Dulles Metrorail Project Update August 6, 2009 Dulles Toll Road Rate-Setting Process. The Metropolitan Washington Airports Authority (Airports Authority) has begun a process to consider and eventually adopt toll increases on the Dulles Toll Road to fund the Dulles Metrorail project. The following information is taken from the Airports Authority's press release and recent Power Point presentations. On July 15, 2009, the Finance and Dulles Toll Road Committees and the Airports Authority authorized a public hearings to begin the process for a proposed toll rate increase of twenty-five cents at the Main Toll Plaza and twenty-five cents at the ramps of the Dulles Toll Road. The toll increases would take effect in 2010 if approved by the Airports Authority Board later this year. The proposal also calls for raising the tolls by another twenty-five cents at the Main Toll Plaza in 2011 and another twenty-five cents in 2012. There will be additional no increase in tolls at the ramps during 2011 and 2012. Public Hearings will be held on: Monday, August 24, 2009, at the Ashburn Elementary School in Ashburn; Thursday, September 3 at McLean High School in McLean, and Wednesday, September 9 at South Lakes High School in Reston. The three sessions will be held from 5:00 to 8:00 p.m. There will be informational exhibits at these meetings highlighting the Metrorail project and its costs and financing; potential improvements that could be made to the Dulles Toll Road; revenues anticipated to be raised as a result of the proposed toll increases; and how the additional revenue will be spent. The Airports Authority has responsibility for the construction of Metrorail in the Dulles Corridor. The Commonwealth of Virginia transferred operation of the Dulles Toll Road to the Airports Authority under a 50-year permit to operate and improve the Dulles Toll Road (DTR) and to use the revenue from the tolls to help finance rail construction and other improvements to the Toll Road in the Dulles corridor. The proposed financing plan for Metrorail calls for the issuance of approximately $2.9 million of Dulles Toll Road revenue bonds over the next five years. Components of the financial plan include capital costs allocated to the DTR; the timing and structure of DTR revenue bonds, and the projected toll rate schedules. Airports Authority obligations include:
The total estimated capital cost of Dulles Metrorail of $5.25 billion includes the $2.75 billion budget for Phase I that has been evaluated and accepted by the Federal Transit Administration and the $2.50 billion preliminary cost estimate for Phase II. Cost components of Phase 1 include $1.71 billion for the Design Build Contract; $120 million for related highway improvements; $130 million for utilities & right-of-way; $240 million for rail cars, startup and testing; and $560 million for engineering, program management and contingencies.
On June 23, 2009, the eight-member Dulles Corridor Advisory Committee met to discuss the potential toll rate increases. Governor Tim Kaine had formed the Committee to provide the Authority with advice on issues related to the management, improvement, and expansion of the Dulles Corridor, as well as changes to tolls on the Dulles Toll Road to fund the roadway improvements and Metrorail extension in the Corridor The Committee consists of two representatives from the four official bodies including the Airports Authority, Fairfax County, Loudoun County, and the Commonwealth of Virginia. The Airport Authority’s Board Chairman and President and CEO serve on the Committee. Fairfax County is represented by the Chairman of the Board of Supervisors and County Executive. Loudoun County is represented by its Chairman of the Board of Supervisors and County Administrator. The Commonwealth is represented by the Northern Virginia member of the Commonwealth Transportation Board and the Director of the Virginia Department of Rail and Public Transportation. In October 2009, there will be a joint meeting of the Airports Authority Finance Committee and Dulles Corridor Committee to consider a report on the public hearings and approve final recommendations for toll increases. The Airports Authority Board will make a decision about the toll increases in November 2009. Loudoun County. The Loudoun County FY 2010 Adopted Fiscal Plan includes funding for the 4.8% share of the cost of the total Dulles Corridor Metrorail project. Contributions towards Phase II construction are anticipated to begin in FY 2010 with the estimated share to be funded through the sale of pledge of bonds, with business/professional/occupational licenses (BPOL) tax revenues as the underlying credit or other financing sources to County deems appropriate. Debt service is forecast to begin in FY 11 in is estimated at $53.2 million over the six-year planning period. A committee consisting of three major property owners (Dulles Gateway Associates LLC, West Dulles Properties, and the Airports Authority) and Loudoun County staff are currently reviewing issues associated with the location of the Route 606 Metrorail station. The county is analyzing whether moving the current location of the station might enhance ridership and economic value for the county. The Project Team would like a final recommendation on the station location from the County by the end of 2009. Fairfax County. Tysons Corner. As directed by the Fairfax County Board of Supervisors, County staff are working with the Planning Commission and