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Loudoun Metro: Financing Options Discussed

As decision looms on Silver Line participation, supervisors wade through details, analysis.

As the Loudoun Board of Supervisors begins a series of outreach meetings about the Dulles Corridor Metrorail Project, much of the long-awaited information about parking needs and possible project financing methods has been presented to the board and negotiations may truly begin.

Possibly the key discussion residents and supervisors had been waiting for centers on how the county would pay for such a project.

Staff members described two tools that could be used in a range of scenarios to pay for the project. The primary new sources of revenue under consideration include a countywide commercial and industrial, or C&I, tax along with a service district tax for properties within one or two miles of the rail stations. Variations were also shown at increments down to zero C&I or service district taxes. In addition, discussions include the possibility of seeking legislation to tailor a custom tax district around the Loudoun Metro stops.

“What is interesting is in some of these scenarios we don’t have to use any general funds whatsoever,” said Supervisor Ralph Buona (R-Ashburn). “To the degree possible, we need to place the bulk or the lion’s share on the those that reap the most benefit.”

A C&I district would tax all properties in commercial or industrial zones, excluding apartment buildings, regardless of location in the county, while a service district would tax all property within a specified distance from the rail stations, including all residential real estate. The scenarios presented by staff showed combinations of using those taxes along with the county’s share of a regional gas tax and general fund revenue.

Some supervisors balked at the idea of instituting new taxes, particularly anything that would apply to a business  far away from the rail stations.

“I’ve never seen so many skunks and rats involved in the public process in my entire 12 years” as supervisor, Eugene Delgaudio (R-Sterling) said, accusing some board members of conspiring about ways “to skin the public.”

Delgaudio’s name had come up earlier when Supervisor Matt Letourneau (R-Dulles) said the board was dealing with a decision made by prior boards, including a 2002 statement of support for the project that won Delgaudio’s vote.

Volpe asked staff to confirm assertions that Loudoun would not have to contribute to bus related operating, maintenance or capital expenses as part of its annual contribution to WMATA. A recent discussion with WMATA representatives did not result in clarity for several board members. Such costs would be of great concern to her constituents, Volpe said, because rail provides no direct benefit to them, but it could impact their taxes.

“It won’t make a darn bit of difference on the value of my home or anyone in my neighborhood,” she said, adding that the project would not benefit businesses in Sterling who may wonder why they should pay a C&I tax.

Scenarios discussed during the work session included a C&I tax of 10 cents per $100 of assessed value and a “rail district” tax of 9 cents. Other variations include when the taxes would start, the size of the rail district and at what time such taxes would be rolled back. Some scenarios did include the use of the general fund dollars. Additional scenarios also involved higher and lower tax rates for the C&I and service districts.

For more information and a list of upcoming meetings, visit the county's web page about the project.

