County Council Passes Downtown Columbia Legislation

The Howard Hughes Corporation® (NYSE: HHC) announced today that Downtown Columbia received a major boost Wednesday night in support of the Downtown Columbia Plan when the Howard County Council approved $90 million in funding for public infrastructure improvements in the Merriweather District - the crescent of land surrounding the acclaimed Merriweather Post Pavilion in the heart of the community. The Downtown Columbia Plan is a 30-year blueprint for the revitalization and redevelopment of Downtown Columbia to be developed by The Howard Hughes Corporation.

The Merriweather District is part of the plan approved by the Howard County Council in 2010 to bring a vibrant, walkable center to the acclaimed master planned community founded by visionary developer James W. Rouse nearly 50 years ago. The Merriweather District is intended to become the “Center of Culture and Commerce” for Howard County. Phase One will include one million square feet of commercial office space, 750 residential apartment units and 250 thousand square feet of street retail. As community developer, The Howard Hughes Corporation will invest $2.2 billion in the redevelopment district created by the legislation.

The County Council also approved legislation that will deliver 900 units of affordable housing within the 391 acres earmarked for redevelopment. The affordable housing plan is the product of collaboration with Howard County, the Howard County Housing Commission, the Columbia Downtown Housing Corporation and The Howard Hughes Corporation. 744 units of new residential density were added to the 5,500 residential units already approved as part of the Downtown Columbia Plan to accommodate the affordable housing.

“This critical legislation is the catalyst for Downtown Columbia to come to life in keeping with the original vision set by Jim Rouse nearly 50 years ago,” said Greg Fitchitt, Vice President of Development for The Howard Hughes Corporation. “We’d like to thank Howard County’s elected leaders, specifically County Executive Allan Kittleman, County Council Chairman Dr. Calvin Ball, District 4 Council Member Mary Kay Sigaty and the rest of the council members as well as the county staff and community advocates, for their continued dedication to Columbia’s values and goals and commitment to ensuring that Columbia continues to be one of the best places to live in the country. This legislation provides the mechanism for continuing the robust public-private partnership that will realize Downtown Columbia’s bright future.”

County Executive Allan Kittleman, whose administration introduced the initial legislative package, commented, “I commend the County Council, County staff, Howard County Housing Commission, Columbia Downtown Housing Corporation, The Howard Hughes Corporation, Merriweather Post Pavilion supporters, Downtown Columbia Arts and Cultural Commission and countless others who have given their time, energy, ideas and expertise to develop the best plan possible. Passing this comprehensive legislative package will guarantee the development of affordable housing for residents of all income levels as well as the construction of critical infrastructure, including a public parking garage to support the growing Downtown.”

The public financing legislation, known as Tax Increment Financing (TIF), includes $90 million approved in Phase I for a public garage intended to provide a permanent parking solution for Merriweather Post Pavilion, roads and other public improvements. Howard County will issue TIF bonds to generate funds for construction. The debt service on the bonds will be repaid by incremental taxes from the new Merriweather District development.

The incremental property taxes from the new development will also be set aside for major public projects supporting Downtown Columbia including: a public elementary school, a fire station, an arts center, a transit center, a central library and transportation improvements.

More than $407 million in net tax revenues will be available to the County’s general fund for use elsewhere - in Columbia and other parts of Howard County - in addition to the repayment of the bond debt services, county capital and operating costs and set asides.

The Affordable Housing legislation calls for 900 residential units, 400 to be distributed within new market rate apartment buildings and 500 included in mixed-income/low-income tax credit (LIHTC) developments, and through an innovative, new “Live Where You Work” program designed to allow moderate-income employees in the Downtown Columbia area live within walking distance of their jobs. These units will be available to families with a full spectrum of income levels. The LIHTC buildings will be developed by the Howard County Housing Commission.

“Together, we are writing the next chapter for Columbia’s future, built on our shared values of innovation, opportunity, and equality and embracing our shared goal of creating the best environment in which to grow our economy and allow our families to thrive,” said Council Chairman Dr. Calvin Ball. “I’m dedicated to ensuring that next chapter is our best chapter!”

A separate but related Memorandum of Understanding between The Howard Hughes Corporation and the County also includes the developer’s commitment to:

• Contribute $12 million to the Reserve Fund for Permanent Public Improvements for educational and cultural facilities serving Downtown Columbia
• Provide access to business and contracting opportunities for Minority, Women, Disabled, Veteran Owned and Local Business Enterprises
• Support workforce development initiatives and local hiring for TIF-related projects
• Provide the county with a site for both a new transit center and complementary transit-oriented development
• Plant 10,000 trees in Howard County over the next 20 years

The Merriweather District will be the next step in creating the urban-oriented center for Columbia and the region. At full build-out, Downtown Columbia will include nearly 14 million square feet of mixed-use development. The impact of the development is expected to be:

• $6.1 billion in economic activity during construction
• $4.1 billion in ongoing, post construction annual economic impact
• More than 25,000 construction jobs
• 31,000 new permanent full-time jobs
• More than $41 million in annual net local government revenues to the County general fund

Image via Shutterstock.