reston funding plan june 2016

7/25/2019 Reston Funding Plan June 2016

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County of Fairfax, Virginia

Reston Funding PlanReston Network Analysis & Funding Plan Advisory Group

June 20, 2016

Tom Biesiadny, Ray Johnson, Janet Nguyen, Ken Kanownik

Fairfax County Department of Transportation

Department of Transportation

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Funding Scenarios


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Outline Updates

Meeting with Advisory Group Developers, June 6

Project Costs

Follow-up from April 11, 2016 meeting

Tax Increment Financing (TIF)

Herndon Projects Associated with Silver Line Phase II

Herndon Metrorail Station Access Management Study(HMSAMS)

Reston Metrorail Access Group (RMAG)

Land Value Analysis

Discussion of funding scenarios


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Estimate - Updates


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Reston Funding Plan Projects

Updated Est. Previous Est. Change

Roadway Projects

DTR Crossing at Soapstone Overpass Sunrise Valley Dr to Sunset Hil ls Rd $170,000,000 $160,000,000 $10,000,000

DTR Crossing at Rock Hill Road Overpass Sunrise Valley Dr to Loudoun Co $80,000,000 $80,000,000 $0

DTR Town Center Parkway Underpass Sunrise Valley Dr to Sunset Hills Rd $170,000,000 $170,000,000 $0

South Lakes Drive Overpass Sunrise Valley Drive t o Sunset Hills Rd $90,000,000 $90,000,000 $0

Route 286 - DTR to West Ox Widening $80,000,000 $80,000,000 $0

Route 286 at Sunrise Valley Drive (Interchange) $400,000,000 $400,000,000 $0

Reston Parkway Widening South Lakes Drive to DTR $25,000,000 $25,000,000 $0

Fox Mill Road Widening Reston Parkway to Monroe Street $60,000,000 $60,000,000 $0

West Ox Road Widening Lawyers Road to Centreville Road $100,000,000 $100,000,000 $0Monroe Street Widening West Ox Road to Town of Herndon $80,000,000 $80,000,000 $0

Pinecrest Road Extension South Lakes Dr to Sunrise Valley Dr $25,000,000 $25,000,000 $0

McNair Farms Drive Extension/Widening $10,000,000 $10,000,000 $0

Total Roadway Projects $1,290,000,000 $1,280,000,000 $10,000,000

Intersection Projects

Centreville Road at Sunrise Valley Drive $10,000,000 $10,000,000 $0

Centreville Road/DTR EB on/off Ramps $1,500,000 $1,500,000 $0

Reston Parkway/Sunrise Valley Drive $15,000,000 $15,000,000 $0

Reston Parkway/DTR WB on/off Ramps $5,000,000 $5,000,000 $0

Reston Parkway/Bluemont Way $4,000,000 $4,000,000 $0

Reston Parkway/New Dominion Parkway $5,000,000 $5,000,000 $0

Wiehle Avenue/DTR EB on/off Ramps $600,000 $600,000 $0

Hunter Mill Road/Sunset Hills Road $3,500,000 $3,500,000 $0

Total Intersection Projects $44,600,000 $44,600,000 $0

Grid Network* $1,021,000,000 $1,244,000,000 ($223,000,000)

Total $2,356,000,000 $2,569,000,000 ($213,000,000)

*Current grid network estimate is based on preliminary results from the Network Analysis Study and may be subject to adjustment.


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Reston Funding PlanAllocation Framework

This cost split was chosen by staffas basis for funding scenarios. Staffis still seeking comments on thisproposal.

In this example, public and privaterevenues* will share costs,approximately equally.

Reston Roadway projects would bepaid for with public revenues.

Most Intersections and the Grid

would be paid for with privaterevenues.


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Please note that the information provided in this presentation is not final and is for discussion purposes only.

