- Briefing Room
|Project Sponsor / Borrower||
Washington Metropolitan Area Transit Authority (WMATA) / District of Columbia
|Value Capture Techniques||
Special Assessment Districts
The NoMa - Gallaudet U station opened in 2004 as the Washington Metrorail's first infill station. During construction, the station name was changed from "New York Avenue" to "New York Avenue-Florida Avenue-Gallaudet University." In 2011, WMATA renamed the station "NoMa - Gallaudet U" after the neighborhood's nickname, meaning north of Massachusetts Avenue.
Prior to construction, property in the vicinity of the station consisted of vacant land, railroad yards, warehouses, and other industrial properties. Redevelopment in the area was proposed by the private sector, but required outside funding due to WMATA's funding constraints. The private sector and local property owners formed a task force, donated land for the project, and formed a special assessment district.
The Action 29-New York Avenue Metro Station Corporation (Action 29 Corporation) was formed by major developers, area property owners, corporate business leaders, and community leaders for the purpose of leveraging private investments for the station. Land in the amount of $10 million amortized over 30 years was donated to the project, reducing property acquisition costs. Other landowners of land adjacent to the proposed station temporarily donated property for construction storage and staging purposes.
Property owners within 2,500 feet of the future station's entrance (excluding properties within 1,250 feet of Union Station) agreed to increase property taxes through the creation of a special assessment district. Through detailed negations, property owners agreed to pay an annual amount of 1/30th of the $25 million total over 30 years. Revenue collected by the special assessment district is being used to repay a $25 million general obligation bond, which funded 24 percent of project costs. Additional project costs were funded by the Federal government (24 percent) and the District of Columbia (42 percent).
In addition to providing $44 million for project costs, the District of Columbia formed the 35-block NoMa Business Improvement District (BID) in 2007 to generate additional economic improvements. The BID levies property taxes on commercial, multi-unit residential, and hotel properties to support the continued development of the NoMa neighborhood.
The project exceeded its initial estimates of 5,000 new jobs and $1 billion in area investments. According to a case study by the National Council for Public-Private Partnerships (NCPPP), assessed valuation of the 35-block area increased to four times its initial amount from 2001 to 2007. In addition, over 15,000 jobs were created between 1998 and 2007, with $1.1 billion in private investments.
|Project Delivery / Contract Method||
|Private Partner||Action 29 Corporation|
|Project Advisors / Consultants||
Lane Construction/Slattery/Skanska (Design-builder)
|Duration / Status||
Opened in 2004. Bond will be paid off using special assessment revenues over the 30-year period.
|Related Links / Articles||Urban Land Institute - NoMa: The Neighborhood That Transit Built|