rail to dulles and "the highway of the one percent", rca reston 2020, may 9, 2012
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White Paper
Reston Citizens Association
Reston 2020 Committee
May 9, 2012
Rail to Dulles and
The Highway of the One Percent
Summary
Contrary to the perception generated by political posturing and massive media attention
to the Project Labor Agreement (PLA) issue confronting Phase 2 of the Silver Line
construction debate, PLAs are a marginal issue in the line's success.
The core issue Transportation Secretary Ray LaHood and the so-called stakeholders
in the construction of the Silver Line must address is the gross inequity and negative
economic consequences of the more than 800% planned increase in tolls to finance the
its construction. In fact, the huge toll increases make Dulles Toll Road users theprimary financial stakeholder in the Silver Line. Those massive increases are dictated in
the current financial arrangement among the Metropolitan Washington Airports
Authority (MWAA), Fairfax County, and Loudoun County that commits 100,000 or so toll
road users to paying 63% of the $2.8 billion estimated cost of Phase 2 and over half the
lines total $5.7 billion construction cost. All together, the official MWAA forecast sees
toll road users paying more than $17 billion over four decades to pay off near-junk rated
revenues bonds issued by MWAA to cover the construction costs while local jurisdictions
and landowners reap the economic benefit. This is an inefficient, unethical, and unfair
way to manage anypublic roadway, much less one that is such a vital transportation
artery for western Fairfax County and eastern Loudoun County.
The impact on area transportation borders on devastating. These increases will cause
the annual costs for regular toll road users to escalate from less than $1,000 to more
than $8,000over $3,000 in 2012 dollar termsby 2048. Those costs will eat up nearly
half the projected gains in real Fairfax County median household income, resulting in a
$17 billion expenditure loss to the local economy. Moreover, MWAAs official estimates
indicate that the exorbitant toll increases will force some 30,000 or more cars onto local
roads next year when tolls double. Even allowing for a generous shift of travelers to
Metrorail, 104,000 vehicles per day will likely divert to local roads by the end of the
forecast period as tolls skyrocket and population and employment grow. The Dulles Toll
Road will become an over-priced, under-utilized roadway better known as The
Highway of the One Percent.
Beyond the specific effects on toll road users, the skyrocketing tolls will limit or
possibly even reverse the projected economic growth along the Dulles Corridor
stimulated by the Silver Line. Increasingly cost-conscious employers are less likely to
pay premium rents or even come to the corridor if their employees and customers face
exorbitant toll costs to reach them. And families who anticipate the huge toll growth
will be less inclined to move there or pay higher rents or home prices, especially outside
the immediate Metrorail station areas.
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Reston Citizens Association (RCA) and its community planning committee, the Reston
2020 Committee, have long held three core principles regarding the Silver Line:
The Silver Line should be built promptly to Dulles Airport with the three Reston-area stations as now planned.
The allocation of construction costs laid out in the 2004 Final Environmental
Impact Statement (FEIS) was a fair and reasonable one, including the 25% share to
be paid by Dulles Toll Road users.
Given the current limited level of federal and state financing, those who will benefit
most financially from the lines construction should be the principal investors in it
and the public infrastructure it will require.
MWAA will see more airline passengers and on-airport business
development opportunitiesfrom the lines construction,
Private landowners/developers will earn major profits on station area
property sales and rentals, and
Local governments will garner extra revenues as those landowners'
property values increase.
We continue to believe these principles are reasonable, cost-effective, and fair.
