City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: RAMI CHEHADE, INTERIM DIRECTOR, DEPARTMENT OF PROJECT IMPLEMENTATION
DOCKET TITLE:
TITLE
Consideration of Authorization for the City Manager to Sign an Amendment to the Net Benefits Agreement Regarding the Potomac Yard Metrorail Station between the National Park Service and the City of Alexandria.
BODY
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ISSUE: Authorization for the City Manager to Sign an amendment to the Net Benefits Agreement Regarding Potomac Yard Metrorail Station between the National Park Service and the City of Alexandria.
RECOMMENDATION: That City Council authorize the City Manager to sign the proposed Second Amendment to the “Net Benefits Agreement” (Attachment 1) regarding the Potomac Yard Metrorail Station between the National Park Service (NPS) and the City of Alexandria.
BACKGROUND: On May 20, 2015, when contemplating alternatives for construction of the Potomac Yard Metrorail Station, the City Council selected Alternative B as the locally preferred alternative for the purposes of fulfilling the City’s obligation under the Environmental Impact Statement (EIS) process through the National Environmental Policy Act (NEPA). At that time, City Council also adopted a proposed mitigation framework regarding the NPS-administered George Washington Memorial Parkway (GWMP) and authorized the City Manager to negotiate a Net Benefits Agreement (NBA) with NPS consistent with that mitigation framework, subject to City Council approval. The purpose of the Net Benefits Agreement is to document mitigation measures and a series of enhancements to be implemented in order to minimize impacts to the GWMP as a result of the Metrorail station and to incorporate measures into the project so that the project would have a “net-benefit” to the GWMP. A “net benefit” is achieved when the transportation use, the measures to minimize harm, and the mitigation incorporated into the project are found to result in an overall enhancement of the property when compared to a No Build alternative. City Council reviewed the NBA and authorized the City Manager to enter into the NBA on May 16, 2016 and it was subsequently signed by the City Manager on October 7, 2016. Amendment #1 to the NBA extended the agreement term by ten (10) years from the date of the final signature on the amendment. This amendment did not require City Council Approval. The NPS is now asking for a second amendment to the NBA which due to the extent of the change, does require City Council’s approval. The NBA and Amendment 1 is attached as Attachment #2 for City Council’s information.
DISCUSSION: One element of the NBA is that the City shall provide a total of $12 million to be deposited in the NPS Impact Fund Account, which was established between the NPS and The Conservation Fund (a Virginia-based national non-profit organization that works closely with NPS), to fund appropriate mitigation projects to minimize or offset Metrorail station impacts within the GWMP. Projects include stormwater improvements, development of and at least partial funding for a master plan for Daingerfield Island, repairs and improvements to the Mount Vernon Trail, and plans and studies to address planning needs of the south section of the GWMP. Eight projects were identified in the NBA. The NBA allows NPS to shift funds from one project to another with written notification to the City of Alexandria. However, shifts that result in a change in excess of 20% to any single specific project require written notification to and approval by the City of Alexandria.
NPS is now requesting three changes to the NBA. The first change is to transfer $1,000,000 reserved for the implementation of repairs and improvements to the Mount Vernon Trail within the City of Alexandria to a new project not contemplated in the original NBA, the renovation of the Jones Point Lighthouse. NPS completed the Mount Vernon Trail repair and improvements project using a different funding source. This proposal to transfer funds to renovate the historic Jones Point Lighthouse is fully supported by the Historic Alexandria Resources Commission. Their letter of support is provided as Attachment #3.
NPS is also requesting to transfer $1,300,000 from the set aside for the implementation of the Daingerfield Island Master Plan to design and construct the Washington Sailing Marina (WSM) Comfort Station project located at Daingerfield Island.
This amendment will extend the completion date of the agreement from ten (10) years from the date of the final signature on the First Amendment (September 6, 2018) to ten (10) years from the date of final signature on this Second Amendment.
For City Council’s awareness, the NBA also includes an exchange of property required in order for the NPS to release the easement on the property where the Metro Station has been built and transfer a small amount of fee simple property to the City for the location of the tracks. In order for the NPS to release property rights they are required by law to receive land in exchange. The initial NBA contemplated the City exchanging ownership of some of the remainder of the NPS scenic easement area in Potomac Yard in exchange for NPS releasing the easement on the portion of property needed for the Metro Station. Because the NBA was signed early in the process, it also noted that the property being acquired by the NPS needed to meet the NPS requirements and if it didn’t the City and the NPS would find another suitable property to exchange with the NPS. Unfortunately, the NPS was not able to accept the Potomac Yard property for the exchange. The City and NPS are still working on finding a property that meets the NPS requirements. In the meantime, the NPS has issued special use permits to WMATA for construction and now operation of a metro station on its easement. This land exchange is not part of Amendment 2 because the original NBA gave the City Manager flexibility to work with the NPS to find a suitable property that meets the requirements. Once the property is identified and NPS has completed its approval process, the purchase of the property will come to City Council for final approval.
FISCAL IMPACT: There are no additional fiscal impacts associated with this amendment. The cost of the Net Benefit Agreement ($12 million) was included in the project’s contingency. The $12 million was wired by the City to the Conservation Fund on September 26, 2018.
ATTACHMENTS:
1. Second Amendment to the Net Benefits Agreement
2. Net Benefits Agreement and First Amendment
3. Historic Alexandria Resources Commission, Letter of Support
4. Presentation
STAFF:
Emily A. Baker, Deputy City Manager
Bryan MacAvoy, Assistant City Attorney
Morgan Routt, Director, OMB
Michael Moon, Interim Director, T&ES
Karl W. Moritz, Director, P&Z
Rami Chehade, Interim Director, DPI
Daphne Kott, Project Director, DPI