funding mechanism ltr exhibits

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May 6, 2013

Thomas Himler, Deputy CAO for Budget,Finance and Administration

Office of the County Executive

County Administration Building, 5th

FloorUpper Marlboro, Maryland 20772

The Honorable Vernon Archer, MayorTown of Riverdale Park5008 Queensbury RoadRiverdale, Maryland 20737

The Honorable John Tabori, MayorTown of University Park6724 Baltimore AvenueUniversity Park, Maryland 20782

Re: Cafritz Property Development-CSX Crossing

Dear Messrs. Himler, Archer and Tabori:

As you are aware, there is currently pending Preliminary Plan oapplication No. 4-13002 before the Prince Georges County Planning required transportation infrastructure involves the construction of a crCSX tracks, which crossing is proposed consistent with the Jcontained in the April 26, 2013 email communication (Exhibit 1) provof the University of Maryland. A professional cost estimate1 has beLoiederman Soltesz Associates (Exhibit 2), with review by the PrCounty Department of Public Works and Transportation (DPWestimated cost to construct such a crossing is approximately $11,0estimate included a cost escalation contingency of 25%. The Dincreased the costs for various factors including inspection, testing, pthe cost escalation contingency which amounts increased the$3,273,686. Based on actual construction estimates that have been rpotential crossing locations, it is anticipated that the actual cost of cobe lower than the LSA estimate, and the true cost will not be determ

11785 Beltsville Drive

Suite 1350

Calverton, MD 20705

301-572-5009

301-572-5007 fax

[email protected]


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Mr. Thomas HimlerThe Honorable Vernon ArcherThe Honorable John TaboriMay 6, 2013Page 2 of 3

estimated the land value as high as $1,000,000 per acre. Collectively, these are the Tthus provide a range of $14,223,212 to $17,496,689 for the crossingsaid range still rhigher end of the scale for the Total Cost.

Condition No. 25 (b) of Zoning Map Amendment A-10018 (the Zoning ApprovalApplicant, prior to Planning Board approval of the Preliminary Plan of Subdivisionfunding mechanism using a combination of public and private funds for the crossing. We therefore proffer the following as our funding mechanism based mentioned estimate:

Private Funds Fifty Percent (50%) of the Total Cost, not to exceed t$5,000,000.00 by the Developer.

Public Funds Tax increment revenues resulting from the creation of a devedistrict created by the Town of Riverdale Park to finance an

exceed one-third (1/3) of the Total Cost, excluding thcontribution.2

Public Funds Up to up to two-thirds (2/3) of the Total Cost, excluding thcontribution, by other Federal, State or Local funding and/revenues to finance improvements resulting from a Prince Gespecial taxing district petitioned for by the Developer.3

Additionally, the DPW&T, at the Town of Riverdale Parks request, will oversee tpermitting of the streets within the proposed development, including the crossing (Esuch, Section 23-116 of the County Code requires that no permit be issued until thprincipal, has posted a performance bond in favor of Prince George's County satisfactory performance and completion of all work covered by the permit; and/or, wha payment bond to ensure timely payment to the County, subcontractors, and/or suppperformed under the permit.

Pursuant to Condition No. 26 (b) of the Zoning Approval, prior to the issuance of build

more than 100,000 square feet of commercial space and more than 120 residentialpermits, the Applicant shall have received all necessary permits and approvals for concrossing and shall have provided the DPW&T all approved financial assurance ansecurity to ensure completion of construction of the CSX crossing, and will thererequired performance bonds for the construction of the crossing at that time. The permconstruction will include a timeframe which must be verified by the DPW&T. It is construction on the crossing will commence in May 2014 and we estimate constr


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Mr. Thomas HimlerThe Honorable Vernon ArcherThe Honorable John TaboriMay 6, 2013Page 3 of 3

Zoning Approval requires the crossing to be open prior to issuance of the 383rd residenthe Preliminary Plan must conform to this condition.Collectively, the information herein addresses the requirements of Condition No. 25 (bApproval. Feel free to contact me if you have any questions.Sincerely,

Andre J. Gingles, Esq.Attachments (Exhibits 1-6)cc: Lawrence Taub, EsquireWhitney Chellis, M-NCPPC

Quynn Nguyen, M-NCPPCSusan Lareuse, M-NCPPC


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EXHIBIT 1


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Andre J. GinglesFrom: Ed Maginnis Sent:. Friday, April 26, 2013 6:02 PMTo: [email protected]; [email protected]; [email protected]

