Metro Tax Districts in Limelight
The Loudoun Board of Supervisors continues to debate rail tonight in its final work session.
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With just four days to go before a planned vote on whether Loudoun participates in the extension of Metro’s Silver Line, which would bring to station beyond Dulles International Airport to Ashburn, the Board of Supervisors has one more evening set aside to discussion options to pay for project.
By opting in, Loudoun would agree to pay 4.8 percent of the construction costs for both phases. Loudoun’s share of the $5.6 billion project—$2.9 for phase one and an estimated $2.7 for phase two—amounts to $270 million.
In addition, Loudoun would have to pay the Washington Metropolitan Area Transit Authority for the operation and maintenance of the two Ashburn stations as well as the airport station ($16.3 million annually starting in 2018, rising to $14.6 million by 2025)—Loudoun is on the hook for those costs at the airport station regardless ($11 million in 2018; $14.6 million by 2025).
To pay for those costs, supervisors are considering new taxes that would primarily put the costs onto businesses, with those closer to the rail stations likely paying the highest tax rates.
In a previous work session, the board decided to focus on a custom tax district (pictured with purple outline) that excludes existing residential units, but would include new units nears the station. In addition, the board continues to consider a commercial and industrial, C&I, tax that likely would be applied countywide. Another consideration is the creation of a tax district based on existing county service districts that would exclude western districts.
Previous straw votes eliminated from consideration the use of general fund dollars, which would impact real estate taxes countywide, and two tax districts that included all properties within one or two miles of the proposed stations. However, those non-binding straw votes do not prevent a supervisor from putting those concepts back on the table.
By establishing the districts before having to make all of its payments to the Metropolitan Washington Airports Authority, which is constructing the project, supervisors hope to lower potential financing costs for the project. Current estimates put the debt service for the project in the range of $15 million to $18 million for Loudoun, with the potential to get costs even lower, depending on the financing mechanism used.
There are other potential project costs as well. While Loudoun hopes to persuade a developer to construct three planned parking decks, if the project proceeds to Ashburn, those costs could revert back to the project. Loudoun would then have to pay a 4.8 percent share for those decks, which are estimated to cost $40 million to $50 million each.
In addition, many Loudoun residents who drive along the Dulles Toll Road will have to pay higher tolls, because those fares have been targeted to help pay for the rail project. While MWAA estimates the tolls to go up to $6 or $7 potentially, some people say the tolls will go much higher. However, according to the planners, the tolls will go up by just about the same amount whether Loudoun participates in the project or not.
To learn more, visit the county's Silver Line page.
[Correction: The county's share for construction of the project was initially written incorrectly. The correct amount is $270 million.]
Daniel Davies
10:13 am on Friday, June 29, 2012
The real issue here is this: Is it worth spending $1.6 billion (the County's own estimate through 2045) to build two miles of rail past the airport? Only 12,000 people are expected to use the train each day by 2040. We can do more for congestion by completing missing links, as Supervisor Ralph Buona recently pointed out in his newsletter: "As part of the Kincora rezoning, the development is responsible for building Gloucester Parkway across the Broad Run, between Loudoun County Parkway and Route 28, where in it will link up to Nokes Boulevard. Completing Gloucester Parkway is projected to take 15,000 daily trips off Waxpool Road."
That's way more cars off Waxpool than projected Loudoun ridership on the Silver Line (12,000 by 2040). Better traffic solution by building a tiny missing link (2/3 mile) than sinking $1.5 billion into Metro. It's faster too (2014 vs. 2018?).
I bet only about $15M of the $80M is for Gloucester (remainder for Pacific, Russell Branch, etc). So $1M gets 1K cars off the road daily. Compare that to $1.5B for Metro to take 5,000 (number of parking garage spots at 772/606) off the road...
How many more of these are there? Clairborne and Loudoun County Pkwy. missing links, 606 widening, a couple more Rt. 7 or Rt. 50 interchanges etc...
