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Contact:
Alexis Henderson
410-222-7410
SPECIAL FINANCING APPROVED FOR MULTI-USE COMMUNITY
Economic Development Bonds and Creation of Special Taxing District to Offset Cost of Infrastructure
ANNAPOLIS, MD (August 3, 2010) - - - Special financing for Cedar Hill, a 321-acre residential and flex/office industrial project to be built in Brooklyn Park by Cherrywood Development, LLC, was approved by the Anne Arundel County Council on Monday. The $24 million financing package for the project will cover the cost of infrastructure needed before construction can start. The financing package was put together by Anne Arundel Economic Development Corporation (AAEDC) and the County Budget and Finance Office using Federal Stimulus Funds and the creation of a Special Taxing District.
"Cedar Hill is an important part of the revitalization of Brooklyn Park,” said Anne Arundel County Executive John R. Leopold. “Anne Arundel Economic Development Corporation moved quickly to leverage Federal resources that will have a tangible economic impact for Anne Arundel County and provide much needed workforce housing.”
The Cedar Hill project represents a significant investment in Brooklyn Park, a designated Anne Arundel County revitalization area. It will bring 1,600 new residential units priced for the moderate to middle income market, addressing the shortage of workforce housing in the County. It will also create business, provide retail alternatives for residents, and help grow the county tax base.
Infrastructure to be financed for Cedar Hill includes the construction of Cedar Hill Boulevard, constructing a new sanitary sewer pumping station, the installation of storm water management ponds, the relocation of a gas line, and the addition of state highway entrance and subdivision roads. Construction is expected to begin by December of 2010 with full sellout expected by the end of 2016.
Robert Hannon, president and CEO of the Anne Arundel Economic Development Corporation, said “creative use of Federal Stimulus Programs and the County’s application of the Special Financing District combine to make the infrastructure for the Cedar Hill project possible. AAEDC will continue to work with Cherrywood Development to ensure timely delivery of this project.”
Financing Program
Of the total $24 million, the public financing for this project, $13 million, is made possible through the establishment of a Special Taxing District which provides an additional, voluntary increment to real property taxes. These revenues are dedicated for the 30-year term of the bonds to satisfy debt service. $11 million will be taxable bonds made available to Anne Arundel County by the American Recovery and Reinvestment Act. The U.S. Treasury will rebate 45% of debt service to the County to reduce the overall cost of home ownership.
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