By Brigid Schulte
Washington Post Staff Writer
Thursday, March 2, 2006; VA03
Alexandria Mayor William D. Euille was working out at a YMCA the other day when a neighbor came rushing up. "Hey, I'm a millionaire!" the neighbor said.
"Why?" Euille replied. "I thought the Lotto wasn't out yet."
"No. On paper," the neighbor said. "I just got my real estate assessment."
Euille related the exchange last week at the Alexandria Chamber of Commerce's annual State of the City breakfast. The story -- which drew groans and knowing nods in the crowd -- highlighted what Euille says is the biggest problem facing the city as well as the reason he will begin pushing so-called smart-growth development more forcefully.
Euille said that smart growth, a strategy of concentrating development around Metro stations and other mass transit, "is a must." He called for a "paradigm shift" in the way residents view their city and its future.
"My heart is in this city. I was born and raised here," the mayor said, departing from his prepared remarks. "Whatever I do, we do, is for the best of the city."
He cited the pressures to maintain affordable workforce housing and the need to reduce the reliance on property taxes to pay for city services and programs. "We've pushed the envelope as far as we can," he said. "We can't do what's being asked of us without a paradigm shift."
Euille went on to say that insofar as smart growth is concerned, Alexandria is "behind the eight ball" compared with Arlington and Fairfax counties. And with 1 million square feet of office space due to become vacant in coming years as a result of the Base Realignment and Closure Commission's decision to move federal jobs out of the city, it's time to be aggressive, he said.
"I've said our future is bright, and it is. For now," Euille said. "But that light is going to dim unless we make this shift."
Euille said the city needs to concentrate on smart-growth development around its four Metro stations. He mentioned Potomac Yard, Braddock Road, the Eisenhower Valley and the Landmark-Van Dorn redevelopment as prime areas. "Goal One is quality development and redevelopment," Euille said.
The ultimate vision is to create a vibrant and diverse "urban village" that preserves Alexandria's history and allows for growth but keeps "that small-town feel," he said.
Real estate assessments, on average, have increased by 20 percent each year in recent years, he said, and the owners of residential and commercial property will shoulder a disproportionate share of the city's proposed $503.5 million operating budget for fiscal 2007.
Euille said that though he is committed to reducing the property tax rate this year, a shift to smart growth is the key to resolving the problem in the future.
That theme was first introduced by the chairman of the chamber of commerce, Lonnie Rich, a former City Council member.
"It's hurting the residential community," Rich told the crowd. "People feel like they're being taxed out of their homes. It's hurting the small-business community."
He proposed that the city set a goal to cap tax rate increases to between 3 and 5 percent, first by tightening the city's belt and then by creating additional revenue through smart growth. Such an approach, he argued, could leave room for open space, another of the city's priorities. "If you go up rather than out, you can have that open space," Rich said.