Current vs. Reston 2020 Proposed Metrorail Silver Line Total Cost Shares
Funding Current Current Proposed Proposed
Source Commitment Share_ Commitment Share__
--Federal $900.0M 15.7% $900.0M 15.7%
--Virginia $275.0M 4.8% $275.0M 4.8%
--MWAA (Av)
& Counties $1,431.7M 25.0% $1,517.3M 26.5%
--Station area
Landowners -0- 0% $1,517.3M 26.5%--Dulles Toll
Road Users $3,120.0M 54.5% $1,517.3M 26.5%
$5,726.7M $5,726.7M
MWAA and the county governments, station area landowners, and Dulles Toll Road
users should share equally the otherwise unfunded costs of the Silver Line1/3
each. With at least the $1.2 billion committed by federal and state authorities to
construction of the Silver Line and the lingering possibility that some future incremental
federal or state funding may be available for Phase 2, that means that each would
contribute about $1.5 billion or 26.5% toward construction costs. To help ensure such an
equitable arrangement, Secretary LaHood needs to include representatives from
affected local civic groups, Including Reston Citizen Association, in the ongoing
discussions.
To do otherwise risks construction of the Silver Line and its intended role as a major
economic driver for northern Virginia, whether or not PLAs are part of the package.
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Rail to Dulles and The Highway of the One Percent
White Paper
Reston Citizens Association
Reston 2020 Committee
May 9, 2012
Between the pontification of political leaders in Washington, Richmond, Fairfax, and Leesburg about the
appropriate role of Project Labor Agreements (PLAs) in the Phase 2 Silver Line construction and the
medias endless frothing at the politicization of this, one would think that PLAs are the key issue in the
completion of the Silver Line.
They are not.
From a cost perspective, opponents of rail to Dulles say it will probably add 10% or so to the cost of the
contract. Proponents of the rail line say it probably will not, and yet it will help smooth the construction
process and avoid cost overruns. They both may be right; they both may be wrong. Neither outcome
will materially affect the final construction cost or long-term economic success of the linenor should
they be a driver in deciding whether to proceed promptly with Phase 2 of the Silver Line. Yet, even
Transportation Secretary Ray LaHood has fallen into this mis-directed imbroglio.
What Secretary LaHood and the so-called stakeholders ought to be focusing on is equity, fairness,effectiveness, and ethics in financing the Silver Line: Nearly two-thirds of the cost of Phase 2 and over
half the total cost of the line will be borne by Dulles Toll Road users under the current financial
arrangement who receive virtually no benefit from its construction.
The core issue is tolls and Dulles Toll Road users are the Silver Lines principal financial stakeholders!
The cost to toll road users will be more than $17 billion over the next four decades predominantly for
debt service on junk-rated MWAA toll road revenue bonds to finance the rail lineaccording to
MWAAs official forecast. Those costs will fall on between 100,000-150,000 current toll road users,
about half of whom are from Fairfax County and a fifth from Loudoun County according to a 2009 survey
of toll road users sponsored by Wilbur Smith & Associates, now CDM Smith.
The result is an escalation of tolls from a one-way full toll of $1.25 in 2009 before MWAA started issuing
rail-related bonds to $2.25 today to double that toll next year and triple todays toll in 2018 , and
spiraling upward from there. Even in real 2012 dollar terms, tolls will quadruple from pre-rail financing
levels by 2018 and sextuple a decade later with 2.5% inflation.
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Regular toll road users (two times per day, five days per week, 44 weeks per year) will see their annual
toll costs skyrocket from less than $1,000 per year now in a similar manner, reaching over $8,000 in
2050, and more than $3,000 by 2028 in 2012 dollars.
$2.25$4.50
$6.75
$8.75
$10.75
$12.75
$1
4.75
$16.75
$18.75
$4.39
$5.82
$6.67
$7.24
$7.59
$7.76
$7.79
$7.71
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00$16.00
$18.00
$20.00
2012
2013
2018
2023
2028
2033
2038
2043
2048
Official Toll Forecast for the Dulles Toll Road,
2012-2050, Full One-Way Toll, Nominal and Real 2012 Prices
Forecast Toll Real Toll ($2012 @ 2.5%/yr)
Source: CDM Smith Preliminary Traffic & Revenue Forecast, January 2012
$1,980
$2,970
$3,850
$4,730
$5,610
$6,490
$7,370
$8,250
$770$942
$2,793 $3,033$3,179 $3,251 $3,263 $3,228
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2010 2015 2020 2025 2030 2035 2040 2045 2050
Annual Nominal and $2012 Toll Cost for
Regular Dulles Toll Road User
Toll Costs per Year (44 Work Weeks)
Inflation-Adjusted Toll Costs per Year (44 WorkWeeks, 2.5%/Yr)
Source: CDM Smith Preliminary Traffic & Revenue Forecast, February 2012
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Even with the continued solid growth in Fairfax County median household income over the last two
decades enjoying relatively moderate inflation during that same period, the increased tolls will eat up
nearly half of any real household income gains over the next 40 years. That is money that will not be
going into the local economy and it is enough to discourage people from moving to or working in the
Dulles Corridor. Why put your pay raise in the toll basket?
