1. Value Capture in
Practice
The Dulles Metrorail
Extension
NJ Future Redevelopment Forum
March 1, 2013

2. What is “Value Capture”
Ballston 1980 Ballston 2001
Station
Entrance
Station
Entrance
Living

3. Metro
Increases Property Values
• $235 billion in real
estate value within
half-mile of rail
stations
• Proximity to rail
increases property
values by 7-9%

4. WMATA 2040 Benefits
• Region tax base would grow by $37 billion
• $477 million per year in new tax revenue
• $488 million per year in travel time savings
• $169 million fuel purchase savings annually from 11 million
fewer gallons of gas
• $112 million per year in reduced auto accidents
• Household savings of $1.8 billion for 60,000 cars
• Reduced demand for 45,000 fewer parking spaces in the core
saves $870 million
• MAIN POINT: LOTS OF WAYS TO CREATE VALUE

5. Value: Alternative Investments
Avoided
+ 1 million auto trips/day
+ 1,000 lane-miles needed
to keep existing levels of
congestion
=
• Equivalent of nearly 2 new
Capital Beltways
• 4-6 new lanes on
Potomac crossings
• ~ $6.7 billion

6. Value: Cost Avoided and Land
Available for Productive Use
200,000 more parking spaces in core
166 =
• Almost 170 blocks of 5-
story parking garages
• From 23rd to 12th
• Constitution Avenue to
R Street
Price: $4.1 billion

7. Value: Economic Competitiveness
“Companies are recruiting
and targeting the next
generation of talented
workers, the Generation
Y/millennials… who
increasingly prefer urban
lifestyles with mass
transit.”
– Urban Land Institute
Source: Jeffrey Spivak, “Urban Office Momentum”, Urban
Land, September 14, 2011

8. Dulles Extension
• 23 Miles
• 2 Phases
• Phase 1 –
Tyson‟s Corner
5 Stations
• Phase 2 –
Dulles Airport
6 Stations
• Metrorail system
expansion

9. Dulles Extension
• Original Phase I project funding concept for project estimated
to cost ~ $1.6 Billion:
• 50% Federal New Starts Funds
• 25% Funds from State of Virginia
• 25% Funds from Fairfax County – Special Improvement
District

10. Phase I Special Improvement
District

11. Tyson’s Today
• 46 million sf
office and
retail
• 20K pop
• 100K daytime

12. Tyson’s Tomorrow
Developer concepts for
Spring Hill Road and
Westwood Center Drive
In 2050, 100K
residents in Tyson‟s
and 200K jobs

13. Phase I Special Improvement
District
• Tysons Corner /Wiehle Avenue
• More than 6,600 businesses
• $200 million in taxes
• $100 million in property taxes
• Rate not to exceed $0.29 per $100 of A.V.
• Initial rate established at $0.22
• Generates between $17 and $27 million annually depending
on tax rate and assessed value

14. Phase I Special Improvement
District
• Authorized under Section 33.1 of the Code of Virginia
• Petition to County Governing Board by owners of 51% land or A.V.
• Land zoned commercial or industrial
• Petition must include:
 Boundaries of the district
 Transportation improvements
 Benefits of the transportation improvements
• County Governing Board conducts public hearing
• County Governing Board finds district beneficial and adopts resolution to
create the district
• Requires District Advisory Board (landowners) and District Commission
(elected officials) to guide actions of the Special Investment District

15. Phase II Special Improvement
District
Issues: Certainty of Phase II, and Ability to Upzone

16. Loudoun Tax District
• $0.20 per $100
within ½ mile of
station
• Rate steps
down farther
away
• Applies to new
commercial and
residential, not
to current

17. Project Funding

18. New York Avenue, DC
$35 million of
$110 million
station cost
50% built out
16 million sf
additional
capacity
AV
$500M in „01
$2.3B in ‟07

19. Take-aways
• Value Capture is not Tax Increment Financing
• Value Capture is two very separate things:
 Creation of Value
Through collaboration, design, investment
 “Capture,” of value for infrastructure funding and finance
Through existing public tools, negotiation – many ways to
skin a cat
• Tailor to project and place specifics
• And as in great comedy, timing is key