The White Flint Partnership endorses the financing plan as proposed by the County Executive at the joint PHED/MFP Work-session on White Flint financing November 16, 2010. We believe that the proposal is a fair and equitable negotiated solution to the $100 million funding gap. The solution proposed by the County Executive shifts the burden for approximately 50% of the funding gap onto the private sector by extending the life of the special taxing district. The portion of the gap to be funded by the County is largely second phase projects which will not be constructed for at least seven to ten years. In addition, the second Metro entrance could be eligible for state or federal funding to further reduce the County’s burden. Below is a summary of some of the benefits of the current financing proposal as well as some greater detail about the true costs of infrastructure in White Flint.
KEY BENEFITS OF COUNTY EXECUTIVE’S FINANCING PROPOSAL:
We believe the funding mechanism proposed is a creative solution for managing the gap for the following reasons:
· Enables infrastructure to occur in White Flint without competing with other CIP projects or counting against the County’s debt capacity because there are dedicated funds for repayment.
· The mechanism continues the precedent that development pays for needed infrastructure within a Sector Plan by having a private sector funding source for all district infrastructure items.
· Forward funding of $37 million of infrastructure will expedite the western work around and free up funds for other major projects in White Flint including the Rockville Pike transformation.
· By allowing the special taxing district to repay the $37 million when excess funds are available, it does not compete with other major projects in White Flint that the special tax must fund. Alternatively, repayment of interest, even starting in year 10, would delay the construction of all other White Flint infrastructure projects including Rockville Pike.
· The proposal allows the County to take advantage of $37 million in reimbursement from the private sector for a major road construction project which is largely on the County’s conference center property.
Finally, the property owners have agreed to relinquish their right to seek a credit for on-site capacity generating infrastructure which would ordinarily have been credited against Impact Tax Payments or PAMR.