This will occur because toll costs will escalate from $0.16 per mile todayroughly consistent with the
national average for this class of toll roadto $1.30/mile in 2050. Thats $0.38/mile in 2012 dollars
nearly two and one-half times the current national average toll cost per mile. With the astronomical
projected tolls, anyone who could use Metrorail almost certainly would rather than taking the toll road.
The only remaining toll road users will be coming from or going to places not served by Metrorail or they
will have so much money they simply dont care
8.0%
21.3%
1.9%8.8%48.0%
3.7%3.1%
3.5%1.7%
Forecast Spending of Cumulative Real Disposable Household
Income Gains for Median Income Household,
Fairfax County, 2012-2048, Regular DTR Users
Food & Beverage Housing Apparel
Transportation Toll Increases Medical Care
Recreation Educ. & Comm. Other
We define a "regular toll road
user" as a person who drives
his/her vehicle twice a day, 5
days a week, 44 weeks per
year, on the Dulles Toll Road.
Median real Fairfax County
real household income, now
at $103,000 per year, is
forecast to grow at 0.2% peryear over the forecast period
based on 2.8%/year nominal
growth and 2.6%/year
inflation growth from 1990-
2010. Allocations based on
BLS categories and CPI-US
shares, February 2012.
Reston 2020 Committee
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Indeed, one of the consequences of the exorbitant toll increases is that the Dulles Toll Road will virtually
become The Highway of the OnePercent. The modest toll increases since 2009 have already led to an
eight percent decline in traffic even as the economy has been recovering. CDM Smith, MWAAs official
traffic and revenue forecaster, projects that ridership will drop 18% next year when tolls doublesome
30,000 or so vehicles per day by our calculations out of the 150,000-200,000 vehicles that use the toll
road daily based on 2010 Virginia traffic counts.
Looking longer term, CDM Smith projects a 28% decline in toll road use from current levels in the 2010-
2050 timeframe while Renaissance Planning Group, the socio-economic forecasting company that
supported CDM Smiths toll road traffic and revenue analysis efforts, forecasts a 36% increase in
population and a 47% increase in jobs for the Silver Linesprimary market area over the same period. So
the potential market for the toll road ought to increase by 26-37%some 22,000-88,000 vehicles per
day, an average of 55,000 per dayif (a) there was no Metrorail line and (b) tolls were to remain steady
in 2012 dollar terms. Allowing for an optimistic 10% share of the 3.1 million new residents and
employees in this primary market area using Metrorail or other travel means, the toll road will only
serve 126,000 vehicles per day (potential range is 108,000-144,000 vehicles per day) out of a potential
market of 230,000 vehicles per day.
$0.31
$0.47
$0.61
$0.74
$0.88
$1.02
$1.16$1.30
$0.16
$0.18 $0.20$0.23 $0.26
$0.30 $0.34$0.38
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
2012
2017
2022
2027
2032
2037
2042
2047
Dulles Toll Road Toll Cost per Mile, Full Length,
Nominal and Inflation-Adjusted Base
Full Length Cost/Mile (Greenway-I495)
Inflation-Adjusted Full Length Toll Cost/Mile ($2012 @ 2.5%/Yr)
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Washington Metrorail Service Area, including Silver Line Primary Market Area
Source: Analysis of Population and Employment Forecasts for the Washington DC Region 2010-2040, Renaissance Planning
Group, October 17, 2011, p.3.
