Reston Funding Plan
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Transcript of Reston Funding Plan
County of Fairfax, Virginia
Reston Funding PlanReston Network Analysis & Funding Plan Advisory Group
June 20, 2016
Tom Biesiadny, Ray Johnson, Janet Nguyen, Ken KanownikFairfax County Department of Transportation
Department of Transportation 1
Funding Scenarios
County of Fairfax, Virginia
Outline• Updates
– Meeting with Advisory Group Developers, June 6– Project Costs
• Follow-up from April 11, 2016 meeting– Tax Increment Financing (TIF)– Herndon Projects Associated with Silver Line Phase II– Herndon Metrorail Station Access Management Study
(HMSAMS)– Reston Metrorail Access Group (RMAG)– Land Value Analysis
• Discussion of funding scenarios
Department of Transportation 2
County of Fairfax, Virginia
Estimate - Updates
Department of Transportation 3
Reston Funding Plan Projects Updated Est. Previous Est. Change
Roadway Projects DTR Crossing at Soapstone Overpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000 $160,000,000 $10,000,000 DTR Crossing at Rock Hill Road Overpass – Sunrise Valley Dr to Loudoun Co $80,000,000 $80,000,000 $0 DTR Town Center Parkway Underpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000 $170,000,000 $0 South Lakes Drive Overpass – Sunrise Valley Drive to Sunset Hills Rd $90,000,000 $90,000,000 $0 Route 286 - DTR to West Ox Widening $80,000,000 $80,000,000 $0 Route 286 at Sunrise Valley Drive (Interchange) $400,000,000 $400,000,000 $0 Reston Parkway Widening – South Lakes Drive to DTR $25,000,000 $25,000,000 $0 Fox Mill Road Widening – Reston Parkway to Monroe Street $60,000,000 $60,000,000 $0 West Ox Road Widening – Lawyers Road to Centreville Road $100,000,000 $100,000,000 $0 Monroe Street Widening – West Ox Road to Town of Herndon $80,000,000 $80,000,000 $0 Pinecrest Road Extension – South Lakes Dr to Sunrise Valley Dr $25,000,000 $25,000,000 $0 McNair Farms Drive Extension/Widening $10,000,000 $10,000,000 $0
Total Roadway Projects $1,290,000,000 $1,280,000,000 $10,000,000 Intersection Projects Centreville Road at Sunrise Valley Drive $10,000,000 $10,000,000 $0 Centreville Road/DTR EB on/off Ramps $1,500,000 $1,500,000 $0 Reston Parkway/Sunrise Valley Drive $15,000,000 $15,000,000 $0 Reston Parkway/DTR WB on/off Ramps $5,000,000 $5,000,000 $0 Reston Parkway/Bluemont Way $4,000,000 $4,000,000 $0 Reston Parkway/New Dominion Parkway $5,000,000 $5,000,000 $0 Wiehle Avenue/DTR EB on/off Ramps $600,000 $600,000 $0 Hunter Mill Road/Sunset Hills Road $3,500,000 $3,500,000 $0
Total Intersection Projects $44,600,000 $44,600,000 $0 Grid Network* $1,021,000,000 $1,244,000,000 ($223,000,000) Total $2,356,000,000 $2,569,000,000 ($213,000,000)
*Current grid network estimate is based on preliminary results from the Network Analysis Study and may be subject to adjustment.
County of Fairfax, Virginia
Reston Funding Plan Allocation FrameworkThis cost split was chosen by staff as basis for funding scenarios. Staff is still seeking comments on this proposal.
In this example, public and private revenues* will share costs, approximately equally.
Reston Roadway projects would be paid for with public revenues.
Most Intersections and the Grid would be paid for with private revenues.
Department of Transportation 4
Please note that the information provided in this presentation is not final and is for discussion purposes only.
