AGENDA ITEM #3C December 5, 2017 Action MEMORANDUM December 1, 201 7 TO: FROM: SUBJECT: County Council Marlene Michaelsognior Legislative Analyst Action - Request for approval to use Advance Land Acquisition Revolving Fund (ALARF) to acquire real property from Street Retail, Inc. (owned by Federal Realty Investment Trust) for public park and transit purposes The Park and Planning Commission has negotiated a Land Purchase Agreement to acquire two parcels using the Advance Land Acquisition Revolving Fund (ALARF). ALARF purchases require Council approval; Staff recommends approval of the request. The parcels are unimproved land located on the east side of Woodmont A venue, the west side of Reed Street, and the south side of Elm Street in Bethesda( 4). The primary address is 4801 Bethesda Avenue, Bethesda, MD in the Bethesda Row District. The properties combined are 17,610 square feet or 0.4 acres, more or less, and will be used to create the Capital Crescent Civic Green (rendering on 5). They are titled in the name of Street Retail, Inc., a corporation owned by Federal Realty Investment Trust (FRIT). The request from the Department of Parks is on 1-2, the Planning Board resolution to approve the purchase is on 3, and a resolution is on 6-7. The properties are zoned CR-5.0, C-5.0, R-5.0, H 145, a Commercial/Residential zone intended for larger downtown, mixed-use, and pedestrian-oriented areas near transit options such as Metro, light rail, and bus. Negotiations began with FRIT to acquire the properties as parkland after the site was identified in the Bethesda Downtown Sector Plan as the proposed Capital Crescent Civic Green. The acquisition of the FRIT property is consistent with the recommendations in the March 2014 Approved and Adopted Bethesda Purple Line Station Minor Master Plan Amendment, as stated in the Plan language below: A key component of redeveloping the station will be the station entrances, at the corner of Wisconsin Avenue and Elm Street, and in Woodmont Plaza, at the intersection of Bethesda and Woodmont Avenues. These spaces not only serve as critical access points to the transit station, but also as
gateways to Downtown Bethesda. Woodmont Plaza will be the central open space for the area around the junction of Bethesda Avenue, Woodmont Avenue, and the Capital Crescent Trail. The acquisition of the FRIT property to create the Capital Crescent Civic Green is consistent with the recommendations in the May 201 7 Approved and Adopted Bethesda Downtown Sector Plan, as stated in the Plan language below: Capital Crescent Civic Green Vision: This space is envisioned as the civic green for the Bethesda Row District and the western gateway of the Capital Crescent Trail. It will build on the success of the existing small plaza at the Barnes and Noble store and act as an outdoor civic center for the Bethesda Row District (page 81). Land Use and Zoning Goal: Provide a civic gathering space as an extension of the plaza at the intersection of Bethesda Avenue and Woodmont Avenue (page 106). Urban Design Public Realm Goal: Create a major central gathering space that can be the hub of activity and connect Bethesda Row to regional transit, trails and surrounding districts (page 108). The Capital Crescent Civic Green is also one of three sites designated as critical Urban Open Spaces in the Legacy Open Space Functional Master Plan via the Bethesda Downtown Sector Plan (page 155): The Capital Crescent Civic Green meets the criteria to be designated as an Urban Open Space of countywide importance within the Legacy Open Space Functional Master Plan (2001). This critical civic green will create one of the primary green spaces in the center of Bethesda. It will provide key community open space for recreation and casual use by the large population center in this community, as well as support trail usage and special events to serve the entire County. The Commission has money available in its Advance Land Acquisition Revolving Fund (ALARF) to complete this acquisition. The Commission will recover a significant portion of the expenditure from MT A, as negotiations are currently underway to sell perpetual and temporary easements for the purpose of the construction, operation, and maintenance of the Purple Line Station. The Commission's ALARF currently has a balance of more than $11.5 million. The purchase price of the FRIT property is $8,500,000.00, which is supported by independent appraisals. Section 18, Subtitle 4 of the Land Use Article, Annotated Code of Maryland authorizes the Planning Commission to use the ALARF, with the approval of the County Council, to purchase land for highways, schools, and other public uses. The intent of this section is to provide a mechanism for protecting sites planned for future public use from development by allowing rapid acquisition. ALARF is typically repaid once a capital project to construct the facility is approved. Property to be acquired under this authority must be shown on an approved and adopted master plan. In addition, sites planned for a public use other than a State highway, street, road, or mass transit facility may not be purchased with ALARF funds if the site is within a public construction program current at the time of acquisition. Staff recommends approval. F:\Michaelson\lPARKS\ALARF\acquisitions\4801 Bethesda Ave\4801 Bethesda Ave Intro 171128.doc 2
MONTGOMERY COUNTY DEPARTMENT OF PARKS THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION November 13, 2017 The Honorable Roger Berliner President, Montgomery County Council Stella Werner Office Building 100 Maryland Avenue Rockville, MD 20850 Re: Request for approval to use Advance Land Acquisition Revolving Funds (ALARF) to acquire real property for public park and transit purposes. Dear President Berliner: The Maryland-National Capital Park and Planning Commission has negotiated a Land Purchase Agreement to acquire 17,610 square feet or 0.4 acres, more or less, for two parcels of unimproved land located on the east side of Woodmont Avenue, the west side of Reed Street, and the south side of Elm Street in the 7 th election district of Montgomery County. The primary address is 4801 Bethesda Avenue, Bethesda, MD in the Bethesda Row District. The properties may be precisely identified on Tax Map HN22 as part of Parcel N625 and all of Parcel P142, and shown outlined in red on Exhibit "A". The properties are titled in the name of Street Retail, Inc., a corporation owned by Federal Realty Investment Trust (FRIT). The subject properties are zoned CR 5.0 C 5.0 R 5.0 H 145, a Commercial Residential Zone intended for larger downtown, mixed use, and pedestrian oriented areas near transit options such as Metro, light rail, and bus. Negotiations began with FRIT to acquire the properties as parkland after the site was identified in the Bethesda Downtown Plan as the proposed Capital Crescent Civic Green. The acquisition of the FRIT property is consistent with the recommendations in the March 2014 Approved and Adopted Bethesda Purple Line Station Plan Minor Master Plan Amendment as stated in the plan language below: A key component of redeveloping the station will be the station entrances, at the corner of Wisconsin Avenue and Elm Street, and in Woodmont Plaza, at the intersection of Bethesda and Woodmont Avenues. These spaces not only serve as criticalaccess points to the transit station, but also as gateways to Downtown Bethesda. Woodmont Plaza will be the central open space for the area around the junction of Bethesda Avenue, Woodmont Avenue, and the Capital Crescent Trail. The acquisition of the FRIT property to create the Capital Crescent Civic Green is consistent with the recommendations in the May 2017 Approved and Adopted Bethesda Downtown Sector Plan as stated in the plan language below: Capital Crescent Civic Green Vision: This space is envisioned as the civic green for the Bethesda Row District and the western gateway of the Capital Crescent Trail. It will build on the success of the existing small plaza at the Barnes and Noble store and act as an outdoor civic center for the Bethesda Row District (page 81). Land Use and Zoning Goal: Provide a civic gathering space as an extension of the plaza at the intersection of Bethesda Avenue and Woodmont Avenue (page 106}. 9500 Brunett Avenue, Silver Spring, Maryland 20901 www.montgomeryparks.org General Information: 301.495.2595,-, I
