Dedicated Real Estate Tax Revenue
In 2003, faced with rapid development activity that was diminishing our City's available open space, former Councilman David Speck proposed the creation of an Open Space Fund, and suggested the dedication of 1 penny of the real estate tax rate to be transferred to that fund each year to fund the acquisition and preservation of open space in our community.
The City Council in 2003 created this new dedication. Since that time, those funds have enabled the City to purchase acres of open space around our City--both active and passive spaces that have benefited our quality of life.
A few years later, in 2005, faced with the rapid loss of housing that was affordable to middle and low income residents, former Councilwoman Joyce Woodson and former Councilman Ludwig Gaines proposed the dedication of an additional penny of the real estate tax rate to fund the creation and preservation of affordable housing.
The City Council in 2005 created this new dedication. Since that time, those funds have enabled the City to work with private and public partners to create new housing, and preserve threatened housing that has remained affordable to middle and low income residents struggling to remain in our City.
During the budget downturn, both of the dedications were reduced to fund little more than the debt service on open space acquisitions and affordable housing development that had already occurred. In the proposed budget this year, the dedication for affordable housing remained at 0.6 cents, and the dedication for open space remained at 0.3% of real estate tax revenue (the open space dedication was changed to a percentage of revenue a few years ago).
Over the past decade, the Council's appointed Budget and Fiscal Affairs Advisory Committee has repeatedly opposed the practice of dedicating real estate revenue in their annual report to the Council, citing the limitations such a practice can have on the flexibility in the City's budget process.
While I have strongly supported initiatives to preserve and create open space, and I have strongly supported initiatives to preserve and create affordable housing, I share the Budget and Fiscal Affairs Advisory Committee's opposition to the dedication of real estate tax revenue.
In my view, such a dedication subverts our annual budget process and places one type of expenditure (in this case open space and affordable housing) above all others.
If Council supports funding open space acquisition or affordable housing development, it has an annual opportunity to budget money to do so. As it is, recent spending for these priorities has mostly consisted of continuing to pay for past purchases.
The challenge of advance dedication is particularly troublesome in the current environment we are in; an environment that will necessitate cuts to City spending each year. With dedicated real estate tax revenue, our City Manager will be forced to proposed a budget with potentially devastating cuts to essential services, while maintaining the dedicated funds for affordable housing and open space. That choice may not be in keeping with the values and wishes of our community.
This issue came up at least twice during the budget worksessions that the City Council conducts during the budget process. During those sessions, other members of Council and I suggested that the City Manager provide for a consideration of removal of these real estate tax dedications so that all potential expenditures can be considered on a level playing field.
Language doing so was included in the motions that Council approved in adopting our budget on May 6th. While there was some confusion over the process, I believe that ultimately this change was the right thing to do.
While the budget was adopted, the question of whether the dedications should continue will come back to Council for a final decision in June.
This is not a question of funding. The Council's approved budget has $6.7 million for Affordable Housing Development & Preservation--a very large increase over the $3.7 million that was budgeted last year. It has $23.5 million for Open Space Acquisition and Development over the next 10 years
The question is how we raise the money for those priorities. Let me know your thoughts.
Landmark Mall Redevelopment Proposal
As I have discussed in previous months, there is now a proposal
for the redevelopment of a portion of Landmark Mall. While this proposal does not achieve the full vision of the approved Landmark/Van Dorn Plan, it is designed not to preclude the future realization of the plan.
This proposal goes before the Planning Commission on Tuesday for its first consideration. If it's approved by the Planning Commission, it will be before the City Council later this month at our June 15th Public Hearing. Please let us know your thoughts.
Grocery Stores
The ability to have fresh groceries available close to your residence is an essential amenity that every neighborhood should have. Generally, Alexandria has been under-served by food grocers.
Unfortunately, in parts of our City, particularly the West End, we have seen closures--including the loss of Magruder's in January, and now the loss of two of our local Giant Food locations.
The Alexandria Economic Development Partnership has been working with national and regional grocers, as well as the real estate industry to attract replacements for the Mark Center Giant, as well as the Magruder's at Seminary Plaza.
Fresh Market has executed a lease to replace the Bradlee Shopping Center Giant, and they plan to open early in 2014.
The Bradlee Safeway will be closing in the near future to allow for the construction of a new 60,000 square foot "Lifestyle Safeway" to open in 2014.
The Giant at Alexandria Commons on Duke Street is seeking to expand their grocery by adding an additional 10,000 square feet adjacent to their existing store (the outdoor space used previously by Hechinger).
We continually will be challenged to ensure that our residents have access to grocery stores in the future. I will keep you updated as this issue develops.
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