Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts

Monday, October 16, 2023

Prime redevelopment site on the auction block in Rockville Town Center


A property with one of the most-desirable and high-traffic locations in Rockville Town Center will be auctioned off in 28 days. 255 Rockville Pike is currently improved with a three-story office building and heavily-used parking garage. While that would provide a steady income for the winning bidder, the site is also directly across from - and connected to via skybridge - the Rockville Metro station. That means the property is also eligible for a transit-oriented redevelopment at much greater height and density than the current structure.


255 Rockville Pike was once part of the now-demolished Rockville Mall. In recent decades, it was home to Montgomery County government offices. Now that those have been moved to the County's new government building in Wheaton, the vacant building is being put on the auction block. This puts a transit-oriented site on the heavily-traveled MD 355 highway corridor into play on the City of Rockville's economic growth chessboard. The Metro station across the street is not only served by WMATA's Red Line subway trains, but also Maryland's MARC commuter rail, and Amtrak's Washington D.C. to Chicago route trains.


Transwestern, which is marketing the Ten-X Commercial auction, notes that the current building's 12-foot ceilings would also make it a prime candidate for conversion to a biotech facility. It could also be redeveloped as a high-visibility corporate headquarters. Of course, as Montgomery County hasn't attracted a major corporate headquarters in a quarter century, there is also the very real probability of the site being redeveloped as a mixed-use residential tower. Some have long touted the need for more residents in the Town Center, to support the businesses in that struggling area, which the latter use would provide, although others have pointed to parking issues as the primary culprit for the area's empty storefronts.


The City of Rockville's 2040 Comprehensive master plan anticipates that 255 Rockville Pike will indeed be demolished and redeveloped. "It is recommended that the City take an active role in the
redevelopment of this area as a prominent site in Rockville’s downtown," the plan states regarding 255 Rockville Pike. "Redevelopment of this property should contribute to the realization of the Town Center downtown L-shaped ‘spine,’ and incorporate an expanded pedestrian promenade over MD-355 to the Rockville Transit Station."


Such recommendations suggest that the City, which is about to elect a new mayor and City Council, will be heavily engaged in any redevelopment of this property. While this could add to the complexity of building something new here, it's also likely that the new property owner could wrangle some benefits or concessions from the City if it presents a project with the amenities and potential to improve the Town Center/Metro station area's environment, business climate, and pedestrian safety. With such a rare opportunity for new construction at the Rockville Metro station, there should be no shortage of bidders. As the auction listing notes, the site's PD-RCI zoning allows for high-rise construction, but also the most Metro-accessible location for a biotech facility in the I-270 life sciences corridor.

Photos courtesy Transwestern

Friday, September 15, 2023

Maryland Gov. Wes Moore joins President Biden in announcing adult education funding


Maryland Governor Wes Moore (D) joined President Joe Biden (D) at an event at Prince George's Community College in Largo Thursday, where Moore announced he is directing $17.4 million in funding toward adult education. More than half of the money will come from the federal government, and the remaining $7.9 million will be redirected from the Maryland Department of Labor budget. The recipients of the funds will be all 16 Maryland community colleges, two local K-12 school systems (Somerset and Worcester counties), three community-based organizations, one public library system and the state correctional education system. One of the three community-based organizations is Classroom to Community in Montgomery County.

“Together, we will grow an economy that works for everyone, from the bottom up and the middle out,” Gov. Moore said. “President Biden has been very clear about his vision to empower and educate workers to grow the middle class. It’s a vision I stand by because it’s good for Maryland, good for our people, and good for our economy. Together, we are going to work in partnership to follow the president’s lead, build out our workforce, grow the economy, and win this decade.” 

Moore recently expressed his concern about the state's moribund economy, and the resulting lack of revenue that will limit his ability to fund initiatives he has proposed. That concern was heightened by the announcement this week that Maryland's Transportation Trust Fund is running out of money.

Biden and Moore were also joined by Maryland Congressman Steny Hoyer (D) and Maryland's U.S. Senators Ben Cardin (D) and Chris Van Hollen (D). The president was introduced by Prince George's County Community College student Sadé Davis.

Tuesday, March 28, 2023

Montgomery County Executive Marc Elrich leading economic development mission to Taiwan


Montgomery County Executive Marc Elrich has accepted an invitation from the Taipei Computer Association to speak at its 2023 Smart Cities Summit and Expo in Taiwan this week. He won't be alone on the trip, as he is leading a delegation to the event. Elrich's guests will be County Councilmember Natali Fani-Gonzales, chair of the Council’s Economic Development Committee; Kevin Beverly, board chair of the Montgomery County Economic Development Corporation (MCEDC); Gail Roper, Montgomery County’s chief information officer; and Judy Costello, Montgomery County's special projects manager for Business, Innovation and Economic Development.

Representatives of five businesses that specialize in what a County press release calls "Smart Cities-related technologies" will also travel with the delegation. The companies are DFSFederal, Lumo Imaging (located in Potomac), Machfu (Rockville), Person Clinic (Rockville), and TSS, LLC. Not mentioned in the press release is whether their travel costs are being paid for by the County, or the businesses themselves.

The event will culminate this Friday, when Elrich will meet with Chiang Wan-an, the mayor of Taipei. Elrich will be one of only four members of the 1,300 expo participants who will participate in the mayor’s conference-ending press conference.