We need to recognize REAL transportation solutions when we see them and tell people the truth.
Satchmo
11:02 am on Friday, June 29, 2012
Davies, I would suggest projecting out the cost to 2090 to say it is $3.2Billion. It sounds more dramatic. And you can also project that everyone will be using "BMUS, (beam me up scottie)" technology by then and it would have all been a waste of money on an obsolete transport system.
MIke
11:18 am on Friday, June 29, 2012
How anyone could be compelled to believe that this would be good for our community after seeing the costs is beyond me. Let the Metro terminate at Dulles, and we still reap benefits.
Vote NO to Metro!
Chris Lopresti
9:33 am on Monday, July 2, 2012
If the Metro stops at Dulles we will not see the benefits. They will not be putting commuter parking in. It will do a lot of good for people who are using the airport, but little else.
CC Mojo
11:58 am on Friday, June 29, 2012
People will use Metro, and as Loudoun grows, more people will use Metro. Businesses will come to Loudoun, bringing us jobs and better economic development. We cannot continue to rely on our homes to provide services throughout the county, we need more businesses for jobs, tax revenue and overall growth. Vote FOR Metro!
Mike
4:01 pm on Friday, June 29, 2012
We all say that we want Metro because it will bring more businesses and families. Has anyone thought how this is going to affect the school system? We can barely afford the school system now. How are we going to afford to build more schools, continue to give our teachers the raises they diserve and pay for metro? What is going to happen is they are going to take away from our schools in order to pay for 2 miles worth of metro. I for one do not think that it is worth it.
BCan
10:20 pm on Friday, June 29, 2012
Fortunately, there is room to cut waste in the school system. Loudoun County loves small high schools. One issue of debate is the new high school, HS-8 that they plan to build in Ashburn to alleviate overcrowding at the other schools. The cost estimate of HS-8 is approaching $100 Million. Instead, Loudoun could add 400 seats to Hertiage HS, Stone Bridge HS, Broad Run HS, and Briar Woods HS and save millions of dollars. And they can divert the money elsewhere.... like METRO!
http://www.loudountaxpayer.com/main/index.php?option=com_content&view=article&id=42:undersized-high-schools-cost-loudoun-taxpayers-big-bucks&catid=3:loudoun&Itemid=4
J Williams
9:43 pm on Friday, June 29, 2012
the metro terminates at Dulles and we get no benefit at all. They have already said there will be no parking for commuters didn't they? I am aware this is going to cost us but it seems there are many benefits to be had, which in my mind and the minds of many of my neighbors outweighs the negatives. I am really looking forward to the metro and plan to ride it daily.
abroderick
11:34 pm on Friday, June 29, 2012
When it comes right down to it the Metro will benefit us all. The cost is worth the gain. The only drawback is that it needs to be paid for. But nothing good comes free. They are trying to work out the financial cost. There is no great conspiracy here. I live in Loudoun and I welcome the Metro.
Melvin Summers
9:27 pm on Sunday, July 1, 2012
The board voted a unanimous 8 to one on how to finance the Metro. I think 8 to one is a good indication, if 8 of them think we have found the financing then they will be passing the Metro rail to Loudoun this Tuesday.
Yes to Metro
Victoria Glenn
10:24 pm on Sunday, July 1, 2012
And we all know who that 1 vote was...but he is "too busy" to talk about why he opposes this project so vehemently. I really cannot wait till tuesday, very hopeful the rail will be one step closer to being a reality!
Chris Lopresti
9:35 am on Monday, July 2, 2012
It looks like Metro is going to get the votes! I'm excited to hear the outcome! Bring us the Metro!
Melvin Summers
7:33 pm on Monday, July 2, 2012
Looks like tomorrow we will finally see how the vote goes. All the debating is about to end and a new age of Metro is upon us
Luisa
9:36 pm on Monday, July 2, 2012
Let's hope the BOS does the right thing for Loudoun County and brings the metro out!