[email protected]; [email protected]; varcher@[email protected]; [email protected];* [email protected]; [email protected]; mtartaro@hyattsvilleGingles; Larry Taub ([email protected]); Jim Soltesz, P.E.; Tim Davis,[email protected]

Cc: William Joyce; Irene Redmiles; Robert M. SpecterSubject: Cafritz: University of Maryland Support for J CrossingAttachments: CSX Crossing J-3.300.pdf; maginnis.vcf

All:It hascome to the University's attention that there might besome confusion about what is meantCrossing" and the University's support for such a crossing, connectingthe Cafritz Project to River RUniversity of Maryland property. The Universitysupportsthat crossingof the CSX tracks asshownto this email and identified as Option J.3.300. The University intends to send a letter to the Plannithis alignment. For precision, Option J.3.300 should be referred to when using the shorthand phraEd MaginnisUniversity Counsel


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6%

840

+

690

+

Option "J .3.300"

RELOCATEDLAFAYETTE AVE

ACCESS TOGOLUB

PROPERTY

PROPOSEDBRIDGE

ABUTMENT

PROPOSEDBRIDGE

ABUTMENT

300'R

adius

520

+

+

6%

A

A

Section A-A

CL12'12' 5'

BIKE

6'WALK

5'BIKE

6'WALK

6%

MINIMUM 45' ROAD SCREENING BUFFER

456,241S.F.or

10.47 AC.


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EXHIBIT 2


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EXHIBIT 3


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EXHIBIT 4


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PETITION

TO CREATE CALVERT TRACT SPECIAL TAXING DISTRICT

Dated: April 19, 2013

The Honorable Rushern L. Baker, IIICounty Executive

14741 Governor Oden Bowie Drive, Suite 5032

Upper Marlboro, Maryland 20772

The County Council of Prince Georges County14741 Governor Oden Bowie DriveUpper Marlboro, Maryland 20772

This is a petition requesting the creation of a special taxing district as tha

in Section 10-269 of the Prince Georges County Code, as amended (2003 ESupplement), and as that term is used in Section 9-1301 of Article 24 of the Anno

Maryland, as amended (2011 Replacement Volume) (collectively, the Act) within

Riverdale Park, Maryland, and other action.

1. Petitioner. This petition is submitted by Calvert Tract LLC (Petitisole owner of the parcels of land generally described in Exhibit A attachedProperty). By submitting this petition, Petitioner warrants to Prince Geor

Maryland (the County) that it is authorized to execute the petition as the sole

Property.

2. Ownership of Property. Petitioner warrants to the County that it is thof the property within the proposed boundaries of the special taxing district and the

property with at least two-thirds of the assessed value of the real property within

boundaries of the special taxing district, determined as prescribed by the Act.

3. Proceedings Requested. Petitioner and its successors and assigns reqCounty Council undertake proceedings under the Act to create a special taxing

designated the Calvert Tract Special Taxing District (the District), to levy sp

the District, to issue special obligation bonds or special obligation refunding bestablish a special fund with respect to the District pursuant to the Act to finance or

or a portion of the public infrastructure improvements more particularly describedattached hereto. Petitioner further requests that the County undertake proceedings

to adopt from time to time any and all such ordinances, resolutions, executive ord


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County Council together with this petition as Exhibit C. Petitioner requests that

included in the proceedings undertaken by the County Council referenced in paragto permit modifications to such boundaries prior to the issuance of the special obl

also referenced in paragraph 3 above.

5. Purpose of the District. The purpose of the District and the specialevied by the County shall be to finance public infrastructure improvements r

development of retail, commercial, residential and office facilities within the Distr

but not limited to, a crossing over the CSX railroad tracks adjacent to the Property.

6.

Consent to Formation of District. On April 1, 2013 the Council ofRiverdale Park, Maryland adopted a resolution approving the designation and crDistrict, as required by the Act.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


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EXHIBIT A

PROPERTIES INCLUDED IN THE

CALVERT TRACT SPECIAL TAXING DISTRICT

The proposed special taxing district will be comprised of portions of th

identified by account numbers 2128106, 2128072 and 2128080, as shown on the m

C.


