Potomac Yard Metro cost rises to $385 million after council approves final $35 million
Council also endorses DMVMoves regional transit plan at virtual meeting
City Council unanimously approved an additional $35 million to close out the Potomac Yard Metrorail Station project Tuesday night, bringing the total cost to $385 million.
The vote came during a legislative meeting held virtually due to the ongoing winter weather emergency.
Deputy City Manager Emily Baker told council the $35 million covers three categories of expenses that emerged as the project wrapped up.
The first involves change orders for work not included in the original design, including additional electrical conduits, enhanced wetland mitigation required by the Army Corps of Engineers, and storm drainage improvements.
The second covers contractor claims related to COVID-19 impacts during construction, including delays from the track switchover between existing and new rails.
The third resolves an escalator claim. The contractor disputed WMATA’s denial of an escalator substitution, and the matter was in litigation before the parties reached a settlement.
“The contractor has agreed that with this amendment, this will completely close out all of the financial obligations for this project,” Baker said.
The station, located on the Blue and Yellow lines between Ronald Reagan Washington National Airport and Braddock Road, opened in May 2023.
The funding will come from the Potomac Yard Fund balance, generated by special tax district revenues, not the general fund. The city will pay in two installments over 24 months.
This marks the third amendment to the original 2018 funding agreement. The Commonwealth of Virginia added $50 million in 2020 based on projected ridership from Amazon’s nearby headquarters, and the city added $10 million in 2023.
DMVMoves endorsement
Council also endorsed DMVMoves, a 25-year regional transit investment plan developed by the Metropolitan Washington Council of Governments and WMATA.
The plan calls for $460 million in new annual capital funding for Metro starting in fiscal year 2028, with a 3% yearly increase. Virginia’s share would be $142 million, though Alexandria’s specific contribution has not been determined.
Staff recommended endorsing the plan conceptually without committing funding at this time.
Arlington, Fairfax and Loudoun counties, along with the Northern Virginia Transportation Commission and Northern Virginia Transportation Authority, have already endorsed the plan. Without new dedicated funding, WMATA projects it will reach its debt capacity limit by fiscal year 2029.
Housing 2040 work session
Council also held a work session on the Housing 2040 Plan, an update to the city’s 2013 Housing Master Plan.
Staff presented draft principles focused on anti-displacement initiatives, housing stability, and preparing for the city’s changing demographics. The plan addresses key challenges including housing affordability for service and hospitality workers, aging condominium buildings — which average 45 years old — and a growing senior population.
The city has lost significant market-rate affordable housing over the past 25 years, with units affordable to households earning up to 60% of area median income dropping from 18,000 in 2000 to 6,900 in 2025. An additional 2,100 committed affordable units have affordability agreements expiring by 2040.
Staff estimated that more than $100 million is needed to fund affordable housing projects currently in the pipeline.
A community open house is scheduled for Feb. 28 at Nannie J. Lee Memorial Recreation Center. A public hearing is planned for spring.
Earlier in the meeting, Councilman R. Kirk McPike announced he will resign Feb. 9, and City Manager James Parajon called the ice storm the worst in 30 years.
This story is developing, mor reaction and context to come.