A CDA is a public development finance tool through which a jurisdiction can issue bonds to pay for a project, usually one being built via a public-private partnership, such as the one Arlington County has with Forest City to redevelop Ballston Quarter. The bonds are typically, as they will in this case, backed with additional tax revenues levied on the property, sales and meals taxes within the CDA boundaries. The beauty of the system, from a state fiscal perspective at least, is that these bonds are not issued on the county's balance sheet and do not affect its debt capacity or rating.

The CDA district will consist of three parcels owned by Forest City Enterprises. Members of the Arlington County Board will sit on the CDA board. A development agreement and bond documents are expected to be authorized by the County Board and the new CDA by early fall.

ARLINGTON, VA-Arlington County Board voted this week to create its first Community Development Authority, or CDA, with an eye to funding public infrastructure costs related to the Ballston Quarter's ongoing redevelopment.

When Arlington County Board signed off on its agreement with Forest City Enterprises last November, it agreed to fund up to $55 million in public infrastructure costs related to the project, including improvements to the Ballston public garage, investments in Wilson Boulevard and North Randolph Street, and the creation of public plazas. The $300 million plan renovates the mall with an open-air design and resurfaced exterior and interior facades. It also adds a 406-residential unit and -- courtesy Arlington County -- improved parking and transit facilities.

The project is expected to deliver in 2018.

The county plans to use existing funds to pay for $9 million of these projects, with the remaining $46 million expected to come from the issuance of CDA bonds.

A CDA is a public development finance tool through which a jurisdiction can issue bonds to pay for a project, usually one being built via a public-private partnership, such as the one Arlington County has with Forest City to redevelop Ballston Quarter. The bonds are typically, as they will in this case, backed with additional tax revenues levied on the property, sales and meals taxes within the CDA boundaries. The beauty of the system, from a state fiscal perspective at least, is that these bonds are not issued on the county's balance sheet and do not affect its debt capacity or rating.

The CDA district will consist of three parcels owned by Forest City Enterprises. Members of the Arlington County Board will sit on the CDA board. A development agreement and bond documents are expected to be authorized by the County Board and the new CDA by early fall.