Uncle Smartypants May 31, 2012 at 08:27 pm
I commuted to Crystal City from Vienna via rail for almost 15 years and what I learned was: don't be in any hurry and a good book is your best friend. You are right, that is the nature of public transportation. Now you had some pretty bad luck missing three trains in a row by 2 minutes, but you also made some bad luck by not considering walking from the convention center to the orange line train at metro center - about a ten minute walk. You were only on the green line for one stop and the red line for one stop; that's a lot of waiting for a little travelling.
To answer your questions, or rather not answer them, it's hard to speculate what a general population who is not accustomed to rail will do. I expect it will be a gradual shift towards bus/rail; as more and more drivers get fed up with traffic (and associated costs of gas, tolls, and parking) and decide to give mass transit a try and find they like how relaxed it is. Sometimes faster, sometimes slower, but always more chill than driving. Metro reminds me of the Theater Industry; they are always operating at a loss, but never go out of business. "It's a mystery."
Victoria Glenn June 1, 2012 at 02:29 am
Roads will require maintenance too..as will buses, and the fuel, and the carbon emissions...penny wise pound foolish.
So now I am not an adult? Could you please let the IRS know so I don't have to pay taxes anymore? I fully grasp the "comcepts" of all of this, I never said it was cheap, but the benefits will offset the cost in the long run and your plan just sounds like throwing good money after bad.
Victoria Glenn June 1, 2012 at 02:48 am
Some of the most negative comments I have seen have come from the opt-outers. You yourself implied that I am a child incapable of grasping the concept of money. Personally I am still wondering why you are so invested in this when you don't even live in LC? What exactly do you have to gain or lose anyway?
The people who live here and will be directly affected by the rail coming to Loudoun want the rail, we want to see the area develop into something great, not just for ourselves but for future generations.
Richard Holmquist June 1, 2012 at 03:09 am
Stop that, U.S. Shining the light of reason on these comments will take all the entertainment out of this for everyone.
Tom Kellner June 1, 2012 at 03:33 am
As I have read all the comments for the building of Phase II, it seems as though that we are in the concept phase. We are not. Theoretically if you wave a magic wand and all necessary monies were made available, this thing could start tomorrow. It is time for someone other than me to ask specific questions as to how this thing is going to work. Questions like, just how am I going to get from my house to the station? Then how am I going to get to my final destination? Will I have to walk, transfer to a bus or what? We need to know how often it will run and how long the ride will be. And we need to know this for non-peak as well as for peak.
This is a consumer product and it should be judged as to how well it will perform. It is now time for Phase II to stand on its own attributes, not high platitudes. Stix, I am counting on you. Please tell me specifically, with examples (Brambleton to North Point, or Sterling Park to Merrifield e.g.), how much better Phase II is. I think that you will find, as express bus riders have since Metro opened, that when their bus route is terminated and they are forced onto the train that their commute time is increased significantly. This will certainly be true of the express buses at Herndon-Monroe Park and Ride. And I almost forgot, what are the projected fares going to be?
The Baconator June 1, 2012 at 04:21 am
Build the Metro, we have needed it for years. We pay our taxes, have the population to support it. We pay our taxes we deserve public transportation. It is really going to make my life easier and most people agree we need it. This is a democracy and like it or not haters, the majority rules.
Bob Bruhns June 1, 2012 at 01:51 pm
No, I'd say that you are an adult who is not living in the real world.
Bus and bus lane costs are lower than rail, so the bus system - that you know you will need - can run much farther. As for environmental concerns, I have pointed out that here in the 21st century, we have buses that can run on electrical power where available, or on engine or battery power elsewhere. That makes a whole lot of transit possible, and you will need it if you want to get people from the rail stations over on the east side of the county, to and from offices and homes out to the north, south and west. Since you already need that, why not use it a little further, and save a lot of money, by being smart, opting out, and running BUS instead? You can take the money you save, and establish dedicated transit BUS routes to many places NOW. And those dedicated lanes will reserve the routes for future rail, when rail actually becomes appropriate.
Bob Bruhns June 1, 2012 at 02:05 pm
