Downtown Frederick Hotel and Conference Center BRIEFING
Public-Private Partnership Team Public-Private Partnership initiated by the Chamber of Commerce and business community to retain existing employers and attract new business. Top economic development priority of the Chamber Major Employer Group (MEG). Supported by economic development Partners Tourism, Downtown Frederick Partnership, East Frederick Rising, and City and County Economic Development Project is a top priority of the McClement Administration City of Frederick Major Employers Group Leidos Biomedical Research State Farm Frederick Community College Bechtel Wells Fargo Home Mortgage US Army Garrison Fort Detrick Frederick County Public Schools Frederick Memorial Health Care Lonza BioScience Astra Zeneca (MedImmune) Mount St. Mary s University The City of Frederick Frederick County 2
Why a Hotel & Meeting Space? No full-service hotel in Frederick and very limited conference, meetings, event facilities Identified by business community as critical need for attracting, retaining and expanding employment in Frederick Strong opportunity for induced demand for meetings, business and family events, conferences, and overnight stays Job creation and tax revenue generator Strengthens Frederick s tourism by increasing likelihood of overnight/multi-day visits Increases in tourism, business use, conference use will in turn strengthen the entire Frederick Hotel Industry Major Employers Group SAIC-Frederick State Farm Frederick Community College Bechtel Wells Fargo Home Mortgage US Army Garrison Fort Detrick Frederick County Public Schools Frederick Memorial Health Care Lonza BioScience MedImmune Mount St. Mary s University Plamondon Companies 3
Study Findings Strong Market for Full-Service Hotel/Conference Center Positive Net Operating Income Market is willing to pay more for an upscale, full-service hotel Downtown has excellent location, amenities, and sites with visibility and size to accommodate such a facility. Positive Economic Impact will be substantial. Private-Public Partnership is the preferred development strategy Proposed hotel will introduce a vastly different product (both rooms and meeting space) than what exists today Lodging market will absorb new supply and stabilize at 71% (4th year after the opening of proposed hotel) Market will absorb new supply due to core demand growth and induced demand from proposed hotel Proposed hotel meetings and conferences will bring new overflow demand in the market 4
Key Accomplishments To Date $250,000 MD Bond Bill $250,000 City CIP Match Retained JLL as Hotel Consultant Public Meetings & Public Input $350,000 SDSGIF Grant through DHCD 2010 2011 2012 2013 2014 Initial Demand & Feasibility Study by Pinnacle Associates/OPX Updated Demand & Feasibility Study by MD Stadium Authority using Crossroads and HGS Issued RFP soliciting Hotel Developer and Site Proposals 2 Proposals Received Selection Team decision presentation to Mayor & Board 9/3/14 Site &Financial Analysis, Developer Interest Meetings 5
Downtown Frederick Hotel & Conference Center: General Overview RFP REQUIREMENTS Full Service Flagship Hotel & Conference Center 200 Rooms (+/-) 20,000 square feet of meeting space Green design and construction Economic Catalyst Jobs & Tax Revenue Private Ownership & Operation (hotel & conference center) Public-Private-Partnership (for construction of public infrastructure & conference center) Open in late 2016 or early 2017 6
Walkability is Key 7
RFP PROPOSALS TEAM WORMALD/DpM 107 S. East Street Embassy Suites 225 Rooms 22,000 GSF Meeting Space 101 FTE - JOBS RFP 14-J 2 Proposals Received TEAM PLAMONDON 200/212 E. Patrick Street Marriott 207 Rooms 27,000 GSF Meeting Space 110 FTE - JOBS 8
FINANCING Estimated Total Project Cost FINANCING TYPE Private Investment Hotel/Amenities Public Parking/Meeting Space/Infrastructure TOTAL PROJECT COST RANGES Public Sources of Funding FINANCING TYPE AMOUNT $35 to $41 Million $20 to $23 Million $55 to $64 Million AMOUNT City/County Tax Increment Financing (resolution pending) $6 to $8 Million City CIP (approved) $250,000 Maryland Bond Bill (approved) $250,000 Maryland DHCD Smart Growth Grant (approved) $350,000 Maryland Governors Budget (request pending) TOTAL PUBLIC SOURCES $15 Million $21.9 to $23.9 Million 9
Next Steps RFP Selection Team decision presentation to Mayor & Board 9/3/14 Project Design & Entitlement Approvals HPC, PC, etc. CONSTRUCTION 2014 2015 2016 2017 Joint City/County Resolution Pledging TIF Financing Approved $ - Project Financing MULTIPARTY LEGAL AGREEMENTS HOTEL OPENING State Funding Request 10
Downtown Frederick Hotel and Conference Center PROPOSED FACILITY PROGRAM 207 Room Full-Service Marriott Hotel 23,500 GSF Meeting Space 700 person ballroom On-Site Parking - 104 spaces LEED Certified Green Design/Construction Historic Trolley Building Renovation 2 Restaurants including terrace dining along CCP 2 Lounges including a rooftop lounge Indoor Pool ECONOMIC IMPACT $64 Million Project 110 FTE JOBS Payroll of $2.9 million Sales Taxes Hotel Taxes Catalyst for Areawide Reinvestment 11
200/212 E. Patrick Street 1.86 Acres Zoned Downtown Business Former Frederick News-Post Site (FNP) Carroll Creek Park 12
Carroll Creek Park New Development Along CCP 405,000 sf office space 150,000 sf retail space 350 to 600 MF residential units 2,200 structured parking spaces 1,500 new jobs $150+ million private investment 200 Room Full Service Hotel 20,000 +/- SF Conference Center hotel site Completed 2006 Phase 2A 2014/15 Phase 2B (Site J/K) 13
Economic Impact IMPLAN MODEL 2012 Study by Maryland Stadium Authority through Crossroads and HGS. 14
Frederick BRAC Zone BRAC Zone Designation by State of Maryland The downtown hotel sites are in the BRAC Revitalization and Incentive Zone & would be eligible under the program criteria. Recognizes pressure to build public infrastructure in response to Detrick growth Reimburses local government for portion of infrastructure cost 700 acres located on East Side of Downtown New mixed-use neighborhoods Transit Oriented Brownfield Redevelopment Includes Portions of the East Street Corridor and Carroll Creek Park as well as the 66 Acre Brickworks Property, and Riverside Research Park 15
www.businessinfrederick.com Appointed Project Chairman: Mr. Earl H. Robbins, Jr. ehrob1@juno.com 240-315-4608 Project Manager: Richard Griffin, AICP, CEcD Director The City of Frederick, Maryland Department of Economic Development rgriffin@cityoffrederick.com 301-600-6361 16