The Reston Citizens Association PO Box 2851 Reston, VA 20195 February4,2013 TheHonorableMarkWarner TheHonorableTimKaine USSenator,Virginia USSenator,Virginia 475RussellSenateOfficeBuilding B40CDirksenSenateOfficeBuilding

eOfficeBuilding Washington,DC20510 Washington,DC20510 TheHonorableFrankWolf TheHonorableGerryConnolly th USRepresentative,10 District,Virginia USRepresentative,11thDistrict,Virginia 233CannonBuilding 424CannonHOB Washington,DC20515 Washington,DC20515 TheHonorableRayH.LaHood TheHonorableRobertMcDonnell USSecretaryofTransportation Governor,CommonwealthofVirginia 1200NewJerseyAve.SE 1111EastBroadStreet WashingtonDC20590 Richmond,Virginia23219 MWAAhasproposedamendingitsauthorityunderitsleasewiththeUSDepartmentof Transportationtoincludeauthoritytoconductnonaviationrelatedactivities,includingcommercial developmentonlandneartheRt.606SilverLineMetrorailstation.Thisletterrecommendsthat,ifit approvesofsuchastep,CongressdirectMWAAtoshareanyincomefromthesetaxfreecommercial initiativeswiththosewhoarepayingfortheSilverLine,includingDullesTollRoadusers. DearHonorableGentlemen, InDecember2012,MetropolitanWashingtonAirportsAuthority(MWAA)CEOJackPotterpresentedto MWAAsBoardofDirectorsthelatestinformationonMWAAsongoingplanningtodevelopthereal estateonitsproperty.Inthatpresentation,henotedthattherearesome3,000acresofdevelopable landwithintheDullesairportproperty,includingsignificantopportunitiesfornonaviationrelated commercialdevelopmentattheRt.606SilverLineMetrorailstationandalongthewesternedgeofthe airportproperty(seeattached).Otherareasoftheairportinternaltoitslargeacreagecouldalsobe developedalthoughitappearstheseareasmightbebestsuitedforaviationrelateddevelopment.

Theopportunitiesfornonaviationrelatedcommercialdevelopmentraiseimportantfinancialissuesfor MWAA,itsfinancialpartnersFairfaxandLoudouncounties,thestateofVirginia,andtheUSCongress whichcreatedtheMWAA.Inparticular,MWAAisnowessentiallyexemptfromtaxesasstatedinitslast annualreport:The(MetropolitanWashington)AirportsAuthorityisexemptfromthepaymentof federalandstateincome,property,andcertainothertaxes.(SeeMWAA2011CAFR,December31, 2011,p.55.) Tomakesuretherewerenoquestionsaboutitsauthoritytoconductactivitiesonitspropertyfornon aviationrelatedpurposes,theMWAABoardpassedaresolutiononJanuary16,2013,proposedan amendmenttoitsleasewiththeUSDepartmentofTransportationthatwouldgiveittheauthoritytodo so.Specifically,itproposedamendingtheleaseasfollows: 2.Article1,Definitions,paragraph1.D.AirportPurposesisamendedbyinsertingbeforethe periodacommaandthenthewordsorforabusinessoractivitynotinconsistentwiththeneeds ofaviationthathasbeenapprovedbytheSecretary. Atpresent,thisdefinitionofAirportPurposesclausestatesthefollowing: ThetermAirportPurposesmeansauseofpropertyinterests(otherthanasale)foraviation businessoractivities,orforactivitiesnecessaryorappropriatetoservepassengersorcargoinair commerce,orfornonprofit,publicusefacilities. TheadditionoftheproposedamendmentwouldallowMWAAtoengageinanykindofactivityatDulles andNationalairportsthatisnotinconsistentwiththeneedsofaviation,agrossexpansionofits airportoperatingauthorityintononaviationrelatedcommercialendeavor. AlthoughtheleaseamendmentproposalrequirestheapprovaloftheSecretaryofTransportation,it remainsunclearwhethertheMWAABoardhastherightevennegotiateforitselfauthoritytochange theessentialpurposeoftheleaseagreementasdetailedabovewithouttheapprovaloftheUS Congress,evenwiththeapprovaloftheUSSecretaryofTransportation.Theproposedlease amendmentbegsthequestionofwhattypesofactivityareinconsistentwiththeneedsofaviation. TheMWAABoarddecisionanditsongoingplanningtodevelopsignificantportionsofitspropertyfor nonaviationpurposesraiseanumberofimportantquestions.Thekeyissuesare: WhopaysfortheneededinfrastructureanditsoperationandmaintenanceintheMWAAnon aviationcommercialdevelopmenteffortandhow? o Asitstandsnow,thetaxpayersofLoudounCountyappeartoberesponsibleforbuilding everythingfromsewerstoschoolstoparkstosupportMWAAsdevelopment,subjectto proffersandrezonings.Moreover,MWAAisnotconstrainedtopursuedevelopment onitspropertyconsistentwithLoudounCountysComprehensivePlan. WhopaysfortheconstructionoftheRt.606Metrorailstationandassociatedparking, currentlyestimatedtocost$168million,andhow? o Currently,LoudounCountyhasassumedthatresponsibilityunderthepresumptionthat itcanfindabusinesspartnertosharethecostsundertheLaHoodarrangement.Inthe

