Welcome To TheEconomic Development

AndBank Financing Forum

WednesdayMarch 22, 2017

8:30AM-11:30AM

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Welcome and Introduction

Shelly M. Gross-WadePresident & CEO

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Prince George's County, Maryland

Thomas Himler

Deputy Chief Administrative Officer

Budget, Finance, Economic Development, and Administration

Economic Development and Financing Opportunities Forum

March 22, 2017

Prince George’s County Basics

• Stable, business friendly County government• 498 Square miles, 320,000 acres• 920,000 Residents, • 324,000 Households• Median household income: $76,741 (136% of the US

MHI) - Top 4% US• Workforce of 480,000 workers• 313,000 resident jobs• 30.1% of residents have a bachelor’s degree• 8 Colleges and universities• 7 Medical centers and medical facilities• AAA Bond Rating – All 3 major agencies

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Prime Location For Business

• Strategically located in the State of Maryland between Washington, DC and Baltimore, Maryland

• Linked to the nation’s capital by dense transit and a vast road network including: I-95/495 and I-295 Corridors

• 3 International Airports:

• Washington Dulles

• Reagan National

• T. Marshall Baltimore-Washington International

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2,299 Days Ago…

• County had lost approximately 16,000 jobs over a 3-year

period (2007-2010)

• Median Sales Prices (MSP) had decreased by 44% over a

4-year period (2006-2010)

• Unemployment rate had increased by almost 125% over a

3-year period (2007-2010)

• Number of unemployed residents had increased by 145%

over a 3-year period (2007-2010)

• Minimal economic development activity

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…Today

• County has added approximately 15,100 jobs over a 3-

year period (2013-2016)

• Median Sales Prices (MSP) has increased by almost 50%

over a 4-year period (2012-2016)

• Unemployment rate has decreased by almost 40% over a

3-year period (2013-2016)

• Number of unemployed residents has decreased by

almost 35% over a 3-year period (2013-2016)

• Over $9 billion in economic development activity

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Focused Economic Development Strategy

• Implemented a focused crime reduction strategy – 55%

reduction in overall crime since 2010

• Reshaped the k-12 governance structure – 10% increase in high

school graduation rates

• Streamlined the permitting process

• Created a $50 million Economic Development Incentive (EDI)

fund - $32 million in awards, $746 million in investments, and

8,600 jobs created/retained

• Focused on 5 priority transit oriented development locations –

Branch Avenue, Largo, New Carrollton, Suitland, Prince

George’s Plaza

• Targeted “generational” projects and redevelopment projects

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*Economic Development Projects

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• $1.4 billion project at National Harbor -opened December 2016

• 22,000 daily visitors

• 10 miles from the center of Washington, D.C.

• The MGM National Harbor:

308 room hotel tower Up-scale retail and spa and

seven restaurants 3,000 seat theater 50,000 SF convention space 5,000 space parking garage

MGM Resort

• $543 million regional hospital

• Collaboration between the County, the University of Maryland Medical System, State, Dimensions Health Corporation, and RPAI

• World-class teaching hospital; Cardiac and Cancer Care, Level II Trauma Center, with over 200 beds

• Groundbreaking – Fall 2017

• Opening December 2020

Regional Medical Center

Federal Bureau of Investigation

• Potential headquarters of the Federal Bureau of Investigation into a consolidated, Level 5 security campus

• Two of three final sites are in the County

• Historic Federal Procurement opportunity

• Projected $2.5 billion - 2.5 million SF - 1,000 jobs

• Private sector development opportunity

Selected Projects - Status

• New Carrollton Metro Station – North Core under construction, South Core in negotiations with WMATA and County ($1 billion mixed-use project)

• Riverdale Station – under construction – Spring 2017 Whole Foods opening

• South Lake (formerly Karington) – Negotiations on incentives with developer and City of Bowie for a mixed-use development along Route 301 – approximately 1,300 residential units, 475,000 SF of commercial space, and 2 hotels

• Westphalia Town Center – Residential phase under construction – negotiations on incentives with developer

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Selected Projects – Status, continued

• Suitland – NVR, Inc. selected as a townhome builder and

Mission First selected as senior builder - $400 million

mixed use project – finalizing infrastructure financing

requirements

• The Hotel at University of Maryland – under construction,

Summer 2017 opening

• Hampton Park – Negotiations with incentives with

developer, developer seeking partners for hotel and

retail components - $300 million mixed-use project,

including a $41 million County Office building

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Summary

• The foundation has been set for the continuation of a

tremendous economic development period in Prince

George’s County

• Generational projects – Regional Medical, MGM National

Harbor, FBI – will have catalytic impact for decades into

the future

• We are willing to enter into public-private partnerships

with the private sector to bring projects to fruition

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Jim Coleman

President & CEO

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Peter A. ShapiroExecutive Director

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Hamilton Street Garage $5,500,000Status: Working with the Developer and the City of Hyattsville to finalize MOU.

RAPGC: Investment: $400,000

• The 287 space garage’s purpose is to meet the increased parking demand for the area and encourage future development within the Hyattsville Arts District.

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New Carrollton Garage $8,000,000Status: In the process of renegotiating lease terms with WMATA.

