Politics & Government

Business Leaders Outline Cost-Saving Measures for Silver Line

In letter to MWAA, group says that it's concerned mounting costs might cause the project to fail

Business leaders from Fairfax and Loudoun counties have sent a letter to the   Metropolitan Washington Airports Authority (MWAA) Board of Directors calling for significant cost reductions in the Phase II segment of the Dulles Corridor Metrorail Project.

Estimated costs for Phase II have reached $3.5 billion, about a $1 billion higher than original projections.

 At a press conference on Thursday across the street from the under-construction Wiehle Avenue station in Reston, business leaders - who represent more than 6,000 businesses and 500,000 residents and taxpayers - outlined their suggested cost-cutting measures.

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"We can't allow this project to fail," said Kurt Krause, board member of the Northern Virginia Transportation Alliance. "We need this project to happen. How we make everyone get along and play nice in the sandbox … we are hopefully offering solutions that everyone can agree to."

Among the suggestions:

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  • Eliminate the requirement that contractors implement a mandatory Project Labor Agreement (PLA) for Phase II.

"A mandatory PLA is certain to reduce competition, which will drive up costs and diminish the number of qualified contractors that are willing to bid," said Tony Howard, president of the Loudoun County Chamber of Commerce. "It will prevent a significant number of Virginia's construction workforce - 96 percent of which is non union - from working on this project."

  • Approve the above-ground station at Dulles Airport.

"The decision to construct an underground station is not only more expensive, it won't provide any meaningful additional convenience to air travelers," said Eileen Curtis, Dulles Regional Chamber President.

  • Reduce the scope of the Dulles Rail Yard, or find ways to  finance it separately or in conjunction with WMATA, saving $50 million to $100 million.
  •  Ask Fairfax and Loudoun Counties to assume responsibility for funding and construction of the parking structures, similar to the public-private partnership at the Wiehle Avenue station.
  • Seek additional financial help from Virginia and the Federal Government, neither of which has any meaningful financial participation in Phase II. 

"Unlike in Phase I, where the federal government contributed $900 million, there has been no federal money dedicated to Phase II," said Mark Ingrao, president and CEO of the . "The original preliminary cost estimates of Phase II actually anticipated that the federal government would provide 14 percent in grants and Virginia could contribute 4.2 percent. But those funds have not been realized. Instead, toll road [users and] employees are being asked to fund over 90 percent of the cost of Phase II with no control over how high the costs may rise."

Patty Nicoson, president of the Dulles Corridor Rail Association, says "many options have been laid on the table," and that she expects a solution will be found.

"Sec. LaHood has brought the parties together, and I understand they have laid many options on the table, including not doing some of the stations, which is  unthinkable because the counties have worked so hard and are planning for the stations," she said.

"It will overwhelm our community," Nicoson said. "We are struggling now to make recommendations for a master plan that will accommodate the station all the way out to Loudoun. To me, it is just unthinkable."

Said Ingrao: "One of the things that is attractive to businesses here is when you have station to the airport, you will have employees reverse commuting. If the Metro does not go there, it is going to hurt the economic viability and jobs here.

"Let’s be clear," Ingrao said. "The whole focus of this rail line was to get people to the airport and to bring people beyond into Loudoun. It would be catastrophic to us. This project cannot be allowed to fail or the terminus will be at Wiehle Avenue.  It is vital to not only Northern Virginia, but to the entire National Capital Region’s economic future."


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