Option 5: Project Category
Project Estimate Allocation ($) Reston Roadways $1,290,000,000 Public Share 100% $1,290,000,000Private Share 0% $0 Reston Intersections $45,000,000 Public Share 0% $0Private Share 100% $45,000,000 Grid $1,021,000,000 Public Share 0% $0Private Share 100% $1,021,000,000 Total $2,356,000,000 Public Share 55% $1,290,000,000Private Share 45% $1,066,000,000
Previously $1.289
Previously $1.244B
Previously $1.280B
Public/Private share in Tysons is 56/44
*Public revenues are those revenues allocated by the County for use on Countywide projects.*Private revenues are generated in Reston and used exclusively for Reston projects. Includes: road fund, TIF, service and tax districts, etc.
County of Fairfax, Virginia
Tentative Allocation of Grid of StreetsIn-Kind vs. Road Fund (Cash Proffers)
Department of Transportation 5
County of Fairfax, Virginia
Tax Increment FinancingTax Increment Financing (TIF) – A funding mechanism that captures net new tax revenues within a defined geographic area (TIF district) to fund public projects in the TIF district to promote economic development or redevelopment.
• Define district, usually commercial, to declare a tax increment district, which will be developed for higher and better use.
• Define a base year assessment. Tax revenue at the base year is “frozen” continuing to accrue to the normal tax funds at those assessment levels.
• Additional tax revenue (tax increment) based upon increases in assessed values over and above the base year assessment rate are allocated to a tax increment fund, and would be used to fund identified improvements.
• Financing option – Property taxes are most commonly used to fund TIFs. TIF revenues are usually pledged to support bond debt service (requires Community Development Authority (CDA)). May be used as pay as you go, rather than to support debt.
• TIF does not directly change the Real Estate Tax rate.
Department of Transportation 6
County of Fairfax, Virginia
Tax Increment Financing (Mosaic District)Fairfax County, VA – Merrifield Town Center (Mosaic District) – District created to provide vehicle for financing public improvements to develop district in accordance with existing zoning.
In the district:• $30 million portion of public facilities would be funded through a 30 year bond
issued by the District whose debt service would be paid by a self-assessment.
• $42 million dollar portion of public facilities constructed on-site (road improvements, parks, portion of parking garage) through a 22 year bond issued through the District whose debt service is paid through incremental real estate tax revenues (TIF). Liability for the debt service is secured by the District not the County. As a result the bonds do not achieve a AA rating.
Department of Transportation 7
County of Fairfax, Virginia
Tax Increment Financing (Mosaic District)
Mosaic District:
• 1,000 dwelling units, multi‐plex theatre, 125,000 square feet of office space, 500,000 square feet of other non‐residential uses, 150 room hotel.
• Public Improvements: 2 parks, realignment and widening of Eskridge Road, widening of Lee Highway, improvements to the Lee Highway/Gallows Road intersection and, construction of a grid of streets.
Department of Transportation 8
County of Fairfax, Virginia
Tax Increment FinancingMosaic district was uniquely fit for Tax Increment Financing: • Fairfax County’s Office of Community Revitalization (OCR) and a consultant
team worked with one development to establish the Mosaic District CDA via petition to the Board of Supervisors.
• The petition was evaluated against the County’s “16 Principles for Public Investment in Support of Commercial Redevelopment” which was adopted by the board in 2008 to advance revitalization and reinvestment opportunities within the County.
• Evaluation determined that the project, to turn the area into the town center of Merrifield, would not occur but for the use of TIF to support funding a portion of public facilities through bond financing.
Department of Transportation 9
County of Fairfax, Virginia
Basic TIF Model
Department of Transportation 10
Base Year Assessment (Existing Tax Base)Revenues continue to accrue to normal tax funds.
Total New Tax
BaseTax IncrementTo support public infrastructure or bond debt service
Life of Tax Increment Financing District
Ann
ual T
axes
Gen
erat
ed
Frozen revenue for basic services
Basic TIF Model: Future Tax Revenue – Baseline Tax Revenue = TIF Revenue
Using the basic TIF model, a TIF district over the Reston TSAs may generate up to $900k per 1% of real-estate assessed value growth on its first year.
