2016 Maryland Construction Network Economic Development Presentation - PowerPoint PPT Presentation

2016 Maryland Construction Network Economic Development Presentation March 10, 2016

Frederick Economic Development Joint Services • Ombudsman for the business community ‐ Policy development and • Mission: To sustain a robust economic advocacy environment which attracts private ‐ Critical infrastructure support and advocacy investment through fair and predictable • Business Expansion and Retention policies, strategic infrastructure investment support and business development. ‐ Connections with industry resources, employee training ‐ Development review and permitting guidance for expansion projects • Site Selection Assistance (CoStar) • • Data and research services Mission: To increase the overall economic • Access to Frederick County and State health of Frederick County through of Maryland business assistance attracting new businesses in our targeted programs industries and helping existing businesses • Educational and networking programs and opportunities be more successful. • 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 Employment By Businesses Within Jurisdiction* City of Frederick Frederick County 2010 Employment 46,900 102,491 2015 Employment 48,514 106,357 +1,614 +3,866 Unemployment Rates for Residents Within Jurisdiction** 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)

City of Frederick Employment Leader • The City of Frederick is the 2 nd 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 Total Commercial Assessable Tax Base FY2016 Total Commercial FY2015 Improved FY2014 Total Commercial Vacant FY2013 FY2012 $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 Source: Maryland State Department of Assessments and Taxation

Commercial & Industrial Construction Commercial & Industrial Commercial & Industrial Construction Costs Permits 1,200 $350,000,000 $302.5M 1042 $300,000,000 1,000 967 928 $250,000,000 800 755 $200,000,000 666 600 $164.8M $139.2M $150,000,000 $146.8M 400 $100,000,000 $113,2M 200 $50,000,000 0 $0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Source: Frederick County Planning and Permitting Division

Frederick Commercial Market Total SF of Commercial Space Commercial Rental Rates $25.00 $20.00 Office Office /gross 8,938,985 Flex $15.00 Flex /nnn 12,955,104 Industrial 5,969,678 $10.00 Retail Retail 12,521,945 $5.00 $0.00 Source: CoStar

Commercial Vacancy Office Market Vacancy Retail Market Vacancy 18% 9% 16.1% 7.7%* 16% 8% 14.3% 13% Frederick Frederick 14% 7% Market Market 12% 6% I‐270 Corridor I‐270 Corridor 4.3% 10% 5% 4.0% Washington 8% 4% Washington Market 6% 3% Market 4% 2% 2% 1% 0% 0% Q4 2015 Q4 2015 *includes Frederick Towne Mall (redevelopment to begin Source: CoStar Q4 2015 Office Market Report spring 2016)

City Development Approach Revitalization, Infill Renovation, & Adaptive Reuse  288 vacant commercially zoned parcels  Downtown  1,169 acres  Golden Mile Annexation & Greenfield  1,348 Acres  Pipeline of Planned Housing and Employment

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

County Land Use Zoning Current Zoning Agriculture 51% Commercial/ 3% Industrial Institutional 1% Residential 10% Resource 26% Conservation/Water/ Parks Right of Way 3%

Top 10 Major Employers Business Employment Industry Sector Fort Detrick 6,400 Military Frederick County Board of 5,650 Public Education 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 2 nd busiest airport in Maryland (1 st ‐ 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 of 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

Downtown Hotel & Conference Center PROPOSED ECONOMIC IMPACT • 207 room full‐service Marriott hotel with • $64 Million Project • onsite parking $25.8M annual direct, indirect • 14,000 SF of rentable meeting space – two and induced spending • ballrooms 280 Jobs ($9.0M payroll) • Complete restoration and adaptive use of the • 110 hotel jobs/$2.9 M payroll • historic Frederick Railroad Company building Sales Tax / Hotel Tax • LEED certified facility • Catalyst for Reinvestment 20