Tell me, what is the plan to run dedicated bus routes to Leesburg and beyond? Is there any plan at all? Will you just have today's buses running on today's roads, and then somebody will say "Oh gee, we never thought about this. All these people are coming to the county to work in these offices where money will be gushing out of the walls because of rail, like that economist told us. But rail doesn't GO to Leesburg and beyond, so all of those people are always late, because they get stuck in traffic on Rt 7! And people going the other way to those high paying jobs, so that money gushes out of their paychecks, are always late for the same reason! And all of our money is going into the rail, so how can we make a dedicated bus route? And those awful tolls being paid by our people who need to get to jobs that don't happen to be on the rail path! Ain't it awful! Now we have to float a Billion Dollar Bond, maybe more - and raise taxes. There's no other choice!"
Tom Kellner June 1, 2012 at 02:06 pm
Would you please share with us how this project will improve your specific transportation requirements. I have yet to see anyone in this forum yet do that.
The BSD Guy June 1, 2012 at 06:23 pm
What you're seeing on this site is the typical "Smoke and Mirrors" show performed by developers. The intent is to STOP PEOPLE FROM INVESTIGATING THE ISSUE AND ASKING REAL, REASONABLE QUESTIONS.
Look at "Uncle Smarty-Pants" post a few threads above. Developers create projects, then sell them to investors. If there are no tenants, the investors shoulder the loss, not the developer. Look at his comments that make eminent domain seizure sound like it's some type of win-win for everyone, then do some actual investigation into people that have been victimized by eminent domain seizure. The reason the developers taking heads are on here is VERY simple: THEY DON'T WANT THE PEOPLE OF LOUDOUN CHECKING THIS OUT. THEY DON'T WANT YOU INVESTIGATING COST. THEY DON'T WANT YOU INVESTIGATING IMPACT. THEY DON' WANT YOU INVESTIGATING NECESSITY, IN SHORT, THEY DON'T WANT LOUDOUN RESIDENTS TO HAVE A SAY. It's up to the residents of Loudoun to investigate the soundness and need for this project. If you look at any of the posts by the "opposition" above, they're not really opposing, but rather questioning and offering other ideas..... two things the developers can have no part of. They must try and control you like sheep to slaughter, hence all the Rah-Rah posts.
Richard Holmquist June 1, 2012 at 06:29 pm
I will take the feeder bus or my bike to the Wiehle metro station and take the train directly to my office at the proposed "Innovation" station. My current commute probably costs me about $10/day in expenses, not to mention driving risks and stress. I'll take public transit in a heartbeat on most days when I don't have other errands to run before or after work, and my car off the street will make your commute easier.
By the way, one of the reasons my company with its several hundred local employees moved to its present location last year is because of the planned Innovation Metro stop.
Richard Holmquist June 1, 2012 at 06:40 pm
Now you're calling developers head-hunters? You've gone too far.
Smartypants had the most reasonable post on this whole chain. He asked you to give an example of eminent domain seizures that were as awful as you claimed (12.5%). If you can't do so, you don't have much credibility. Same with your comments about occupancy. Without facts, you're just ranting. If you can't substantiate your comments with facts, and since you never comment on anything other than your singular obsession with developers, and that you write in CAPS as if you're screaming, one might conclude that you're obsessed and irrational.
Bob Bruhns June 1, 2012 at 06:45 pm
(This post is stuck in 'pending' a few posts above, so I am reposting it here.)
I believe that we have seen careless overdevelopment, and that it is in fact a pyramid scam. Sell investors on big building profits, and string everybody along as long as possible, and justify construction, with cooked-up occupancy numbers. But although I do believe that many here are indeed business and political shills, I am more interested in the actual issue of this rail project - its cost versus what it should cost, and the need for it, and the viability of the BUS alternative to it at this time. I am asking TGG for the source of his numbers, not to challenge or contadict him, but to get the truth out. I think his numbers are much closer to the truth than 86% occupancy. 86% just doesn't match what I see, when I happen to be driving around. But the industry reports that are on line have all claimed extremely high occupancy numbers for many years. Maybe we will find that they mean that 86% of the buildings have -some- occupancy. That, I could believe.
Uncle Smartypants June 1, 2012 at 07:27 pm
Thanks for the kind words Richard. I have nothing to add; your comment sums it up nicely.
Uncle Smartypants June 1, 2012 at 07:35 pm
Everybody's favorite Poster Boy for Overdevelopment - One Dulles Corridor - has been sold for a cool $41.7 MILLION. Boy, those investors sure are stupid! I wish I had the cash to just throw away almost $42M. The good news is that they are actually going to hire a broker to let the space. Here's the link:
http://www.costar.com/News/Article/Westbrook-Pays-$417M-for-One-Dulles-Corridor/138824#.T8d6Yqc0Tug.gmail BTW, all you people who look at a builbing and divine occupancy, here's a little tip for you: Do it at night, but after cleaning crews are gone. Developers almost always keep the lights on in unoccupied spaces to draw attention to them.
the-stix June 1, 2012 at 08:24 pm
Mr. Kellner; How much better the Silver Line will be depends on many factors and especially on what your definition of “better” is. In all candor, I do not know enough to answer your question. And even if I did venture an answer, I am nearly certain that you would pronounce it unsat.