Assessed Value Growth Revenue
1% $ 900,000 2% $ 1,800,000 5% $ 4,500,000
County of Fairfax, Virginia
Baseline Growth TIF ModelBaseline Growth TIF Model: Future Tax Revenue – (Baseline Tax Revenue x Growth Factor) = TIF Revenue
Department of Transportation 11
County of Fairfax, Virginia
TIF Diversion ModelTIF Diversion Model:(Future Tax Revenue –Baseline Tax Revenue) x Diversion Factor = TIF Revenue (This method can be a set dollar amount or a percentage of revenue)
Department of Transportation 12
County of Fairfax, Virginia
Herndon Metro PlanningMetro related projects to be funding by the Town of Herndon.
Total of all projects is $13,947,400.
From Herndon Metro Station Area Plan: http://www.herndon-va.gov/departments/community-development/planning-policy/metrorail-planning.
Department of Transportation 13
County of Fairfax, Virginia
Herndon Metrorail Stations Access Management (HMSAMS) Study Projects
Project Location Project ScopeSunrise Valley Drive/Monroe Street Improve signalized crosswalks.
Van Buren Street/Worldgate Drive Add signalized crosswalk.
Herndon Parkway/Herndon Metro Entrance North
Add mid-block signalized crosswalk.
Dulles Toll Road/Monroe Street Pedestrian/Bicycle Bridge. Fund Feasibility/Cost Estimate Study.
Innovation Center to Arrowbrook Complete walkway with lighting.
Dulles Toll Road/Centreville Road Add lighting under Dulles Toll Rd. Add signalized crosswalk at north ramps.
Herndon Parkway from W&OD Trail to Fairbrook Drive
Improve access ramp at W&OD. Widen sidewalk to shared use path. Funding for Feasibility/Cost Estimate Study.
Chandon Park to Worldgate Drive Dulles Glen Apartments to Worldgate Dr. shared use path and lighting.
Coppermine Crossing to Merrybrook Improve FCPA fair-weather crossing to pedestrian bridge.
Innovation Avenue/Rock Hill Road Add shared use path and lighting.
Van Buren Street from W&OD to Monroe St Bridge
Reconstruct w/ on-road bike lanes, sidewalk(s), drainage, urban. Funding for feasibility/cost estimate study.
Monroe Street from Dulles Toll Road to Monroe Manor Drive Missing Links
Shared use path Dulles Toll Rd. to East Lake Dr., Fox Mill Rd. to Sunrise Valley Dr., Monroe Manor Dr. to Dwight St.
Sunrise Valley Drive from Fairfax County Parkway to Innovation Station
Reconstruct with on-road bike lanes. Reduce median width. Restripe with narrow lane widths.
Innovation Station North Side Neighborhood Access
Add Shared use path and lighting. Fund Feasibility/Cost Estimate Study.
Bicycle and pedestrian facility projects to improve access to the future Herndon and Innovation Center Metrorail Station: http://www.fairfaxcounty.gov/fcdot/hmsams/
These projects are funded separate from the Reston Funding Plan, mostly with public sources.
Department of Transportation 14
County of Fairfax, Virginia
Reston Metrorail Access Group (RMAG) and Wiehle Ave/Reston Pkwy Station Access Management Study Projects
Recommended station access management and traffic improvements at the Wiehle-Reston East Metrorail station.
More RMAG improvements can also be found here: http://www.fairfaxcounty.gov/fcdot/silverline/restonimp.htm
These projects are funded separate from the Reston Funding Plan, mostly with public sources.Department of Transportation
15
Project Location Project ScopeBluemont Way & Discovery Street/Explorer Street/Library Street
Improve crosswalks, bike facilities.
Sunset Hills Road/Old Reston Avenue Add signalized crosswalks.
Explorer Street/New Dominion Parkway Improve crosswalk.
Sunrise Valley Drive from Reston Parkway to Soapstone Drive Missing Links
Complete shared use path north side. Add signalized crosswalk at Colts Neck Rd.
Sunrise Valley Drive/Edmund Halley Drive Add signalized crosswalks.
Sunset Hills Road/Discovery Street Pedestrian Bridge Walkway Extended
Add signalized crosswalk.
Reston Parkway/Dulles Toll Road Westbound On-Ramp
Add signalized crosswalk. Remove southbound free-flow right turn.
Reston Parkway/Dulles Toll Road Eastbound Off-Ramp and On-Ramp
Add signalized crosswalks. Remove northbound free-flow right turn.