Option 5: Project Category

Project Estimate Allocation ($)

Reston Roadways $1,290,000,000

Public Share 100% $1,290,000,000

Private Share 0% $0

Reston Intersections $45,000,000

Public Share 0% $0

Private Share 100% $45,000,000

Grid $1,021,000,000

Public Share 0% $0

Private Share 100% $1,021,000,000

Total $2,356,000,000

Public Share 55% $1,290,000,000

Private Share 45% $1,066,000,000Previously

$1.289

Previously$1.244B

Previously$1.280B

Public/Private share inTysons is 56/44

*Public revenues are those revenues allocated by the County for use onCountywide projects.*Private revenues are generated in Reston and used exclusively for Restonprojects. Includes: road fund, TIF, service and tax districts, etc.


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Tentative Allocation of Grid of StreetsIn-Kind vs. Road Fund (Cash Proffers)


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Tax Increment FinancingTax Increment Financing (TIF) A funding mechanism that captures net new taxrevenues within a defined geographic area (TIF district) to fund public projects in the TIFdistrict to promote economic development or redevelopment.

Define district, usually commercial, to declare a tax increment district, which will be developed forhigher and better use.

Define a base year assessment. Tax revenue at the base year is frozen continuing to accrue tothe normal tax funds at those assessment levels.

Additional tax revenue (tax increment) based upon increases in assessed values over and abovethe base year assessment rate are allocated to a tax increment fund, and would be used to fundidentified improvements.

Financing option Property taxes are most commonly used to fund TIFs. TIF revenues areusually pledged to support bond debt service (requires Community Development Authority(CDA)). May be used as pay as you go, rather than to support debt.

TIF does not directly change the Real Estate Tax rate.


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Tax Increment Financing (Mosaic District)Fairfax County, VA Merrifield Town Center (Mosaic District) District created toprovide vehicle for financing public improvements to develop district in accordance withexisting zoning.

In the district:

$30 million portion of public facilities would be funded through a 30 year bondissued by the District whose debt service would be paid by a self-assessment.

$42 million dollar portion of public facilities constructed on-site (roadimprovements, parks, portion of parking garage) through a 22 year bond issuedthrough the District whose debt service is paid through incremental real estate

tax revenues (TIF). Liability for the debt service is secured by the District not theCounty. As a result the bonds do not achieve a AA rating.


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Tax Increment Financing (Mosaic District)

Mosaic District:

1,000 dwelling units, multiplex theatre,125,000 square feet of office space,

500,000 square feet of othernonresidential uses, 150 room hotel.

Public Improvements: 2 parks,realignment and widening of EskridgeRoad, widening of Lee Highway,improvements to the Lee Highway/GallowsRoad intersection and, construction of agrid of streets.


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Tax Increment FinancingMosaic district was uniquely fit for Tax Increment Financing:

Fairfax Countys Office of Community Revitalization (OCR) and a consultantteam worked with one development to establish the Mosaic District CDA via

petition to the Board of Supervisors. The petition was evaluated against the Countys 16 Principles for Public

Investment in Support of Commercial Redevelopment which was adoptedby the board in 2008 to advance revitalization and reinvestmentopportunities within the County.

Evaluation determined that the project, to turn the area into the town center

of Merrifield, would not occur but for the use of TIF to support funding aportion of public facilities through bond financing.


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Basic TIF Model


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Base Year Assessment (Existing Tax Base)

Revenues continue to accrue to normal tax funds.

TotalNew Tax

BaseTax IncrementTo support publicinfrastructure orbond debtservice

Life of Tax Increment Financing District

Ann

ualTaxesGenerated

Frozen revenue for basic services

Basic TIF Model:Future Tax Revenue Baseline Tax Revenue = TIF Revenue

Using the basic TIF model, a TIFdistrict over the Reston TSAs maygenerate up to $900k per 1% ofreal-estate assessed value growthon its first year.

