2016 Maryland Construction Network Economic Development Presentation - - PowerPoint PPT Presentation

2016 Maryland Construction Network

Economic Development Presentation

March 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
• f 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 2015 Maryland 7.1 6.8 6.3 5.6 5.1 Frederick County 6.2 5.9 5.7 4.8 4.5 City 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 Commercial Improved Total Commercial Vacant

Source: Maryland State Department of Assessments and Taxation

Total Commercial Assessable Tax Base

Commercial & Industrial Construction

666 755 967 928 1042

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

Frederick Market I‐270 Corridor Washington Market

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

Frederick Market I‐270 Corridor Washington Market

*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
• f 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
• nsite 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 Projects

Riverside 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 Projects

Northgate Town Center

• 100 acre mixed use with walking trails and
• utdoor 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 Projects

Westview 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 Projects

Jefferson Place

County Projects

Urbana

• 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 Projects

Shovel 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

Infrastructure

Top 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

• f 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, Director Frederick County Office of Economic Development hpropheter@frederickcountymd.gov 301‐600‐1058 Richard Griffin, AICP, CEcD, Director City of Frederick Department of Economic Development rgriffin@cityoffrederick.com 301‐600‐6360

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