Nearly three years after the Potomac Yard Metro station opened to the public, the Washington Metropolitan Area Transit Authority is requesting that Alexandria pay an additional $35 million to close out all construction contracts and claims associated with the project.
The proposal will head to City Council for review this evening (Tuesday). If approved, WMATA says the funding increase would be the third and final modification to its funding agreement with the city.
The station opened in May 2023, and Metro wrapped most of its work in fall 2024.
Emily Baker, deputy city manager and interim deputy director of the city’s Department of Transportation and Environmental Services, wrote in a Jan. 22 memo to Council that the extra costs were not expected in the original budget.
“Staff performed an analysis to reconcile WMATA’s budget and reviewed the submitted change orders and claims and concur with the requested close out cost,” Baker wrote. “The additional cost can be attributable to complexities not anticipated in the original budget.”
The $290 million project was approved by the city in Dec. 2018. It increased by $50 million in 2020 and by $10 million in 2023.
The $35 million ask puts a $385 million price tag for the entire project.
“WMATA’s cost accounting indicates an additional $35M is required to close out all outstanding merited change orders, submitted Contractor claims, and the existing escalator claim currently with the Armed Services Board of Contract Appeals associated with the project,” Baker wrote. “WMATA understands this request for additional funding will be the final request, which must cover all current and any future WMATA costs, litigation or claims associated with the project.”
Baker wrote that WMATA will send a project budget increase request to its board, after which the third change to the funding agreement with the city will be finalized.
The city can get the $35 million from funds generated through special tax district revenues in Potomac Yard, Baker added.
“No funding from the city’s general fund will be used,” Baker wrote. “The first funding request will be fulfilled 12 months from date of amendment execution, and the second and final request will be fulfilled 24 months from date of amendment execution.”
