7/30/2019 Meadow Road TIF Summary - 05-10-13

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Question: Why should you support construction of the Meadow Road / I-70 Interchangethrough Tax Increment Financing (TIF) for the Oakdale (Lake Linganore)Project?

Answer: It makes sense for Lake Linganore, the New Market Region, the City ofFrederick, Frederick County and the State of Maryland. Heres why

Current Situation:-Incomplete Interchange: Since opening in the 1980s, there has only been a partial interchange(westbound I-70 off-ramp and an eastbound I-70 on-ramp) along I-70 at the MD 144/MeadowRoad area.-Congestion: Local traffic has to travel 3 to 5 miles along the secondary highway system to gainaccess to I-70 for movements not provided by the Meadow Road interchange.-Driver Inconvenience: Travelers sometimes have to backtrack, adding significant mileage to theeveryday commute.-Conclusion: There are existing deficiencies due to these conditions along the secondary

roadway system and the adjacent existing full movement interchanges have negative impacts oncurrent residents and businesses.

Future/Proposal:-Congestion Relief: Construction ofthe missing westbound I-70 on-ramp and eastbound I-70off-ramp at the MD 144/Meadow Road Interchange will provide significant relief at the othertwo interchanges both east (MD 75) and west (MD 144/Quinn Orchard Road and MonocacyBoulevard) of the partial MD 144/Meadow Road Interchange. The traffic volumes at theseinterchanges are projected to significantly increase in the future (based on existing, backgroundand thru traffic, and normal growth), for the existing 6,000 plus homes and commercial areas inthe New Market Region.-Reduced Travel Distances and Times: Construction of these ramps will provide significantbenefits to many residents of Frederick County and other travelers whose miles traveled andtravel time to and from work or their destination will be greatly reduced.-Increased Safety: In conjunction with the on-going I-70/I-270 projects in Frederick County, thisimprovement will add roadway capacity and will increase safety on both the interstate and thelocal roads.-Improved Quality of Life and Economic Development: An improved regional transportationnetwork will improve quality of life for numerous Frederick County residents and promoteeconomic development in the County by moving the regional traffic off the local roads andencouraging future employers to locate businesses in Frederick County.-Costs: The Maryland State Highway Administration (SHA) has prepared preliminary costestimates for both of these missing ramps at this interchange (including road networksignalization):

- Project Design and Engineering: $5 million-Construction of the Westbound I-70 on-ramp: $5 Million-Construction of the Eastbound I-70 off-ramp: $20 Million-Total Cost: $30 million

7/30/2019 Meadow Road TIF Summary - 05-10-13

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Tax Increment Financing Details:-No use of current County revenue: No current County revenue dollars will be used to fund theconstruction of the two ramps at the Meadow Road interchange.-Not dependent on County or State funding: If the TIF financing is approved, the Oakdaledeveloper will fund the design and engineering costs ($5,000,000; 15% of the total cost).TIF

bonds are proposed to finance the costs associated with constructing the Interstate 70/MeadowRoad Interchange ($25,000,000-85% of total cost).-Public Benefit: The proposed TIF will not be used to provide any infrastructure specifically forthe development of Oakdale; just the Meadow Road interchange. The TIF is a financing tool toprovide funds for the construction of an interchange on I-70 that is needed and will benefit thisarea of the County.-New and Excess County Revenue: Under the TIF, the Oakdale project and its developer areultimately responsible to produce additional tax revenue to pay for the construction of theinterchange. The repayment will occur through increased and excess tax revenues generated bydevelopment of the Oakdale project. Frederick County is projected to receive a net final benefitof approximately $1.7m per year above operating expenses and debt service for the TIF bonds.

Additionally, Frederick County will receive approximately $118,000,000 in one-time fees fromthe Oakdale project. The design costs paid by the developer would not be repaid.-No Other Solution in Sight: Although the Meadow Road/Interstate 70 Interchange has longbeen a priority of both Frederick County and the State of Maryland, no funding has been or isprojected to be available to complete the interchange.

Why is using a TIF fair to both the developer and Frederick County in this situation?-Interchange Improvement not required to pass APFO: The proposed TIF financing for thispublic infrastructure is justified by the fact that the public infrastructure (the completion of theMeadow Road interchange) is not strictly required by the Adequate Public Facilities Ordinancefor the Oakdale/Linganore project.-Cheaper alternatives exist to pass APFO: Less costly improvements to the existing local roadnetwork could be made by Oakdale Investments to add capacity for the added traffic that thedevelopment will generate to meet APFO requirements.-Public/Private Cooperation-Win/Win: However, due to the fact that the missing MeadowRoad/Interstate 70 ramps have been a high priority of both Frederick County and Maryland StateHighway Administration (SHA) for decades, the public sector agencies have asked the developerto consider building the missing ramps. The only way this is feasible is through a Public-PrivatePartnership (PPP), facilitated through TIF financing, which will not use any existing Countyrevenue.-Predominantly Public Need/Benefit: The Oakdale development will only use approximately tenpercent (10%) of the added capacity that the Meadow Road/Interstate 70 Interchange willprovide. The other ninety percent (90%) of the capacity will be used by existing and futuretraffic in the broad region from Frederick to New Market.-Significantly Improved Road Network: As a result, the surface road network along MarylandRoute 144 from Frederick to New Market will be vastly improved; reducing traffic volume,increasing safety, and facilitating economic development around both municipalities thatotherwise would be hampered due to limitations on the local roads.