“I’m looking forward to meeting with Taiwanese business and academic leaders to learn more about their activities and to speak with them about why Montgomery County is a top location for them to enter or expand their presence in the United States," Elrich said in a statement.  “Getting Montgomery County’s economy moving and working for everyone is my top priority as the Chair of Council Economic Development Committee,” Councilmember Fani-González said in the joint statement with Elrich. “That is why I am thrilled to join the County Executive and County business leaders on this delegation to Taiwan to bring investment and jobs to the County. We will aggressively court businesses and academic and research institutions to choose Montgomery County for their next location.”

Tuesday, February 28, 2023

Montgomery County loses another corporate HQ to Virginia


There goes another one. Amentum Services, a leading government contractor in the fields of engineering, project management and advanced solutions integration, is moving from Germantown to Chantilly in Fairfax County, Virginia. The latest corporate decision to choose Virginia over Montgomery County will bring 157 new jobs to Fairfax County - good jobs with high pay. Virginia Gov. Glenn Youngkin (R) announced the move in a press release Monday.

According to Youngkin's statement, Virginia competed directly with Maryland to woo Amentum, which has 44,000 employees working in 85 countries around the world. “Fairfax County offers the location, access to decision-makers, and talent pipeline that global providers like Amentum are seeking, and we are proud to welcome the company’s leadership and operations team to Virginia,” Youngkin said. “Amentum joins the ranks of the Commonwealth’s diversified ecosystem of more than 800 corporate headquarters across a broad cross-section of industries.”

“I want to thank and congratulate Amentum for choosing Fairfax County for its home base,” Fairfax County Board of Supervisors Chairman Jeffrey C. McKay said in statement. “Our long-term investment into making Fairfax County the top choice to locate a global business continues to bear fruit, and I am thrilled that Amentum has chosen to take advantage of what we offer.” 

Amentum is the latest corporation to abandon moribund Montgomery County for Virginia, or choose Virginia over Maryland in a relocation search. It joins Amazon, Northrop Grumman, Volkswagen, Lidl, Hilton Hotels, Intelsat, Corporate Executive Board, Nestle, Lego, and Gerber, to name a few. 

Montgomery County and Maryland have had difficulty even gobbling up the crumbs under Virginia's dinner table. When Youngkin made the surprising decision to reject a Ford Motor Company battery plant recently, Maryland wasn't even a serious contender to grab the jump ball. That fumble apparently happened on the watch of former Maryland Gov. Larry Hogan (R) and the 2018-2022 Montgomery County Council, as Michigan was quickly named as Ford's backup choice. 

Friday, October 7, 2022

Rockville office building owner seeks height exemption for rooftop biotech equipment


Here is some good news from the King Farm area of Rockville. Instead of yet another request to convert office zoning to residential use, an office building landlord is seeking a waiver from the City of Rockville that could instead increase the number of high-wage jobs in King Farm. Banyan Street Capital has requested a height waiver for its existing office building at 805 King Farm Boulevard. It is seeking the waiver to allow additional rooftop equipment for a biotech tenant's needs, and a higher rooftop screen wall to block that equipment from view for aesthetic reasons.

In a letter to the Rockville Planning Commission, Banyan Street's attorney, Pat Harris, says that the waiver and new rooftop equipment are "vital to the Applicant’s intended research and development (“R&D”) uses within the building, and the expansion of life science uses in the greater King Farm community." She adds that the new 12' Envel-paneled rooftop screen wall will be designed to closely match the exterior skin of the office building.

Banyan Street Capital completed its acquisition of four office properties in the King Farm employment zone earlier this year. It is making upgrades and amenity enhancements at all of those properties, in what it has branded as The District at King Farm. In addition to the rooftop equipment, Banyan Street says it will be opening a new cafe in the 805 King Farm Boulevard building.

The Planning Commission will consider the waiver request at its October 26, 2022 meeting. It is likely to approve the request, as it voted to allow a similar exemption for sister building 800 King Farm Boulevard in November 2021. A potentially great opportunity for more King Farm residents to be able to walk to high-paying jobs, which was one of the original visions for the community.

Tuesday, October 4, 2022

Miller's Ale House has closed in Rockville


Miller's Ale House
has closed at 1471 Rockville Pike. The restaurant and bar operated there for a decade.  Miller's had a 4.1 out of 5 rating on Google and Facebook, a 3.5 on TripAdvisor and 3 stars on Yelp, so they weren't exactly run out of town. Its closure really is the end of an era, in a way.

When Miller's Ale House opened in 2012, it looked like a new age of nightlife might be upon us in Rockville. Bar Louie and American Tap Room had also just opened at Rockville Town Square. And there were old standbys like Gordon Biersch and Hooters. Look around in 2022, and every single one of those businesses is gone.


This may simply be Rockville's chapter in the larger book of Montgomery County nightlife being slammed shut over the last decade. The county had a good number of bars and nightclubs around 2010, and certainly was positioned to improve with the right policies at the county level. Just the opposite ended up happening.

It started with a major hike in the County energy tax, one that saw businesses like Target and Magruder's having to dim their lighting, posting apologetic signs explaining it was due to the energy tax. A series of other anti-business votes were taken by the Council in the ensuing years, over the objections of business owners.


Melvin Thompson of the Restaurant Association of Maryland warned councilmembers in 2016 that Montgomery County's restaurant sector had gone flat since 2012. In contrast, Thompson noted, Fairfax County's restaurant sector had grown by 6% in the previous year alone. Frederick County's had jumped 5.4% over the same period. The Council ignored Thompson, and passed more taxes (including a whopping 9% property tax increase), more regulations, and a $15 minimum wage. 

