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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
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• 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
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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• UMW Foundation purchased the outdated Park & Shop shopping center in December 2007.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.
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Property Overview – Parcels
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Background
• UMW and UMWF announced plans for a new
mixed-use development called “Eagle Village.”
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University Village Concept
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Former Park & Shop in Images
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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.
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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.
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Welcome to Eagle Village
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The Players . . . The University
• Needed premium student housing
• Needed walkable retail and restaurants
• Long-term land acquisition
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Eagle Village: Before & After
Before
After
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Route 1 Corridor
Before
After
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Route 1 Corridor
Before
After
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Roger Dodger
Before
After
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View from College Avenue
Before
After
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Hyatt Place Fredericksburg at
Mary Washington
Before
After
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The Turnaround in Images
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The Turnaround in Images
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The Turnaround in Images
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The Turnaround in Images
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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.
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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
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Real Estate Tax Revenue
from Eagle Village
$-
$50,000
$100,000
$150,000
$200,000
$250,000
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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.
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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.
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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.
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• 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
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Eagle Village . . .A Win-Win for all Players!
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Questions ?