City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 9, 2022
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
LAURA B. TRIGGS, DEPUTY CITY MANAGER
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance Authorizing and Empowering the Issuance of General Obligation Bonds through a Direct Bank Loan. [ROLL-CALL VOTE]
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ISSUE: Consideration of an ordinance to authorize the issuance of General Obligation Bonds to finance the Potomac Yard Metrorail Station.
RECOMMENDATION: That City Council: (1) hold a public hearing and second reading, final passage on May 14, for an ordinance (Attachment 1) authorizing General Obligation Bonds through a bank loan to finance a portion of the costs of the Potomac Yard Metrorail Station and (2) authorize staff to terminate the $50 million Virginia Transportation Infrastructure bank loan agreement previously authorized and entered into for such project.
BACKGROUND: The current Potomac Yard Metrorail project plans reflect a total project budget of $370 million. Throughout the development of the Potomac Yard Metro project, staff has pursued funding alternatives that take advantage of low interest rates and flexible repayment options. Current funding sources include:
* $70 million grant from the Northern Virginia Transportation Authority (NVTA) that has already been awarded,
* $25 million in revenues collected from the Potomac Yard Special Services District, and
* $50 million from the Commonwealth for enhancement of the southwest entrance.
These funds will collectively provide $145 million of the $370 million needed for the construction project. The remaining $225 million was anticipated to be funded through a combination of a $50 million loan from the Virginia Transportation Infrastructure Bank (VTIB), and General Ob...
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