PB PlaceMaking - Maryland Department of Transportation

Feasibility Analysis and
Economic Benefit
Key Findings
The proposed development program exceeds $1 billion over four
phases, and creates approximately:
• 1.1 million square feet of new or rehabbed office space (with
approximately half of that consisting of continued tenancy by
State agencies).
• 630,000 square feet of new retail and entertainment uses, including
a new 200-room hotel.
• 3,200 new residential units that include townhouses, condominiums,
and apartments, with 10 percent of new units, excluding
the McCulloh Homes site, at below-market rates.
The Strategy calls for McCulloh Homes to be redeveloped to better
meet the needs of its residents and enhance new residential and commercial
development on adjacent blocks. McCulloh Homes would
become a mixed-income, mixed-tenure community, with units for residents
who wish to remain.
• Approximately 100 units of the new or renovated rowhouses
already planned by the City for the Upton neighborhood would
be made available to interested McCulloh Homes residents.
There is an approximately $81 million feasibility gap for all four
phases. Public financing sources are needed to close this gap and
make new development possible. The feasibility gap is primarily due
to the high costs associated with redevelopment of McCulloh Homes
and its replacement housing.
• Redevelopment of State-owned property is feasible overall as
well in each of the phases, except for the first phase that has a
$4.2 million gap due to up-front infrastructure costs.
New development, and adding State- and HABC-owned property to
the property tax rolls, means that it is feasible to finance $81 million
in Tax Increment Finance (TIF) bonds to close the feasibility gap, while
still generating close to $10 million in additional annual property tax
revenues for the City.
State Center Transit Oriented Development Strategy 41