NEWS: Fort Magruder Envisioned as 'Workforce Housing' Community
Hotel & conference center conversion possible in James City County

The James City County Planning Department is in the process of evaluating a proposal to convert the Fort Magruder Hotel and Conference Center into a new mixed-use apartment community called “The Foundry at Williamsburg.” The department indicates in public documents available on the County’s website that their review should finish sometime around March 17. Future public hearings by the Planning Commission and the Board of Supervisors will be conducted as they consider the proposal. The next scheduled meeting of the Planning Commission is scheduled for April 3, though it’s not clear if they will consider the project at that time.

Ft. Magruder is located on Pocahontas Trail, right at the County line bordering Williamsburg and the proposed redevelopment of the property would include converting 303 hotel rooms into 126 apartment units, consisting of a mix of 2-bedrooms and 3-bedrooms layouts. As of the time of this writing, the County’s planning department had yet to make an official recommendation to approve or deny the application.
View a rendering of the proposed redevelopment of Fort Magruder Hotel & Conference Center, rebranded “The Foundry at Williamsburg.”
Workforce housing
The developer’s stated goal is to create “workforce housing,” and the proposal comes with noticeable proffers meant to make the apartment complex affordable to more households. The median household income in James City County in 2023 is estimated at $107K by the US Census Bureau. The offers made by the developer are focused on accommodating renters below or just above this figure. The proffers include:
Setting aside 14% of units for households earning 60% or less than the Area Median Income (AMI), another 14% of units for those earning 80% or less, and 12% of units for households making 120% or less than AMI.
Some rents will be controlled so that households spend no more than 30% of their income on housing costs.
The target rent program will be in effect for 20 years. The developer will submit a report each year to the County identifying units in the program and the rental rates being charged.
James City County conducted a workforce housing study back in 2019 and the final report concluded that thousands of people who work in the County can’t afford to live there. Rising costs have also made it difficult for young families to afford to start out in the County. Overall, lower income households are forced to spend a disproportionate amount of their income on housing. Though the task force acknowledged that there is no single fix for the housing problem if left unresolved, they predicted that employers will continue to have difficulty recruiting and keeping workers.




Retail component
The project will ultimately require approval from the Board of Supervisors to rezone the property from B-1 (General Business) to MU (Mixed-Use). The redevelopment of the hotel would also include turning the existing conference center into retail space. The County noted in initial feedback to developers that more detail will be needed about the type of businesses that might be included. For example, if the developer wants to put a restaurant on site, they would need to demonstrate the property has ample space for parking.
Zoning considerations
Developers noted in their proposal the property sits in a Primary Service Area (PSA) which is a tool used by the County to direct development into areas best suited to it. First incorporated into the County’s Comprehensive plan in 1975, the guidelines designate land outside the PSA as rural lands, in which it generally discourages large developments. The Comprehensive Plan allows mixed-use development in the PSA, and specifically encourages converting older hotels and motels into housing. The site also sits on a major route for the local public transportation system.
Interestingly, though most of the property sits in James City County, the Planning Department pointed out that part of a proposed parking lot may actually be in the City of Williamsburg. Staff indicates that more investigation is needed about the exact boundary, as the Geographic Information System (GIS) data for Williamsburg and James City County don’t align. If the property does sit in Williamsburg, it may not be included in calculations done for allowable density, parking needs and landscape buffers.
Public safety and environmental issues
Several County departments review the plan as part of regular oversight activities. The Fire Department indicated some concerns about the placement of fire hydrants and the need for fire lanes, though expressed no objections to the converted use to apartments. The County will likely require that a stormwater management system be put in place for the property, as none currently exists. A traffic analysis determined that no changes in terms of access and exit will be needed to accommodate the change in use.
Next steps
As mentioned, the project will need to clear several hurdles in order to move forward. The Planning Department will soon issue its recommendation. The Planning Commission will then conduct a public hearing while considering the proposal. Staff will be required to post a notice of that hearing. Another critical step outlined by the Planning Department is discussing the project proposal with owners of neighboring properties to gauge their support, which often plays a big part in rezoning decisions. They indicate that a letter will be sent to adjacent property owners informing them of the potential redevelopment. Finally, the project will need approval from the Board of Supervisors.
View the developer’s letter regarding redevelopment of Fort Magruder Hotel & Conference Center.
View the County Planning Department response letter regarding redevelopment of Fort Magruder Hotel & Conference Center.
Editor’s Note: A Google AI tool called NotebookLM was used to help compile, analyze and summarize data & information from 17 documents related to this project, totaling approximately 165 pages.
George Arbogust is Founder and Editor of the Williamsburg Independent. Consider buying him a cup of coffee.