Welcome to the Potomac Yard Development Portal
City of Alexandria Awarded $50 Million Loan Towards Construction of a
New Potomac Yard Metrorail Station
The Commonwealth Transportation Board has awarded the City a $50
million loan from the Virginia Transportation Infrastructure Bank (VTIB) to
construct a Metrorail station in Potomac Yards.
The new station will be funded through a variety of sources -- including
new tax revenue from development around the station and two new special tax
districts. This means that most
residents and businesses in Alexandria will not have to contribute to the
station’s construction through local taxes.
Because the new tax revenue will be received over time and the station
must be paid for when it is built, the City plans to issue General Obligation
Bonds to finance construction. Today’s
VTIB loan, which is close to the maximum available from the state fund, will lower
the amount the City must borrow from other sources. The 30-year loan locks in an interest rate of
2.17%, which is substantially lower than municipal bonds. The loan also requires no interest or
principal payments for four and one-half years after contract completion. This
grace period is important to allow early development around the Metro station
to begin to create new revenue prior to the City’s first repayments. The City’s loan application included an offer
to accelerate repayment if revenue exceeds expectations. Members of the Board took particular note of
this innovative provision, which would allow the money lent to the City to be
returned to the VTIB’s revolving fund 11 to 12 years earlier than originally
Physical and Digital Models
- A physical model has been prepared showing the relationship of each alternative (plus Design Option B-CSX) to its surroundings. The model is on view in the Planning & Zoning office on the second floor of City Hall, 301 King Street.
- A digital model has been prepared showing how each of the Build Alternatives as well as Design Option B-CSX might look to drivers traveling on the George Washington Memorial Parkway (GWMP).