Zounds! I never thought it possible: A sliver of economic logic has entered into the discussions over how to finance the Rail-to-Dulles project — in particular, how to pay for the heavy-rail tunnel that everyone in Tysons Corner prefers to running above-ground. The Washington Post reports that the Governor’s office will receive a two-month study tomorrow by a panel of independent engineers and that a go/no go decision on the tunnel is imminent. Although digging the rail line for four miles underground would add $200 million to the $4 billion price tag of the entire Rail-to-Dulles project, it would contribute to the vision of Tysons as a walkable, urban-style business center.
Richmond is leaning toward the tunnel option, sources tell writer Alec MacGillis, which raises another question: how to pay for it.
The funding option getting the most attention, at least for now, is to increase the tax being paid by landowners along the Tysons portion of the line, who are contributing $400 million to the project through a special tax district. The landowners — the owners of shopping malls, office buildings and car dealerships, among others — agreed to the contribution partly because Fairfax zoning rules will allow many of them to build more densely once rail is in place.
The landowners are likely to gain even more from a tunnel, because an elevated track would be less aesthetically pleasing and would limit development along the route. That is why they are a natural candidate to contribute even more toward a below-ground approach, said Fairfax Board of Supervisors Chairman Gerald E. Connolly (D).
Some of the financing is anticipated to come from a special tax district already. But here’s the kicker, says MacGillis: “There is also talk of creating a second district that would apply only to those with land closest to the four planned stations at Tysons. The argument for the second approach is that those nearest the stations would be granted the biggest increases in allowed building density.” (My emphasis.)
Please forgive me for engaging in a little self-congratulation. That is almost exactly the logic I laid out in a column “Rail Rip-off” back in May 15! It is very, very encouraging to see public officials embrace the core principle that those who benefit from a transportation project are those who should pay for it, even if in a limited way.
No surprisingly, Macerich East Development president John Anderson told MacGillis that he is open to paying more for a tunnel. “We’d need to see the details … but . . . we would certainly give a tax district change our best consideration.” Of course, Macerich would go with the plan. The company is getting higher density and a Metro station out of the deal! Macerich would be willing to pay up a lot more than its share of just $200 million, I would suggest. Even with this deal, the state could be leaving a lot of money on the table. But it’s a step in the right direction.