Gambrills shopping center close to breaking ground

But the developers may have run into an obstacle with nearby residents because they are asking the county to approve a $16 million tax-increment financing plan to be able to pay for the necessary infrastructure improvements. Those plans include capping off, literally and figuratively, a troublesome fly-ash landfill in that area.

The 1-million-square-foot mixed-used Village South at Waugh Chapel is designed to include the upscale grocery market Wegman's and a Target, among numerous other retailers, restaurants, office space and residential units.

A movie theater that had originally been slated for the project appears to have fallen through because it was not able to obtain its own financing, officials said.

There also has been discussion of building a new youth recreation center inside Village South.

Some Crofton-area residents are trying to mount a campaign to oppose the financing plan, commonly known as a TIF. A TIF is an agreement between the county and the developers for the county to sell a bond on the private market and allow the developer to pay off the bond with a portion of the tax dollars generated from the improvements made to the site.

The rest of the tax money goes to the county. The county does not provide any money to the company and is not held liable for the bonds. A resolution initiating the process to create the TIF agreement will have a public hearing in front of the County Council tomorrow night.Officials with Owings Mills-based Greenberg Gibbons Commercial, the developers of Village South as well as the Annapolis Towne Centre at Parole and the Kent Towne Market, said they have all the necessary permits to build Village South and are ready to start construction in March.

If all goes according to plan, work can be completed in 2012, chief executive officer Brian Gibbons said Friday. The project also would generate at least $13 million in one-time fees to the county for inspection and permit costs outside the TIF deal, Gibbons said.

The main financing remains the only question mark. As the local and national economies continue to struggle, finding venture capital companies to invest in the project has been difficult, Gibbons said.

"I have the permits," Gibbons said. "Now all I need is money. It used to never be a roadblock, but it is now."

He said this is the first time his company has requested a TIF, and that includes the Annapolis Towne Centre project. He also said his investment partner of the past eights years isn't doing any commercial projects now because of the economy.

"Commercial real estate is viewed right now as extremely risky," Gibbons said. "When we first started, the financing climate was a lot different."

The developers are hoping the county approves the 30-year TIF agreement to help pay for water, sewer and road improvements around the shopping center, improvements that the county will own.

TIF agreements

Under a TIF agreement, the county would pay for the infrastructure construction. Taxes generated from the center would be used to pay back the investors who purchase the bond. If the project fails, those investors are out money.

As the project pays back the investors, it also starts paying taxes to the county, revenue that it otherwise would not be receiving.

When built-out, Village South is expected to generate nearly $115 million in tax revenue for the county on the life of the bonds, officials said. Gibbons said the project would create more than 2,900 temporary construction jobs for local companies and more than 2,600 permanent jobs.

Similar TIF agreements were set up for the National Business Park in Annapolis Junction and Arundel Mills mall in Hanover. Those projects are generating significant revenue for the county, according to county budget director John Hammond.

However, Crofton-area residents weren't swayed by the agreement's potential economic benefits.

"We're in a tax-strapped county," said Madonna Brennan, a member of both Crofton First and the Greater Crofton Council. "School repairs are on hold, people are being furloughed. Nobody has money right now."

Brennan said area residents are excited about having a Wegman's, but taxpayers shouldn't pay for something that developers should pay for.

'A mixed bag'

Earlier this month, Hammond and west county Councilman Jamie Benoit outlined the TIF plan for area residents.

Benoit, who sponsored the TIF resolution, said some of the opposition to the plan might be pre-emptive and based on misinformation.

But he said the developers may have a tough time getting enough support to pass the TIF agreement.

"It's a mixed bag," said Benoit, D-Crownsville.

The board of directors for Crofton First released a statement Thursday opposing the use of the tax-increment financing.

"There are currently numerous commercial developments on Route 3 that are not at 100 percent capacity," they said in the statement. "Having taxpayers front the bill for the Waugh Chapel South does not seem like a viable answer to a developer's problem."

Members of the Greater Crofton Council also voted against supporting the TIF agreement for Village South, which is slated to be built along Route 3 across from the 10-year-old Village at Waugh Chapel shopping center.

There are currently no appeals filed against a proposal for a TIF agreement associated with an expansion of the National Business Park, which also is expected to be introduced at tomorrow's council meeting.

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Cobb Theatre - 2010-01-21 10:39:07

I was kind of excited to hear the addition of the movie theatre with the cinebistro feature. Anybody know if there is a chance it will still be added?

I don't understand the need for the target or the grocery store when there's 4 grocery stores within 2 traffic lights of the build site and a target within 4 lights.

If they're going to add stores they should add stores that are guaranteed high traffic first like Wal-Mart and Best Buy.