That means an estimated average of 104,000 vehicles per day
(a potential range of 86,000-122,000 vehicles per day) will
divert to already clogged local roads in Fairfax and Loudoun
counties by 2050 if the various underlying forecasts are
accurate. So while toll road traffic probably ought to be
increasing sharply in the next four decades, it will instead be
declining by more than a quarter. The vehicles diverting from
the toll road will do so because it is far too expensive, leaving
the tollway to the one percent or so for whom the high tolls are
meaningless and the extra minutes saved are valuable. (We
welcome alternative estimates and explanations about these
changes in traffic patterns from knowledgeable authorities
VDOT, MWAA, FCDOT, LCDOT, WMATA, or othersall of whom
have been reluctant to offer them so far.)
We believe this is an inefficient, unethical, inequitable, and
unfair way to manage any public roadway, much less one that
is such a vital transportation artery for western Fairfax County
and eastern Loudoun County.
Aside from the tremendous traffic
impacts, Virginias Governor and
General Assembly have been
discussing the devolution of road
construction and maintenance
costs to local jurisdictionsand
not transferring state funds with it.
The result could be large budget
deficits for Fairfax and Loudoun
counties and/or huge property tax
increases to replace the funds the
state will no longer provide and
meet the transportation needs of
their growing number of residentsand employees. This is a potential
unintended consequence that no
official has publicly acknowledged
so far, much less considered or
begun to address.
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More broadly, this foolish approach to financing the Silver Line will erode its value as a driver of
economic growth in either Fairfax or Loudoun County, although we cannot precisely quantify those
effects. Indeed, it could be counter-productive. In this era of business cost-efficiency, employers will
be unlikely to move to or pay higher rents for a location where the bulk of their employees face
unusually high living costsjust to commutein an area that already has a high cost of living. As recent
corporate departures from the Dulles Corridorincluding the departures from Reston of Accenture to
Arlington and LaFarge North America to Chicagoindicate, cutting office space costs and having access
to inexpensive transportation close to clients are todays office location decision-drivers.
Many families are likely to avoid taking up residence in the corridor areaespecially beyond the
immediate station areasif they, too, face a high cost of commuting or otherwise drive on the toll road
to sustain their lifestyles. They certainly are unlikely to pay premium prices to live there, especially
outside the immediate station areas. If federal spendingpayroll or contractscontinues to shrink as
many believe it must, it could actually turn the Dulles Corridors anticipated economic expansion into a
contraction for many years.
The Reston Citizens Associationwhich represents the communitys 58,000 residentsand its Reston
2020 Committee, the committee charged with addressing Restons future with the goal of sustaining itsquality of life, have been involved in advocating the construction of the Silver Line for years. That
advocacy has been centered on three core principles:
The Silver Line should be built promptly to Dulles Airport with the three Reston-area stations as planned.
The allocation of construction costs laid out in the 2004 Final Environmental
Impact Statement (FEIS) was a fair, including the 25% to be paid by Dulles Toll
Road users. It creates an incentive for drivers to shift to public transit.
In the face of limited federal and state financing, however, those who will benefitmost financially from the lines construction should be the principal investors in it
and the public infrastructure it will require.
We continue to believe these principles are reasonable, fair, and cost-efficient, yet current plansthreaten to undermine all three principles.
The failure of the federal and state governments to live up to the allocations laid out in the 2004 FEIS
has left the local jurisdictions and Dulles Toll Road users holding the bag.
The US Government committed $900 million toward construction of Phase 1 and thenbowed out, most recently rejecting a $1,950 million FY2012 TIFIA direct loan proposal
from MWAA. Under the FEIS allocation, it was supposed to contribute 50% of the lines
construction, now about $2.9 billion.