eventthatLoudounCountyisunabletofindapartner(agrowinglikelihood),the stationandgarageconstructioncostsreverttotheoverallMWAAprojectwiththree quartersofthosecostspaidDullesTollRoad(DTR)users. WhatshareofresultingMWAAdevelopmentrevenueswillbedirectedtopayingfor constructionoftheSilverLine,especiallyreducingtollsontheDullesTollRoad,andhowwill thatbeaccomplished? o Todate,wehaveseennoindicationthatMWAAintendstouseanyrevenuefromthese developmenteffortstorelievethehugeburdentollroadusersfaceinpayingoffthe massivedebtissuedbyMWAAtocovertheSilverLinesconstruction. OnDecember30,2012,wecontactedkeymembersofMWAAsleadership,includingCEOJackPotter, ChairmanMichaelCurto,ViceChairmanTomDavis,andCFOAndyRountreefortheiranswertothese questionsandaskedforaresponseattheirearliestconvenience.Todate,wehavereceivednoreply whatsoever,notevenaninterimresponse.TheabsenceofaresponseofanykindbeliesMWAA leadershipsoftstated,butincreasinglyhollow,commitmenttoopenness,transparency,andeven easingthegrowingtollburdenfacedbyDullesTollRoadusers. TheRestonCitizensAssociation(RCA)BoardofDirectors,byaunanimousvoteatitsFebruary4,2013, meeting,resolvesthatitisfundamentallyinequitableandunfairforMWAA,anotforprofitpublic aviationserviceenterprise,togarnerallthebenefitsofataxpayingnonaviationrelatedcommercial developmententerprisewithoutpayingitsfairshareofthecoststhroughappropriatetaxes,fees,and otherobligationsthatsuchadevelopmenteffortincurs. First,itisunfairtoitssocalledfinancialpartners,LoudounandFairfaxcountiesbecausethese countiesarelikelytolosetaxrevenuegeneratingbusinesstodevelopmentonMWAAsDullesairport property.LoudounCountytaxpayerswillbeespeciallyhardhitbecausetheywillneedtopayforthe infrastructureforMWAAstaxfreenonaviationrelatedcommercialdevelopmentfordecadestocome. TheprivatedevelopmentsectoralsofacesaplayingfieldtiltedinfavorofMWAAincompetingfornon aviationrelatedcommercialdevelopmentintheseareas,especiallyaroundtheRt.606Metrorail station.Besidesnotbeingburdenedbytaxesrelatedtotheneededinfrastructuredevelopment, includingtherecenttaxservicedistrictLoudounCountyhascreatedtocoverstationareainfrastructure costs,MWAAwillnotbepayingpropertytaxestoLoudounCountytosustaintheservicesforthese areas.TheresultisthatMWAAwillbeabletoundercutthecommercialdevelopmentmarketin attractingbusinessestoitspropertyandkeepalltherevenuesthatdevelopmentgenerateswithout payingforneededservices. WebelieveitisespeciallyunfairtoDullesTollRoaduserswhoarenowexpectedtopayforoverhalfof theestimated$6billioncostconstructingtheSilverLinewithfaresthatforecasttotripleinsixyearsand risetomorethan$18fullonewaytollin2050.Moreover,thethreebilliondollarplusdebttobepaid bytollroaduserscouldincreasebysome$400millionifLoudounandFairfaxcountiescannotfind partnersinthedevelopmentofseveralPhase2SilverLinestationsandparking.Therearealso innumerablerisksofcostescalationintheconstructionprocessthatcouldleadtomoreMWAAdebt andevenhighertolls.