Assessed Value

Growth Revenue

1% $ 900,0002% $ 1,800,000

5% $ 4,500,000


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Baseline Growth TIF ModelBaseline Growth TIF Model:

Future Tax Revenue (Baseline Tax Revenue x Growth Factor) = TIF Revenue


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TIF Diversion ModelTIF Diversion Model:

(Future Tax Revenue Baseline Tax Revenue) x Diversion Factor = TIF Revenue (Thismethod can be a set dollar amount or a percentage of revenue)


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Herndon MetroPlanning

Metro related projects to be fundingby the Town of Herndon.

Total of all projects is $13,947,400.

From Herndon Metro Station Area Plan:http://www.herndon-va.gov/departments/community-development/planning-policy/metrorail-planning.


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Herndon MetrorailStations AccessManagement(HMSAMS) StudyProjects

Project Location Project Scope

Sunrise Valley Drive/Monroe Street Improve signalized crosswalks.

Van Buren Street/Worldgate Drive Add signalized crosswalk.

Herndon Parkway/Herndon Metro

Entrance North

Add mid-block signalized crosswalk.

Dulles Toll Road/Monroe Street Pedestrian/Bicycle Bridge. Fund Feasibility/Cost Estimate

Study.

Innovation Center to Arrowbrook Complete walkway with lighting.

Dulles Toll Road/Centreville Road Add lighting under Dulles Toll Rd. Add signalized crosswalk

at north ramps.

Herndon Parkway from W&OD Trail toFairbrook Drive

Improve access ramp at W&OD. Widen sidewalk to shareduse path. Funding for Feasibility/Cost Estimate Study.

Chandon Park to Worldgate Drive Dulles Glen Apartments to Worldgate Dr. shared use path

and lighting.

Coppermine Crossing to Merrybrook Improve FCPA fair-weather crossing to pedestrian bridge.

Innovation Avenue/Rock Hill Road Add shareduse path and lighting.

Van Buren Street from W&OD to Monroe

St Bridge

Reconstruct w/ on-road bike lanes, sidewalk(s), drainage,

urban. Funding for feasibility/cost estimate study.

Monroe Street from Dulles Toll Road to

Monroe Manor Drive Missing Links

Shared use path Dulles Toll Rd. to East Lake Dr., Fox Mill Rd.

to Sunrise Valley Dr., Monroe Manor Dr. to Dwight St.

Sunrise Valley Drive from Fairfax County

Parkway to Innovation Station

Reconstruct with on-road bike lanes. Reduce median width.

Restripe with narrow lane widths.

Innovation Station North Side

Neighborhood Access

Add Shared use path and lighting. Fund Feasibility/Cost

Estimate Study.

Bicycle and pedestrian facility

projects to improve access tothe future Herndon andInnovation Center MetrorailStation:http://www.fairfaxcounty.gov/fcdot/hmsams/

These projects are funded

separate from the RestonFunding Plan, mostly withpublic sources.


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Reston MetrorailAccess Group (RMAG)and Wiehle Ave/RestonPkwy Station AccessManagement StudyProjects

Recommended station

access management andtraffic improvements at theWiehle-Reston East Metrorailstation.

More RMAG improvementscan also be found here:http://www.fairfaxcounty.gov/f

cdot/silverline/restonimp.htm

These projects are fundedseparate from the RestonFunding Plan, mostly withpublic sources.


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Project Location Project Scope

Bluemont Way & Discovery Street/Explorer

Street/Library Street

Improve crosswalks, bike facilities.

Sunset Hills Road/Old Reston Avenue Add signalized crosswalks.

Explorer Street/New Dominion Parkway Improve crosswalk.

Sunrise Valley Drive from Reston Parkway to

Soapstone Drive Missing Links

Complete shared use path north side. Add signalized

crosswalk at Colts Neck Rd.

Sunrise Valley Drive/Edmund Halley Drive Add signalized crosswalks.

Sunset Hills Road/Discovery Street Pedestrian Bridge

Walkway Extended

Add signalized crosswalk.