At the same time, the Council also lashed out at food trucks. Part of the bubbling up of a potentially vibrant new era of nightlife was the new phenomenon of food trucks, which would park in legal parking spots in busy areas at lunchtime in Bethesda, Rockville and Silver Spring. Some would also park in nightlife areas later, to serve patrons emerging after bars closed for the night. 


The Council banned such mobile food operations, limiting food trucks to private property. Trucks - the majority of which were based in Washington, D.C. - retreated over the Maryland border into the District. Office workers in Friendship Heights had a clear view of trucks still working the lunch hour just over the line in D.C. Montgomery County's food truck scene was gone, with the exception of those who were invited to cater private events, or to park on private property like gas stations.

Over the last decade, at least 21 nightspots closed in downtown Bethesda alone. Incredibly, all of those closures followed the Council's 2012 "Nighttime Economy Initiative." Hyped to the max by some local media outlets at the time, the initiative - along with the rest of the misguided Council actions of the last decade - ended up tanking the nighttime economy countywide. The demise of Miller's is only the latest example of that collapse.




Friday, September 16, 2022

Maryland Gov. Hogan announces Korean firm UNDBIO to establish R&D lab in Rockville

Maryland Gov. Larry Hogan meeting with
South Korean President Yoon Suk-yeol in Seoul 

Maryland Gov. Larry Hogan (R) announced more positive economic developments for his state from his economic development trip to Asia today. Rockville is one of the winners in Hogan's outreach, as the governor reported that South Korean biotech firm UNDBIO has agreed to establish a 25,000 square foot research and development facility here. Twinlabs, a Rockville real estate firm that specializes in life sciences, reached a lease agreement with UNDBIO, who have committed $100,000,000 to the project.

UNDBIO anticipates the new facility will develop and manufacture insulin samples for FDA approval. These approved products will then enter the pharmaceutical market. The company possesses unique proprietary insulin production technology, which will be employed in the Rockville venture.

"Maryland is proud to be home to hundreds of life sciences companies that set the bar for biotechnology innovation and fuel our region’s innovative economy, and we are excited to welcome the life-saving work of UNDBIO to Rockville,” Hogan said in a statement this afternoon. “This is yet another shining example that Maryland is open for business and further evidence of our state’s special bond with the Republic of Korea.”

“I am happy to establish our relationship with the State of Maryland to undertake the research and development required to produce affordable insulin and insulin analogues for the diabetic population around the globe,” UNDBIO’s Chairman Jun Yong-soo said. “We look forward to developing high paying biotech jobs for Maryland, and would welcome other partners into our global insulin project.”

Tuesday, October 26, 2021

Choice Hotels to move headquarters out of City of Rockville to Pike & Rose


Less than a decade after moving its corporate headquarters from Silver Spring to Rockville Town Center, Choice Hotels International is leaving the city. The hospitality firm, which has been located in Montgomery County since 1968, will move outside the city limits to unincorporated Rockville at the Pike & Rose development. 

Choice will move its operations into a new, 16-story office tower at 915 Meeting Street at the Federal Realty-owned development. It will take the place of an existing surface parking lot. The firm will occupy more than 105,000 square feet in the building, a downsizing of 25,000 SF from its current Rockville headquarters. 

The move is shocking, as there was no public indication that Choice was seeking to relocate so soon after building out a state-of-the-art headquarters at 1 Choice Hotels Circle in 2013. Less than ten years ago, the City of Rockville, Montgomery County and Maryland awarded the company $4.3 million in loans and grants, among other concessions, to keep Choice from joining the many companies that have fled the county and state over the last two decades.

Fortunately, the County has at least managed to retain the firm again. Unlike other corporate leaders who have passed on Montgomery County, Choice chair Stewart Bainum is politically-aligned with local and state Democratic leaders to the extent that he is willing to forgo tax savings to stay in the county. Bainum has recently sought to invest his own money to rescue the Baltimore Sun, a favorite newspaper of Democratic politicians statewide that is in danger of falling prey to a private investment firm. He himself has served in the Maryland General Assembly, and is very active in the community.

Maryland Gov. Larry Hogan (R)

"It is tremendous news that Choice Hotels is opening a new headquarters in North Bethesda, reaffirming its commitment to our state and retaining hundreds of jobs here for years to come," Maryland Governor Larry Hogan (R) said in a statement Monday. "The company has been an outstanding corporate citizen in the community, and we look forward to their continued success here in Maryland and around the world."

Maryland Commerce Secretary Kelly M. Schulz

"Choice Hotels has been an important member of Maryland's tourism industry for more than 50 years and we were very pleased to work with them on the decision for a new headquarters," Maryland Commerce Secretary and Republican gubernatorial candidate Kelly M. Schulz added. "This new location will give a world-class company like Choice Hotels a number of attractive advantages that are so critical to companies today, including proximity to public transportation and a variety of retail, dining and wellness options."

The move further underlines that moribund Montgomery County's economic development victories have been few and  hollow over the last quarter century. No major corporation has relocated its headquarters to Montgomery County in over 25 years. Many of the few that were here have left. County politicians have been reduced to celebrating the relocation of HQs that are already here, such as Marriott moving from North Bethesda to downtown Bethesda, and now Choice from Rockville to "Rockville," a.k.a. North Bethesda. Rather than advancing the ball, this is largely a case of rearranging the furniture on the deck of the Titanic.

