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Potomac Yard Metrorail Station

The City of Alexandria sought to investigate innovative strategies to finance a new rail station adjacent to a rapidly developing former rail yard. Existing and future travel demand in the area is on the rise. Improving accessibility to the Potomac Yard area and providing more transportation choices for current and future residents, employees, and businesses will establish a new access point to the regional Metrorail system.

 

Potomac Yard Metrorail Station

WSP USA conducted a study that compared several station locations, development scenarios, value capture mechanisms and financing options to support the development of a preferred public-private partnership strategy. Our analysis demonstrated that the right mix of value capture techniques, which included development impact fees, tax increment financing and special assessments, can provide an effective means of harnessing the benefits of future development at Potomac Yard. 

With a combination of special district financing, net new tax revenues and developer contributions, our analysis showed the $240 million station can be financed solely on the revenue generated by the nearby development without any impact on the City’s existing tax base. This investment grade analysis was used to support negotiations of a memorandum of understanding with the land owner that resulted in an agreement by the developer for a $50 million contribution to the project.