Montgomery County Councilmembers expect to vote on July 15 to create a new development district. It would make it easier to attract private investment for housing, retail and private sector jobs in the eastern portion of the county.
The district would include 294 acres in White Oak near the U.S. Food and Drug Administration headquarters and Adventist Hospital.
According to an April 30 letter from County Executive Marc Elrich, who backs the project, the county now has “an experienced development team” interested in “bringing major development to this area.”
The developer would create a mixed-use community of residential, retail and other commercial and life science assets. There would be at most 4,708 units of townhomes, multifamily homes and senior living apartments. Also included in the development plans hotel and medical office space. There is room for a new elementary school.
Public Hearing
On Tuesday, the Council held a public hearing on the proposal where Gordie Brenne of the Montgomery County Taxpayer’s League was the only speaker.
He said the proposed White Oak district would mainly create temporary construction jobs.
He urged the Council to come up with a different economic development plan that would be more competitive. He stated the County needs “a new approach” to lure businesses here.
According to Brenne, the County needs to refocus on other businesses besides life science and government agencies. He suggested leisure and hospitality jobs similar to the current headquarters of Marriott and Choice Hotels.
He also urged the Council to improve the Beltway and American Legion Bridge and to restructure property taxes to bring in more businesses.
County Projections
According to Elrich, the development will generate more than 17,000 construction jobs, 9,000 permanent jobs and an estimated $62 million in annual County revenue once completed.
To make the project more viable, the County announced a Tax Increment Financing (TIF) proposal designed to support Viva White Oak mixed use development project.
TIFs are financing tools that use property tax revenues from new development in the area to fund public infrastructure. Montgomery County can use these funds without impacting existing county resources or services. It would not affect the county’s general fund or bond rating, according to a County news release.
According to County officials, an independent analysis conducted by Municap determined the total assessed value of the Viva White Oak project once completed will be $2.8 billion. The analysis supports the potential to generate up to $320 million in net proceeds for public infrastructure improvements. The current plan would include new roads, sidewalks, trails and bike lanes, and water and sewer infrastructure.
