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Council Discusses Funding Infrastructure for Downtown Master Plan

Under the current comprehensive plan amendment for the DMP the town may have to find $24 million to $28 million for infrastructure improvements

 

The Herndon Town Council heard from consultants at Alvarez and Marsal that the infrastructure gap for the Downtown Master Plan could be between $24.1 million and $28.8 million at its work session Tuesday night.

The process for the Downtown Master Plan has been underway for more than a year and includes a downtown area with buildings being between one to three stories. The plan includes uses such as retail, residential and public uses.

The issue the town has been tackling since the fall is what it will cost the town and taxpayers to be able to pay for infrastructure improvements in the downtown that will be necessary with redevelopment.

The Town tasked consultants Alvarez and Marsal with figuring out how large of a monetary gap there might be for the improvements, which include structured parking, utility undergrounding, intersection realignments, streetscapes and more.

The Planning Commission came up with a number of ways to help cover the costs of the needed improvements. Those include bonds, service district funding, which would tax those within the district for infrastructure costs, grants and other means.

Councilwoman Grace Wolf said some projects within the downtown already have planned funding sources, which may skew the results of the consultant's study by a few million dollars. She said that information should be included.

Councilwoman Lisa Merkel said the future arts facility, the project Wolf referred to, is different than other projects in existence so it may be hard to find a comparison. The Herndon Foundation for the Arts intends to develop an arts center without using public taxpayer money.

Councilman Jasbinder Singh asked why more information wasn't included in the study. The study results include a lot of numbers but not the way of how those numbers came to be, he said. Consultants said they don't give out their models because other consulting firms might use them.

Councilman Bill Tirrell said what was being presented by the consultants was simply a snapshot of what the numbers might look like now. He said the values are dictated by the marketplace and will change over time.

"It's not static," Tirrell said. "Nothing in here is static. My takeaway right now is that depending on the option, we're looking at a $15 to $20 million gap depending on a few things."

Tirrell said the bottom line is that most financing will probably have to come from the taxpayers. He said aiming for a low density means the developer may not be able to achieve what they want or get all they want.

Dana Heiberg, a senior planner for the Town of Herndon, said the plan is of modest density, which meets the desires of the community. Lisa Gilleran, director of community development, said there is a lack of proffers in the plan.

Proffers are when developers agree to fund infrastructure improvements in areas surrounding the development, such as paying for a portion of a parking structure, when coming to an agreement for development with a municipality.

Merkel said the town has spent a lot of time talking with the public about what they want in the Downtown Master Plan. She said if they were considering 10-story buildings, the infrastructure gap might not be there, but they are following the desires of Herndon residents.

Merkel said the town now has to hear what the public has to say about finding the funds to support redeveloping the downtown. She said residents will need to decide if they want to stick with lower density knowing the town will have to find ways to pay for it, or would they rather consider increasing density.

Consultants from Alvarez and Marsal said if town eliminates the improvements for the parcel of land that Jimmy's Old Town Tavern sits on the number gets much smaller, about $12 million.

The Town Council will consider the comprehensive plan amendment for the Downtown Master Plan at its next public hearing, at 7 p.m. Tuesday, Jan. 11 at the Mary Ingram Council Chambers, 765 Lynn St. Members of the public can voice their opinions during the public hearing and will be given three minutes to speak.

Bob Bruhns

9:04 pm on Thursday, January 6, 2011

It may be heresy to ask this... but isn't Downtown Development a self-generated emergency? Do we really need to run up 20 to 30 million dollars of debt to make a scenario in the downtown that we probably can't afford? Isn't this just a big borrowing game? And why should development always be funded with tax dollars?

I like the pictures... but life is about to get a lot more expensive in this region pretty soon. We are also looking at the Herndon-Monroe rail station mess, and the whole Dulles Rail financial nightmare for this whole region. We are only beginning to see the dimensions and magnitude of that fiasco. Herndon should not be looking to stagger into more and more debt.

We should be making do, and making things work. It seems to me that if we have any sense, we can make this idea develop itself over time - although we haven't been making much of anything happen in all the years it's been kicked around, because everybody is waiting for a big government handout of borrowed money. Why can't we pay as we go?

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Bob Bruhns

6:51 pm on Sunday, January 16, 2011

If we need parking, then maybe we should -build- parking, instead of stampeding into a hugely expensive and ultimately impractical deal to get a parking garage thrown in for 'free'. I certainly can not imagine a parking garage for downtown Herndon costing 20 to 30 million dollars, and I can not believe that undergrounding the utilities would add enough cost to eat 20 to 30 million dollars either. If it does, then we need to get competitive bids on that work.

I think Herndon would come out far ahead, if we built what a government should build, and let business build what business should build. In my opinion, we have been bamboozled for years with talk about a town center that we really don't need, and now once again we are being pushed to spend money that we simply don't have.

I think the art center has been the bait for a very expensive and painful (and possibly town-busting) lesson in economics. It was a very good trick, but now it's time for us to get real.

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