2016 maryland construction network · policies, strategic infrastructure investment ......
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2016 Maryland Construction NetworkEconomic Development PresentationMarch 10, 2016
Frederick Economic Development
• Mission: To sustain a robust economic environment which attracts private investment through fair and predictable policies, strategic infrastructure investment and business development.
• Mission: To increase the overall economic health of Frederick County through attracting new businesses in our targeted industries and helping existing businesses be more successful.
Joint Services•Ombudsman for the business community
‐ Policy development and advocacy ‐ Critical infrastructure support and advocacy
• Business Expansion and Retention support
‐ Connections with industry resources, employee training‐ Development review and permitting guidance for expansion projects
• Site Selection Assistance (CoStar) • Data and research services• Access to Frederick County and State of Maryland business assistance programs • Educational and networking programs and opportunities• PR Frederick – press release service
National Recognition
2016 Top 50 Places in the South (Frederick #20) – Southern Living
2015 Top 50 Best Places to Live (Urbana #35) – Money Magazine
2015 Top 10 Best Places to Live for Veterans (Frederick #8)–Military Times
2015 Top 100 Best Places to Live (Frederick #32) – Livability.com
2014 Top 10 Best Downtowns (Frederick #6) – Livability.com
2014 Best Counties in America (#9) – Livability.com
2013 Top 8 Small Town Comebacks – CNN
2011 Most Secure Places to Live (#9) – Farmer’s Insurance
2012 Prettiest Painted Pictures in America – Paint Quality Institute
2010 Top 25 Small Cities for Art – American Style Magazine 2010 10 Great Neighborhoods – American Planning Association
Economic Drivers
Strong business growth Bioscience, Advanced Technology, Healthcare, Services, Retail Small business jobs at a record high in 2015
Fort Detrick & National Cancer Institute – Frederick Expansion National Interagency Biodefense Campus Construction of new USAMRIID laboratory
Downtown Frederick Completion of Carroll Creek Linear Park (Phase II)
Downtown Innovation Center Westview Area Growth Corridor
MD 85/I270 interchange ‐ #1 transportation priority in the County Major active retail, hotel, mixed‐use construction
Urbana and Jefferson Place Mixed Use Growth Growing minority population
#1 in Asian (212.5%) and Hispanic (316.4%) population increases in the state (2000‐2013) Golden Mile revitalization East Frederick Rising
Overall Business Climate
Labor Market
City of Frederick Frederick County
2010 Employment 46,900 102,491
2015 Employment 48,514 106,357
+1,614 +3,866
2011 2012 2013 2014 2015Maryland 7.1 6.8 6.3 5.6 5.1Frederick County 6.2 5.9 5.7 4.8 4.5City of Frederick 6.7 6.2 6.0 5.2 4.9
Source: *MWCOG Data Provided by City/County Planning Departments **Maryland DLLR (October 2011, 2012, 2013, 2014, 2015)
Employment By Businesses Within Jurisdiction*
Unemployment Rates for Residents Within Jurisdiction**
City of Frederick Employment Leader
• The City of Frederick is the 2nd largest City in Maryland
•The City of Frederick was responsible for 49.6 % of countywide employment in 2011.
• The City has 2/3 + of countywide employment in utilities, public administration, healthcare/social assistance, finance/insurance, and information.Source: 2014 Market Analysis Report
Commercial Tax Base
$3,800,000,000.00 $4,000,000,000.00 $4,200,000,000.00 $4,400,000,000.00 $4,600,000,000.00 $4,800,000,000.00
FY2012
FY2013
FY2014
FY2015
FY2016
Total CommercialImproved
Total CommercialVacant
Source: Maryland State Department of Assessments and Taxation
Total Commercial Assessable Tax Base
Commercial & Industrial Construction
666755
967 928
1042
0
200
400
600
800
1,000
1,200
2011 2012 2013 2014 2015
Commercial & Industrial Permits
$139.2M
$113,2M
$146.8M $164.8M
$302.5M
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
2011 2012 2013 2014 2015
Commercial & Industrial Construction Costs
Source: Frederick County Planning and Permitting Division
Frederick Commercial Market
Source: CoStar
8,938,985
5,969,678
12,521,945
12,955,104
Total SF of Commercial Space
Office
Flex
Industrial
Retail
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Office/gross
Flex /nnn
Retail
Commercial Rental Rates
Commercial Vacancy
13%
16.1%14.3%
0%2%4%6%8%
10%12%14%16%18%
Q4 2015
FrederickMarketI‐270 Corridor
WashingtonMarket
Source: CoStar Q4 2015 Office Market Report
Office Market Vacancy
7.7%*
4.0%4.3%
0%1%2%3%4%5%6%7%8%9%
Q4 2015
FrederickMarket
I‐270 Corridor
WashingtonMarket
*includes Frederick Towne Mall (redevelopment to begin spring 2016)
Retail Market Vacancy
Infill
Annexation & Greenfield
Revitalization, Renovation, & Adaptive Reuse 288 vacant commercially
zoned parcels 1,169 acres Downtown
Golden Mile
1,348 Acres Pipeline of Planned
Housing and Employment
City Development Approach
Main Street Frederick County• 5 Maryland Main Streets (façade grants available)
– Downtown Frederick– Brunswick– Middletown– Thurmont– Mt. Airy
• 5 Maryland Sustainable Communities (Sustainable Communities Act of 2010‐resources for comprehensive revitalization including funding sources such as Neighborhood Business Works and Community Legacy Program and tax credits)– Brunswick– Emmitsburg– Middletown– Thurmont– City of Frederick – Patrick St Corridor
