Governor’s Infrastructure Financing Conference

University of Mary Washington Foundation

Development of Eagle Village

Hotel Roanoke, December 2014

Presented by: Jeff W. Rountree, CEO

UMW Foundation

• Fredericksburg, Virginia: Located 50 miles between

both Washington D.C. and Richmond, Virginia

• UMW: Selective four-year Master’s-level liberal arts

institution with 4,169 undergraduate students and 368

graduate students (FY15)

• City: Part of Planning District 16, along with the

counties of Caroline, King George, Spotsylvania &

Stafford. Total population of PD 16 is 320,000 with

City population of 28,000. Also boyhood home of

George Washington & site of 4 major Civil War battles.

UMW & City Overview

Background

• UMW Foundation purchased the outdated Park & Shop shopping center in December 2007.

• Park & Shop was built in 1963 and was in decline.

• 23-acre shopping center directly across U.S. 1 from UMW’s Fredericksburg campus.

• UMW Foundation purchased additional smaller parcels adjacent to the center.

Property Overview – Parcels

5

Background

• UMW and UMWF announced plans for a new

mixed-use development called “Eagle Village.”

University Village Concept

7

Former Park & Shop in Images

A Dramatic Turnaround

• Older spaces have been torn down.

• UMW Foundation built nearly 500,000 square

feet of new Class A space at Eagle Village.

• Includes 30,000 SF of new retail, 36,000 SF of

new office, and a 560-space secured parking

deck.

A Dramatic Turnaround

• 206,000-square-foot student housing complex

with premium residences for 624 students.

• Covered pedestrian bridge linking EV to campus.

• New road to Mary Washington Hospital.

• 66,500-square-foot, 93-room Hyatt Place hotel.

Welcome to Eagle Village

11

The Players . . . The University

• Needed premium student housing

• Needed walkable retail and restaurants

• Long-term land acquisition

The Players . . . The Elected Officials

• Constituents wanted to see the revitalization

of the Route 1 Corridor.

• Urban renewal was a winning platform.

• Additional tax revenues and business

development a plus for the City.

The Players . . . The Municipality

• Wanted to achieve goals in the City’s Jump Start Plan.

• Needed to draft new zoning codes to allow mixed-use developments.

• Assisted UMW in getting $620,000 of incentives through the Virginia Tourism Corporation (VTC) Financing Program . . . first project in the Commonwealth.

The Players . . . The Lawyer

• Key to every aspect of the project, to this day.

• Handled the acquisition, the re-zoning and numerous agreements needed with the City and other parties.

• Managed the EDA process.

• Spearheaded the application for tax incentives.

The Players . . . The Financial Advisor

• Crafted the best plan of finance for the

UMW Foundation.

• Managed the RFP process with multiple

banks

• Negotiated the final package with Bank of

America.

The Players . . . The Bankers

• Understood the needs and constraints of the

University and the Foundation.

• Supported the finance package utilizing the

bank’s letter of credit.

• BoA has helped restructure and refinance

the project as the development has evolved.

The Players . . . The EDA

• Financed through the Fredericksburg Economic Development Authority bonds underwritten by BoA.

• Local EDA receives $79,000 annual fee from UMWF . . . 33% of their budget.

• Money is used for economic development projects in the City of Fredericksburg.

The Players . . . The Foundation

• Owner and developer of the Eagle Village

development

• Take all of the risk

• Pull all of the players together and make it

happen

Eagle Village: Before & After

Before

After

Route 1 Corridor

Before

After

Route 1 Corridor

Before

After

Roger Dodger

Before

After

View from College Avenue

Before

After

Hyatt Place Fredericksburg at

Mary Washington

Before

After

The Turnaround in Images

The Turnaround in Images

The Turnaround in Images

The Turnaround in Images

Eagle Village

Impact on the City

Redevelopment of Eagle Village has had a dramatic effect on the City of Fredericksburg’s tax base.

• 2007 assessment: $16.5M

• Current assessment: $70.6M

• 2007 real estate tax revenue: $113,127

• Current real estate tax revenue: $231,818

• Hyatt will generate another $300,000+ to the City.

Eagle Village Assessed

Real Estate Value

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Real Estate Tax Revenue

from Eagle Village

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Taxable vs. Non-taxable

• The gains in real estate tax revenue have come

despite the fact that much of Eagle Village is

tax-exempt.

• Student apartments assessed at $39.3 million.

• That is 55.6 percent of total EV assessed value.

• Illustrates value of universities, localities

working together on developments.

Additional Impacts to City

• Businesses recruited since Eagle Village redevelopment: Home Team Grill, Hyatt Place, Blackstone Coffee, Children’s Museum of Richmond, Planet Fitness, Sweet Frog, etc.

• Several additional popular restaurants have located near Eagle Village due in large part to the cleaning up of the corridor.

• Old businesses are renovating their properties.

A New Zoning District

• Eagle Village first project in Fredericksburg to

use the mixed-use zoning category.

• Since then another large project in

Fredericksburg (Telegraph Hill) has gotten this

zoning category, and another application is

pending (Mill District).

• New mixed-use developments will add

millions of dollars in tax revenue to city.

• Hyatt Place Fredericksburg first in state to use

Virginia Tourism Corporation Financing Program

(commonly called gap financing program).

• State and local incentives allow UMW Foundation to

get up to $620,000 back in sales tax revenue from

hotel.

• City of Fredericksburg and UMW Foundation

received Community Economic Development Award

from Virginia Economic Developers Association in

2013 for creative financing of hotel.

Innovative Financing

Eagle Village . . .A Win-Win for all Players!

Questions ?