Reston Parkway/Dulles Toll Road Westbound On-

Ramp

Add signalized crosswalk. Remove southbound free-

flow right turn.

Reston Parkway/Dulles Toll Road Eastbound Off-

Ramp and On-Ramp

Add signalized crosswalks. Remove northbound free-

flow right turn.

Dulles Toll Road Eastbound Off-Ramp/Fairfax County

Parkway Trail

Realign trail to barrier-separated on shoulder. Realign

trail crossing. Add signalized crosswalk.

Sunset Hills Road Eastbound Off-Ramp/Fairfax

County Pkwy Trail

Realign trail crossing. Add signalized crosswalk.

Bluemont Way from Discovery Street Pedestrian

Bridge Walkway to Reston Parkway

Add sidewalk south side.

Sunset Hills Road from Town Center Parkway to

Reston Town Center Station Entrance

Complete shared use path north side.

New Dominion Parkway from Reston Parkway to

Fairfax County Parkway

Reconstruct with on-road bike lanes. Reduce median

width. Restripe with narrow lane widths.

Town Center Parkway/W&OD Trail Add access ramp at W&OD trail west side.

Town Center Parkway from Sunset Hills Road to

Baron Cameron Avenue



Sunrise Valley Drive from Reston Parkway to Fairfax

County Parkway



Sunrise Valley Drive/Reston Association Entrance Add signalized crosswalks.

Reston Bikeshare Phase 2 Bikeshare Expansion for Phase 2 Silver Line Metrorail.


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Land Value Analysis


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Comparison Reston TSAs to Tysons Assessed Values

Reston 2015 Tysons 2015 Dollar Percent

Residential Value/DU $ 260,129 $ 220,362 $ 39,766 15%

Commercial Value/Sqft $ 239 $ 284 $ -45 -19%

Residential Value/Sqft $ 221 $ 188 $ 32 15%

Average Value/Sqft* $ 235 $ 261 $ -26 -11%

* Assessed value for a given sq. ft. regardless of zoning


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Scenarios April AG Meeting


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Contribution Rates to meet $480M

Residential/DU Commercial/SF Funding

Shortfall

Scenario 1: Tysons residential rates $2,571 $27.80 $0

Scenario 2: Tysons commercial rates $8,036 $12.63 $0

Scenario 3: Rates proportional to Restondevelopment $9,680 $8.07 $0

Scenario 4: Tysons rates and service districtover Reston TSA $2,571 $12.63 $208.43M

Scenario 5: Tysons rates and tax district overReston TSAs $2,571 $12.63 $208.43M

Scenario 6: Tysons Rates and Service Districtover Reston &TSAs $2,571 $12.63 $206.01M

Scenario 7: Tysons Rates and Service Districtover Sp. TD5 $2,571 $12.63 $190.9M



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Private Contributions


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Estimate of Private Contributions Needed Updated from Previous AG Meeting

April June

Reston Grid Estimate Percent Estimate Percent

Grid estimate $1,244,000,000 100% $1,021,000,000 100%Less: Expected in-kind contributions $809,000,000 65% $711,000,000 70%

Funding gap for Grid $435,000,000 35% $310,000,000 30%

Private Cash Contributions Needed (Rounded) Estimate Estimate

Funding gap for Grid $435,000,000 $310,000,000

Intersections $45,000,000 $45,000,000Total other private contributions needed $480,000,000 $355,000,000

Add: In-kind contributions $809,000,000 $711,000,000

Total private share of entire plan $1,289,000,000 $1,066,000,000



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New Funding ScenariosNew Scenario 6 and 7 were developed in response to analysis of land values inReston and Tysons.


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New Scenario 6: Makes a general adjustment of 11 percent to the combined Tysons

residential and commercial rates.

New Scenario 7: Makes a specific adjustment of 15 percent to the combined Tysonsresidential rate and -19 percent to the combined Tysons commercial rate.