Dulles Toll Road Eastbound Off-Ramp/Fairfax County Parkway Trail
Realign trail to barrier-separated on shoulder. Realign trail crossing. Add signalized crosswalk.
Sunset Hills Road Eastbound Off-Ramp/Fairfax County Pkwy Trail
Realign trail crossing. Add signalized crosswalk.
Bluemont Way from Discovery Street Pedestrian Bridge Walkway to Reston Parkway
Add sidewalk south side.
Sunset Hills Road from Town Center Parkway to Reston Town Center Station Entrance
Complete shared use path north side.
New Dominion Parkway from Reston Parkway to Fairfax County Parkway
Reconstruct with on-road bike lanes. Reduce median width. Restripe with narrow lane widths.
Town Center Parkway/W&OD Trail Add access ramp at W&OD trail west side.
Town Center Parkway from Sunset Hills Road to Baron Cameron Avenue
Reconstruct with on-road bike lanes. Reduce median width. Restripe with narrow lane widths.
Sunrise Valley Drive from Reston Parkway to Fairfax County Parkway
Reconstruct with on-road bike lanes. Reduce median width. Restripe with narrow lane widths.
Sunrise Valley Drive/Reston Association Entrance Add signalized crosswalks.
Reston Bikeshare Phase 2 Bikeshare Expansion for Phase 2 Silver Line Metrorail.
County of Fairfax, Virginia
Land Value Analysis
Department of Transportation 16
Comparison – Reston TSAs to Tysons Assessed Values Reston 2015 Tysons 2015 Dollar PercentResidential Value/DU $ 260,129 $ 220,362 $ 39,766 15%Commercial Value/Sqft $ 239 $ 284 $ -45 -19%Residential Value/Sqft $ 221 $ 188 $ 32 15%Average Value/Sqft* $ 235 $ 261 $ -26 -11%
* Assessed value for a given sq. ft. regardless of zoning
County of Fairfax, Virginia
Scenarios – April AG Meeting
Department of Transportation 17
Contribution Rates to meet $480M
Residential/DU Commercial/SF Funding Shortfall
Scenario 1: Tysons residential rates $2,571 $27.80 $0Scenario 2: Tysons commercial rates $8,036 $12.63 $0Scenario 3: Rates proportional to Reston development $9,680 $8.07 $0Scenario 4: Tysons rates and service district over Reston TSA $2,571 $12.63 $208.43MScenario 5: Tysons rates and tax district over Reston TSAs $2,571 $12.63 $208.43MScenario 6: Tysons Rates and Service District over Reston &TSAs $2,571 $12.63 $206.01MScenario 7: Tysons Rates and Service District over Sp. TD5 $2,571 $12.63 $190.9M
Please note that the information provided in this presentation is not final and is for discussion purposes only.
County of Fairfax, Virginia
Private Contributions
Department of Transportation 18
Estimate of Private Contributions Needed – Updated from Previous AG Meeting
April JuneReston Grid Estimate Percent Estimate PercentGrid estimate $1,244,000,000 100% $1,021,000,000 100%Less: Expected in-kind contributions $809,000,000 65% $711,000,000 70%Funding gap for Grid $435,000,000 35% $310,000,000 30%
Private Cash Contributions Needed (Rounded) Estimate EstimateFunding gap for Grid $435,000,000 $310,000,000 Intersections $45,000,000 $45,000,000 Total other private contributions needed $480,000,000 $355,000,000
Add: In-kind contributions $809,000,000 $711,000,000 Total private share of entire plan $1,289,000,000 $1,066,000,000
Please note that the information provided in this presentation is not final and is for discussion purposes only.
County of Fairfax, Virginia
New Funding ScenariosNew Scenario 6 and 7 were developed in response to analysis of land values in Reston and Tysons.
Department of Transportation 19
• New Scenario 6: Makes a general adjustment of 11 percent to the combined Tysons residential and commercial rates.
• New Scenario 7: Makes a specific adjustment of 15 percent to the combined Tysons residential rate and -19 percent to the combined Tysons commercial rate.
