Wednesday, March 21, 2007

Affordable Housing Crisis

This topic can be sensitive for a variety of reasons. Can people at different ends of the economic ladder live next to each other peacefully? It is no longer news that there is a severe shortage of affordable housing in the county which has led to a situation where teachers, construction workers, EMT workers, Sherriff’s deputies and other middle class wage earners have to live outside the county.

What can be done to fix this problem? Should we be doing what is being done in New York City? New York City offers housing subsidies of up to $14,600 to entice teachers to work in the city's schools. Costly but effective strategy. The other option to consider is the Moderately Priced Dwelling Unit Program (MPDU) which has been in effect in Montgomery County, Maryland since 1974. This program is believed to be the nation's first mandatory, inclusionary zoning law that specified a density bonus allowance to builders for providing affordable housing.

The density bonus was designed to preclude developers from losing opportunities to build market-rate units and to help offset some of the production costs of the MPDUs. The program's implementation involves both the public and private sectors, with the local government performing regulatory and administrative functions and the building industry producing the housing. More information on the MPDU program is available at this site.

Needless to say that the MPDU ordinance faced stiff opposition prior to becoming law. Builders believed it would cut into their profits and existing homeowners were afraid it would devalue their homes - neither of these concerns materialized. I will be the first to agree that neither options (NY & Montgomery County) are perfect, but they definitely do mitigate affordable housing problems. I would suggest that the Loudoun county government start to look at both options and others, we do not have to do exactly the same thing here in Loudoun, but a variation of some sort will definitely reduce the shortage that we are currently experiencing, and it is only going to get worse if we do not come up with both short and long term plans to address this issue.

Friday, March 16, 2007

Metro to Dulles Airport in Jeopardy?

Washington Post and other media outlets are reporting today that Virginia transportation officials are threatening to end talks with the private consortium seeking to build the metro extension to Dulles airport if a deal is not struck by April 5, potentially jeopardizing the future of this project. The Metropolitan Washington Airports Authority says the cost estimates are too high. Also we may lose $900 million dollars in Federal funds if the Federal Transit Administration decides that the project was not cost effective.

It is surprising to most visitors to our country that the busiest airport in the capital of the free world is not connected to a mass transit system. I do not have any expertise in appraising billion-dollar projects, but I do not understand how we are able to finance the visitors building for the capitol hill which has gone way over budget, or the "drunken sailor" spending going on in Baghdad, where in some cases US taxpayer dollars is available but it cannot be spent because of the security situation.

How come when it comes to projects that would improve the quality of life of US residents, strict federal criteria apply, meanwhile we do not have the same issue in Baghdad. I may be wrong, but I feel if this metro rail was being built by the US government in Baghdad, all these road blocks will not be there and money would not be an issue. More importantly by now, the construction would have started.

In my view, this project requires the same urgency and immediate attention of top government officials - Mary Peters - US transportation secretary, the Virginia congressional delegation and Governor Tim Kaine. This is just not a Northern Virginia problem, this airport serves the capital of our country. If the contractors are not being competitive price-wise, should we be talking to their competitors? Why can’t we get multiple cost estimates? Are they the only contractors that can work on this project? Maybe I am being too simplistic, but I just cannot understand.

I understand that we need to address the situation in the Tysons area ASAP -" tunnel or surface option", regarding this Tysons issue, I am neutral, but I do not want it to disrupt the schedule of this project. I hope the "for" and "against" crowd in Tysons will settle their differences without any further delay. Please call your elected representatives, April 5 is the deadline.

Thursday, March 15, 2007

Dulles to Beijing, China Route - A big Win for the area

We probably all have heard that United Airlines beat out other major US airlines for the approval of a new nonstop service between the United States and China. The route from Dulles to Beijing which is now commonly referred to as the “capital-to-capital” flight debuts on March 25. How exciting for the metro region, perhaps more exciting for the businesses/commercial property owners in the Dulles corridor and the entire county.

Of course, the hope is that this new route would generate new business for the area, hopefully more Chinese businesses will be setting up in the area. We definitely can use some new businesses to lease all the new office space about to come to the market and the some of the unleased space.

Another interesting dimension to this story is what is reported to be happening in Beijing that may also benefit us. Per the Wall Street Journal, “Beijing is stepping up efforts to wrest status as China’s financial center from Shanghai. Apparently Beijing Mayor Wang Qishan, a key player in Chinese financial circles, has sent letters to executives at foreign banks operating in China asking them to incorporate their local operations in Beijing. Beijing’s allure to foreign firms lies in its proximity to financial regulators and big-state owned companies”.


Well the same thing applies to the Washington DC metro area, and also this means that we have a direct flight from Dulles to the political and potentially the financial capital of China. Is it possible that we could become the No 3 financial center in the US after New York and Charlotte, NC? This probably appears far-fetched, if Beijing can do it, we probably can do it, and we have the same qualifications. wishful thinking?

By the way if you are looking for ways to maintain your United mileage status, you may want to fly to Beijing for the weekend. United is offering very attractive deals. You may also want to book your flights for the Olympics next year, if you are into the Olympics… Have a safe trip, if you do follow my somewhat crazy idea about spending the weekend in Beijing for fun! Please come back and share your experience.

Tuesday, March 13, 2007

Board of Supervisors - Land Deal Scandal

I will be surprised if at least 3 members of the current board of supervisors do not lose their seats later this year. It is obvious that we desperately need new hands to move our county to the next level. Of course like everyone else I am waiting for the outcome of the probe being conducted by the Feds regarding a possible abuse of power by some supervisors and their friends in the private sector to corruptly enrich a few at the expense of Loudoun taxpayers.

Though I totally subscribe to presuming innocence until proven otherwise in civil and criminal matters, the information available to the public so far shows that even if laws were not broken, some supervisors did push the envelope to the limit, leaving room for suspicion and the appearance of impropriety. It will be difficult for them to be effective with this cloud hanging over them, even if they are exonerated.

I expect the voters of Loudoun County to send a clear message to our representatives that even the appearance of impropriety would not be tolerated. In my humble opinion the ethics measures passed by the BOS came a few months, perhaps a year or 2 late! I will be voting, I believe we need to send a message to this group should their names be back on the ballot.

Wednesday, March 7, 2007

Certificate of Need Provision for Real Estate Developers

Have you all noticed the new office buildings being built in the county? Quite a few have been completed for a while, and the developers have been unable to find tenants. Still if you look around, there are new buildings springing up everywhere. It appears we may be heading for a glut with the usual devastating consequences for everyone. Is it time for a Certificate of Need (CON) provision for real estate developers in the county? i.e., the developer would have to convince the county that there is a need for a new building project, how long can we continue with “if we build, they will come”

AMC movie theatre coming to Leesburg

Folks, I have good news to share with Leesburg residents. Very soon you will not have to drive to Sterling to see movies in a modern theatre. AMC Entertainment is at the very early stages of securing a location for a movie theatre in Leesburg. Stay tuned for more on this!!!

Welcome to Loudoun Talk

Hello everyone! How are you all doing? The purpose of this forum is to discuss life in Loudoun County, VA - schools, entertainment, shopping, real estate, transportation, commerce, politics - everything that affects our daily lives. Fasten your seatbelts and enjoy the ride!!!