Comparison Reston TSAs to Tysons Assessed Values

Reston 2015 Tysons 2015 Dollar Percent

Residential Value/DU $ 260,129 $ 220,362 $ 39,766 15%Commercial Value/Sqft $ 239 $ 284 $ -45 -19%

Residential Value/Sqft $ 221 $ 188 $ 32 15%

Average Sqft* $ 235 $ 261 $ -26 -11%

*Assessed value for a given sq. ft. regardless of zoning


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New Funding Scenarios


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New Scenario 6New Scenario 6

$2,288 $11.24

Roughly Equivalent to combined TysonsRates (per DU and per Sqft)


$2,571 $12.63

New Scenario 7New Scenario 7

$2,957 $10.23



$2,571 $12.63

New Scenario 6: Makes a generaladjustment of 11 percent to thecombined Tysons residential andcommercial rates and leaves a

funding shortfall of $111.20 million.

New Scenario 7: Makes a specificadjustment of 15 percent to thecombined Tysons residential rate and-19 percent to the combined Tysons

commercial rate and leaves a fundingshortfall of $85.22 million.


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Scenarios - Update


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Residential/DU Commercial/SF Funding

Shortfall

Scenario 1: Tysons residential rates $2,571 $18.70 $0

Scenario 2: Tysons commercial rates $4,759 $12.63 $0Scenario 3: Rates proportional to Restondevelopment $7,159 $5.97 $0

Scenario 4: Tysons rates and service districtover Reston TSA $2,571 $12.63 $83.43M

Scenario 5: Tysons rates and tax district overReston TSAs $2,571 $12.63 $83.43M

New Scenario 6: General adjustment fromTysons rates $2,288 $11.24 $111.20

New Scenario 7: Specific adjustments fromTysons rates $2,957 $10.23 $85.22



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Funding GapThe various funding gaps can potentially be funded through the followingmechanisms:

Tax District: $0.03/$100 of assessed values for commercial and industrial

properties in Reston TSAs.* Service District: $0.015/$100 of assessed values for all properties in

Reston TSAs.* Service District Rate in Tysons FY17 is $0.05/$100assessed value.


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Residential/DU Commercial/SF Funding Shortfall

Scenario 4: Tysons rates and service district over Reston TSA $2,571 $12.63 $83.43M

Scenario 5: Tysons rates and tax district over Reston TSAs $2,571 $12.63 $83.43M

New Scenario 6: General adjustment from Tysons rates $2,288 $11.24 $111.20

New Scenario 7: Specific adjustments from Tysons rates $2,957 $10.23 $85.22

*These are average annual rates that do not reflect actual cash flow needs. New Scenario 6 would need an additional $0.005 added to eachrate to meet the shortfall.


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Average Annual Cost to Property Owner


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AssessedValue

Service District Rate

$0.015 $0.020 $0.025 $0.030 $0.035

$300,000 $45.00 $60.00 $75.00 $90.00 $105.00

$400,000 $60.00 $80.00 $100.00 $120.00 $140.00

$500,000 $75.00 $100.00 $125.00 $150.00 $175.00

$600,000 $90.00 $120.00 $150.00 $180.00 $210.00

$700,000 $105.00 $140.00 $175.00 $210.00 $245.00

$800,000 $120.00 $160.00 $200.00 $240.00 $280.00

$900,000 $135.00 $180.00 $225.00 $270.00 $315.00


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Reston Funding Plan Next Steps Seek feedback for cost allocation plan and funding scenarios.

Public meeting 6/27.

Advisory group feedback. Board Transportation Committee (BTC) meeting, July or Fall.

Development of final recommendations.

Board of Supervisors approval by end of 2016.


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Advisory Group Feedback on Do any of these scenarios work?

What features do you like? What features dont you like?

Are you comfortable with a road fund at an appropriate rate? What other options should staff be considering?


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Comments/Questions/Discussion


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reston funding plan june 2016

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