I will say that from your previous comments, my opinion is that using your auto is the best for most of your personal needs.. especially in good weather, in light traffic, no delays such as construction, breakdown or accident, and cost (including the car depreciation, fuel, maintenance, insurance, tolls, parking, etc.) is no object. I found it interesting that you chose Metro to go to DC last week. I can only assume that one or more of the conditions mentioned above were unfavorable. So at least you have proven that under some circumstances the Metro is the best choice. My guess is that on a 365/24/7 basis, many Loudoun commuters will find Metro the better choice over private auto as you did, and especially as population grows in the next 20-50 years.
Tom Kellner June 2, 2012 at 12:11 am
To both smarty pants and Stix, thank you for your candid answers.
I rode that particular route to the Convention Center for two different reasons. One, even though my employer would have reimbursed my parking expenses, I ride public transportation when it goes where I go. I am a firm believer in public transportation and have ridden the Metro system off since it opened in the 1970’s. Second, is leadership by example. If I am speaking about this subject, I should have a basic knowledge of how it works. And the only way that I can do that is to actually get out and ride within the system during different conditions and scenarios, so I am not totally talking through my hat. I am not against public transportation or specifically heavy-rail for that matter. It is just that it is doomed to failure unless it adequately serves the people who ride it. And as I have said before, with the frequent stops, the need for multiple transfers, seemingly never ending enroute time, lack of flexibility and its present lack of dependability; I question this technology for this purpose Oh, and I forgot, its questionable funding for both construction and operations for the next how many years to come.
Bob Bruhns June 2, 2012 at 06:11 pm
What a coincidence, it just sold after all these years, proving (I suppose) that it was a big and very visible part of the tiny little scrap of available space in Northern Viriginia, and it was overlooked by the market for all those years, because somebody failed to use some good-old-boy sales network to market it. I guess nobody noticed it there all those years, other than a few people with, you know, eyes in their heads. Hmmm.
RKO June 2, 2012 at 06:29 pm
Oh, for the love of God, now they're trying to con the people of Loudoun into thinking the government seizing their property and handing it over to a developer is a good thing, then patting themselves on the back for getting the "facts" straight.
For those that don't remember: http://www.waldoandlyle.com/resources/waldo-and-lyle-articles/97-virginia-must-stop-abuse-of-eminent-domain Here's a little hint: If there are attorney's representing homeowners against eminent domain seizure, there must be a reason for it. If any of the so called"Rah-Rah" boys bothered to look on the web for maybe 1 minute it would become quite clear to anyone why eminent domain is a problem. There are some very serious logic problems with many of the posts on this thread: 1. Why is it that a few posters in this thread conclude that Loudoun county residents need to investigate what's going on & find out for themselves costs, impacts, etc. and this seems to be such an horrific threat that it **must** be quashed as insanity or stupidity? 2. Why would any **normal** person defend eminent domain seizure? (HINT: A normal person wouldn't) This is, exactly what another poster said it was: A bunch of marketing people from development companies trying to shut up opposing opinions. And it really is a smoke and mirrors show - They use any trick they can to try and keep the focus off costs and real results and put it on their fantasies about boom towns that never materialize.
RKO June 2, 2012 at 06:44 pm
I find it interesting the none of the "Rah-Rah" boys are refuting the disastrous 49% occupancy figure that TGG posted. Why is that? Could it be that figure is accurate. Could it be the real figure is ***even worse***????.
Now ***that's*** saying something.
Richard Holmquist June 2, 2012 at 08:32 pm
I ignored it because TGG didn't reference the source of the figure. If you want to convince anyone to adopt your position, try including verifiable information.
Richard Holmquist June 2, 2012 at 08:33 pm
Sounds like you question the number also.
Bob Bruhns June 3, 2012 at 12:36 am
No, I think you are an adult who is not living in the real world, Victoria, and it is the concept of not bankrupting yourself or your region that appears to elude you.
Uncle Smartypants June 3, 2012 at 12:58 am
At Least two different people (including Bob Bruhns - the least rah-rah guy ever) asked for TGG's source data and got nothing. I've already stated one number; here's a slightly higher number published by Washington Business Journal and recently recapped by the Reston Patch:
"While much of the Dulles corridor struggles to land tenants (Fairfax County’s office vacancy rate, according to Jones Lang LaSalle Inc., is 13.8 percent; the rate for the Reston/Herndon submarket is 17.8 percent) Reston Town Center can tout a measely 4 percent vacancy rate and leases that top that of the overall corridor by $10 to $18 per square foot." Not quite 49%, don't you think? Original Article: http://www.bizjournals.com/washington/blog/2012/06/reston-town-center-point-of-pride.html