RAPGC: Investment: $6,500,000

• Purpose of this project is to perform some major capital improvement to a 35 year old garage structure and improve the customer experience

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Suitland I $175,000,000 Status: Additional site acquisition in process. Working with Redevelopment Authority on demolition and construction plans. Demolition anticipated by November 2017.

RAPGC: Investment: $14,800,000

• Purpose of this project is to anchor the revitalization of the Suitland Federal Center area with additional mixed-use development.

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Suitland II $125,000,000 Status: Land assembly in process.

RAPGC: Investment: $7,200,000

• Purpose of this project is to anchor the revitalization of the Suitland Federal Center area with additional mixed-use development.

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Regional Medical Center Garage $20,000,000Status: Developing RFP for a project manager.

RAPGC: Investment: $500,000

• The 1166 space garage will provide the parking for the Largo hospital and first Medical office building.

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H o wa rd Wa y s , A ICP

Ex ec u t ive Direc t o r

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County Revitalization Objectives

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Diversify and expand the County’s tax base

Reduce impact of foreclosures

Promote green and sustainable development and business practices

Attract partners and expand collaborations

Identify new funding sources

Increase the capacity and demand for local businesses and non profits

OVERVIEW OF REDEVELOPMENT AUTHORITY

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•Established by Charter in 1998

•Has 9 Board Members (currently 2 vacancies)

•Has staff of 9 FTEs

•$233,700 operating subsidy from County

•Focus on residential and mixed used development

ROLE OF THE REDEVELOPMENT AUTHORITY

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Be the County’s principal real estate development entity

Focus on mixed used, infill projects in targeted communities inside the Beltway

Advance the creation and preservation of mixed income housing near transit centers

Collaborate with for profit and non-profit partners

Expand the use of local and minority contractors

2017 Accomplishment

Glenarden Apartments

• HUD approved final redevelopment plan

• 221 affordable on-site units

• 84 affordable off-site units

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Proposed Glenarden Site Plan

2017 Accomplishment

Suitland Town Center

•Final record plat recorded

•Suitland Town Center Town Homes

200+ town home units

NRV selected builder

•Suitland Town Center Senior Housing

130+ independent/assisted

living units

Mission First Housing selected builder

•Suitland Net Zero Homes3 SF units

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Proposed Suitland Site Plan

Current Development Project39

Glenn Dale Hospital

• 60 acre historic campus

• Development team selected

• Letter of Intent for feasibility study issued

Current Development Project40

210 Maryland Park Drive

• Site plans submitted

to MNCPPC for approval

• Development Agreement

extended to December 2017

Current Development Project41

Fairmount Heights and

Capitol Heights Net Zero

Energy Homes

• 8 SF units

• Development Agreement with

Housing Initiative Partnership

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REDEVELOPMENT AUTHORITY OF PRINCE GEORGE’S COUNTY

9200 Basil Court, Suite 504Largo, MD 20774

301-883-5300

Howard Ways, AICPExecutive Directorhwways@co.pg.md.uswww.princegeorgescountymd.gov/RDA/

Follow and “like” the Redevelopment Authority of Prince George’s County on Facebook

Dawn R MedleyVice President

Business Financing Programs

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Existing Loan Products

New Additions

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SBA 504 Commercial Real Estate LoanUp to $5.5 Million20 Year Loan Term

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EDI FundMinimum Loan: $250,00010 years maximum

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Target Market

Businesses that cannot qualify for any of the FSC First existing programs

Businesses that are worth the risk because of their sound business plan, proven operating principles and realistic growth potential

Flexible amounts & terms

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TPC: $25,080,000Loan Amounts: Revere Bank $12,540,000FSC First/SBA 504: $ 4,890,000*FSC/EDI Fund: $ 1,400,000*DHCD/NBW: $ 700,000*FSC/VLT Small Business Flex Fund$ 500,000*Micro DHCD: $ 34,000*

Use of Funds: New hotel construction, equipment, and furnishing

Hospitality Development Company III, LLCd/b/a Courtyard by Marriott Bowie-Melford

*FSC First Sourced and/or lender

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STATUS OF LOAN POOL

(as of December 31, 2016)

PARTICIPATING PRO RATA SHARE %

OUTSTANDING BALANCES AS OF 12/31/2016INSTITUTIONS COMMITMENTS

1 Branch Banking & Trust Company $400,000.00 8.55% $219,097.66

2 Industrial Bank $275,000.00 5.88% $161,861.17

3 Old Line Bank $400,000.00 8.55% $143,633.12

4 PNC Bank $800,000.00 17.10% $213,282.62

5 Revere Bank $100,000.00 2.14% $28,834.67

6 Sandy Spring Bank $100,000.00 2.14% $52,647.95

7 Sona Bank $500,000.00 10.69% $78,907.56

8 SunTrust Bank $1,000,000.00 21.37% $690,032.45

9 TD Bank $200,000.00 4.27% $112,736.63

10 The Columbia Bank $153,600.00 3.28% $87,476.65

11 Wells Fargo Bank $750,000.00 16.03% $450,923.80

TOTALS $4,678,600.00 100.00% $2,239,434.28

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