Nevertheless, this is a huge win for Federal Realty. Not only does Pike & Rose now gain the cachet of a major corporate headquarters at the expense of rival Foulger Pratt, but all those incoming employees represent new lunch and happy hour customers for the many restaurants at the development. "We are thrilled to welcome Choice Hotels to the growing list of world-class organizations that call Pike & Rose home," Federal Realty CEO Donald Wood said yesterday. "Choice's focus on employee well-being make 915 Meeting Street and the Pike & Rose neighborhood the perfect fit. Its associates will have unparalleled access to state-of-the-art architecture that incorporates the latest wellness features and a thoughtfully curated merchandising mix all within an authentic, vibrant neighborhood with excellent regional access."

Photo courtesy Choice Hotels International

Monday, October 19, 2020

Rockville Mayor and Council to discuss undergrounding MD 355 in Rockville Town Center


Redevelopment of Rockville 
Metro station also to be discussed

A long-term goal of Rockville Mayor Bridget Donnell Newton, the undergrounding of MD Route 355 where it passes through Rockville Town Center, will officially come before the Mayor and Council for the first time tonight at its 6:00 PM virtual meeting. The idea has been floated for decades, such as the above rendering from the 2001 Rockville Town Center master plan.

Newton revived the idea in recent years, with a goal of creating more public space for city events, and a calmer traffic environment for the town center. The space could replace the lost town center parking lots where events like Hometown Holidays formerly hosted concerts and carnival rides, but with less asphalt. City staff estimates the potential cost of such a project to be in the $200-300 million range.

This 1990s concept drawing of the
undergrounding of MD 355 created by
a city-hired consultant envisioned the
future redevelopment of the
Rockville Metro station surface areas

There is potential to combine such a project with development or redevelopment of the Rockville Metro station surface lots, and the Rockville Mall-era structure across MD 355 from it. Coincidentally, the Mayor and Council will also be discussing the former topic at tonight's meeting, as well. The staff report notes that the city's Rockville 2040 comprehensive plan draft calls for "a blend of moderate-density housing and neighborhood-serving retail" on the station site, and at the edge of East Rockville.

Images via City of Rockville

Monday, February 24, 2020

Montgomery County Council seeking authority for new property tax, income tax hikes

Montgomery County Councilmember Will Jawando (D - At-Large) will hold a press conference this morning to endorse two bills in the Maryland General Assembly that would broadly increase the Council's ability to hike taxes on property and income. If passed in Annapolis, the new taxing powers would allow the Council to hike property taxes even further on owners of homes 5000 SF or larger, or any subclass of property not specifically excluded in the bill, and to raise the County income tax and set multiple rates based on income. The proposed tax hikes come as County taxpayers are already paying the highest tax rates in history, and as large numbers of wealthy residents continue to flee to lower-tax jurisdictions in the region, resulting in declining revenue for the County as they take their money with them.

Last year, Councilmember Evan Glass (D - At-Large) proposed a "teardown tax," also known as a "McMansion tax." It would have taxed new construction homes that replaced existing homes, and then place an excise tax on the square footage added. The proposal was blasted by homebuilders, many of whom would have been forced out of business by the new taxes. Local media did their darndest to promote Glass and his tax, but rarely told the public that he did not even have the votes on the Council to pass it.

Jawando will endorse a bill today that brings the tax back in a new form - and then some. Applying to homes 5000 SF and larger, it again primarily targets teardown projects, by going after square footage. Jawando claims that 97% of County homeowners own homes less than 5000 SF in size, and promises that they would receive a "property tax cut." However, House Bill 1276 includes no such tax cut. There is also the possibility that the automatic assessment hikes each year would handily eclipse a nominal, tiny "tax cut." In that case, the "97 percent" of homeowners would continue to pay the same high property taxes they are now - and the ongoing annual increases.

The House bill is also much more general then what Jawando's press release would suggest. It could lead to all kinds of new property tax hikes on other kinds of property.

HB 1276 actually would allow the Council to create new, higher property taxes on any subclass of property. The bill appears that it could be used to sneak in the high taxes developers have sought for golf and country clubs that would run them out of business, forcing them to sell their club properties, to open up their vast lands for real estate development. In fact, under the current language, any subclass of property not exempted by the bill could face higher taxes of any amount sought by the Council.
Attorney and activist Robin Ficker
is mobbed by fans outside the
Council Office Building in Rockville
The property tax move is the Council's latest attempt to find an end run around attorney Robin Ficker's successful property tax cap ballot initiative, which requires the Council to vote unanimously to raise property taxes beyond the charter limit. When the Council did last did that, voters responded by voting to pass Ficker's ballot question allowing 12-year term limits on the Council and County Executive.

Ironically, Jawando's press conference is scheduled to take place at 11:45 AM this morning. Fifteen minutes later, at noon, Ficker is expected to deliver 55 lbs. of signed petitions for a new ballot question preventing the Council from passing another 9% property tax hike as they did recently.

But wait, we're not done talking about new taxes!

Jawando will also endorse House Bill 1494, which he claims will allow the County to increase the tax rate on incomes over $1 million a year from 3.2% to 3.5%. The Councilman says such a tax hike on millionaires would raise $88.4 million in new revenue annually.

One must ask, if true, why did the 9% increase of the already-progressive property tax only result in ongoing budget shortfalls each fiscal year since? Revenue is declining, not increasing, under the record-high tax rates now being paid. You can only get so much blood from a stone, especially when that stone has very smart tax advisors on retainer. Some on the Council continue to ignore what their own staff - past and present - has warned them about the impact of overtaxing, and their warnings are borne out in our declining revenue today.