Urban Design Public Realm Goal: Create a major central gathering space that can be the hub of activity and connect Bethesda Row to regional transit, trails and surrounding districts (page 108). The Capital Crescent Civic Green is also one of three sites designated as critical Urban Open Spaces in the Legacy Open Space Functional Master Plan via the'bethesdadowntown Plan (page 155): The Capital Crescent Civic Green meets the criteria to be designated as an Urban Open Space of countywide importance within the Legacy Open Space Functional Master Plan (2001). This critical civic green will create one of the primary green spaces in the center of Bethesda. It will provide key community open space for recreation and casual use by the large population center in this community, as well as support trail usage and special events to serve the entire County. A concept rendering of the proposed Capital Crescent Civic Green is shown attached as Exhibit "B". This acquisition will implement the vision of the Bethesda Downtown Plan to create one of the most important park spaces in Bethesda. As recommended in the Plan, the Capital Crescent Civic Green would provide an open space with a variety of spaces and amenities to support the active Bethesda Row area, as stated in the Plan: Purpose: The Capital Crescent Trail Civic Green would provide an open space with a large lawn. This green would accommodate community events and programming, a meeting spot for moviegoers, cyclists and restaurant patrons, and space for casual picnicking, reading and sunbathing (page 82). The Commission has money available in its Advance Land Acquisition Revolving Fund (ALARF) to complete this acquisition. The Commission will recover a significant portion of the expenditure from MTA, as negotiations are currently underway to sell perpetual and temporary easements for the purpose of the construction, operation, and maintenance of the Purple Line Station. The Commission's ALARF currently has a balance of more than $11.5 million. The purchase price of the FRIT property is $8,500,000.00, which is supported by independent appraisals. Maryland Code Annotated, Land Use Article 18-402 (formerly Article 28, 7-106), requires that when ALARF funds are to be used, the Commission must first receive District Council approval before any expenditures can be made. To that end, please include this matter for Council consideration and approval during one of its next regularly scheduled meetings. Your early attention to this matter will be appreciated as we are hoping to close on this transaction before the end of the calendar year. I am also enclosing a draft Resolution as Exhibit "C" that may be helpful to you as the Council considers this matter. Thank you for your time and attention. If you have any questions in this regard, please call me at {301) 495-2553. Sincerely, ~/7 Mike Riley (../ (,/ Director of Parks Maryland-National Park and Planning Commission
MONTGOMERY COUNTY PLANNING BOARD TI 11, ~I \RYL\ND N \ l'ion \L C.\PI L\L P.\RK \ND PL.\NNING COI-.U\!ISS[ON OFFICE OF THE CHAIR MCPB 17-094 RESOLUTION WHEREAS, the Maryland-National Capital Park and Planning Commission ("Commission") is authorized by Md. Code Ann., Land Use 17-101 (formerly Article 28, Section 5-101), to acquire, develop, maintain and operate a public park system within the Maryland-Washington Metropolitan District; and WHEREAS, the acquisition is consistent with the recommendations in the May 2017 Approved and Adopted Bethesda Downtown Sector Plan, and the 2014 Purple Line Station Plan Minor Master Plan Amendment; and WHEREAS, the Montgomery County Planning Board received and considered a recommendation from staff of the Commission, in closed session on November 2, 2017, that it approve the acquisition of 17,610 square feet (0.4 acres) ofland, more or less, unimproved, (the "Property") from Street Retail, rnc., ( the "Seller"), located at 4801 Bethesda A venue in Bethesda, MD 20814, identified in Maryland Department of Assessments and Taxation's Tax Map HN22, as part of Parcel N625 having Tax Account Number 07-02608550, and all of Parcel P142 having Tax Account Number 07-00429373, for the purpose of creating a new urban park called the Capital Crescent Civic Green; and WHEREAS, there are sufficient monies available in the Commission's Advance Land Acquisition Revolving Fund (ALARF) to pay the $8,500,000.00 negotiated purchase price for the Property; and NOW THEREFORE, BE IT RESOLVED, that, subject to the final approval of the Montgomery County Council, the acquisition of the Property from the Seller as described above, for a purchase price of $8,500,000.00 in accordance with a proposed Land Purchase Agreement between the Commission and the Seller, in a form and substance to be approved