Friday, February 08, 2013

Will Virginia get in a TIF over Potomac Yard Metro?

Today, the Alexandria Times discusses a proposal by Delegate Rob Krupicka that would have participate in the financing of the Potomac Yard Metro Station via Tax-Increment Financing (Krupicka turns to Richmond to Help Pay for Potomac Yard Metro Station).

Tax Increment Financing (TIF) is a method to use future gains in tax revenues to help fund current infrastructure improvements that are projected to produce those gains.

From the Times:

"The freshman state legislator has introduced a bill that would redirect state tax revenue from the neighborhood’s development — as well as future sales and use taxes — back to the Port City. The dollars would then go toward paying off the estimated $250 million Metro stop.... dipping into state tax revenue streams — capped at $1.25 million per year — could potentially cover interest on the municipal bonds.
"According to the Alexandria Chamber of Commerce, which has also thrown its weight behind Krupicka’s proposal, the state would pay for as much as 10 percent of the station’s construction cost over 30 years."

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