One must also, again, read the actual text of the bill. In fact, under the language in the bill, everyone - that includes you! - could end up paying a higher income tax rate. "But Will Jawando says we won't," someone - likely an obsequious member of the local media or political cartel - might protest. As with the desperate Council attempt to create a Transit Authority last decade, it is key to ignore what the politicians say, and read what the actual bill says.

Under HB 1494, the Council could - for example - hike the income tax of all residents to 3.4%, and of "millionaires" to 3.5%. The bill has no language protecting "non-millionaires" from a higher income tax rate. It only says wealthier residents can't pay a lower tax rate than the people in the brackets under them, and allows the Council to create those brackets.

So even if you think the property tax hike on homes bigger than 5000 SF - and the income tax hike on incomes over $1 million - are good policy, you need to lobby your legislators to actually put those specific provisions into the bill. They aren't there as of this morning.

With no amendments to the text of each bill, both proposals will allow much corrupt mischief by the Council on property taxes, certainly hit local homebuilders and remodeling firms hard financially, and absolutely set up a potential income tax hike for every Montgomery County resident.

Will the proposed tax hikes destroy the Montgomery County economy? Probably not, because the County economy has already been destroyed. The new taxes will simply put a heavier layer of concrete atop the grave of the moribund economic corpse. And will make it all the harder for a future, competent set of new leaders to restore it once we have a free and fair Montgomery County election.

Friday, February 21, 2020

Virginia studying another Metro extension - why isn't Montgomery County?

The Silver Line isn't even finished yet, and booming Northern Virginia is already looking at another ambitious subway extension to Prince William County. Meanwhile, Montgomery County elected officials are looking at a ten-day February vacation, and even sleepier, moribund economic times ahead. What they should be studying are Metro extensions to the Upcounty and East County, studies that should have begun over a decade ago.

Clarksburg is about 12 miles from the Shady Grove Metro station. Burtonsville is around 10 miles from the Silver Spring Metro station. Virginia's $2 million Blue Line study is examining a 15-mile extension to Prince William via Fort Belvoir, Lorton, Potomac Mills and Quantico, modestly bigger than either potential Montgomery County extension.

Rail transit is far more advantageous for economic development than bus rapid transit. Unlike BRT, companies and developers can be assured the new transit isn't going to be suddenly cut off or rerouted. Ridership of rail would be far higher than that of buses or BRT (the County's future "Flash" B"Rapid"T will take a sluggish 87 minutes to travel from Clarksburg to Bethesda - longer than a car in traffic!).

In contrast, Montgomery County couldn't even get the Corridor Cities Transitway bus line built. Instead of high-speed rail technology fomenting a modern economic hub of the future, Montgomery's "Science City" ended up as Sleepy City. Just more stack-and-pack residential development, and thousands more cars vying for space on over-capacity I-270 and MD 355 every rush hour. Promised anchor biotech tenant Johns Hopkins Medicine just exited stage left as a result.

Meanwhile, what jobs we had in the 270 corridor continued to migrate to Northern Virginia and Frederick County. Montgomery County was at rock bottom in the D.C. region for job growth over the last decade. What we need are boardrooms, not more bedrooms.

There are also large properties planned for redevelopment north of Shady Grove, such as Lakeforest Mall, COMSAT and the Montgomery County Fairgrounds. These developments will not be "smart growth" without a Metro extension, or other rail service, and will not have the job component we need to also reduce the number and length of car trips in the corridor. The same goes for White Oak and Burtonsville.

A coordinated plan to address our moribund economy and failing, incomplete transportation system is needed. No such plan has come out of our current County Council.

Here's what we should be prioritizing today:


  • Study extending the Red Line to Clarksburg, including options for at-grade, elevated and cut-and-cover underground segments
  • Metro should connect to Lakeforest and COMSAT
  • Study of Metro extension from Silver Spring Metro to Burtonsville
  • Addition of third track to MARC Brunswick Line
  • Making Ride On bus service free
  • More business-friendly tax policy and regulations
  • More competitive state tax policies
  • Fully privatizing the County liquor monopoly, and allowing beer and wine sales at all grocery, drug and convenience stores
  • Coordinate timing of new business policies with zoning/sector plan updates that incentivize and favor commercial/corporate development (a.k.a. high-wage jobs) over residential housing
  • Planning and construction of long-delayed Midcounty Highway Extended (M-83 Highway Master Plan Alignment), with potential use for median/cut-and-cover simultaneous construction of rail line from Shady Grove Metro on relevant segments
  • Construction of equally-long-delayed new Potomac River crossing to Dulles Airport with trackbed for future Red Line extension to Silver Line in median, as a toll facility built by a private company
  • A concerted, focused effort on attracting aerospace, defense and tech corporate headquarters, and related research and manufacturing facilities (i.e. satellite and rocket assembly)
The Montgomery County Council isn't doing any of this. In fact, they're in the middle of a 10-day vacation. In February. 
Working hard, or hardly working?
In contrast, the Council-equivalents of our biggest competitors - Arlington, Fairfax, Loudoun and Prince William counties - are all meeting this week. It would be interesting if all local media - print, online, TV, radio - would join me in exposing the lazy work schedule of our self-proclaimed "full-time" slacker County Council.

