The Council Connection
your connection to City Council by Mayor Justin M. Wilson
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The four bidders who have responded to this solicitation are:
The City Council voted unanimously to accept all four proposals and our staff is currently working to return to Council with franchise agreements with one or more of these bidders very soon.
It has taken far too long, but the City is finally moving ahead on an effort to bring new broadband capacity to our community.
Over 7 years ago, the City issued a Request for Information (RFI). This RFI solicited concepts from the private sector for partnership with the City in expanding broadband options, availability, and capabilities. We received 10 responses from potential private partners and those responses shaped the approach the City is now taking.
For years, Alexandria has sought new private investment in broadband infrastructure. For most of our residents, we have one company providing Internet connectivity and television. Regardless of the performance of incumbent providers, technological innovation and reliability thrives on competition.
This is an issue that impacts not only residents but also our businesses and the ability of our community to attract new investment.
By leveraging E-Rate funding from the FCC, achieving operating savings from the costs of the existing agreement, and the potential for private leases of our infrastructure, the effort may be able to pay for itself.
One of the core components of the original proposal I made was that the City adopt a "Dig Once" policy. Essentially that's a policy that makes the City more efficient by leveraging existing underground infrastructure work to add conduit and other infrastructure at the same time. With hundreds of millions of dollars of sewer and transportation work scheduled over the next decade, we should sequence and combine that work to be the most efficient.
This is an exciting project and one that gives the City the best chance to leverage its assets to bring new broadband services to our residents and businesses.
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On June 30th 2010, the Alexandria Fire Department had an authorized workforce of 252 full-time equivalent (FTE) employees. Today the authorized workforce is 301.50 employees. No other City department has experienced that type of workforce growth during that period.
As a result of that investment, we are now making new progress in aligning our Fire Department staffing with the recommendations of the National Fire Protection Association (NFPA).
By cross-training the existing single-mode medics, the belief was that we could achieve appropriate minimum staffing on all engines, ladders and the rescue company in order to meet the NFPA standard.
When the City began the transition to the new staffing model in 2014, we had 64 single-role medics with 10 single-role EMS supervisors. Today we have 19 remaining single-role medics.
A SAFER grant covers most of the personnel costs of these positions in the first and second years, and a portion in the third year. At that point, the City becomes responsible for all of the costs going forward.
This is an important step forward to ensure that Alexandria's residents and their property are protected by fire suppression and emergency medical services which meet minimum standards. This is an investment in the safety of our personnel and our residents.
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During my presentation at the beginning of the session, I discussed the City's achievement toward our goal of creating of preserving an additional 2,000 committed affordable units before 2025. Through a variety of efforts, the City had accounted for 1,404 of the 2,000 housing units we are working towards.
Of the 1,404 units 735 of them were created through partnerships with non-profits and the City's housing authority, the Alexandria Redevelopment and Housing Authority. These partnerships have typically utilized Federal Low-Income Housing Tax Credits (LIHTC) and braided several different funding approaches. Creating housing that remains affordable regardless of often unforgiving market conditions, requires creativity and a little luck.
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Last month, the City Council unanimously approved a proposal by the Alexandria Housing Development Corporation (AHDC) to develop 475 committed affordable and workforce units in Arlandria at the corner of Glebe and Mount Vernon. This is the site of a former Safeway and an office building bought by the City 2 decades ago, demolished and used as a parking lot as an interim use.
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In December, the City Council unanimously approved a separate proposal by AHDC to develop 36 affordable homeownership units (31 townhomes and 5 condominiums) and 3 flats to be operated by Sheltered Homes of Alexandria for 12 residents. This project is located on Seminary Road just east of the City's Fire Station.
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This evening, the City's Planning Commission will be considering a proposal by another housing non-profit, Wesley Housing Development Corporation, to build 373 committed affordable housing units at Parcview on Holmes Run Parkway. If the Planning Commission makes a recommendation, this project will come before City Council on the 12th of this month.
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Last month, Wesley Housing used resources from Amazon's Housing Equity Fund and a loan from Housing Partnership Fund, to purchase 66 private units in Arlandria and preserve them as affordable, with future redevelopment plans to come.
The City will continue to seek creative partnerships, new land-use tools and innovative financing to preserve and create affordability in our City. I am pleased to see these efforts come to fruition.
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Stormwater Utility Fee Credits
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The fee applies to all properties (regardless of their taxable status). For commercial properties, it is assessed based on the impervious surfaces on the property. For residential properties, there are four tiers (apartment, townhome, small single-family home and large single-family home). Currently, the fee is $78.40 per year for apartments, $117.60 per year for a townhome, $280 per year for a small single-family home and $467.60 per year for a large single-family home. Essentially the fee is structured to be a user fee for the City's stormwater handling.
The fee was created to raise revenue for important flooding remediation and water quality initiatives. When property owners implement best practices to benefit our stormwater systems, it helps the community as a whole. Please make sure you obtain credits for these important efforts.
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- In April of 2019, our local sales tax revenue exceeded $2.5 million. In April of 2020, it fell to $2 million.