The Virginia General Assembly and Governor have not yet lived up to their expected FEISshare to cover 25% of the lines construction costs. The state has committed a total of
$275 million (4.8%) under both Republican and Democrat governors. A possible $150
million contribution to Phase 2 financing is pending the resolution of the PLA dispute.
The result is that the local so-called local funding partnersMWAA, Fairfax, and Loudounand toll
road users have been forced to pick up the $3.1 billion shortfall in funding for the lines construction.
Rather than step up to the funding plate to meet the revenue shortfall, the funding partners decided in
secretto stick toll road users with the added burden. There was no disclosure of the terms to the public,
much less hearings, ahead of time. The result is that toll road users are now stuck with 55% of the
total $5.7 billion cost of the line and 63% of the cost of Phase 2about $1,766 million.
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Reston 2020 believes that, whether or not Loudoun County participates in funding Silver Line
construction, a fair allocation of the cost consistent with RCAs core principles is one in which those who
are likely to benefit most financially from the lines construction ought to be the most heavily invested in
its success. In our view, that means the following financial allocation to cover construction costs not
covered by federal or state assistance or other revenue sources:
MWAA and the participating counties should pay one-third of the costs out of their generalinternal revenue streams. This would include not only the costs officially in the project, but
those recently shifted to the counties to cover stations and parking garages. This means
additional MWAA funding from its Aviation Fundvarious airport user feesand fees from on-
site businesses, and more general tax revenue (probably from property taxes) for the counties.
They may wish to pro rate their current shares or negotiate a new allocation among themselves.
Property owners in roughly the half-mile circlethe transit-oriented development (TOD)walking distance areaaround each station should pay one-third of the costs through special
tax districts. Fairfax County has adopted this approach to some extent, but capped the
landowners contribution at $740 million, and it is applying that revenue to its own 16.1% shareof the construction costs. Loudoun has not taken any such steps. Among the several
approaches to generating this needed revenue, we believe the use of Tax Increment Financing
(TIF) may be most effective. In brief, it taxes the incremental gain in property value of
landowners in the affected areas at a higher rate to generate required revenues. Aside from the
fairness of this overall approach, it offers the advantage that the two counties can borrow at
much lower rates than MWAA because of their higher credit ratings, lowering overall financing
costs for the line.
Dulles Toll Road users should pay the remaining one-third of the otherwise unfunded costs ofthe rail line. At this time, that would lower their projected overall share of the cost of the Silver
Line from 54.5% to 26.5%--nearly in line with the 2004 FEIS 25% allocation.
In this arrangement, each of the three parties would be contributing about $1.5 billion (26.5%)
toward the currently estimated total cost of the Silver Line. These costs and shares would go
down to the extent that additional federal or state funding might be forthcoming. They would
go up to the extent that actual construction costs are higher than now estimated.
Current vs. Reston 2020 Proposed Metrorail Silver Line Funding Shares
Funding Current Current Proposed Proposed
Source Commitment Share_ Commitment Share__
--Federal $900.0M 15.7% $900.0M 15.7%
--Virginia $275.0M 4.8% $275.0M 4.8%
--MWAA (Av)
& Counties $1,431.7M 25.0% $1,517.3M 26.5%
--Station area
Landowners -0- 0% $1,517.3M 26.5%
--Dulles Toll
Road Users $3,120.0M 54.5% $1,517.3M 26.5%
$5,726.7M $5,726.7M
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Both RCA Reston 2020 and MWAA have
explored additional financing options
that could further reduce the funding
costs of local jurisdictions, landowners,and toll road users if implemented.
Ina paper published in April 2011on the
impact of the higher Metrorail
construction costs, Reston 2020
recommended:
Tolling the Dulles Access Highway as
hot lanes.
Increasing MWAA aviation passenger
and freight fees.
In a presentation to the MWAA Board in
April 2011, MWAAs staff offered several
ideas for augmenting funding sources as
well. These included aviation-related
options, options involving the toll road,
options involving the Commonwealth,
and options involving federal assistance.
