Alexandria City Council on Saturday approved an ordinance creating a special tax district for the area surrounding the proposed Potomac Yard Metrorail Station.
This Tier II tax would be capped at 10 cents, which would not be levied until Jan. 1 of the calendar year after the Metro station opens. The city is expecting revenues from the first year of these taxes to be about $400,000, according to city documents.
The "Potomac Yard Metrorail Station Special Services District" does not include Potomac Greens or Old Town Greens.
The actual location of the proposed station will be determined during an environmental impact study, which began in February and is expected to take up to three years to complete.
The new tax district will help pay for the $240 million it could cost to build a Metro station there.
The City Manager's office describes the Tier II special tax district as "the southern part of Potomac Yard not including the development sites south of the Monroe Avenue bridge."
Additionally, the office said that because Potomac Greens homes eventually will appreciate because they will be nearer to a Metro station, "the average Potomac Green homeowner will pay approximately $800 more a year in city real estate taxes, generating about $200,000 in revenue that will be directed toward the Metrorail station fund."