Anyone who thinks we can dig ourselves out of this economic hole with a small-ball agenda by running empty BRT buses up and down, giving government contracts to small businesses, believing residential housing that generates more costs than revenue is the definition of "economic development," and patting ourselves on the back by adding the same STEM components to our schools that all of our competitors' school systems are also adding - or that it can be done under the leadership of our current County Council - is fooling themselves. 

Virginia has plenty of housing. But they also have plenty of jobs. Plenty of revenue, as a result. And they are making the big ticket investments to keep cleaning our clock for decades to come. Meanwhile, we're scaring every company away, have a structural budget deficit as far out as the projections go, are paying record high taxes, have massive debt, and steadily declining revenue even with a 9% tax hike several years ago. 

We can't go on like this.

Monday, January 27, 2020

Bar Louie closes Rockville, Wheaton Plaza locations

Just as nightlife in booming Washington, D.C. expands into new corners of the District, it continues to tank spectacularly in moribund Montgomery County. Bar Louie has closed in Rockville Town Square. As if that wasn't enough, Bar Louie also closed its newer location at Wheaton Plaza, which was in a very modern and new structure with prime proximity to the AMC Wheaton 9 cineplex. "Thanks for all the memories," read signs in the windows.
Having been at Rockville Town Square for many years, the closure reflects the drastic downturn the county has taken over the past decade, as the Montgomery County political cartel has seized all nine seats on the County Council. The fact that the Wheaton location exited the same weekend indicates that this was more than just the ongoing struggles at Federal Realty's Rockville Town Square, which has seen a mass exodus of many of its key tenants in recent years.
Montgomery County is in real trouble, folks. County revenue, not surprisingly, is severely declining with the failing economy and flight of the rich to lower-tax jurisdictions in the region. Nightlife took a catastrophic blow from the Council's disastrous "nighttime economy task force" debacle, which resulted in the closure of 18 nightspots in Bethesda alone, and was capped by several new Council policies that hit the bottom line of hospitality businesses hard. Not to mention the Council preserving and beefing up the County government liquor monopoly, instead of ending it as bar and restaurant owners have begged them to do for years.

More liquor money for Virginia and D.C. We're being led by very stupid people, folks.









Wednesday, January 22, 2020

Montgomery County fumbles Eli Lilly factory to North Carolina

Indianapolis residents now know what it feels like to live in Montgomery County. Just as moribund MoCo can't get one of its few remaining major companies - Lockheed - to locate its manufacturing facilities here, neither could Indy get hometown pharmaceutical giant Eli Lilly to build its new manufacturing facility in the Hoosier capital. Lilly is looking south instead, choosing Durham County, North Carolina's booming Research Triangle Park.

"We continue to grow North Carolina into a worldwide hub for the biotechnology industry," a jubilant North Carolina Gov. Roy Cooper (D) said in a statement Tuesday.

Biotech and hospitality are the only two economic sectors in Montgomery County that even have a pulse these days, thanks to decisions made by wiser County leaders prior to the Montgomery County political cartel's seizure of the County Council in 2002 (today, the cartel controls all nine Council seats). But just days after the Washington Post reported once again that Montgomery County has fallen behind Prince George's County in job creation (while failing to report MoCo was also behind every other county in the region over the last decade in that department), Montgomery County's elected officials weren't able to score the biggest biotech get of the year so far - the Eli Lilly factory.

Not only did the County Council and economic development officials make no public campaign to attract Lilly, but their fumble also emphasizes how our inept leaders are squandering the biotech advantages their smarter, less corrupt predecessors left them at the turn of the century. North Carolina is catching up, as is Virginia. As MoCo officials continue to drop balls left and right, those and other states will soon surpass us.

North Carolina Commerce Secretary Tony Copeland correctly noted Tuesday that, "North Carolina is one of the nation’s leading centers for innovation in the life sciences." They also have two other things we don't: A friendly business climate, and superior infrastructure.

The Tar Heel state has the Research Triangle Park. Montgomery County was supposed to have a "Science City" in the I-270 corridor. Remember that?

Montgomery County elected officials couldn't even get that done. Of course, they never intended to. "Science City" was a total ruse perpetrated by the Council, and their developer sugar daddies, a decade ago. Sold to you as something like North Carolina's biotech park, that fakeout was merely a Trojan horse for more residential development.

Remember how Clarksburg, Germantown and Shady Grove were going to be booming job centers, with a Corridor Cities Transitway and expanded MARC service? None of that ever happened.

But - the housing all got built.

Jobs continued to divert to Northern Virginia, and I-270 just got more congested with all of the new housing approved by the Council without any new transportation infrastructure to support it. Heckuva job, Brownie!

Now, standing amidst the ashes of a "Science City" ghost town surrounded by stack-and-pack Soviet-style apartment blocs, the Council is saying the whole problem is...there wasn't enough housing built. LOL. [Insert cuckoo clock sound here].

You can't make this stuff up, folks.

What did we lose this week as a result?

462 new pharmaceutical manufacturing jobs, with an average salary above $72,000. 462 jobs are just a drop in the bucket given how stagnant and shrinking Montgomery County's economy is, but we're not in a position to pass any up in such a crisis. We should be, but are not, actively pursuing aerospace, biotech, and defense corporate headquarters, and their related research and manufacturing facilities.

North Carolina's Research Triangle Park's motto is, "Inspiring Bold Ideas."

The Montgomery County Council's is, "Lining our pockets with developer cash."

