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Budget Year / Version:  
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Description

This grant provides for the retention of Marriott International, Inc.'s new $500 million headquarters facility in Montgomery County. The facility will be approximately 700,000 square feet in size and include an adjacent Marriott brand hotel. The headquarters building will house upwards of 3,250 permanent full-time employees and equivalent contract workers, as well as 250 part-time workers and equivalent contract workers.
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Phase

Planning Stage

Status

Active
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Budget Snapshot
$22M Total
Expenditures/Funding
$11M 6 Year Total
Expenditures/Funding
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Location

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Estimated Schedule

Facility to be delivered in late 2022.
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Justification

The County and the State have a unique economic development opportunity to retain the global headquarters of Marriott International, Inc. (currently ranked 221 on the Fortune 500 Company list) and its 3,500 employees in the County, and to also induce approximately $500 million in capital investment from the project to construct a new 700,000 square feet Class A office building and a new hotel in the downtown Bethesda area. The grant made to Marriott International, Inc., will be recouped directly from the incremental real and personal property tax generated from the project in less than seven years, above and beyond the $1.2 billion in direct and indirect economic impacts that Marriott International, Inc. creates in the State of Maryland.
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Fiscal Note

The State of Maryland will contribute $22 million towards this project. The State's contribution will be made directly to Marriott International, Inc. The terms of the Marriott agreement required appropriation of $11 million in FY17. Annual payments began in FY19. Currently, the funding sources are assumed to be Recordation Tax Premium and the Economic Development Fund. The source of funds may be revised in the future.
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Coordination

Department of Transportation, Department of Permitting Services, Department of Finance, Maryland Department of Commerce, and Maryland State Highway Administration
Budget Snapshot
$22M Total
Expenditures/Funding
$11M 6 Year Total
Expenditures/Funding
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Project Details
Project NumberP361703
Date Last Modified06/15/20
Administering AgencyCounty Executive
CategoryGeneral Government
SubCategoryEconomic Development
Planning AreaBethesda-Chevy Chase and Vicinity
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Total Expenditures by Cost Element (000s)
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Total Funding by Source (000s)
EXPENDITURES (000s)
Cost ElementsTotalThru FY19Est FY20Total 6 YearsFY 21FY 22FY 23FY 24FY 25FY 26Beyond 6 Years
Planning, Design and Supervision00000000000
Land00000000000
Site Improvements and Utilities00000000000
Construction00000000000
Other2200055005500110005500550000000
Total Expenditures2200055005500110005500550000000
FUNDING (000s)
Funding SourceTotalThru FY19Est FY20Total 6 YearsFY 21FY 22FY 23FY 24FY 25FY 26Beyond 6 Years
Current Revenue: Economic Development Fund1100000110005500550000000
Recordation Tax Premium (MCG)110005500550000000000
Total Funding Sources2200055005500110005500550000000
APPROPRIATION AND EXPENDITURE DATA ($000s)
Appropriation FY 21 Request5500
Year First Appropriation
Appropriation FY 22 Request5500
Last FY's Cost Estimate22000
Cumulative Appropriation11000
Expenditure / Encumbrances5500
Unencumbered Balance5500