1. WHITE FLINT SECTOR PLAN Financial Analysis, Infrastructure Financing & Economic Benefits

2. Who We Are  Collaborative group of commercial property owners in White Flint.  Federal Realty Investment Trust  The JBG Companies  Holladay Corporation  White Flint Mall (Lerner Enterprises/The Tower Companies)  Combined Properties  Financial Feasibility Study Consultant  W-ZHA, LLC  Transportation Consultant  Glatting Jackson Kercher Englin

3. Purpose of Presentation  Economic Benefits of Development within the White Flint Sector Plan Area to Montgomery County  Public-Private Financing Strategy for Critical Transportation Infrastructure  Economic Viability of Development in the Context of the TMX-Zone and White Flint Sector Plan Requirements

4. Absorption Infrastructure Investment Grows Along with Absorption. FAR at Full Build Out is Only 2.21

5. Potential Tax Revenues 1.4 Billion in Cumulative New Taxes Through 2028

6. Infrastructure Projects Montrose Pkwy Montrose Rd Tilden Nicholson Executive M

7. Infrastructure Financing $500 Million of Total New Transportation Infrastructure Investment within District

8. Infrastructure Financing PRIVATE SECTOR ON-SITE IMPROVEMENTS RESIDENTIAL TRANSPORATION IMPACT TAX COMMERCIAL SPECIAL ASSESSMENTS PUBLIC SECTOR INVESTMENT

9. Infrastructure Financing PRIVATE SECTOR INVESTMENT PUBLIC SECTOR INVESTMENT

10. Infrastructure Financing Less than 10% of Net New Tax Revenue Allocated to Service Debt on Infrastructure Bonds

11. Property Level Financial Analysis  To determine the redevelopment value, we performed a financial analysis on a fictitious 4 acre parcel of land.  We tested the following development scenarios at a 2.0, 3.0 and 4.0 FAR  A rental residential building with retail on the first floor  A for-sale residential building with retail on the first floor  An office building with retail on the first floor  The residual land value is the value of the piece of property after taking into account all development costs plus a reasonable return to the developer

12. Property Level Financial Analysis

13. Residential Rental

14. Incentive to Redevelop Where Residual Land Value is Greater Than Existing Land Value

15. Cost of Community Benefits MPDU’s and WFHU’s Alone Add $67.00 per SF of Cost to New Residential Development

16. Residential Rental $80 per SF Cost of Public Benefits Removes Incentive to Redevelop

17. Residential Rental Potential changes to benefits to increase residual land value:  Remove work force housing or revise requirements to be cost neutral  Modify MPDU legislation to decrease burden on land owners  Publicly finance costs to place utilities underground

18. Condo Potential changes to benefits to increase residual land value:  Remove work force housing or revise requirements to be cost neutral  Modify MPDU legislation to decrease burden on land owners  Publicly finance costs to place utilities underground

19. Office Potential changes to benefits to increase residual land value:  Decrease Building Lot Termination costs by 50%  Publicly finance costs to place utilities underground

20. Total

22. Planning Suggestions  Streamline approval process to be no longer than one year  Alter/remove transfer density concept and increase FAR’s correspondingly. Transfer can exist above this new base FAR.  Mandate that all utilities must be captured in the ROW of public streets. No PUE’s in addition to the ROW width.  Allow private parking to occur below public ROW where possible  Allow for above grade parking structures  Provide density bonuses for excellence in environmentally sensitive design and green building.  Raise the standard method base for the purchase of BLTs from 0.5 FAR to 1.0, decrease the percentage from 12.5% to 10%, and set price per BLT so that the cost is predictable.  Offset mechanism to credit costs of on site improvements against other public improvements

23. Legislative Suggestions  Cordon Line District Traffic Model to Provide Certainty of Development Rights in Return for Funding Infrastructure Improvements  Eliminate the payment of Transportation Impact Fees for WHU’s  Reduce or eliminate parking requirement for MPDU and WHU’s  Modify/Eliminate requirement for WHU’s within the Sector Plan Area.  Allow for the consolidation of the MPDU’s into buildings that are 20% affordable so land owners can access federal tax credits  Allow for affordable housing to be provided off-site within Sector Plan Area  Dramatically decrease parking requirements for retail  Create a County parking district

24. Questions & Answers