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Governor’s Infrastructure Financing Conference
University of Mary Washington Foundation
Development of Eagle Village
Hotel Roanoke, December 2014
Presented by: Jeff W. Rountree, CEO
UMW Foundation
• Fredericksburg, Virginia: Located 50 miles between
both Washington D.C. and Richmond, Virginia
• UMW: Selective four-year Master’s-level liberal arts
institution with 4,169 undergraduate students and 368
graduate students (FY15)
• City: Part of Planning District 16, along with the
counties of Caroline, King George, Spotsylvania &
Stafford. Total population of PD 16 is 320,000 with
City population of 28,000. Also boyhood home of
George Washington & site of 4 major Civil War battles.
UMW & City Overview
Background
• UMW Foundation purchased the outdated Park & Shop shopping center in December 2007.
• Park & Shop was built in 1963 and was in decline.
• 23-acre shopping center directly across U.S. 1 from UMW’s Fredericksburg campus.
• UMW Foundation purchased additional smaller parcels adjacent to the center.
Property Overview – Parcels
5
Background
• UMW and UMWF announced plans for a new
mixed-use development called “Eagle Village.”
University Village Concept
7
Former Park & Shop in Images
A Dramatic Turnaround
• Older spaces have been torn down.
• UMW Foundation built nearly 500,000 square
feet of new Class A space at Eagle Village.
• Includes 30,000 SF of new retail, 36,000 SF of
new office, and a 560-space secured parking
deck.
A Dramatic Turnaround
• 206,000-square-foot student housing complex
with premium residences for 624 students.
• Covered pedestrian bridge linking EV to campus.
• New road to Mary Washington Hospital.
• 66,500-square-foot, 93-room Hyatt Place hotel.
Welcome to Eagle Village
11
The Players . . . The University
• Needed premium student housing
• Needed walkable retail and restaurants
• Long-term land acquisition
The Players . . . The Elected Officials
• Constituents wanted to see the revitalization
of the Route 1 Corridor.
• Urban renewal was a winning platform.
• Additional tax revenues and business
development a plus for the City.
The Players . . . The Municipality
• Wanted to achieve goals in the City’s Jump Start Plan.
• Needed to draft new zoning codes to allow mixed-use developments.
• Assisted UMW in getting $620,000 of incentives through the Virginia Tourism Corporation (VTC) Financing Program . . . first project in the Commonwealth.
The Players . . . The Lawyer
• Key to every aspect of the project, to this day.
• Handled the acquisition, the re-zoning and numerous agreements needed with the City and other parties.
• Managed the EDA process.
• Spearheaded the application for tax incentives.
The Players . . . The Financial Advisor
• Crafted the best plan of finance for the
UMW Foundation.
• Managed the RFP process with multiple
banks
• Negotiated the final package with Bank of
America.
The Players . . . The Bankers
• Understood the needs and constraints of the
University and the Foundation.
• Supported the finance package utilizing the
bank’s letter of credit.
• BoA has helped restructure and refinance
the project as the development has evolved.
The Players . . . The EDA
• Financed through the Fredericksburg Economic Development Authority bonds underwritten by BoA.
• Local EDA receives $79,000 annual fee from UMWF . . . 33% of their budget.
• Money is used for economic development projects in the City of Fredericksburg.
The Players . . . The Foundation
• Owner and developer of the Eagle Village
development
• Take all of the risk
• Pull all of the players together and make it
happen
Eagle Village: Before & After
Before
After
Route 1 Corridor
Before
After
Route 1 Corridor
Before
After
Roger Dodger
Before
After
View from College Avenue
Before
After
Hyatt Place Fredericksburg at
Mary Washington
Before
After
The Turnaround in Images
The Turnaround in Images
The Turnaround in Images
The Turnaround in Images
Eagle Village
Impact on the City
Redevelopment of Eagle Village has had a dramatic effect on the City of Fredericksburg’s tax base.
• 2007 assessment: $16.5M
• Current assessment: $70.6M
• 2007 real estate tax revenue: $113,127
• Current real estate tax revenue: $231,818
• Hyatt will generate another $300,000+ to the City.
Eagle Village Assessed
Real Estate Value
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Real Estate Tax Revenue
from Eagle Village
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Taxable vs. Non-taxable
• The gains in real estate tax revenue have come
despite the fact that much of Eagle Village is
tax-exempt.
• Student apartments assessed at $39.3 million.
• That is 55.6 percent of total EV assessed value.
• Illustrates value of universities, localities
working together on developments.
Additional Impacts to City
• Businesses recruited since Eagle Village redevelopment: Home Team Grill, Hyatt Place, Blackstone Coffee, Children’s Museum of Richmond, Planet Fitness, Sweet Frog, etc.
• Several additional popular restaurants have located near Eagle Village due in large part to the cleaning up of the corridor.
• Old businesses are renovating their properties.
A New Zoning District
• Eagle Village first project in Fredericksburg to
use the mixed-use zoning category.
• Since then another large project in
Fredericksburg (Telegraph Hill) has gotten this
zoning category, and another application is
pending (Mill District).
• New mixed-use developments will add
millions of dollars in tax revenue to city.
• Hyatt Place Fredericksburg first in state to use
Virginia Tourism Corporation Financing Program
(commonly called gap financing program).
• State and local incentives allow UMW Foundation to
get up to $620,000 back in sales tax revenue from
hotel.
• City of Fredericksburg and UMW Foundation
received Community Economic Development Award
from Virginia Economic Developers Association in
2013 for creative financing of hotel.
Innovative Financing
Eagle Village . . .A Win-Win for all Players!
Questions ?
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