Zoning Current Zoning
Agriculture 51%Commercial/Industrial
3%
Institutional 1%Residential 10%
Resource Conservation/Water/Parks
26%
Right of Way 3%
County Land Use
Top 10 Major Employers
Business Employment Industry Sector
Fort Detrick 6,400 Military
Frederick County Board of Education
5,650 Public Education
NCI/Leidos Biomedical 2,700 Bioscience
Frederick Memorial Healthcare 2,232 Comprehensive Health Care
Frederick County Government 2,072 County Government
Wells Fargo Home Mortgage 1,742 Mortgage Loans and Service Center
Frederick Community College 1,055 Two‐Year College
City of Frederick Government 842 Municipal Government
State Farm Insurance Corporation 832 Regional Headquarters‐ Insurance
United Healthcare 635 Health Insurance Provider
Fort Detrick & National Cancer Institute
Important to our Country Cancer, AIDS, biological research & vaccine Development Telecommunications Medical protection for the Armed Forces
Important to the region Largest employer – 6,400 Ft. Detrick & 2,700 Leidos Biomedical / NCI‐F Economy ‐ $2.1B in Maryland ($842 M in employee compensation)* Technology transfer – Commercialization of off‐the‐shelf technologies
Source: Maryland Military Installation Economic Impact Study (Aug. 2015)
Business Incubation
Frederick Innovative Technology Center, Inc (FITCI) 15,000 SF High‐Technology Business Incubator 25 offices 10 wet labs 30 tenants with 70‐80 employees at any one time Economic Impact
Since inception, 268 jobs created with $16.8M in payroll Graduates lease over 68,000 SFT in Frederick community
Downtown Innovation Center Framework began in 2015 to establish a technology incubator at 118 N.
Market St. The goal is to move IT business incubation downtown and to help serve millennial
population needs and bring more IT downtown.
Frederick Municipal Airport (FDK)
Economic Impact (2013 Maryland Aviation Administration Study) 1,268 jobs (direct/indirect/induced) $110M business revenue $77M personal income $7M taxes
300+ businesses use FDK annually 2nd busiest airport in Maryland (1st ‐ BWI) (90,000 aircraft operations
in 2014) Services provided:
2 licensed runways (5,200’ and 3,600’) Federally‐funded Air Traffic Control Tower Fixed‐base operator services, aircraft maintenance, hangars Fuel sales Flight training programs
Downtown Frederick
Hub of culture, commerce, and government 850 businesses 6,800+ jobs
Carroll Creek Park ‐ $15.8M second phase of construction to be completed in Spring 2016 More than $100M in new and renovated
private construction is planned along new section
Anticipated to result in hundreds of new jobs and increased local and state tax revenues
Union Mills rehabilitation is underway along new section. Main tenant to occupy space in Q1 2016
405,000 sf office space 150,000 sf retail space 350 to 600 MF residential units 2,200 structured parking spaces
20
ECONOMIC IMPACT• $64 Million Project• $25.8M annual direct, indirect
and induced spending• 280 Jobs ($9.0M payroll)• 110 hotel jobs/$2.9 M payroll• Sales Tax / Hotel Tax• Catalyst for Reinvestment
Downtown Hotel & Conference Center
PROPOSED• 207 room full‐service Marriott hotel with onsite parking• 14,000 SF of rentable meeting space – two ballrooms• Complete restoration and adaptive use of the historic Frederick Railroad Company building• LEED certified facility
MedImmune / AstraZeneca
1996 – MedImmune first entered Frederick with a 164K SF bio‐manufacturing facility
2006 – MedImmune selected Frederick for a new $600M and 385K SF biologics pharmaceutical manufacturing facility
2015 – AZ/MedImmune Began construction on $200M expansion. Project will result in 300 new jobs
Anticipated Phase II to current expansion to include a $300M investment and additional 350 new jobs
East Frederick
2,200 AC positioned for mixed‐use neighborhoods Major planned developments include:
Frederick Brickworks – 65AC located at East Street & I‐70 Renn Farm – 200 AC Mixed‐Use residential and commercial project (1,500
residential units and 105,000 SF commercial) Riverside Research Park – 177 AC world‐class life sciences research park anchored
by Frederick National Laboratory for Cancer Research. Planned expansion to include Riverside 6, 7, and 8
City ProjectsRiverside Research Park
177‐acre biomedical research and development park National Cancer Institute opened a 333,000 SF building in 2012 bringing 200 new jobs Can accommodate up to 1.4M SF of lab, manufacturing and office space The FBI is moving into 5,000 SF of office at Riverside 5 this Spring
Golden Mile
Largest retail corridor in Frederick County
Planned redevelopment of the former Frederick Towne Mall Final site plan approved for 155K Super
Walmart and additional out‐parcel buildings
Expected to create 300 new jobs and $4.2 million in local and state taxes
Project to begin in spring 2016
Development underway of former Maryland State Police Barracks Golden Mile Gateway to feature Wawa
convenience store/fueling station and additional in‐line retail opportunities
City ProjectsNorthgate Town Center
100 acre mixed use with walking trails and outdoor amenities
Westview Retail 21,000 SF of brand new inline retail delivering
March 2016 At lease for a 4K SF restaurant 3 additional 1 to 1‐1/2 acre pads available
Westview Residential Under construction to Mitchell & Best for 610
residential units.
