Two Tax Districts Planned for Two Phases
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Two Tax Districts Planned for Two Phases

Saving a plan to pay for local portion of Dulles rail costs, after western landowners balk at paying for rail to Tysons.

Rail advocates are putting the finishing touches on a new plan to finance the local share of the Dulles rail project after a similar effort fell apart last fall.

Rail advocates face a tight deadline imposed by the federal government. All local and state funding sources must be approved by spring if the project hopes to receive federal construction funds. That's when Congress is set to allocate transportation dollars for the next six years.

Unlike the earlier proposal which would have raised real estate taxes for all commercial properties between Falls Church and the Loudoun County line, the new proposal would only affect properties east of Wiehle Avenue in Reston.

Eric Peterson, executive director of the Landowners Economic Alliance for the Dulles Extension of Rail (LEADER), said the group hoped to present a new petition asking for the tax increase signed by eastern corridor landowners to the Board of Supervisors at its Jan. 26 meeting.

"We are doing everything we can to make that happen," he said. Fairfax County Board Chairman Gerry Connolly (D), a vocal advocate of rail, said he welcomed the new petition.

The Metrorail extension is currently planned to reach Wiehle Avenue in Reston by 2009 and extend to Dulles Airport and Loudoun County by 2015.

LAST OCTOBER, LEADER presented a petition signed by commercial landowners representing 51 percent of the value of the land in the entire corridor agreeing to pay higher real estate taxes in order to help finance the construction of the rail line. But most of the signers of the first petition represented Tysons Corner and the eastern part of the corridor, and the margin in favor was razor thin. Western landowners protested that they didn't want to pay higher taxes for a service that would benefit their eastern competitors at least six years before it benefited them. The Herndon Town Council, which had to approve the tax increase, agreed with the western landowners and effectively killed the proposal.

The new proposal would create two special tax districts, eliminating the prospect of pitting eastern landowners against their western counterparts.

Peterson said LEADER was focusing its efforts on securing higher taxes from the Tysons Corner and eastern landowners. It is unclear at this point what the new tax rate will be or how long it will be in effect.

"We're getting a very positive response," he said.

Rail advocates hope to build the first phase out to Wiehle Avenue in Reston during the coming six-year cycle, and the second phase in the next cycle.

As a result, landowners in the western part of the corridor have not worked as hard to create a western tax district because their deadline isn't for another six years.

"There are discussions going on with various landowners and with the county. It's not that far along," said Mike Cooper, an executive with Prentiss Properties which owns property in the western part of the corridor.

"We're happy to assist in whatever way they'd like us to help," said Peterson, adding that LEADER was planning to leave the details of the second tax district up to the western landowners.

"I THINK it's a major step forward," said Del. Ken Plum (D-36), a Reston area lawmaker who supports rail. "What it does is it addresses some of the concerns that existed with the single tax district."

"While this one tax district had a lot of convenience in terms of putting it in place it probably was disadvantageous to the people in the west," he said.

Creating two tax districts has helped mend fences between western landowners, eastern landowners and local officials. Several meetings have been held over the past few weeks to overcome the disagreements which split the Dulles corridor apart last fall.

"All that is in the past," said Plum. "It's whatever it takes to accomplish the task."