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Economic Outlook Anne Arundel County

Maryland Washington Minority Companies Association

February 7, 2014

Ed Rothstein President/CEO

Anne Arundel Economic Development Corporation 2660 Riva Road, Suite 200, Annapolis, MD 21401

erothstein@aaedc.org • www.aaedc.org • 410-222-7410

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Who is AAEDC

The mission of the Anne Arundel Economic Development Corporation is to

support business and serve as a catalyst for business growth in Anne Arundel

County thereby increasing job opportunities, expanding the tax base and

improving quality of life.

To accomplish its mission, AAEDC:

Recruits new businesses to locate in Anne Arundel County and assists in the expansion of

existing businesses

Anticipates and addresses workforce development needs of the county's business

community

Promotes Anne Arundel County as a premier location for business

Provides advocacy for Anne Arundel County businesses undergoing the regulatory and

approval process

Provides financing assistance to county businesses

Incentivizes redevelopment and revitalization along older commercial corridors

Promotes technology development and attracts start-up ventures through Anne Arundel

County's technology incubator, the Chesapeake Innovation Center

Promotes agriculture development and expands markets for agri-business

Source: AAEDC

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Anne Arundel County Initiatives Clarify and expedite the development review process

AAEDC will meet with County agencies and developers to resolve issues

quickly and efficiently

County Agencies are meeting with developers up to three times a week if necessary

Each project is assigned an “ombudsman” from AAEDC to closely monitor and guide the

project all the way through the process

Agencies and the AAEDC now compile a monthly priorities projects report to track progress

on key projects/shared with the County Executive’s office

County Agencies working on a new guidebook for the development and

permitting processes

Will be accessible on the county website

Each of the agency websites will provide a clear, step-by-step guide to each planning review

process and each permit process

Goals

Quicker process time for projects

Reducing review time

Help businesses understand their responsibilities

Understand how the County can help them resolve issues

Source: County Executives Office

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Statistical Update Overview Overview 2012 – 2013

Anne Arundel County Maryland

Population (U.S. Census Bureau, 2012, American Community Survey)

1 year estimate

550,488 5,884,563

Number of Households (U.S. Census Bureau, 2012, American Community Survey)

1 year estimate

201,934 2,157,717

Median HH Income (U.S. Census Bureau, 2012, American Community Survey)

1 year estimate

$89,179 $71,122

Per Capita Personal Income (Bureau of Economic Analysis 2012)

$59,711 $53,816

PCI Annual Growth 1999-2012 (Bureau of Economic Analysis)

4.33% 4.03%

Unemployment Rate November 2013 (DLLR)

5.4% 6.0%

Source: DLLR, U.S. Census Bureau, 2012, American Community Survey, Bureau of Economic Analysis 2012

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Anne Arundel County: Statistical Update & Overview The Short View 2012 – 2013

Unemployment Rate (November 2013 Maryland Department of Labor, Licensing and

Regulation)

2013 2012

5.4% 5.6%

In Place Employment (2nd Qtr. 2012 - 2nd Qtr. 2013) Maryland Department of Labor,

Licensing and Regulation 253,568 240,253

Value of New Commercial Permits (Jan. – Sept. 2012 to Jan. – Sept. 2013)

Baltimore Metropolitan Council $46,917,000 $52,421,000

Existing Home Sales (Jan. – Sept. 2012 to Jan. – Sept. 2013) Metropolitan Regional

Information Systems 4,847 2,204

New Foreclosure Events (2nd Qtr. 2012 – 2nd Qtr. 2013), MD Department of Housing

and Community Development, increase due to lenders addressing the back log of

delinquent loans

1,134 223

Average Home Price for Existing Home (Jan. – Sept. 2012 to Jan. – Sept.