None of the participants in the planning
of the Silver Line have pursued any of
the proposals identified above.
Early adaptation of the RCA Reston 2020 Silver Line
construction cost sharing allocation would help ensure
that construction of the Silver Line would proceed
largely on schedule at least as far as Dulles Airport. It
would mean that Dulles Toll Road users would be
paying a little more than one-quarter of the cost of the
Silver Line, consistent with the arrangement defined in
the 2004 FEIS. And it would mean that the entities that
stand to gain the most from the Silver Lines
construction and operation would be paying a fair share
of the lines construction cost. Rather than spending
other peoples money, MWAA, the counties, and the
landowners would all be paying an investors version of
user feessharing the cost to garner the long term
benefits. And none of this would prevent the federal
and state governments from living up to their earliercommitments, easing the burden on the other partners.
Stakeholders in rail to Dulles must more equitably
share the costs of the Silver Line or risk its construction
and its intended role as a major economic driver for
northern Virginia, whether or not PLAs are part of the
package.
http://www.scribd.com/doc/54320216/The-Impacts-of-Increased-Phase-2-Dulles-Metrorail-Construction-Costs-FINAL-04272011http://www.scribd.com/doc/54320216/The-Impacts-of-Increased-Phase-2-Dulles-Metrorail-Construction-Costs-FINAL-04272011http://www.scribd.com/doc/54320216/The-Impacts-of-Increased-Phase-2-Dulles-Metrorail-Construction-Costs-FINAL-04272011http://www.scribd.com/doc/54320216/The-Impacts-of-Increased-Phase-2-Dulles-Metrorail-Construction-Costs-FINAL-04272011 -
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Appendix: What are the economic benefits of the Silver Line?
The principal driver in moving forward with the construction of the Silver Line from the perspective of
the areas local jurisdictions has been the claim that it will stimulate economic growth and county
revenues. A secondary consideration has been greater use of public transit and the possible associated
reduction in road traffic growth and needed road construction and maintenance, which are largely
funded by the state.
The results of these studies have been diverse and the methods used in generating them controversial.
Some look at county-wide economic development; others look at county government revenue impacts.
None of them, in our view, provide a clear, well-supported argument for the positive economic impact
of the Silver Line.
In 2009,MuniCap prepared a county fiscal impact analysis(analysis of net county tax revenue
gains/losses) in support of the Tysons Task Force. It projected that the county would earn an extra $1.2billion in net tax revenues by 2030 and $5.3 billion by 2050. In a brief paper, Fred Costello, an officer in
the Fairfax County Federation of Civic Associations, and member of the Fairfax County Taxpayer Alliance,
pointed out that the study included only the continuation of current county road maintenance costs in
the area. It did not cover road improvements nor debt service costs for roads nor employee or some
new infrastructure operating costs. Now, the Planning Commission Tysons Committee is wrestling with
the need for more than $2.1 bil lion in road improvement (in 2012 dollars) and other infrastructure-
related costs in the Tysons area by 2030, meaning that the County is likely to be more than $900 million
in the hole if the balance of the MuniCap analysis is correct.
In 2011 and again in 2012, the Robert Charles Lesser (RCL) commercial real estate firm provided the
Loudoun County Board of Supervisors with a study andupdate of the impact of rail on its countyrevenues. Its update forecast a $386 million increase in tax revenues by 2040 from the arrival of
Metrorail in Loudoun. Tim Hemstreet, the countys administrator, noted in a letter forwarding the RCL
report to the Board that it did not include necessary capital investments (such as roads). It also
suggested the rail line would focus about 2/3s of the countys forecast development in the rail station
areas. RCLs report itself indicates that there is no evidence that such rail lines increase the overall
market, only that it increases development around stations. Tom Cranmer, a member of the Fairfax
County Taxpayers Alliance and a forensic economist, calculated that, with capital investments and
associated financing costs included, the line would end up costing the county a net $711 milliona
more than one billion dollar swing in the projected net fiscal impact for the county.