Comparison – Reston TSAs to Tysons Assessed Values Reston 2015 Tysons 2015 Dollar PercentResidential Value/DU $ 260,129 $ 220,362 $ 39,766 15%Commercial Value/Sqft $ 239 $ 284 $ -45 -19%Residential Value/Sqft $ 221 $ 188 $ 32 15%Average Sqft* $ 235 $ 261 $ -26 -11%*Assessed value for a given sq. ft. regardless of zoning
County of Fairfax, Virginia
New Funding Scenarios
Department of Transportation 20
New Scenario 6: Makes a general adjustment of 11 percent to the combined Tysons residential and commercial rates and leaves a funding shortfall of $111.20 million.
New Scenario 7: Makes a specific adjustment of 15 percent to the combined Tysons residential rate and -19 percent to the combined Tysons commercial rate and leaves a funding shortfall of $85.22 million.
County of Fairfax, Virginia
Scenarios - Update
Department of Transportation 21
Contribution Rates to meet $355M
Residential/DU Commercial/SF Funding Shortfall
Scenario 1: Tysons residential rates $2,571 $18.70 $0Scenario 2: Tysons commercial rates $4,759 $12.63 $0Scenario 3: Rates proportional to Reston development $7,159 $5.97 $0Scenario 4: Tysons rates and service district over Reston TSA $2,571 $12.63 $83.43MScenario 5: Tysons rates and tax district over Reston TSAs $2,571 $12.63 $83.43MNew Scenario 6: General adjustment from Tysons rates $2,288 $11.24 $111.20New Scenario 7: Specific adjustments from Tysons rates $2,957 $10.23 $85.22
Please note that the information provided in this presentation is not final and is for discussion purposes only.
County of Fairfax, Virginia
Funding GapThe various funding gaps can potentially be funded through the following mechanisms:• Tax District: $0.03/$100 of assessed values for commercial and industrial
properties in Reston TSAs.*• Service District: $0.015/$100 of assessed values for all properties in
Reston TSAs.* Service District Rate in Tysons FY17 is $0.05/$100 assessed value.
Department of Transportation 22
Please note that the information provided in this presentation is not final and is for discussion purposes only.
Contribution Rates to meet $355MResidential/DU Commercial/SF Funding Shortfall
Scenario 4: Tysons rates and service district over Reston TSA $2,571 $12.63 $83.43MScenario 5: Tysons rates and tax district over Reston TSAs $2,571 $12.63 $83.43MNew Scenario 6: General adjustment from Tysons rates $2,288 $11.24 $111.20New Scenario 7: Specific adjustments from Tysons rates $2,957 $10.23 $85.22*These are average annual rates that do not reflect actual cash flow needs. New Scenario 6 would need an additional $0.005 added to each rate to meet the shortfall.
County of Fairfax, Virginia
Average Annual Cost to Property Owner
Department of Transportation 23
AssessedValue
Service District Rate
$0.015 $0.020 $0.025 $0.030 $0.035
$300,000 $45.00 $60.00 $75.00 $90.00 $105.00
$400,000 $60.00 $80.00 $100.00 $120.00 $140.00
$500,000 $75.00 $100.00 $125.00 $150.00 $175.00
$600,000 $90.00 $120.00 $150.00 $180.00 $210.00
$700,000 $105.00 $140.00 $175.00 $210.00 $245.00
$800,000 $120.00 $160.00 $200.00 $240.00 $280.00
$900,000 $135.00 $180.00 $225.00 $270.00 $315.00
County of Fairfax, Virginia
Reston Funding Plan Next Steps• Seek feedback for cost allocation plan and funding scenarios.• Public meeting 6/27.• Advisory group feedback. • Board Transportation Committee (BTC) meeting, July or Fall.• Development of final recommendations.• Board of Supervisors approval by end of 2016.
Department of Transportation 24
County of Fairfax, Virginia
Advisory Group Feedback on…• Do any of these scenarios work?• What features do you like? What features don’t you like?• Are you comfortable with a road fund at an appropriate rate?• What other options should staff be considering?
Department of Transportation 25
County of Fairfax, Virginia
Comments/Questions/Discussion
Department of Transportation 26