Westview ORI 110,000 SF government contractor in negotiation Additional 1 million SF available
County ProjectsWestview South
• A corporate campus and town center within the US340/MD 180/I‐70 corridor
– 825 Residential Units– 173 Total Acres
• 55 Acres Employment• 20 Acres Commercial• 40 Acres Open Space
• In discussions with two large entertainment users which would lead to rapid completion of the retail component
• Preliminary approval for a Hilton Hotel• $11.5 Million US Rt 15 and MD Rt. 340
interchange completed
Source: Bradford Kline, Jefferson Park Development, LLC
County ProjectsJefferson Place
County ProjectsUrbana
Corporate Center – 200 acre office and R&D campus includes:− Fannie Mae (247,000 SF)− Legal General America (115,000 SF)− Social Security Administration (300,000 SF and
$500M capital investment) with 200 employees (average salary is $60,000)
Residential− 3,000 of 3,500 units in Villages of Urbana and
Urbana Highlands are occupied− Projected to add 100‐150 new units per year
Town Center Employment District− New approvals obtained in October 2013 for
additional Urbana development of up to:• 610 residential units• 1,950,000 SF office/research space• Development underway
County ProjectsShovel Ready Properties Available
Limited Industrial Stanford Industrial Park Omega Center Russell Property Frederick Presesrve Myersville Business Park Alban Property
Office, Research, Industrial Westview Corporate Campus Urbana Office Research Center
General Industrial Intercoastal Industrial Park Noffsinger Industrial Park
Mixed Use Development Urbana Town Center Urbana Office Research Center Jefferson Technology Park Jefferson Park West Wedgewood West Westview South Frederick Crossing
• Monocacy Boulevard Center Section • $16 million share between County & City• Connects I‐70 to Riverside Research Park• Opens up land for employment development• Improves access for business to municipal airport
• US 15/Monocacy Boulevard Interchange• Complete in 2017/2018• Construction cost ‐ $63.8 million
• I‐70 Widening from MD 144 and MD 85/East Street interchanges
• $45 million project• Carroll Creek Park (Urban Park Bike/Pedestrian Pathways)
• Phase II Construction to be completed Spring 2016• $15.7M project
• MD 180/351 lane widening and expanded bridge over US 340/15
• City & County to collect developer funds as seed money• MD 85/I‐270 Northbound Ramp Intersection
• Design and reconstruction to add lanes on MD 85 at the northbound ramp intersection
• $110M project to begin summer 2017
InfrastructureTop Transportation Projects
Wineries, Distilleries, Breweries Medical Cannabis Continued growth of craft brewery industry
Monocacy Brewing – located on N. Market Street Olde Mother Brewing Co. – located on E. Patrick Street Flying Dog – Anticipated to build new 150,000 SF brewery within City limits 4 Farm Breweries with 1 for 2016 pending
Emerging interest in craft distilleries Legislative change enabled craft distilleries within Downtown Frederick 1st Distillery (Dragon Distillery) officially opened in February 2016 with additional
three distilleries to come online in 2016 Economic impact: tourism, manufacturing, entrepreneurism
Growing wineries 11 wineries with 4 more pending to open in 2016
Interest from several medical cannabis firms interested in production capabilities in Frederick, pending State licensing decisions
New Incentives
• 2016 ‐ Frederick County Small Business Loan Guarantee Fund• 2015 ‐ Commercial and Industrial Business Tax Credit
‐For manufacturers who create 25+ new jobs and invest $5M+.• 2015 ‐ Water and Sewer Capacity for Frederick County Businesses
‐ Water and Sewer Capacity Leases for certain manufacturing facilities in lieu of purchasing the capacity for a term of no more than 20 years.‐ Water and Sewer Capacity Fee Payment Plan Fund (PPF) – may be used to provide loans to certain commercial water and/or wastewater customers to purchase capacity fees for new construction or expansion. It allows the property owner to spread out the payment of the Capacity Fees over a max term of 10 years.
• 2015 No Business Personal Property Tax Phase‐Out in the City of Frederick
‐10‐year phase out. No business personal property tax for manufacturers.‐ County does not have business personal property tax.
• Small Business Tax Credit ‐ TBD
Contact Us
Helen Propheter, DirectorFrederick County Office of Economic Development
[email protected]‐600‐1058
Richard Griffin, AICP, CEcD, DirectorCity of Frederick Department of Economic Development
[email protected]‐600‐6360
www.discoverfrederickmd.com │www.businessinfrederick.com