The McDonnell administration is soliciting “innovative ideas” from the private sector to develop air rights at the Rosslyn Metro station in Arlington and the East Falls Church Metro station on Interstate 66. In administrative parlance, this solicitation is a “request for information,” which will gather feedback on the feasibility and types of development that could occur in the two locations. After an evaluation phase, it could be followed by a formal “request for proposal” this fall.
“As governor, one of my primary goals has been to ensure that our transportation agencies utilize every innovative method to better leverage and maximize our existing resources,” said Governor Bob McDonnell in a press release today. “By leasing airspace above certain transportation facilities owned by the Commonwealth, we can better utilize our existing infrastructure to generate additional revenues to fund future transportation improvements, while at the same time attracting new jobs and economic development. ”
Added Secretary of Transportation Sean T. Connaughton: “The potential development of these air rights presents a unique opportunity to attract additional private sector investment to the Commonwealth and better utilize our existing assets to fund future transportation projects.”
The administration pointed to the granting of air rights in Massachusetts, which generated $40 million in FY 2011 through leases, with long-term income projected at $868 million.
McDonnell noted another advantage of air rights that can’t be readily measured by dollars and cents. “By co-locating these potential developments around existing Metro stations and other major transportation facilities, we can reduce congestion and create more livable communities.”
Bacon’s bottom line: McDonnell’s statement represents a dramatic leap for the governor, whose entire administration has been defined by the search for more money to pay for transportation projects with little consideration to the interaction between transportation and land use. Indeed, it seems to represent a conceptual breakthrough — at least as manifested by his public statements. Let’s hope he continues to follow that line of thinking.
The Office of Transportation Public Private Partnerships (OTP3) has been giving serious consideration to selling or leasing air rights since last year. (See “Conjuring Wealth out of Thin Air.”) Two days ago the administration included the air rights project in a list of 20 potential projects that may be suitable to pursue through public-private partnerships. The projects ranged from converting HOV lanes to HOT lanes (tolled express lanes) on Interstate 64 in Hampton Roads to enhancing rest areas with electric charging stations.
The most innovative thinking in Virginia state government today is coming out of the OTP3. The problem is that there is an inherent conflict between the need for confidentiality in OTP3’s negotiations with private-sector players and the need to disclose terms and conditions in a timely enough manner to permit meaningful public input. The McDonnell administration and the Virginia Department of Transportation have made efforts to keep the process transparent but not enough to satisfy citizen and public-interest groups. If this tension can be resolved, we could see some great projects coming out of the OTP3 pipeline.
— JAB
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