ALEXANDRIA, VA — Alexandria's City Council is scheduled to consider the 30-year, $135-million proposed public infrastructure investment in redeveloping the former Potomac River Generating Station site at its legislative meeting on Tuesday.
Tuesday's briefing will be followed by a public hearing on Saturday, during which the council could approve the proposal.
City Manager Jim Parajon will present a preliminary, non-binding term sheet outlining a proposed public-private financing partnership for the redevelopment of the former Potomac River Generating Station site. The proposal would see the city invest $135 million in public infrastructure required as part of the site’s redevelopment. The money would be generated through tax-increment financing, which uses anticipated future tax revenues to backstop payments, and a Community Development Authority would be created to issue bonds as a financing mechanism.
Developer HRP Potomac says it plans to invest $2 billion in the planned 2.5 million-square-foot mixed-use property that would take the place of the derelict power station.
The redevelopment would unfold in 2 phases through at least 2034, with HRP Potomac required to meet construction and investment benchmarks before receiving reimbursements.
Parajon submitted 37 pages of public feedback on the proposal, both positive and negative. The Alexandria Housing Affordability Advisory Committee endorsed the affordable housing plan for the first phase of development, noting it would include committed affordable units and eventually support a separate affordable housing project through a public-private partnership. However, the committee said the developer's Housing Trust Fund contribution should remain available to the city if later phases are not completed and argued the city should not commit additional affordable housing funds beyond what is already contemplated through the project.
North Old Town civic association NOTICe warned that the complexity of the proposal and the speed with which it is being considered warranted pause. It urged the city to prioritize environmental remediation and demolition before major construction begins, seek stronger community oversight during cleanup efforts, and ensure the project delivers promised public benefits including parks, arts and cultural facilities, and affordable housing.
Several residents also submitted comments opposing the proposed $135 million tax increment financing package, arguing the redevelopment timeline is aggressive, environmental risks remain unresolved, and taxpayers could assume too much financial risk if project revenues fail to meet expectations. Critics called for additional public review and scrutiny before the city moves forward with the financing proposal.
The 19-acre site of a former coal-fired power plant has sat unused since the plant closed in 2012. The site was purchased by HRP Group in 2020, and zoning for its redevelopment was approved in 2023.
The current redevelopment plans include a mixed-use district with up to 2,000 residential units as well as retail, office, arts and cultural and potential hotel uses. The amendments and conceptual design plan call for at least 58,333 square feet of affordable units and a potential public-private partnership for a 100-unit affordable housing project, as well as several acres of publicly accessible open space.
View the full meeting agenda, with instructions on how to join and view the meeting, here.
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