Proposed Potomac Yard Station Secures $50M Loan

ALEXANDRIA, VA—The Commonwealth Transportation Board has approved a $50-million loan from the Virginia Transportation Infrastructure Bank for the City of Alexandria to construct a Metrorail station in the Potomac Yard area.

The loan award, announced by Virginia Gov. Terry McAuliffe, provides up-front construction funds at substantially lower interest rates than municipal bonds, and will be repaid by the new tax revenue occurring from development in Potomac Yard, and the revenue from two special tax districts surrounding the station, according to the governor's office. Remaining costs will be paid by contributions by private developers, funding from the Northern Virginia Transportation Authority, and some federal funding. Feasible station location options will cost between $209 million and $268 million.

The Potomac Yard Metrorail Station will be built on Metrorail's Yellow and Blue Lines, between the existing Braddock Road and Ronald Reagan Washington National Airport stations, and is expected to generate billions of dollars in new private sector investment. The resulting development around the station will support up to 26,000 new jobs within one-quarter mile, and 13,000 new residents within one-half mile.

“This loan is an important step towards a major economic development project for Virginia, and a sign of continued progress as we seek to build a new Virginia economy,” states Governor McAuliffe. “I applaud the Commonwealth Transportation Board for approving this investment to reduce strain on area roadways, attract new residents, and create and keep good jobs right here in the Commonwealth.”

“The investment Virginia is making today will pay dividends over generations by spurring smart growth and bolstering transit alternatives for the entire region,” states Alexandria Mayor William Euille. “We thank Governor McAuliffe and the Commonwealth Transportation Board for supporting this important project.”

The City of Alexandria is currently completing the environmental impact review stage of the process required to secure federal funds. Partner agencies include the Washington Metropolitan Area Transit Authority, the Federal Transit Administration, and the National Park Service. It is expected that public review of the Draft Environmental Impact Statement will start in March 2015, after which the Alexandria City Council will choose the preferred station location in April. The project timeline anticipates that the new station will open in late 2018.