2013) Metropolitan Regional Information Systems $360,177 $357,113

New Residential Permits (Jan. – Sept. 2012 to Jan. – Sept. 2013) Baltimore

Metropolitan Council 1,552 1,383

BWI-TM Passenger (Jan. – Sept. 2012 to Jan. – Sept. 2013) BWI Thurgood Marshall

Airport

Freight

17,003,808

170,973,264

17,279,570

173,615,292

Hotel Tax (Jan. – Sept. 2012 to Jan. - Sept 2013) Anne Arundel County Finance Office $11,946,797 $11,999,303

Office Vacancy Rate (December 2013 CoStar Group) 11.8% 11.0%

Industrial Vacancy (December 2013 CoStar Group) 10.0% 8.8%

Flex Space Vacancy (December 2013 CoStar Group) 8.9% 9.2%

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0%

2%

4%

6%

8%

10%

Anne Arundel Maryland U.S.

Anne Arundel County’s unemployment rate is at 5.4% in

November 2013, same as the prior year, .2% lower than

tis time last year.

The County’s unemployment rate continues to be below

that of Maryland and the U.S.

The County’s resident employment is up 0.91% from

285,895 to 288,495 over the last year (excluding

National Security Agency employees).

The County added 12,860 jobs over the last year, a

5.4% increase compared to 1.4% increase for Maryland

and 1.6% increase for the U.S.

The County’s Federal sector employment contracted

.5% and private sector employment grew 4.2%

The County’s 2012 Personal Income was up 4.1% from

2011, up 3.5% for Maryland and up 4.1% for the U.S.

The County’s Per Capita Personal Income in 2012 was

at $59,711, 136.5% of the national average and 110.9%

of Maryland.

The County’s median household income in 2012 was

$89,179, approximately $18,000 higher than Maryland

and $37,000 higher than the U.S.

Source: DLLR & Bureau of Economic Analysis

5.4%

7.0% 6.0%

$0

$20,000

$40,000

$60,000

$80,000

Anne Arundel Maryland U.S.

$59,711

$ 43,735

$53,816

Unemployment Rate (November 2013)

Per Capita Personal Income (2012)

Employment Data Anne Arundel County Labor Market

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Population Growth Population 1970 - 2013

Anne Arundel County’s population grew by nearly 85% from 1970 to 2013

The County’s population growth between 2000 and 2013 is ranked 4th in

Maryland, having increased 13% during that period

The majority of the population growth occurred in Odenton, Crofton, Severn,

and Jessup/Maryland City, which are located in the western part of the County

Source: Maryland State Data Center

Population

Anne

Arundel

Baltimore

Region

Maryland

U.S.

1970 298,042 2,071,016 3,923,897 203,302,031

1980 370,775 2,173,969 4,216,933 226,545,805

1990 427,239 2,348,219 4,780,753 248,709,873

2000 489,656 2,512,431 5,296,486 281,421,906

2010 537,656 2,662,691 5,773,552 308,745,538

2013 Est. 551,145 2,698,808 5,883,014 314,419,291

1970-2013

% Change 84.92% 30.31% 49.93% 54.66%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

1970-2013 1980-2013 1990-2013 2000-2013

Anne Arundel Baltimore Region Maryland U.S.

Population Growth

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Economic Update

Housing & Commercial Real Estate

Current Market

Sales and Sale Prices

Tourism

Gaming

Federal Sequestration

Recent Economic Development Activity

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Real Estate Housing And Commercial Office Market

Housing

The housing market has been improving over the last year

Single family home sales are up 15.2% from a year ago, with an average selling price of

$360,177 or 0.86% higher than in the previous year

Condominium average selling price was $271,120 in November 2013, 24.9% higher than the

previous year

Source: Maryland Association of Realtors

Commercial Office Market

In 4th Quarter of 2013, commercial office vacancy rate was at 11.5% for the County, 0.4%

higher than the prior year

The County’s office vacancy rate was slightly lower than the Baltimore-Towson Metro area

rate at 11.6% and lower than the U.S. at 16.9%

Source: CoStar Group; CBRE Group

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Tourism Industry

5.9 million people visited Anne Arundel County in 2012

Anne Arundel County ranks number one in the State for tourism

Source: The Economic Impact of Tourism in Maryland/Tourism Satellite Account 2012

Visitors to Anne Arundel County spent $3.3 billion while at the County,

accounting for 22% of the State’s tourism industry sales, a 3.5% increase over

the previous year

Source: The Economic Impact of Tourism in Maryland/Tourism Satellite Account 2012

Hotel Tax collections were $16.0 million in FY2013, a 5.8% increase over the

prior year. The projected total for FY2014 is about $13.7 million. The County

currently has 10,608 hotel rooms in 86 properties

Source: Anne Arundel County Finance Office

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VLT Gaming Revenue: Maryland Live Casinos!