The Analyst June 3, 2012 at 09:27 am
George Wallace once (in)famously said: "You can prove anything you want to with statistics."
Here are some observations: 1. This now apparently infamous poster using ID "TGG" likely shouldn't be ignored or taken too seriously. He didn't supply a basis for his facts. Were they real? Were they based on a limited study? Was he referencing a specific type of real estate? Is it published anywhere? 2. The other posts, particularly those from "Uncle Smartypants" at 8:58PM on Saturday, June 2, 2012 as well as his other post referencing "data" aren't any better, in fact, maybe worse. Both posts are sourced in what others are referring to as "special interest" supplied data, including the one from the Washington Post. The source of the data in the brilliant Washington Post article is "Jones Lang LaSalle Inc" which a commercial real estate marketing firm. Gee, I'm fooled. His other post was from yet another clearly biased source. The internet has become the world biggest scam market. Anything anyone reads or sees, particularly on a "hot" topic like this needs serious investigation if it's to be taken seriously. It's truly a sad day when the Washington Post reporting is so incompetent that they cite a special interest for facts. It's sort of like asking Bashar al-Assad to give an unbiased opinion on the Syrian revolt. I hope the leaders of Loudoun County have more depth and intelligence. It's a sorry world when the Post doesn't bother verifying their information.
Bob Bruhns June 3, 2012 at 10:36 am
In most cases, I really don't see why a bus would not have done just as well. But people like to spend money we don't have, and the more, the better, it seems. It's become the American Way, and it has certainly worked for countries like Greece and Spain.
The BSD Guy June 3, 2012 at 07:38 pm
People such as TGG are also not obligated to "report" to Mr. Bruhns, who I guess now thinks this is his site and everyone must meet his standards or be kicked off. Sorry, Bob, you have no authority here. People such as TGG are also not required to be obsessed with this thread and post on it every three minutes either.
I couldn't agree more with The Analyst....but he's really just repeating what I said a few threads up, namely CHECK EVERYTHING OUT. This thread is, however, an excellent lesson for those who wish to see how developers use trickery, fake statistics, and misinformation to con people.
Uncle Smartypants June 5, 2012 at 03:20 am
I prefer the "Lies, Damn Lies, and Statistics" quote (Twain, maybe),but I hear you. My thing is, and I'm old school, in a proper debate you have to quote your sources. So although my sources may have been biased (and I don't know that), at least I let people know what they are. Then readers still capable of critical thinking (like yourself) can evaluate the source and determine for his or herself if there is bias one way or the other.
But I don't understand your comments about the Washington Post. My link was to an article in the Washington Business Journal, not affiliated in any way with the WaPo. I don't really have a dog in this fight, but I hope Loudoun opts out. I hope the Silver Line stops at Dulles. I don't think it makes sense to go to Ashburn at this date.
Bob Bruhns June 5, 2012 at 02:10 pm
I'm just looking for sources of better information than the 86% claim that some people throw around.
Something just seems wrong with these figures. 86% occupancy DOES sound high - but I noticed somebody saying that an 82.2% occupancy figure means that owners are 'struggling' to get tenants, in the June 1, 2012 Washington Business Journal article "Reston Town Center 'point of pride' for developer as it celebrates 22 years." So 82% means that owners are struggling to find tenants, but 86% means that developers should all run out and build more buildings? Something has to be wrong with these figures somewhere. Meanwhile, none of this really relates to the issue of overpriced, premature rail. It's just a different example of strange numbers being used to support construction in search of a purpose.
The BSD Guy June 5, 2012 at 06:18 pm
Read the comments from "The Analyst" above. I think they hit the nail on the head. The Washington Post is not what it used to be and can no longer be relied on for "cutting edge" journalism. One example is "The Analyst's" point above that all their reporter did was reference a document provided by a development firm. Another is the recent blunder they made when they misquoted Barak Obama when the source of the distorted quote was Steve Doocy....that's right, the Washington Posts "investigative journalism" went as deep as watching "Fox & Friends" in the morning. to obtain facts. As an FYI, "The Analyst" also made another post at:
http://reston.patch.com/articles/developers-have-vision-for-crescent-apts Interestingly he points out that a lot of the mega buildings around Dunn Loring were empty, with many owners filing for bankruptcy rather than filling up as the Rah-Rah boys suggest and promise.

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Jim June 18, 2013 at 11:22 am
Doug was a coach in Dulles Little League for many years and the entire DLL community sends itsRead More thoughts and prayers to Barbara, Chris and all of Doug's family and friends. Thank you, Payne family, for sharing Doug with us. May he rest in peace.