As Sterling Golf Course Bills Go Unpaid, Mall Project Approved

At a meeting in Leesburg Oct. 6, the Loudoun County Board of Supervisors gave the go-ahead to a plan by Lerner Enterprises to add 453,000 square feet of offices and a 225,000-square-foot hotel to the Dulles 28 Centre at Route 7 and Waxpool Road. The mall is well known as home to a Wegmans.

However, what sparked controversy at the meeting—which included the presence of about 20 protesters, some holding signs—was not the addition of more buildings, but the sordid past surrounding the adjacent golf club.

Now a public facility called the 1757 Golf Club, the course was once known as the Presidential Golf Club, a high-end private club with a restaurant, Jack Nicklaus golf academy and an annual membership fee of $60,0000. The club was on leased land owned by Lerner, one of the region’s biggest commercial developers and the owner of the Washington Nationals.

In late-2008, the Presidential, founded by a large group of investors headed up by developer Eric Wells, president of WestDulles Properties, went belly up in Chapter 7, leaving the course deserted until 1757 moved in. All told, more than $4.5 million was still owed the many electrical, plumbing, roofing and other assorted contractors who worked on the project, according to court documents. Most of the contractors filed liens against Presidential management, most of which are still waiting judgment in court.

Besides Wells, also said to have had a stack in the Presidential was former Redskin legend Darrell Green. A press release posted on Green’s Web site described the former cornerback as a “partner” in the club. However, when contacted through his Web site on whether he and the other “investors” intended to pay the contractors, the following statement was e-mailed to the Loudoun Independent.

“Mr. Green was not an investor in the Presidential Golf Club project, nor did he have an official relationship with the Club. As such he has no intimate knowledge of its business dealings.”

Rosemary Pelletier, who represents some of contractors, recently told supervisors that since Lerner owns the land and stands to benefit from the new 1757 club, Lerner should cover her clients' losses, which is why the meeting on the Dulles 28 Centre application drew the protesters. But, as she pointed out, Lerner “refuses” to discuss the matter with her clients.

In response, Ben Tompkins, an attorney for Lerner, told supervisors last month that the company “is very sympathetic” to the contractors. “But we have no contractual relationship with them,” he said. “Their relationship is with the Wells entity and Eric Wells individually. He said Lerner also lost money in the Presidential at a clip of about $1 million in back rent and maintenance of the course.

At the Oct. 6 meeting, supervisors were sympathetic of the contractors, of which one in the audience held up a sign saying “Paradigm Services owed $849,000.”

“[Lerner] does have some moral obligation to help these people who got shafted,” said Supervisor Jim Burton (I-Blue Ridge), adding that Lerner did “gain something” by the contractors’ work since the company has since released the property. “ … I really call upon the applicant to make amends, or do something.”

Supervisor Lori Waters (R-Broad Run) asked County Attorney John Roberts if there was something the county could do to help the contractors. However, Roberts said there was no legal authority within the county’s zoning process to force Lerner to step in and recoup the contractors.

Echoing Lerner’s attorney, Chairman Scott York (I-at large) pointed out that the investors behind the Presidential were at fault, not Lerner, which he called a victim in the failed club. “So, ultimately, the people who are responsible for this mess are the people who should take care of it,” ,” York stressed.

The board eventually approved Lerner’s request with respect to Dulles 28 Centre 7-2, with Supervisors Kelly Burk (D-Leesburg) and Sally Kurtz (D-Catoctin) voting no.