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operate that parking lot for the Institution, but the Institution would keep the income from it, reimbursing Maryland only for operating expenses. Shuttle bus services to the Extension would also be provided by the State. In addition, Maryland offers to conduct the site mapping, surveying, and environmental studies. Maryland offers to finance all three phases of the construction through MEDCO, a non-profit entity whose board of directors is named by the Governor. For each phase, MEDCO would float a bond, interest payments for which would not be due until a year after construction for that phase is completed and the Smithsonian has taken occupancy. In particular, for Phase I the first payments would not be due until 1995. MEDCO would receive $75 M in construction interest and $16 M in closing costs.

Virginia offers to provide all the infrastructure aid the Smithsonian had requested, including preparation of taxiways, parking, grading, highway access improvements, etc., in all valued at roughly $40 M by Hellmuth, Obata, and Kassabaaum. A $3 M interest-free loan for the planning phase for the project would also be provided, as well as a $100 M bond for construction of the first phase of the facility. (This would leave the Institution with at least $20 M to raise on its own, to obtain the full $162 M required for constructing Phase I). The Commonwealth would take out the bond, payments for which would be provided by annual augmentations to the Institution's Federal budget and possibly through annual payments made by the Commonwealth. Interest payments would begin at the start of construction. While the Virginia offer does not mention construction, interest, or closing costs, the Institution would have to make sure that such fees would not be levied against us. The extent of the Commonwealth contributions are not specified and would have to be worked out. The proposal refers to "an appropriate level of support" toward these lease payments. No mention is made of commitments beyond Phase I.

[[underline]] C. Demographics [[/underline]]

The Virginia proposal includes a long section in which demographic issues are addressed from a somewhat different perspective from that employed in the study commissioned by Hellmuth, Obata and Kassabaum, which used distance criteria rather than travel time. The documentation provided for this section does not permit verification. In particular, the statement that the areas within a 45 minute drive from the two airports would include a 30% larger total population and a 40% larger minority population for Dulles than for BWI, is unclear, since this driving radius might include both Washington and Baltimore for the BWI site, but none of Baltimore for the Dulles site. Otherwise, this report contains few surprises. It shows only marginally more passengers using Dulles in the most recent survey, 10.7 million people, contrasted to 10.3. The remainder of the discussion deals with traveller preferences, number of available hotel rooms in the vicinity of the two airports, and other indicators, none of which specifically challenge figures in