City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 5, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Introduction and First Reading. Consideration. Passage on First Reading of an ordinance to repeal Section 3-2-190 (Tier II Potomac Yard Metrorail Station Special Tax District) in Division 1 (Real Estate) of Article M (Levy and Collection of Property Taxes) of Chapter 2 (Taxation) of Title 3 (FINANCE, TAXATION, AND PROCUREMENT) of the Code of the City of Alexandria, Virginia, 1981, as amended.
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ISSUE: Should the Tier II Special Tax District be repealed?
RECOMMENDATION: That City Council approve on first reading, set for second reading and public hearing on December 15, 2018, the approval of the repeal of the Tier II Potomac Yard Special Tax District.
BACKGROUND: When the 2010 Potomac Yard Metrorail Station financing plan was developed, there were four main financing sources: incremental increases in the real estate tax base in Potomac Yard, developer contributions, and two Special Tax Districts (the Tier I District and Tier II District). The Tier I Special Tax District, with at 20-cent add-on real estate tax rate, encompassed North Potomac Yard and the commercial elements of South Potomac Yard, and the Tier II District, at a 10-cent add on real estate tax rate, encompassed the fee ownership residential blocks of South Potomac Yard. A map of the two districts is attached. The Tier I District's taxation was effective in 2011, with the Tier II District taxation not planned to start until the calendar year after the Metrorail Station opens. Based on today's construction schedule, the Tier II effective taxation start year would be 2023. The residential areas of Potomac Yard to the east of the rail tracks (Old Town Greens and Potomac Greens) were not included in either of these two special tax ...
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