Public Hearing, Second Reading, and Final Passage of an Ordinance to lease and manage the Torpedo Factory Art Center (TFAC) to Initiate And Establish The Process To Grant An Agreement For The Lease, Management, And Operation Of The Torpedo Factory Arts Center (“TFAC”), Owned By The City Of Alexandria And Located At 105 Union Street.

The City of Alexandria is initiating a process to grant a long-term agreement for the lease, management, and operation of the Torpedo Factory Art Center (TFAC), located at 105 Union Street. This ordinance authorizes the City Manager to advertise a Request for Proposals (RFP) for a franchise agreement, with an initial term of no less than five years and a total term not to exceed forty years.

Proposals for the TFAC lease are due by March 30, 2026, with a public announcement of bidders and a summary of bids scheduled for the City Council meeting on April 14, 2026. The selected operator will be responsible for managing TFAC to high art center industry standards, including maintenance, design, construction, and programming, while maximizing community-wide economic impact and supporting its artistic mission.

TFAC, a 77,000 sq ft facility, currently operates with an average annual budget of $1.15M-$1.25M (including City support) and generates approximately $992,000 in earned revenue, primarily from studio and gallery rents. A September 2021 Facility Condition Assessment rated TFAC's condition as "Poor" (FCI of 0.37), identifying $10.7 million in deferred maintenance over five years.

A Structural Investigation & Feasibility Study (September 2021) indicates that a proposed rooftop expansion for a restaurant/event space would require significant structural reinforcement, including new steel framing, internal steel braced frames for seismic resistance, and new micropile foundations. The estimated cost for these structural modifications alone is $9.2 million, with foundations accounting for 45% of this cost. The City has also allocated $20.2 million in its Capital Facilities Program (FY26-FY35) and $4.27 million for revitalization efforts.

Community focus groups highlighted a desire for TFAC to attract people seeking art experiences, tourists, and residents, through strategies like arts/cultural events, art-making experiences, and building improvements. Key revenue-generating strategies suggested include facility/event rentals, varying rent by location, and private fundraising. This comprehensive approach aims to transition TFAC to a self-sustaining model while addressing critical infrastructure needs and enhancing its role as a cultural landmark.