The Casino is estimated to generate $400

million in annual revenue for the State in

FY2014, with approximately $20.0 million

of that revenue going directly to the

County.

Largest gaming facility in Maryland

Employs 2,700 people

Proposed plans for Casino expansion

70,000 SF convention center

300 room hotel

$20 million intermodal transit hub with 1,500

parking spaces

Expansion would add 800 permanent jobs to

casino and 1,000 construction jobs

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Recent Economic Development Activity

Economic Development Projects:

Chesapeake Innovation Center (new Location)

Arundel Preserve

National Business Park

Odenton Town Center

Maryland Live! Casino

1 2

3 4

5

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Economic Development Projects Chesapeake Innovation Center

In 2014, the CIC will be relocating to

Odenton adjacent to the gates of

Fort Meade.

New member companies

ITnova

New affiliate member companies

VUPEN Security

Awards and announcements

Authentik Solutions received a $75,000

award from MD TEDCO

kloudtrack® announced a business

relationship with Cisco

CIC’s New Location

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Economic Development Projects Arundel Preserve

Completed projects

1,078 apartments in three apartment

complexes

227,000 square feet of commercial

space

Including the Shops at Arundel Preserve

Phase I of the Town Center

Projects under construction or in

planning

340 unit apartment building

The Corporate Center

has one 153,000 square foot office

building complete

with another 1.85 million square feet of

office space to be built

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Arundel Preserve 2012 2013 % Leased

Apartments 738 1,078 92%

Commercial Office 153,000 sf 153,000 sf 100%

Near Term Development 123,000 sf

Date TBD - Contract in place

100%

The Palisades – 90% leased

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Economic Development Projects National Business Park

Completed projects

3.5 million square feet of office

space is currently in place with

The second segment of

roadway infrastructure for the

park was completed in 2013

Projects under construction

Another 2.0 million square feet

of development planned for

National Business Park North

Primarily tenants

Defense contractors holding

contracts with

National Security Agency

U.S. Cyber Command

DISA

Arundel Preserve 2012 2013 Notes

Commercial Office 3.5M sf 3.5M sf 100%

Leased

Near Term

Development

334,000

sf

2 buildings,

1st

scheduled

to open July

2014

Far Term

Development

330,000 sf

projected

National Business Park

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Economic Development Projects Odenton Town Center

Completed projects

283,000 square feet of commercial

space

960 residential units

Projects planned

3.97 million square feet of

commercial space

1,559 residential units

Project Commercial % Leased Retail % Leased Residential % Leased

Town Center Commons 126

town homes

90% Sold

Villages at Odenton

Station

60,00 sf 16% 235

apartments

97%

Odenton Gateway 60,000 sf 100% 20,000 sf 100% 252

apartments

94%

Seven Oaks Office

Building

68,000 sf 6%

Flats 17 at Academy Yard 369

apartment

45% Started Leasing

April 2013

Flats 170 at Academy Yard – stared leasing in

April 2013

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Economic Development Initiatives

Economic Development Initiatives:

Arundel Community Reinvestment Fund (ACR Fund)

Base Realignment and Closure Revitalization and Incentive Zones (BRAC Zone)

VOLT Loan Program

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Economic Development Initiatives Arundel Community Reinvestment Fund (ACR Fund)

Encourages economic investment in 16 commercial revitalization districts

Twenty-four companies have received loans totaling $776,000. These loans

resulted in $6,000,000 in overall investment in the County

Be

fore

A

fter

Tennis Shoe Warehouse, Glen Burnie Ward-Pratz Law Firm, Glen Burnie Honey Bee Diner, Glen Burnie

