White Flint Redevelopment Program (P151200)

  • Category: General Government

  • Sub Category: Economic Development

  • Administering Agency: County Executive (AAGE03)

  • Planning Area: North Bethesda-Garrett Park

  • Date Last Modified: 3/6/14

  • Required Adequate Public Facility: No

  • Relocation Impact: None

  • Status: Planning Stage

EXPENDITURE SCHEDULE ($000s)

FUNDING SCHEDULE ($000s) 

Description

This program provides for the plans, studies, analysis, and development coordination activities by the County necessary to implement redevelopment in the White Flint Sector Plan Area. Specialized services as detailed in the Justification section below are required to implement the extensive public infrastructure requirements called for in the Sector Plan, and for the implementation of the specified public financing mechanism and related requirements for infrastructure funding. This program also provides for certain land acquisitions necessary to support Transit-Oriented Development (TOD) activities in the White Flint Sector Plan Area.

Cost Change

Cost decrease of $2.233M due to reduction of land expenditures no longer needed, partly offset by cost increases due to updated staff charges and the addition of FY19 and FY20 to this ongoing project.

Justification 

In the spring of 2010, the Montgomery County Council approved the new White Flint Sector Plan, which covers a 430 acre area. The Plan establishes a vision for transforming what has long been an auto-oriented suburban development pattern into a denser, mixed-used 'urban' center in which people can walk to work, shops and transit. An expanded street grid and other infrastructure improvements will create walkable blocks containing residences, retail, offices and local services. The Plan also calls for a financing mechanism that would generate significant revenues from properties and developments within the Sector Plan Area. The County Council further defined this financing mechanism in Bill 50-10, which established a White Flint Special Taxing District, authorized the levy of a property tax and the issuance of bonds to finance transportation infrastructure improvements, and stated conditions for the loaning or advancing of County funds to the District. In Resolution No. 16-1570, the Council adopted an implementation strategy which required the Executive to carry out a feasibility or other study to assess whether debt repayment will require a district tax rate that exceeds certain policy goals, and called for the forward funding or advance funding of specified items in order to promptly implement the Sector Plan. In addition to the financing implementation, specialized services are required related to the complex land assemblage and disposition actions necessary to implement the new street grid and for the reconfiguration of Executive Boulevard/Old Georgetown Road associated with implementation of Stage 1. Staff time and services are required to manage and coordinate efforts to develop detailed staging plans, to assess opportunities to maximize property dedications, and to negotiate property dedications to avoid or minimize acquisition costs. Necessary services will include appraisals, legal services, title services and consultants versed in land assemblage. The County is also currently evaluating efforts needed to implement roadway improvements through the Conference Center site, which is a County asset. Special requirements related to the Conference Center include negotiations with the private hotel owner as well as the Hotel and Conference Center management firm, and the provision of interim and permanent parking related to the impacts of road rights of way that traverse the site and will reduce the number of parking spaces available to patrons.

Other

The County purchased certain State-owned property in FY13 and resold the property to the developers to facilitate redevelopment. The land sale proceeds will be used to partially fund replacement Conference Center permanent parking, as well as other related TransitOriented Development projects, based upon an agreement between the County and State.

Fiscal Note

The funding source for this project is White Flint Special Taxing District tax revenues. Current revenue was appropriated for this project in FY13 for the purchase of surplus SHA property. In FY15, current revenue was disappropriated from this project since the purchase of the surplus property was repaid through land sale proceeds the County received from transferring the property to a private developer. Accounting for these land expenditures will occur outside of this project by the Department of Finance.

Disclosures

Expenditures will continue indefinitely.

Coordination 

Office of the County Executive, Department of Finance, Department of Transportation, Department of Economic Development, Maryland Department of Transportation (MDOT), Maryland State Highway Administration (SHA), Developers