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EXHIBIT B

DESCRIPTION OF THE PUBLIC INFRASTRUCTURE IMPROVEMEN

The specific public improvements for which financing is requested inc

limitation:

Acquisition of property and rights of way; Demolition and clearing associated with preparing the site

crossing over the CSX railroad adjacent to the Propert

Crossing);

Utilities, including the relocation of existing utilities associconstruction of the CSX Crossing;

Construction of the east and west approach to the CSX Crossigrading, retaining walls, subgrade and paving, lighting,

marking;

Construction of the CSX Crossing; Road improvements, including roads to and from the Property Landscaping and reforestation associated with the improveme Project design, engineering and other soft project costs; and Related infrastructure improvements within the District

authorized by the Act.


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EXHIBIT C

MAP OF BOUNDARIES OF CALVERT TRACT SPECIAL TAXING DIST

(See attached.)


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EXHIBIT 5


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COUNTY COUNCIL OF PRINCE GEORGE'S COUNTY, MARY

2013 Legislative Session

Resolution No. CR-28-2013

Proposed by The Chair (by request County Executive)

Introduced by Council Member Harrison

Co-Sponsors

Date of Introduction April 23, 2013

RESOLUTION

A RESOLUTION concerning1

Calvert Tract Special Taxing District2

For the purpose of designating an area within Prince Georges County, Maryland3

taxing district as that term is used in Section 10-269 of the Prince Georges Cou4

amended, and as that term is used in Section 9-1301 of Article 24 of the Annotat5

Maryland, as amended, (collectively, the Act), such special taxing district to be6

Town of Riverdale Park, Maryland and to be known as the Calvert Tract Specia7

District; providing for, and determining, various matters in connection with the 8

a special taxing district, creating a special fund with respect to the special taxing 9

providing for the introduction of a future ordinance or ordinances to provide for 10

special tax in connection with such special taxing district; pledging proceeds of s11

to be paid over to the special fund as provided in the Act; making certain finding12

determinations with respect to the special fund and the use of such fund; providin13

obligation bonds may be issued from time to time pursuant to an ordinance or or14

in accordance with the Act and secured by the special fund; and generally relatin15

Tract Special Taxing District.16

WHEREAS, Section 10-269 of the Prince Georges County Code, as amend17

CR


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CR

WHEREAS, Calvert Tract LLC, a Maryland limited liability company (the 1

owner of at least two-thirds of the assessed valuation of the real property located 2

Special Taxing District and at least two-thirds of the owners of the real property 3

the Special Taxing District and has petitioned the County to designate and create4

Taxing District within the Town of Riverdale Park, Maryland as more specificall5

within such petition; and6

WHEREAS, the Owner plans to construct a mixed use development includi7

commercial, residential and office facilities, including, but not limited to, a cross8

CSX railroad tracks adjacent to the Special Taxing District; and9

WHEREAS, such development will further economic development within t10

thus meet the public purposes contemplated by the Act; and11

WHEREAS, the Owner has requested that the County issue its special oblig12

one or more issues or series to finance infrastructure improvements within or adj13

Special Taxing District, as permitted by the Act; and14

WHEREAS, the Act authorizes the County to issue special obligation bond15

time for the purpose of providing funds to be used to fulfill one or more of the pu16

Act; and17

WHEREAS, the County will consider the introduction of an ordinance or or18

among other things, provide for the levy of a special tax on the real property with19

Taxing District, and provide that the County will apply the revenues of the Speci20

proceeds of any special obligation bonds authorized by the ordinance or ordinanc21

under the Act to fund a portion of the costs of the infrastructure improvements; a22

WHEREAS, if the County issues its special obligation bonds upon enactme23ordinance or ordinances such ordinance or ordinances will provide that the speci24

bonds shall be secured by a pledge of the Special Tax, as more specifically provi25

WHEREAS, on April 1, 2013 the Council of the Town of Riverdale Park, M26

CR


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the meanings set forth below:1

(1) Bonds means special obligation bonds, revenue bonds, notes, o2

instruments issued by the County pursuant to and in accordance with this Resolu3

(2) Special Tax means the special taxes levied and imposed by the 4

real property within the Special Taxing District pursuant to the Act.5

(3) Special Taxing District means the area within the County desig6

3 of this Resolution as a special taxing district under the Act.7

(4) Special Taxing District Fund means the special taxing district fu8

in Section 5 of this Resolution.9

SECTION 2. BE IT FURTHER RESOLVED, that acting pursuant to the A10

found and determined that the establishment of the Special Taxing District, the cr11

