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/
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Proposed Revisions to the Potomac Yard Metrorail Station Memorandum of Understanding between the City of Alexandria and CPYR.
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ISSUE: Revision of 2010 Memorandum of Understanding.
RECOMMENDATION: That City Council authorize the City Manager to execute the revised Potomac Yard Metrorail Station Funding Memorandum of Understanding (Attached) between the City of Alexandria and CPYR.
SUMMARY: In 2010, as a key element of the approval of the North Potomac Yard Small Area Plan as well as the related plans to construct a Metrorail Station in Potomac Yard, a Memorandum of Understanding ("MOU") was developed, agreed to and executed by the City and CPYR who is the owner of North Potomac Yard. In that MOU, CPYR agreed to pay the City $10 per square foot of development for the first 4.9 million square feet of the total 7.5 million square feet of planned development in North Potomac Yard. This $10 per square foot totaled some $49 million in 2010, would be paid at the time of each building's occupancy, and would be indexed for inflation to keep its real value to the City over time. These payments would be used to fund a portion of the debt service to be incurred to finance the planned Potomac Yard Metrorail Station.
Since 2010 development economics have changed, and in order that the first 1.3 million square foot mixed use development phase on the 20 acre movie theatre site can proceed, a revision of a few key terms of the 2010 MOU are necessary. As described in this memorandum, the proposed MOU: (1) creates a catalyst phase of development where this per square foot payment would not apply to hotel, retail and office development in the catalyst phase, but would apply to residential development, and (2)...
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