Dr. Stephen Fuller, head of GMUs Center for Regional Analysis, wrote in a recent paperin which he
projects that the Silver Line would add $25 billion to Loudouns economy by 2040. He forecasts that the
countys gross product would rise from $21.2 billion in 2010 to $51 billion in 2020 with the addition of
the Silver Line. By 2040, that figure would rise to $230.4 billion. Without rail, the countys gross product
would only reach $47.8 billion in 2020 and $204.8 billion in 2040.
Dr. Fuller is projecting a 9.2% per annum growth rate for Loudoun County through 2020 withMetrorail and 8.5% growth without, both more than double the growth forecast for Fairfax
County over the same timeframe. In the face of the weak national economy (roughly 2.5-3.0%
per year growth through the decade) and the expected impact of federal cost cutting locally, we
http://www.fairfaxcounty.gov/planning/tysons_docs/fiscalimpactanalysis.pdfhttp://www.fairfaxcounty.gov/planning/tysons_docs/fiscalimpactanalysis.pdfhttp://www.fairfaxcounty.gov/planning/tysons_docs/fiscalimpactanalysis.pdfhttp://www.fcta.org/data/dulles-rail/updated-report-on-the-funding-of-dulles-railhttp://www.fcta.org/data/dulles-rail/updated-report-on-the-funding-of-dulles-railhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://cra.gmu.edu/pdfs/Loudoun_MetroRail.pdfhttp://cra.gmu.edu/pdfs/Loudoun_MetroRail.pdfhttp://cra.gmu.edu/pdfs/Loudoun_MetroRail.pdfhttp://cra.gmu.edu/pdfs/Loudoun_MetroRail.pdfhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://www.loudoun.gov/documents/45/2218/2012RCLCO%20Market%20and%20Fiscal%20Impact%20Analysis_201204131544249109.pdfhttp://www.fcta.org/data/dulles-rail/updated-report-on-the-funding-of-dulles-railhttp://www.fairfaxcounty.gov/planning/tysons_docs/fiscalimpactanalysis.pdf -
8/2/2019 Rail to Dulles and "The Highway of the One Percent", RCA Reston 2020, May 9, 2012
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believe real annual growth in Loudoun above 2% per year and inflation above 3% per year is
unrealistic.
Fuller also forecasts 7.8% and 7.5% annual growth rates with and without Metrorail respectivelyfor the following twenty years. These, too, are probably optimistic with real growth probably
less than 3% per year and inflation running at 3%/year or less.
We fail to understand why Fuller would forecast a 0.7% difference in Loudoun Countys average
annual growth rate this decade between Metro and non-Metro choices when the incremental
growth would only occur in the final two years of the decadeat most.
At the regional level, as recently as January, GMU CRA forecast the Washington areas gross
regional product to grow from $425 billion in 2010 to $774 billion in 2030. In this latest paper,
using year old data, Fuller puts those sums at $429 bill ion in 2010 and $1,138 billion in 2030
without explaining the $364 billion jump in the regions gross regional product forecastfor 2030.
These highly optimistic forecasts and unexplained changes erode the credibility of the latest report.
Reston 2020 believes that the Silver Line will enhance development opportunitiescommercial and
residentialand general economic growth in the transit-oriented development (TOD) areas along the
line. Those trends may extend beyond the TOD areas at a quickly diminishing rate, but we share the RCL
reports concern that the Silver Line will probably not stimulate large area (county or broader) economicgrowth. In fact, we believe it is an open question whether the economic gains made in the TOD areas
however modest will come at the expense of declines in values and economic activity over the
remainder of the larger areas. This outcome may lead to no net gain in county fiscal impacts as
economic growth merely moves to TOD areas and other areas stagnate or decline. In this regard, we
believe Reston is fortunate to be along the Silver Line and we anticipate the work of the Reston Master
Plan Special Study Task Force will help ensure that the rest of Reston beyond the TOD areas participates
in the corridors economic growth.