Special Taxing District Fund and the issuance of Bonds from time to time pursua12

for the purpose of providing funds to finance the costs of certain infrastructure im13

within or adjacent to the Special Taxing District accomplishes the public purpose14

generally promotes the health, welfare and safety of the residents of the State of M15

the County.16

SECTION 3. BE IT FURTHER RESOLVED, that an area of the Town of 17

Maryland and the County consisting of the property set forth below is hereby des18

Special Taxing District (to be known as the Calvert Tract Special Taxing Dist19

to Section 10-269(e) of the Prince Georges County Code, as amended, and Secti20

Article 24 of the Annotated Code of Maryland, as amended. The Special Taxing21

consist of property described in Exhibit A to this Resolution and as depicted in th22

hereto as Exhibit B and all adjoining roads, highways, alleys, rights of way, park23similar property. The boundaries of the Special Taxing District may be modified24

after the issuance of the Bonds as provided in Section 4 of this Resolution.25

SECTION 4. BE IT FURTHER RESOLVED, that prior to the issuance of 26

CR


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the County to reduce the area constituting the Special Taxing District or the hold1

or a representative on their behalf consents to any such reduction.2

SECTION 5. BE IT FURTHER RESOLVED, that there is hereby establish3

fund within the meaning of the Act to be designated the Calvert Tract Special T4

Fund with respect to the Special Taxing District. The taxes derived from the lev5

Tax on real property within the Special Taxing District, once such Special Tax is6

collected, shall be paid over to the Special Taxing District Fund pursuant to Sect7

1301(f)(2)(ii) of Article 24 of the Annotated Code of Maryland, as amended, and8

269(e)(2)(B) of the Prince Georges County Code, as amended. The County Exe9

Chief Administrative Officer, the Financial Officer, and other officers and emplo10

County, to the extent applicable, are hereby authorized to take all necessary steps11

establish a separate fund to be held by the County.12

SECTION 6. BE IT FURTHER RESOLVED, that Bonds may be issued fr13

pursuant to an ordinance or ordinances enacted in accordance with the Act for th14

providing funds for the financing of infrastructure improvements within or adjac15

Special Taxing District. Such ordinance or ordinances shall specify, in general d16

proposed undertaking to be financed with the proceeds of the Bonds and shall oth17

to the requirements of the Act and this Resolution.18

SECTION 7. BE IT FURTHER RESOLVED, that prior to the issuance of 19

pursuant to the ordinance or ordinances referred to in Section 6, the County shall20

levy and imposition of the Special Tax upon all real property within the Special T21

unless exempted by law or the provisions hereof, at a rate or amount designed to 22

adequate revenues to pay the principal of, interest on, and redemption premium, 23Bonds, to replenish any debt service reserve fund, to pay the County's administra24

related to the issuance of the Bonds and the creation of the Special Taxing Distri25

other purpose related to the ongoing expenses of or security for the Bonds. The 26

CR


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be illegal, invalid or unconstitutional or inapplicable to any person or circumstan1

illegality, invalidity or unconstitutionality or inapplicability shall not affect or im2

remaining provisions, sentences, clauses, sections or parts of this Resolution or th3

to other persons or circumstances. It is hereby declared to be the legislative inten4

Resolution would have been passed if such illegal, invalid, unconstitutional or in5

provision, sentence, clause, section or part had not been included herein, and as i6

circumstances to which this Resolution or any part hereof are inapplicable had be7

exempted herefrom.8

SECTION 9. BE IT FURTHER RESOLVED, that this Resolution is admin9

nature and shall take effect upon approval by the County Executive.10

Adopted this ___ day of , 2013.

COUNTY COUNCIL OF PRINCE

GEORGE'S COUNTY, MARYLA

BY: ____________________________Andrea Harrison

Chair

ATTEST:

______________________________Redis C. Floyd

Clerk of the Council

APPROVED:

CR-28


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Exhibit A

PROPERTIES INCLUDED IN THE

CALVERT TRACT SPECIAL TAXING DISTRICT

The special taxing district will be comprised of portions of the tax parcels

account identifier numbers 2128106, 2128072 and 2128080, as shown on the map in

CR-28


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Exhibit B

SPECIAL TAXING DISTRICT MAP

(Exhibit B is available as an Inclusion File in LIS.)


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EXHIBIT 6


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funding mechanism ltr exhibits

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