Our County's should be, "The Bedroom Community for the Booming Job Centers Elsewhere in Our Region."

Tuesday, January 14, 2020

Mayor & Council approve grant to keep Aronson, LLC in Rockville Town Center

Rockville Mayor Bridget Donnell Newton and City Council members voted unanimously last night to approve a $50,000 grant to accounting firm Aronson, LLC. The investment is designed to keep Aronson from moving their headquarters elsewhere, and to keep their employees in Town Center to support the restaurants in that area.

Monday, January 13, 2020

Mayor & Council to consider $50K grant to retain Rockville accounting firm

Rockville's Mayor and Council will consider approving a $50,000 financial grant to an accounting firm, in order to keep their headquarters in Rockville Town Center. Aronson, LLC is currently headquartered at 111 Rockville Pike. The firm currently employs 206 people with an average salary of $87502.

If the firm can stay put, it is promising to add around 40 new full-time positions over the next five years. Aronson is also in the process of obtaining grants from the state of Maryland and Montgomery County.

City staff argue that retaining Aronson is important due to the expected relocation of several County government departments to a new County office building in Wheaton this summer. To that end, one of the conditions of the City grant will be that Aronson agree not to add an in-house cafeteria for at least five years, so that employees will continue to patronize Town Center-area restaurants at lunchtime.

The Mayor & Council already set aside $50,000 in incentives for Aronson in its FY-2020 budget. Tonight, at their 7:00 PM meeting at City Hall, they will consider giving final approval to city staff to execute the incentive agreement.

Friday, December 27, 2019

How did Montgomery County fail to attract yet another Fortune 500 HQ?

Montgomery County officials have failed yet again to attract a major corporate headquarters; the county hasn't attracted a single one in over twenty years. Fortune 500 financial services giant Schwab was looking for an escape plan from California, a state that is an economic powerhouse but seemingly doing all it can to relinquish that title. Texas, as it so often is, was the winning suitor. An excellent article in the Dallas Morning News explains why suburban paradise Westlake, Texas crushed Montgomery County in the bidding war for Schwab.

Our elected officials, and their few supporters among county residents, continue to suffer from a severe case of Lake Wobegon syndrome. With no critical press corps, massive voter fraud, and unlimited money from the local political cartel, they've been free to continue believing that every day, in every way, Montgomery County is getting better and better.

"There’s a cachet associated with Westlake," the Morning News reports. "Westlake is one of the nation’s premier suburban markets. It has great schools, great hospitals, great gated communities, a lot of celebrities, athletes and former athletes live in that area. It’s highly desirable for the types of executives and high net worth individuals that will be working on this new campus."

In contrast, Montgomery County Public Schools have steadily declined this decade, with test scores and graduation rates plunging, and a widening achievement gap. Many of the ultra-rich who don't share the radical, Neo-Communist views of the Montgomery County Council have fled to lower-tax jurisdictions in our region, tanking County revenues in the process.

Transportation and airport access remain critical to corporate relocation decisions.

"The qualitative parts of site selection that a Schwab would look at have to do with lifestyle amenities like transportation assets. Dallas also enjoys unique access to the global marketplace with major air service."

Montgomery County, on the other hand, has nation-leading traffic congestion, an incomplete highway network that County officials have openly boasted they will not complete, and no direct access to Dulles International Airport, the only airport in the region with the frequency and international destinations of flights demanded by international businesspeople.

County officials have refused to construct the new Potomac River crossing to Dulles that would provide that direct access.

Also important, according to the article, are "the relationships with local elected officials. Are they pro-growth like the folks in the Dallas are? Or do they tend to be anti-business, like elected officials in the Bay Area?"

Montgomery County is clearly in the anti-business category, as demonstrated by its rock-bottom economic development status in the region. MoCo was even whipped by Culpeper and Rappahanock counties this decade. Now that's embarrassing.

Once again, the need to be a desirable destination for millennials and Generation Z is a significant factor. "Fortunately for cities like Houston, Austin and Dallas, you have high in-migration rates of working professionals and young people."

Young professionals are avoiding Montgomery County like the plague, by comparison. MoCo shares the "out-of-control housing costs" of California, and is busy approving demolition of what affordable housing exists - with a redevelopment of Battery Lane that will deliver a net loss of affordable units being the latest.

The County Council's disastrous Nighttime Economy Task Force effort ended up destroying the nighttime economy, with 18 nightspots closing in downtown Bethesda alone in its wake. Young people are going just about anywhere but Montgomery County for nightlife, as it continues to grow its reputation as the boring and sleepy bedroom community for the booming job centers elsewhere in our region.

One new factor not really discussed before is the concern of shareholders. The Morning News reports that choosing a business-friendly HQ site like Texas or Tennessee pleases shareholders, who can expect greater profit margins as a result.

Business friendliness is especially important when the national economy goes south, the paper notes.

"There's an enormous amount of uncertainty about the economy. What the economy will look like a couple of years from now with respect to potential tax increases, regulations and uncertain trade issues.

"And that’s really bringing back a focus on the old fashioned cost-of-doing-business business climate analysis. Because states that will best weather the storm of an economic downturn are states like Texas and Florida that have pro-business policies, low taxes, fiscal restraint."

Thursday, October 31, 2019

MoCo misses out on Mitsubishi HQ, relocation expert cites importance of airport access

Montgomery County hasn't attracted a single major corporate headquarters in over twenty years, and Mitsubishi North America won't break that humiliating streak of failure. The Japanese industrial giant's U.S. headquarters has been in sunny California since 1988. After a nationwide search, they've chosen Franklin, Tennessee.