its Committee on Tysons Corner (chaired by Walter Alcorn) and the Tysons Task Force Committee working on plan changes (chaired by Senator George Barker) to develop recommendations for changes to the Comprehensive Plan to implement the Task Force vision for Tysons Corner. The Commission is taking an August break and will resume meeting in September. The February staff strawman can be found on the County website. Staff is working on an updated strawman. Numerous studies are underway to support plan recommendations. Dulles Corridor Special Study. On May 18, 2009, the County Board authorized a special study of the Dulles corridor that would be conducted in conjunction with the review of the Reston Master Plan. The special study will include all properties in the Dulles Corridor between Centreville Road and Hunter Mill Road. The process has started with a Land Use College to inform residents about planning requirements and the planning process and identification of existing conditions. During the fall 2009, activities for the Reston Station areas (Wiehle Avenue, Reston Parkway, and Herndon Monroe) and the Reston Town Center will include the development of a public outreach and participation process for review of the land use recommendations. The next step will be to develop plan recommendations for plan language and to conduct a 527 transportation impact analysis as required by the state (May – August 2010). The Planning Commission will consider recommendations in the fall 2010 with consideration by the Board anticipated in November or December 2010. Consultant assistance will be provided to help with forecasting jobs and housing, public outreach, transportation analysis, and urban design assistance. The Route 28/CIT station area is being addressed by an Interjurisdictional Group consisting of officials of Loudoun and Fairfax counties and the Town of Herndon. There are several proposals being reviewed as part of the North County Area Plan Review (APR) by the Dranesville APR Task Force. There is also a pending Plan Amendment authorized for the south side of the Route 28/CIT station authorized by the County Board. Loudoun County also has a site plan in the vicinity that is part of the review process. Staff has recommended a comprehensive evaluation of the Plan recommendations in the Route 28 area. The Interjurisdictional Committee on Route 28 Planning was created to ensure coordination of Route 28 planning issues. The group met on July 28 in the Herndon Town Council chambers. Scott York, Chairman of the Loudoun Board of Supervisors, chaired the meeting. Loudoun Vice Chairman Kelly Burke and Supervisor Stevens Miller also attended. Fairfax County Chairman Sharon Bulova was there as were Supervisors John Foust and Cathy Hudgins. Herndon Mayor Steve DeBenedittis attended as did Council Members Connie Hutchinson and Richard Downer. Staff of the three jurisdictions briefed them on transportation issues and the discussion centered on potential transportation improvements to be studied. The group will continue to meet. Town of Herndon. Herndon is undertaking an update of its Downtown plan and is developing a Request for Proposals for the “Herndon Metrorail Station Area Plan and North Side Access Facility Concept for 2016 Herndon Monroe Metrorail Station". A working draft was distributed on July 14, 2009. Currently the Dulles rail project will only provide a pedestrian overpass over the Dulles Toll Road that will land on property north of the Dulles Toll Road in Herndon and will provide a sidewalk to the Herndon Parkway. Council members want to explore transportation access, as well as development options. Fairfax County staff briefed the Town Council on land use and transportation planning efforts the county had undertaken and on the Phase I tax district. Chairman Bulova and Supervisors Foust and Hudgins attended this meeting. Phase II Tax District. The Western Alliance for Rail to Dulles has prepared a petition to form a special tax district to fund the Fairfax County share of Phase II of the Dulles Metrorail Project. The website, www.railtodulles.com, went live on August 3. Fairfax County’s share of Phase II is expected to be $420 million of which $330 million is to come from the proposed Phase II district. Commercial, industrial, multi-family, and hotel properties under state law are subject to the special tax. The tax rate will be set annually at the minimum level to meet the District's financial commitments to service the debt on bonds issued for Phase II construction costs. The initial tax rate would be five cents per $100 assessed valuation in 2010; 10 cents per $100 valuation in 2011; 15 cents per $100 valuation in 2012 and 20 cents per $100 valuation in 2013; and continue until all stations are operational. The ultimate tax rate is projected to be 25 cents per $100 valuation based on an assumed 3 percent average annual growth in the District’s tax base. The draft petition includes an attachment, Memorandum of Material and Essential Understandings (MEU Memo) which calls for keeping the tolls at the lowest possible level and includes a reference to protections against downzoning and recognition that increased density should be permitted within the vicinity of the rail stations in accord with the count’s Comprehensive Plan as amended. A special study to amend the plan has been started as indicated above and recommendations are expected to be presented to the County Board at the end of 2010. # # # # # # # |