I don't think the traffic is much of an issue. Its on a stretch of highway between rt50 and I97. It gets congested during rush hour but in my experience the majority of the traffic is alleviated once you hit those points.

unhide Comment hidden due to low ranking. Why is this comment hidden?

Antuan Thompson - Crofton, MD - Karma: Neutral

incomplete project nearby needs att - 2010-01-21 09:58:42

Commercial real estate still is risky and will be so long as there are layoffs and furloughs because people are spending less. Look at the incomplete strip mall development at Waugh Chapel and Route 3 north.

maria hrabinski - , - Karma: Neutral

Enough already - 2010-01-19 19:31:10

Yippee more congestion.

Anthony Forrest - crownsville, MD - Karma: Excellent

Simple analysis - 2010-01-19 18:06:26

The County Executive and Council had studies conducted on cost and fees associated with new residential development. Each concluded fees covered just 18% or required infrastructure costs. The TIF bond is a vehicle by which the cost, or portion , of development infrastructure costs are paid by issuance of bond. Payments to the investors who purchase the bond are diverted tax revenue, thereby subsidizing development costs. New construction infrastructure costs should pay for by the developer, not taxpayers. It's time for County to require a through audited accounting of costs associated with new developement and stop passing the buck to taxpayers.

harry trampolini - severna park, MD - Karma: Excellent

Cost Benefit Analysis - 2010-01-19 15:28:07

Someone needs to conduct a cost/benefit analysis on the short-term vs. long-term benefits and costs of this project in the perspective of the average citizen in the area. It seems that traffic within the area is already really bad and that Route 3 should have been expanded to a full 3 lanes years ago. This shopping center will only add to the situation.

One might also be able to address the concern of the school population. My experience of having lived in a TIF district is that the taxes are high and the district creates an undue burden on the local infrastructures, including schools.

It is interesting to consider the potential success of a high-end grocery store in this economic climate and that there are already two Targets close by, Bowie and Annapolis.

Martin Hoagland - Gambrills, MD - Karma: Good

Many of you are not accurate - 2010-01-19 14:08:07

Mr. Trampolini is incorrect in his understanding of the cash flow surrounding a project supported by the TIF financing initiative. Simply put, when a TIF is being used for financing, the county is not outlaying any cash for the infrastructure improvements. (There may be some administrative costs for the issuance of the TIF). When the bond that is created for the TIF is sold to investors, those funds are used to pay for the infrastructure improvements. As the added tax revenue is received, it is split between providing the return to those investors and also returning additional revenue to the county for supporting the TIF issuance. The county is doing nothing other than issuing and managing the bond(s) involved and the process itself though the infrastructure improvements will support more than only this one shopping center though that may be the driving factor.

Also, Mr. Hoagland, additional residents SHOULD only put additional "burden" on the local communities and schools temporarily. Additional residents INCREASE the tax base of an area producing more dollars for the local operations, including schools and other community enhancements. If AA county does not choose to always distribute its funding in this way (as may be the case currently as they funnel more tax $ from rising areas to support crumbling ones), that is a different argument altogether. Also, higher real estate taxes normally, the last few years being an anomaly, reflect higher property values as well, driven by higher demand for the properties in an area. This demand is driven by a community having better infrastructure and community offerings, including civil, retail, and residential.

I do not live in that area and I am not a supporter of anyone in this argument but having watched some of this play out in Parole recently, I think no decision should be rushed to when people are spouting incorrect and, more importantly, INACCURATE, economic and financial information.

Glenn Atwell - Edgewater, MD - Karma: Neutral

Look at the numbers - 2010-01-19 11:38:05

The article said no County money is being applied. That is incorrect, tax dollars which should have been paid to the County will be used to pay for infrastructure costs. Why should the County be responsible for capping the fly ash site? If the developement is not financially viable without subsidy or tax dollars, it's not viable. According to the article Mr. Gibbon's sophisticated investors apparently have come to that conclusion. If County is a partner, with an equity interest which can be sold or generates profits from cash flow or preference in a capital account, may be this should be considered. Foisting development costs on County taxpayers while benefiting a few, is not equitable.

TIF dollars - 2010-01-19 10:37:20

With the residential units, this will bring in more families, including children, adding to the burden of the school districts, yet the TIF dollars will be directed to paying off the bonds and not directed to the schools to pay for this increase in enrollment. That added cost will be passed along to the Gambrills/Crofton residents in the form of higher real estate taxes.

business - 2010-01-18 16:40:45

guess rt3 will be the rockville pike of a.a.co.it was bad enough when I lived there and that means any where from bowie/mitchelleville,crofton and gambrils

jim pearson - seaford, de - Karma: Excellent