Comments on: University Spends $12M on Washington Post Plant for East Campus Relocation http://rethinkcollegepark.net/blog/2010/1914/ Helping imagine a great college town for a great university Fri, 25 Jan 2013 04:03:38 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Resist, Reclaim, Rebuild « Every day a snowpocalypse – UMD March 4th http://rethinkcollegepark.net/blog/2010/1914/comment-page-1/#comment-182204 Resist, Reclaim, Rebuild « Every day a snowpocalypse – UMD March 4th Mon, 22 Feb 2010 05:02:43 +0000 http://rethinkcollegepark.net/blog/?p=1914#comment-182204 [...] some of the last wooded area on campus to build a bunch of private stores. Instead they paid $12 million for the Washington Post building. Funny how there’s always money for a shopping mall, even in [...] [...] some of the last wooded area on campus to build a bunch of private stores. Instead they paid $12 million for the Washington Post building. Funny how there’s always money for a shopping mall, even in [...]

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]]> By: weberincp http://rethinkcollegepark.net/blog/2010/1914/comment-page-1/#comment-181896 weberincp Tue, 16 Feb 2010 00:47:11 +0000 http://rethinkcollegepark.net/blog/?p=1914#comment-181896 Yes, of course, there are pros and cons to any decision. The full implications of the Washington Post plant purchase will be eagerly awaited by the many tax paying property owners of College Park. Will a deal be cut so the City does not lose all the revenue it might have otherwise been entitled to ? Will the University acknowledge its impact upon the City and actually pay for all the extra traffic and congestion, or will they continue to expect local property owners to forcibly subsidize the great new commercial development from which the University will receive its percentages ? Whatever happened to the great and wonderful Argo Pratt ? Why did they bail ? How much will the University have to pay for their beautiful plans ? What about all the processes that are supposed to be followed through PG County and MNCPPC ? Will that get bull-dozed ? Will the community have a chance to comment ever again ? What if the University decides that it does not need the entire plant ? Will it lease to other government agencies, or to private businesses ? Who gets that rent ? What about taxes on those operations ? Yes, it must be worth $12 million to save some trees and buy an existing industrial building, but the financial implications appear to be more of the same where the University ignores the local residents who have to tolerate and pay for the abuse of the neighborhood bully. Yes, of course, there are pros and cons to any decision. The full implications of the Washington Post plant purchase will be eagerly awaited by the many tax paying property owners of College Park.

Will a deal be cut so the City does not lose all the revenue it might have otherwise been entitled to ?

Will the University acknowledge its impact upon the City and actually pay for all the extra traffic and congestion, or will they continue to expect local property owners to forcibly subsidize the great new commercial development from which the University will receive its percentages ?

Whatever happened to the great and wonderful Argo Pratt ? Why did they bail ? How much will the University have to pay for their beautiful plans ? What about all the processes that are supposed to be followed through PG County and MNCPPC ? Will that get bull-dozed ? Will the community have a chance to comment ever again ?

What if the University decides that it does not need the entire plant ? Will it lease to other government agencies, or to private businesses ? Who gets that rent ? What about taxes on those operations ?

Yes, it must be worth $12 million to save some trees and buy an existing industrial building, but the financial implications appear to be more of the same where the University ignores the local residents who have to tolerate and pay for the abuse of the neighborhood bully.

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]]> By: Robert Catlin http://rethinkcollegepark.net/blog/2010/1914/comment-page-1/#comment-181269 Robert Catlin Sun, 31 Jan 2010 14:36:37 +0000 http://rethinkcollegepark.net/blog/?p=1914#comment-181269 As of now their are no TIF bonds proposed for the project. If bonds are proposed down the road, I am sure that they would be of a much smaller amount then were being discussed in 2008. Any TIF bonds issued by the City or the County would be the responsibility of the project. If revenues were not sufficient to pay the bonds a special property tax would be levied on the project. If that were not sufficient the project may go into default. TIF bonds are not GO (general obligation) bonds that the City has to find a way to pay. A reason why the marketplace today would not be an easy sell for such TIF financing. Mazza GrandMarc should pay lower level of property taxes, than housing next to campus, because of greater cost of high-rise construction and higher land values there, but I expect it would still be in the $225-$250 range per bed. Mazza is building structured parking space for each bed, while projects adjacent to campus build only parking for about one-third of residents. So that is one major thing Mazza is building that enhances the cost/value of the project. As of now their are no TIF bonds proposed for the project. If bonds are proposed down the road, I am sure that they would be of a much smaller amount then were being discussed in 2008.

Any TIF bonds issued by the City or the County would be the responsibility of the project. If revenues were not sufficient to pay the bonds a special property tax would be levied on the project. If that were not sufficient the project may go into default.

TIF bonds are not GO (general obligation) bonds that the City has to find a way to pay. A reason why the marketplace today would not be an easy sell for such TIF financing.

Mazza GrandMarc should pay lower level of property taxes, than housing next to campus, because of greater cost of high-rise construction and higher land values there, but I expect it would still be in the $225-$250 range per bed.

Mazza is building structured parking space for each bed, while projects adjacent to campus build only parking for about one-third of residents. So that is one major thing Mazza is building that enhances the cost/value of the project.

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]]> By: Bob http://rethinkcollegepark.net/blog/2010/1914/comment-page-1/#comment-181182 Bob Fri, 29 Jan 2010 22:29:46 +0000 http://rethinkcollegepark.net/blog/?p=1914#comment-181182 Thank you for some welcome information on the tax revenues....from David and Bob...I'm glad to hear that about the income from the student housing being built in the City. Are those rates for all the units being built, including Mazza GrandMarc and others? I'd still like to know what the payback time is estimated on the TIF bonds and what happens if the tax revenues fall shorter than projected? Who is on the hook for the difference? CP residents or the University? or would it be a shared obligation? Thanks to all for their quick responses to my previous questions.... Thank you for some welcome information on the tax revenues….from David and Bob…I’m glad to hear that about the income from the student housing being built in the City. Are those rates for all the units being built, including Mazza GrandMarc and others?

I’d still like to know what the payback time is estimated on the TIF bonds and what happens if the tax revenues fall shorter than projected? Who is on the hook for the difference? CP residents or the University? or would it be a shared obligation?

Thanks to all for their quick responses to my previous questions….

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]]> By: Robert Catlin http://rethinkcollegepark.net/blog/2010/1914/comment-page-1/#comment-181172 Robert Catlin Fri, 29 Jan 2010 20:13:48 +0000 http://rethinkcollegepark.net/blog/?p=1914#comment-181172 City property taxes from new privately owned student housing comes in at about $300/bed per year. 2,500 new beds in 2010-2011 equals $750,000, plus about $100,000 in rental licensing fees, plus a small amount ($15,000?) of personal property tax (on furniture). If the retail space has tenants and generates rent, perhaps an additional $40,000 in property tax, too. So possibly a $900,000 revenue increase for a City budget that was about $12 million a year. City property taxes from new privately owned student housing comes in at about $300/bed per year. 2,500 new beds in 2010-2011 equals $750,000, plus about $100,000 in rental licensing fees, plus a small amount ($15,000?) of personal property tax (on furniture). If the retail space has tenants and generates rent, perhaps an additional $40,000 in property tax, too.

So possibly a $900,000 revenue increase for a City budget that was about $12 million a year.

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