The Federal Deposit Insurance Corp.’s board of directors today approved the construction of a 9-story building at the FDIC office complex in Arlington, Va. The 422,000 sq. ft. project will cost approximately $111 million.

Over the long term, the expansion will save the FDIC more than $78 million over the next 20 years. Currently, the FDIC owns three buildings in metropolitan Washington, D.C. and leases space in four others. All four leases will expire in June 2003. The new building will house the 1,100 FDIC employees now working in leased space.

In addition to its property in Northern Virginia, the FDIC will continue to own its headquarters building at 550 17th St. across the street from the historic Old Executive Office Building, as well as a building at 1776 F St.

When concluded in 2006, the project will complete the development of the FDIC Virginia Square campus, which began more than 10 years ago when the agency built an office building, training facility and student residence at the site.