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Economic Development Initiatives BRAC Revitalization & Incentive Zones

Money is appropriated to designated areas affected by BRAC

To date, there have been nine projects completed in the BRAC Zone and

another three near-term projects that are under construction

Seven Oaks

Flats 170 at Academy Yard Odenton Health and Technology

The Village at Odenton Station

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Economic Development Initiatives VOLT Fund

Anne Arundel Economic Development Corporation was selected as a fund

manager for a $3.36 million loan fund for Small, Minority and Women-Owned

Business

Loan Program funded by 1.5% of the video lottery terminal (VLT) revenue from

Maryland casinos

VOLT Loan Activity: 47% of the funds were allocated to Anne Arundel County

totaling $1.5M

Closed & Underwriting

Total $ $3,092,000 $3,092,000

Current $ $3,083,750 99.73%

Remaining $ $8,250

Total loans 22

Average Loan $140,170

Total $ amount Percentage

(#) Percentage ($)

Targeted Area 14 $1,927,750 63.64% 62.51%

Small 22 $3,083,750 100.00% 100.00%

Woman 6 $1,095,000 27.27% 35.51%

Minority 8 $1,070,000 36.36% 34.70%

Veteran 6 $596,000 27.27% 19.33%

Woman, Minority or

Veteran 15 $2,041,000 68.18% 66.19%

Anne Arundel County 12 $1,441,000 54.55% 46.73%

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Project

Total Estimated

Commercial

Space (SF)

Status

Academy Yard (Mixed Use) 400,000 373 apartments complete in the spring of 2013,

proposed commercial in design

Annapolis Junction Business Park 2,300,000 2 buildings complete, 3rd building under roof, 4th building

in design

Annapolis Commons 227,000 Mass grading and infrastructure underway in 2013

Annapolis Towne Centre at Parole (Mixed

Use)

695,000 213 apartments complete in 2013, The 3rd faze of retail,

28,000 sf has broken ground, 100% leased

Arundel Gateway (Mixed Use) 428,000 In permitting, 1,850 residential units proposed

Arundel Mills Mall/Maryland Live! Casino 333,164 Hotel and convention center proposed. Poker rooms

were added is summer 2013

Arundel Overlook 313,800 5 buildings complete, 3 to be built

Arundel Preserve (Mixed Use)

Corporate Center at Arundel Preserve

5,500,000 1,788 apartments complete. The Palisades Apartment

Building opened in 2013. Additional apartments

proposed

Buckingham (Mixed Use) 292,650 Residential and retail under construction

BWI Tech Park I, II & III 1,302,808 Phase I complete, Phase II & III under construction.

Completed 64,445 sf of flex space in 2013.

Hanover Crossing at New Ridge 244,000 Mass grading underway

Fort George G. Meade (Cyber Initiative) 1,800,000 Under construction. Data Center broke ground in 2013.

Recent Economic Development Activity Major Commercial Development

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Project

Total Estimated

Commercial

Space (SF)

Status

Independence Park at Odenton Town

Center (Mixed Use)

3,025,000 Infrastructure under construction

National Business Park/

National Business Park North

5,400,000 National Business Park complete, National Business

Park North under construction – 140,000 sf office

delivered in May 2013.

Odenton Town Square

(TOD - Mixed Use)

74,000 Proposed

Parkside (Mixed Use) 408,750 Residential under construction – Broke ground in 2013

Preston Gateway North 805,000 Mass grading complete

Route 100 Technology Center 124,198 Close to being complete

Station Ridge 360,000 3 buildings completed in 2013, 1 to be built

The Ridge (Mixed Use) 225,000 In permitting

Waugh Chapel Towne Centre 1,066,231 Phase I and II complete in 2013

Total Commercial Space Under

Construction or Proposed

25,324,601

Recent Economic Development Activity Major Commercial Development

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Ed Rothstein President/CEO

Anne Arundel Economic Development Corporation

2660 Riva Road, Suite 200, Annapolis, MD 21401

410-222-7410

erothstein@aaedc.org

www.aaedc.org