by the Commission's Office of General Counsel, is hereby approved by the Montgomery County Planning Board on this 9 th day of November, 2017 and the Executive Director is authorized to execute said Agreement on behalf of The Maryland-National Capital Park and Planning Commission. * * * * * * * * * * * * * This is to certify the foregoing is a true and correct copy of a resolution adopted by the Montgomery County Planning Board of The Maryland-National Capital Park and Planning Commission on motion of Commissioner Fani-Gonzalez, seconded by Commissioner Cichy, with Chairman Anderson, Commissioners Cichy, Fani-Gonzalez, and Patterson present and voting in favor of the motion, and Commissioner Dreyfuss being absent, at its regular meeting held on Thursday, November 9"', 2017 in Silver Spring, Maryl~ APPRov~~..t..J LEGAL SlJFFIClENC. Casey Anderson, Chair Montgomery County Planning Board 8787 Georgia.-\venue, Silver Spring, Maryland 20910 Chrunnan's Office: 301.495.4605 Fax: 301.495.1320 www.mont,gomei:yplanningboard.org E-Mail: mcp-chair@mncppc.org (i)
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Resolution No.: Introduced: November 28, 201 7 Adopted: COUNTY COUNCIL FOR MONTGOMERY COUNTY, MARYLAND SITTING AS THE DISTRICT COUNCIL FOR THAT PORTION OF THE MARYLAND-WASIDNGTON REGIONAL DISTRICT WITHIN MONTGOMERY COUNTY, MARYLAND Lead Sponsor: District Council at the request of the Planning Board SUBJECT: Acquisition of Real Property from Street Retail, Inc., (FRIT) in the Bethesda Central Business District of Montgomery County for Public Park and Transit Purposes Background 1. The Montgomery County Council has approved the establishment of an Advance Land Acquisition Revolving Fund for the Maryland-National Capital Park and Planning Commission. The fund was originally created through a $7 million bond issue in FY72 and supplemented with a $5 million bond issue in FY90, a $2.2 million bond issue in FY94, and a $2 million bond issue in FY05. 2. The Montgomery County Council has provided for expenditures from this fund in Fiscal Year 2018. 3. The Maryland-National Capital Park and Planning Commission has requested the Council's approval to acquire the below-described real property, in the Bethesda area of Montgomery County, using the Advance Land Acquisition Revolving Fund. The land is intended to be used for a new civic green urban park in the Bethesda Row District. 4. The subject property will be acquired from a willing seller for a master planned public purpose. Action The County Council for Montgomery County, Maryland, sitting as the District Council for that portion of the Maryland-Washington Regional District within Montgomery County, approves the following resolution:
The District Council approves the acquisition by The Maryland-National Capital Park and Planning Commission of the below described real property: 1. Part of that land owned by Street Retail, Inc., as described in a deed dated May 29, 1998 and recorded among the Land Records of Montgomery County, Maryland in Liber 15895 at folio 356, consisting of 18,251 square feet, more or less, unimproved. Being a portion of that property located in Montgomery County, Maryland, east of Woodmont Avenue and south of Elm Street, Bethesda, MD 20854, and further identified by the Maryland Department of Assessments and Taxation as Parcel N625 with Tax Account No. 07-02608550, and; 2. All of that parcel ofland owned by Street Retail, Inc., as described in a deed dated October 27, 2000 and recorded among the Land Records of Montgomery County, Maryland in Liber 18506 at folio 658, consisting of 4,322 square feet, more or less, unimproved. Being all of that property located in Montgomery County, Maryland with a physical address of 4801 Bethesda A venue, Bethesda, MD 20854, and further identified by the Maryland Department of Assessments and Taxation as Parcel P142 with Tax Account No. 07-00429373. 3. The subject property will be used for a future civic green urban park and transit access point for a community-wide public purpose. 4. The total cost of the acquisition described in (1) & (2) above shall not exceed the sum of Eight Million Five Hundred Thousand and.00/100 Dollars ($8,500,000.00). 5. This action is in compliance with Section 18, Subtitle 4 of the Land Use Article, Annotated Code of Maryland. This is a correct copy of Council action. Linda M. Lauer, Clerk of the Council