"I’m proud Mitsubishi Motors will call Franklin its U.S. home, and bring 200 high-quality jobs to Middle Tennessee," Tennessee Gov. Bill Lee said in a press release announcing the victory. The press release notes that corporate headquarters jobs have grown by 37% in Tennessee since 2013. "Mitsubishi Motors’ decision to relocate its U.S. headquarters from California to Franklin underscores Tennessee’s growing profile as a hub for U.S. and international companies," Tennessee Department of Economic and Community Development Chair Bob Rolfe said. "Tennessee will continue to actively recruit quality headquarters jobs from higher-cost coastal states, and we are honored Mitsubishi will make this significant investment in Williamson County.”

This is just the latest major corporate HQ contest the Montgomery County Council and economic development officials have either lost, or simply dozed through without even making a bid. One ongoing disadvantage Montgomery has, besides its national reputation as a business-unfriendly jurisdiction with high taxes, is its lack of direct access to Dulles International Airport.

We could have had direct access by now, had our elected officials not canceled the long-planned Potomac River crossing to the Dulles area. John Boyd of corporate relocation firm The Boyd Company reaffirmed the importance of such access in recent comments about Sherwin Williams dissatisfaction with their current Cleveland HQ location, that has spurred them to begin a relocation search.

Boyd's analysis was reported by Cleveland's Fox 8 as follows:

He said air transit is a key factor in site selection. As Cleveland vies to keep the company that employs more than 33,000 people worldwide, Boyd said the region's lack of non-stop flights to markets around the globe is its biggest hurdle.

Cleveland Hopkins International Airport was ranked second-worst among 16 similar-sized airports in the J.D. Power 2019 North America Airport Satisfaction Study. The airport has commissioned a firm to create a new master plan for upgrades.

"Every time there's a major trophy headquarters project, you always think about the usual suspects: Atlanta, Charlotte, Chicago, Dallas, Houston. Cities with major gateway airports," Boyd said.

Dulles is unmatched in our region for the frequency of flights and variety of international business destinations. It would be so simple to eliminate this major obstacle to economic growth by merely greenlighting the new bridge to Dulles. The Council's stubborn refusal to do so speaks volumes about their radical, fringe ideology, and total lack of competence.

Thursday, September 26, 2019

Another job center lost in Rockville, as developer cancels office building in favor of residential

Montgomery County continues
to become the bedroom community
for job centers elsewhere in region

The developer of 1800 Research Boulevard in Rockville, a property approved for an office development, is requesting a master plan amendment to flip it to residential. FG Office Group, LLC, a Lerner shell company, is seeking to build a 350-unit residential building with courtyards and two "amenity spaces." One will be a pool, and the other a green space with patio and picnic areas.

Previously, the site had been designated for a 210,981 SF office building. The site would seem ideal for a biotech or medical research company, given its proximity to the I-270 biotech corridor, Shady Grove Hospital and The Universities at Shady Grove. But Lerner says it has concluded there is no market demand for office presently. Lerner adds that it has been unable to find tenants for their existing Fallsgrove office building on Shady Grove Road.

The moribund Montgomery County economy continues to stymie the office market. Some developers have been forced to move their own headquarters into their new office buildings because they are unable to sign an anchor tenant. Montgomery County hasn't attracted a major corporate headquarters in over twenty years. The end result is that a planned job center at Fallsgrove, similar to changes at King Farm and elsewhere in the County, will now be permanently lost. So even if the County changes leadership and policies to be more business-friendly down the road, those new jobs can't be placed here to reduce the number of Rockville residents driving to job centers in Northern Virginia and the District.

Thursday, August 22, 2019

White Flint Mall site reclaimed by nature (Photos)

The former site of White Flint Mall on Rockville Pike has been reclaimed by nature. Several years have passed since the mall was demolished, and now it is an overgrown field guarded by hyperaggressive security. Perhaps they fear a giant rabbit may jump the fence and munch on the vegetation. The heady greed that led the owners to pull the plug on a fully-leased mall, with crowded parking lots and popular restaurants, has dissipated. Replacing it is stagnation and malaise. And lots of weeds.
An area touted as Montgomery County's answer to Tysons fell victim to MoCo's moribund economy, corrupt and incompetent County Council, and hostile business climate. Tysons is booming, while White Flint Mall's former site is only blooming with weeds and brush. Developers and investors have fled, abandoning or downsizing their plans. Only Federal Realty moved forward with a fully-realized development, leading their CEO, Don Wood, to criticize County officials for not delivering on their end of the bargain in White Flint.
The Montgomery County Council hasn't taken a single action to address our economic development crisis since taking office last December, as MoCo stagnates with the lowest-ranked economy in the region by every relevant measure. No major corporation has moved its headquarters to Montgomery County in over twenty years. County taxes are at an all-time high, but tax revenue is declining, as the ultra-rich flee to lower-tax jurisdictions in the region.

Yet our elected officials have decided to simply put a piece of carpet tape over the "Check Engine" light screaming at them from the civic dashboard. It's intriguing that Lerner is compelled to provide entertainment for the public on a future development site they own in bustling Tysons, but here the Council allows them to leave us an overgrown field. That says a lot about the difference between the two jurisdictions, and the competency of their respective leadership.

This stretch of Rockville Pike looks
exactly the same as it did over nine years
ago, when the White Flint sector plan passed