New Proposal For Developing Potomac River Generating Station Put Forth

ALEXANDRIA, VA – Alexandria’s City Council is considering a proposal on how to develop the former Potomac River Generating Station in Old Town North.

Presented by City Manager Jim Parajon on April 28, the proposal lays out a 30-year, $135 million tax-increment financing plan for the site. Using this mechanism, future tax revenues are used by a proposed Community Development Authority, which can issue bonds based on those future funds that are earmarked for initial development. It does not require additional taxation of city residents or businesses.

The city’s investment will unlock more than $2 billion in private investment and generate more than $770 million in tax revenue, Parajon said.

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.

Parajon’s proposal foresees completing the redevelopment of Blocks A, B and C by 2030 and of Blocks D, E, F, a pumphouse and the site's open spaces by 2034.

ALX Now reports that under this proposal, HRP Group would be responsible for tearing down the existing derelict plant, building the public infrastructure and completing the required environmental remediation.

HRP Group will hold a community Zoom call on its plans May 4. Parajon's proposal will be discussed at its Planning Commission public hearing June 2 and the city investment in the proposal will be considered later that month. For more on the proposal and opportunities for public feedback, visit the Alexandria city government website.