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Posted on: February 15, 2024

Loudoun, Leesburg Reach Annexation Agreement for Compass Creek

Image of government center with text about annexation agreement approved

During its February 6, 2024, meeting the Loudoun County Board of Supervisors reviewed the terms of a mediated agreement and approved the terms of the agreement, which would allow the Town of Leesburg to annex more than 400 acres of land known as Compass Creek. 

The county and town have been working since 2019 to reach agreement on boundary line issues related to Compass Creek, which is south of the existing town limits, east of the Dulles Greenway, north of Shreve Mill Road and adjacent to Leesburg Executive Airport. The development includes retail business and multiple proposed data centers.

The mediated agreement includes the following terms and conditions: 

  • Only property owners who voluntarily consent in writing will be incorporated into Leesburg. Property owners who do not consent prior to adoption of the Voluntary Settlement Agreement will not be forced to enter into the boundaries of Leesburg. After that date, property owners may consent to come into Leesburg through a voluntary boundary line adjustment. 
  • Leesburg will be the primary utility provider to properties in Compass Creek that are incorporated into the town’s boundaries.
  • Leesburg will eliminate the out-of-town differential for water and sewer service. 
  • Leesburg will forego pursuing “city status” until at least 2057. Leesburg will not pursue any more adversarial annexation proceedings for at least 25 years, but Leesburg and the county may continue to approve voluntary boundary line adjustments with the landowners’ written consent.
  • The county will pay Leesburg $2 million (escalated by 3% each year) annually to promote economic development in the Joint Land Management Area outside the town’s limits.

If the agreement is approved by the Leesburg Town Council, Virginia’s Commission on Local Government will hold a public hearing and issue a report with its findings as to whether the agreement is in the public interest. The commission’s findings will then be considered by a three-member court specially appointed by the Supreme Court of Virginia, which has the ultimate authority to approve agreements of this type.  

Leesburg and Loudoun County are working together to try to obtain approval from the special court by December 31, 2024; however, if the special court has not approved the agreement by then, it will become effective 30 days after the court affirms the agreement.

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