WebelievetheCongressoftheUnitedStates,ledbyyouournorthernVirginiaarealegislatorsand theleadersofthepartiestothecompactVirginia,Maryland,andtheDistrictofColumbiashould movetoamendMWAACompacttoassurethefairandequitabledistributionofanyincome generatedbyMWAAsmovementintocommercialdevelopmentnotdirectlyrelatedtoitsaviation operationsandmanagementmission.Specifically,weaskthatyouamendtheMWAACompactto assurethatallincomefromthesale,development,lease,oranyotherincomeproducingactivitythat isnotdirectlyrelatedtothesupportofaviationactivitiesonpropertymanagedbyMWAAbeshared withLoudounCounty,FairfaxCounty,andDullesTollRoadusersinthemannerdetailedinits2007 fundingpartnersagreementforallocatingcoststoconstructtheMetrorailSilverLine. TheMWAAfundingpartnersagreementcallsfor: MWAAtopay4.1%ofthecostofconstruction LoudounCountytopayfor4.8%ofthecostofconstruction; FairfaxCountytopay16.1%ofthecostofconstruction;and DullesTollRoaduserstopaythebalanceofthecostnototherwisecoveredbyother principallyfederalandVirginiacontributions.Atthistime,MWAAestimatesthesharetobe paidbytollroadusersatabout54%. Byourcalculation,thisformulationwouldmeanMWAAwouldreceiveabout5.2%oftheincomefrom itsnonaviationrelatedactivities;Loudounwouldreceiveabout6.1%oftheincome;Fairfaxwould receiveabout20.4%oftheincome;andDullesTollRoaduserswouldseeabout68.4%oftheincome directedtobuyingdownthe$3billionSilverLineconstructiondebtthefundingpartnersobligatedthem topay.WebelievethepaymentsbyMWAAoughttobemadesemiannually,ifnotquarterly,toenable revenueplanningbythecountiesandthetimelybuydownofMWAAdebtpaidbytollroadusers.In short,webelievethetimely,proportionalsharingofthefinancialbenefitsamongthosewhomust absorbthecostsofSilverLineconstructionistheonlyfair,equitable,reasonable,andrightcourseof action,especiallyforanynonaviationrelatedcommercialenterpriseMWAAdecidestopursue. Weappreciatethatthismaybeachallengingtask,butwehavethegreatestconfidencethatyou,our electedleaders,willbeabletoaccomplishthisgoalthatwillbringsomedegreeoffairnessbackintothe futuredevelopmentlinkedtotheconstructionofMetrorailsSilverLine.OnbehalfoftheReston CitizensAssociationBoardofDirectors,weaskthatyoutakethestepsneededtoleveltheplayingfield fornorthernVirginiascounties,residents,andbusinessesinthecomingdevelopmentoftheSilverLine corridorinFairfaxandLoudouncounties. Respectfullysubmitted, ColinW.Mills,President RestonCitizensAssociation

cc: SeanConnaughton,VirginiaSecretaryofTransportation ThelmaDrake,Director,DepartmentofVirginiaRailandPublicTransportation SenatorJanetHowell,VirginiaSenate,CommonwealthofVirginia DelegateKenPlum,HouseofDelegates,CommonwealthofVirginia DelegateJoeT.May,Chairman,HouseTransportationCommittee,CommonwealthofVirginia SenatorStephenNewman,Chairman,SenateTransportationCommittee,CommonwealthofVirginia FairfaxCountyBoardofSupervisors LoudounCountyBoardofSupervisors JackPotter,CEO,MetropolitanWashingtonAirportsAuthority MichaelCurto,ChairmanoftheBoard,MetropolitanWashingtonAirportsAuthority KenKneuven,President,RestonAssociationBoardofDirectors JerryVolloy,President,AssociationofRestonClustersandHomeowners MichaelFerraro,Chairman,GreaterRestonChamberofCommerce PattyNicoson,President,DullesCorridorRailAssociation RichMcCary,CommitteeforDulles KurtThompson,President,DullesAreaTransportationAssociation bcc: LocalNewsMedia