) are progressing. In May the JCC Board of Supervisors facilitated the transfer of 14 acres of Eastern State Hospital land, which the County had accepted from the Commonwealth in February, to Colonial Behavioral Health for the construction of a crisis center. Colonial Behavioral Health has received a $12 million State contract to build this facility for its emergency services and crisis intervention and stabilization services. 
 
The facility will be located diagonally across from the College of William & Mary Plumeri baseball stadium (1001 Galt Lane.) Since around 2007 State officials have envisioned selling the surplus Eastern State Hospital property in part to increase revenue for mental health services and allow expansion for Colonial Behavioral Health.  
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