The proposed state and local incentive package for Marriott as it plans to relocate its headquarters within Bethesda, Maryland, could be valued up to $62 million.
The HQ relocation
Marriott is already headquartered in Bethesda but wants to relocate from an office park location to a more urban setting with multiple transportation options, including Metro accessibility. The new headquarters site will also include a 200-room hotel.
Similar to other major headquarters moves (see our write-ups of the GE and Mercedes-Benz USA relocations), Marriott wants a more “engaging environment,” a transit-oriented location, and “cutting-edge workspace” for its employees.
The company will also require less space, planning to downsize from approximately 1 million square feet at its current location to 700,000 square feet in Marriott’s new complex. The number of employees is expected to remain at 3,500.
What is in the incentive package
The combined state and local offer includes:
- $20 million in forgivable loans from the Maryland Sunny Day Fund. This request requires legislative approval.
- $2 million from the Maryland Economic Development Assistance Authority Fund (MEDAAF)
- $22 million matching conditional grant from the Montgomery County Economic Development Fund. This request requires approval by the County Council.
- Up to $18 million in state and county job creation tax credits, divided roughly between $12 million from the county and $6 million from the state. Marriott will be eligible for these statutory tax credits if it adds a small number of jobs (less than 100), according to the County spokesman.
- County commitment to provide 1,200 parking spaces for the new complex, for which Marriott will pay $2 million per year over a 20-year period.
Most, if not all, of these incentives are contingent upon Marriott maintaining employment at 3,500 for ten years and investing $600 million in the new headquarters complex.
The County has estimated the economic impact at $1.8 billion over the next 20 years – or $90 million in economic benefits per year to the state and county.
This post draws on excellent local reporting from the Washington Business Journal and Bethesda Magazine. Check out their articles here: