MEMORANDUM. City Council. John L. Fitzwater Acting City Manager. Date: November 17, 2016

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1 MEMORANDUM To: From: Subject: City Council John L. Fitzwater Acting City Manager Resolution R Date: November 17, 2016 The Maryland Department of Housing and Community Development wrote to the City on November 4, 2016 asking for a local government resolution supporting financing by the State s Neighborhood BusinessWorks Program for Dr. Ernest L. Murphy/Hospitality development Company III, LLC to construct a 144 unit Courtyard by Marriott at Science Drive at Melford. The State loan request for $700,000 is part of larger loan package that will include $50,000 from the City of Bowie Revolving Loan Fund administered for us by FSC First. Recommendation: Staff recommends the City Council approve Resolution R expressing the support requested by the Maryland Department of Housing and Community Development. Attachments 1. Resolution R November 4, 2016 Letter From Maryland DHCD

2 R RESOLUTION OF THE COUNCIL OF THE CITY OF BOWIE, MARYLAND SUPPORTING THE MARYLAND DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT NEIGHBORHOOD BUSINESSWORKS PROGRAM FINANCING TO ERNEST L. MURPHY AND HOSPITALITY DEVELOPMENT COMPANY III, LLC FOR A COURTYARD BY MARRIOTT HOTEL LOCATED WITHIN THE MELFORD BUSINESS PARK AT SCIENCE DRIVE, BOWIE, MARYLAND WHEREAS, the City of Bowie is interested in promoting the continued success and revitalization of the community by encouraging the location, retention and expansion of for-profit small businesses; and WHEREAS, Ernest L. Murphy with Hospitality Development Company III, LLC applied to the Neighborhood BusinessWorks Program for a business loan at Science Drive, Bowie, Maryland in order to permit it to construct a 90,340 square foot Class C 144-unit Courtyard by Marriott; and WHEREAS, this project will add needed hotel rooms, generate employment, and provide added tax revenue to the City of Bowie; and WHEREAS, this project is located in a State-approved Sustainable Community and Priority Funding Area and conforms to the land uses permitted by law; and WHEREAS, the regulations of the Neighborhood Business Works Program require that all projects receiving financing be approved and supported by the appropriate governing body of the locality in which the project is situated; and WHEREAS, the Maryland Department of Housing and Community Development has represented to the City of Bowie that the State provided information about this loan is true and accurate and that the State has accomplished all due diligence required to lend the amount of money requested. NOW, THEREFORE, BE IT RESOLVED by the City Council that the City of Bowie hereby endorses financing to Ernest L. Murphy and Hospitality development Company III, LLC; and BE IT FURTHER RESOLVED that copies of this Resolution be sent to the City Clerk and to the Director of the Neighborhood BusinessWorks Program at the Maryland Department of Housing and Community Development, 7800 Harkins Road, Lanham, Maryland INTRODUCED AND PASSED on this 21st day of November 2016, by the Council of the City of Bowie, Bowie, Maryland. ATTEST: Awilda Hernandez City Clerk THE CITY OF BOWIE, MARYLAND G. Frederick Robinson Mayor

3 Lawrence J. Hogan Jr. GOVERNOR Boyd K. Rutherford LT. GOVERNOR Kenneth C. Holt SECRETARY November 4, 2016 Mayor G. Frederick Robinson City of Bowie Excalibur Road Bowie, MD Dear Honorable G. Frederick Robinson: The Division of Neighborhood Revitalization has received an application for financial assistance under the Neighborhood BusinessWorks Program (NBWP) for Dr. Ernest L. Murphy in association with Hospitality Development Compny III, LLC, for the purchase of a vacant parcel of land to develop a 144 room hotel. A description of the proposed project is attached. We welcome your comments about this project. A local government resolution supporting financing by the NBWP will be required prior to execution of this loan request. A sample resolution is attached. Please also indicate that this project will meet zoning compliance. If you have any questions about this request, please contact me at (301) We look forward to receiving your resolution. Sincerely, Cheivelle Hill Underwriter, Neighborhood BusinessWorks Division of Neighborhood Revitalization Maryland Department of Housing and Community Development 7800 Harkins Road Lanham, MD Office Fax cheivelle.hill@maryland.gov 7800 HARKINS ROAD LANHAM, MD PHONE:

4 Lawrence J. Hogan Jr. GOVERNOR Boyd K. Rutherford LT. GOVERNOR Kenneth C. Holt SECRETARY Local Government Notification Project Summary Neighborhood BusinessWorks Program Loan Request Applicant: Correspondence to: Contact Person: Hospitality Development Company III, LLC Dr. Ernest L Murphy Hospitality Development Company, LLC 8850 Columbia 100 Parkway Columbia, MD Dr. Ernest L Murphy Phone Number: Project Name: Melford Courtyard by Marriott Project Address: Science Drive, Bowie, MD Project Description: Development of a Courtyard by Marriott Hotel in the Melford Business Park Hospitality Development Company will build a Courtyard by Marriott in the Melford community of Bowie. The Melford development is a mixed-use master planned business community being developed by St. Johns Properties in Bowie. The 3.8 acre site for the proposed hotel is part of a larger acre parcel owned by the borrower. The hotel will be a 90,340sqft five-story Class C 144 unit Courtyard by Marriott that will consist of 79 king rooms, 59 double queen rooms and 6 suites. In addition to guestroom amenities the hotel will have a great room concept with communal tables media pods and business library, a 28 seat café offering breakfast and serving light dinner, a five seat bar lounge serving drinks, about 2,500sqft of meeting space, a sundry shop, a business center, quick print area, a touchscreen go board in the lobby, complimentary wireless internet, indoor swimming pool, small fitness center, guest laundry area and free parking. The total project cost to develop the hotel is $27,138,866. Revere Bank has committed a permanent loan of $12,540,000 for construction and a bridge construction loan for $5,000,000. FSC First has committed to take-out the $5,000,000 bridge construction loan with an SBA guaranteed 504 loan. FSC First will also provide a $500,000 term loan for FF&E. Prince George s County EDIFund has committed a $1,400,000 term loan for construction and FF&E. The City of Bowie has committed a $50,000 term loan for FF&E. The borrower will contribute $6,948,866 to the project. The NBW program loan request is for $700,000 for FF&E. This project and loan request will positively impact the development of the Melford Business Park. The project will support a public private partnership while strengthening the local and state relationship. The business will impact the neighborhood with 93 jobs and support the demand for additional available hotel rooms in the region. Jobs Retained: 0 Total Project Costs: $27,138,866 Jobs Created: 93 Requested Loan Amount: $700, HARKINS ROAD LANHAM, MD PHONE:

5 SAMPLE RESOLUTION NO. RESOLUTION OF THE (NAME OF GOVERNMENT BODY) SUPPORTING MARYLAND DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, NEIGHBORHOOD BUSINESSWORKS PROGRAM FINANCING TO (NAME OF APPLICANT). WHEREAS, the (name of government body) is interested in promoting the revitalization of our community by encouraging the development and/or expansion of for-profit and nonprofit small businesses; and WHEREAS, (name of applicant) applied to the Neighborhood BusinessWorks Program for financing to (describe project) at (address of project) ; and WHEREAS, this project is located in a State-approved locally designated revitalization area and conforms to the local zoning code; and WHEREAS, the regulations of the Neighborhood BusinessWorks Program require that all projects receiving financing be approved and supported by the appropriate governing body of the locality in which the project is situated; now, therefore, BE IT RESOLVED that the (name of government body) hereby endorses the financing to (name of applicant) ; and BE IT FURTHER RESOLVED that copies of this Resolution be sent to (Local Chief Elected Official) and to Niecie Draper, Neighborhood BusinessWorks Program at the Maryland Department of Housing and Community Development, Division of Neighborhood Revitalization, 100 Community Place, Crownsville, MD Read and Passed this (day) Day of (month), (year). I hereby certify that this Resolution is true and correct and duly adopted by government body). (name of [ Insert authorized signatures and titles ]