Henrico County is being asked to help launch a mostly residential development in Varina the way it did Short Pump Town Center.

HHHunt Communities wants Henrico to create a community development authority to finance more than $61 million in roads and other public infrastructure for Wilton on the James.  HHHunt, the developer of Twin Hickory, Wellesley and Wyndham in western Henrico, is planning Wilton on nearly 1,200 acres of a former tobacco plantation on the James River.

The community would have 3,209 homes of various types built around a pedestrian-oriented "town center" with shops, offices and other amenities. About 300 acres along the river would be developed as a county park.

Under HHHunt's proposal, a community development authority, would sell about $75 million in bonds to cover the cost of the improvements, plus interest and other fees. The improvements would include an interchange with state Route 895 and a four-lane parkway extending past Osborne Turnpike to New Market Road.  A little more than half of the bonds would be repaid over 30 years through special assessments on homes and other properties.  The rest would be repaid over 10 years using a portion of the increase in tax revenue generated by the development.

County Manager Virgil R. Hazelett rejected the idea of a CDA for Wilton in letters to HHHunt officials in November and February. He reiterated his concerns in a meeting Tuesday.  So far, Henrico has approved CDAs for three commercial projects -- Short Pump Town Center, Reynolds Crossing and The Shops at White Oak Village. Hanover and New Kent counties have used CDAs for projects that include some housing.

Hazelett said Henrico does not need to entice residential growth and warned that similar requests would likely follow if a CDA is approved for Wilton.  "This is a precedential change that will impact east, west, north and south of Henrico County," he said.

HHHunt officials say Wilton represents a special opportunity to set a high standard before development takes hold in eastern Henrico. Wilton is modeled after the Daniel Island resort in Charleston, S.C.  A CDA is needed, the officials say, because traditional bank financing is not available for projects with extensive costs.

"It is critical for us to finance this infrastructure with this method. We have to create a destination for the East End," said Dan Schmitt, president of HHHunt Communities.

Wilton fails to meet at least four of Henrico's eight criteria for a CDA, Finance Director Reta R. Busher said. Under the guidelines, only commercial projects are eligible.  Board of Supervisors Chairman James B. Donati Jr., who represents Varina, and Supervisor David A. Kaechele saw enough merit to HHHunt's proposal to request Tuesday's meeting.

"It's a real departure from what we considered in the past," Kaechele said afterward. "It would be a big boost for the East End, but there are other considerations, precedents and that sort of thing."  Donati said he likes the idea of using a CDA for Wilton and called the county's criteria too rigid.  "I really don't view it any different than a CDA for the commercial [developments]," he said. "It does stimulate the economy. Wilton is a project that I think is deserving of it."

Other supervisors voiced caution, and at times skepticism, in their questions about HHHunt's proposal.  Supervisor Richard W. Glover bristled at the prospect of tying up a portion of tax revenues from Wilton, an amount estimated at $42.2 million by HHHunt's financial consultants.  Glover asked why other residents should have to shoulder an extra burden as Wilton grows. "Somebody's paying for the services that go into this development."  He also wondered whether a CDA would accelerate residential growth, creating a further strain on the county.

HHHunt officials said Wilton would add nearly $1.3 billion to Henrico's tax base when the community is fully built. While some revenues would be used to pay off bonds and the development would generate other costs, HHHunt's projections show Wilton would provide a net increase in revenue to the county after 20 years.

Jim Crowder, a vice president for finance and accounting for HHHunt, acknowledged there's work to be done to sway county officials and to explain how Wilton would benefit the community in eastern Henrico.  "I think we'll be able to get that message across," he said. "It may just take a little longer."