- In April of 2019, our dining tax revenue was over $2 million. In April of 2020, it fell to just barely over a half million.
- In April of 2019, our transient lodging (hotel) tax revenue was $1.4 million. In April of 2020, it fell to less than $200,000.
Unfortunately, the carnage had very real human impacts. In April of 2020, the Virginia Employment Commission (VEC) reported over 7,000 initial unemployment claims for Alexandria. Most of the employees impacted were those who worked in the travel and hospitality industry.
- Visitor spending is projected to rebound to $693 million this year.
- In December, there were only 110 initial unemployment claims.
- Sales tax revenue in September (the most recent month available) exceeded $3 million, significantly higher than the same month in 2019.
- Meals tax revenue has now exceeded 2019 levels for 5 straight months.
- Hotel tax revenue continues to grow every month, but still has a way to go to match where we were in 2019.
It has been the creativity of business leaders around our City, the tireless work of their dedicated employees and the partnership with government that has led our local economy into recovery. We still have work to do, but we have made considerable progress from the dark days of 2020. Our City government will continue our efforts to restore our local economy.
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The approval will construct a new facility with 313,355 square feet of space, capacity for 1,600 students, and significant sustainability features to ensure the building is "NetZero" when it opens. The project also includes a variety of City facility co-location, with a new pool, a teen wellness center, early-childhood space, and more.
We also see a clear divide emerging in the new post-pandemic enrollment trends, as enrollment in our high school (grades 9 - 12) continues to increase, while enrollment for elementary and middle school students dropped. While both the increase and the decreases were modest, they are potential trends to be watched in the future.
This 10-year Capital Program includes rebuilds or builds of:
- Cora Kelly Elementary School
- George Mason Elementary School
- Minnie Howard Campus of our High School
- A new school to be determined
Every public school student in Alexandria should learn in a first-class facility. The Minnie Howard project will be a significant investment in the future of education in Alexandria.
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George Mason Hotel Reborn
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In 1929, the George Mason Hotel opened up at the corner of S. Washington Street and Prince Street in Old Town. Designed by the architect William Lee Stoddart, the hotel boasted a toilet in each room!
This transition has led to an opportunity to return this building to its original use.
Hotels are the most lucrative land-use for the City of Alexandria and its taxpayers. Hotels generate significant real estate tax, transient lodging (hotel) tax, dining tax, sales tax and Business, Professional and Occupational License (BPOL) tax. In return, hotels consume hardly any services, with no kids in schools, minimal public safety needs and limited impact on transportation networks. No other land-use can match it.
AEDP identified a state program, the Tourism Development Financing Program (TDFP), administered by the Virginia Tourism Corporation. This program identifies tools to address the needs of gap financing for projects supporting tourism activity.
In this case, a $69.6 million project was partially financed by its investors, leaving a $6.1 million gap. Using the TDFP, private loans sought by the hotel developer could be serviced by 3 revenue sources, all ultimately paid by hotel guests:
- The Commonwealth agrees to provide its 1% sales and use tax charged to each hotel guest over 20 years to pay off the debt
- The City agrees to provide its 1% sales and use tax charged to each hotel guest over 20 years to pay off the debt
- The hotel guests will pay a special 5% "access fee" over 20 years to pay off the debt
As the City Council considered this arrangement, concerns were raised by members of Council and labor activists, as to whether additional protections for workers could be included as part of the performance agreement with the hotel.
Last month, City Council voted 4-3 to approve the arrangement, submitting the application to the Virginia Tourism Corporation and including new protections in the performance agreement to support the right of employees to organize with a union if they wish to do so.
The landowners of this property have vested rights under the existing zoning to convert the property to a multi-family residential use (as well as other "by-right" uses). By reverting to the hotel use, this property will generate a net tax return to the City's taxpayers of $37.6 million over the next 20 years, a return 500% higher than an allowed residential use.
This project will bring back the history use of the building and provide strong economic return for the City's taxpayers.
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Each of our fire stations are critical municipal infrastructure, with availability required every day of the year. To complete these facility investments requires disruption and systemic resiliency.
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Power Plant Redevelopment
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Eventually, they got the support of the City government, and through years of work, led by my former colleagues Paul Smedberg and Del Pepper, the plant shut down for good a little over 8 years ago.
Now, it's time for what will be next.
With the closure of the plant, this site became one of the higher priority sites for redevelopment in the City. As the City's focus on the waterfront has led to new public access, increased open space and new economic vitality, the power plant site is a critical missing piece as we work to ensure the connection of the northern end of the waterfront.
Fortunately, Hilco is welcomed to Alexandria with an adopted community vision to guide them. In 2017, City Council approved the Old Town North Small Area Plan. This planning document codified a redevelopment vision for the 20-acre power plant site and the area surrounding it.
While the plan was appropriately non-specific about the exact future development of the power plant site, the approved vision details new open space, mixed-use development, sustainable land-use, affordable housing and much more.
This is a critical parcel for the City's future. The community engagement will be key to shaping these applications in the future.
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Paid for by Wilson For Mayor | www.justin.net
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