by Mike Conroy
Former Montgomery Village Foundation (MVF) Treasurer Beth-Ellen Berry attended her last MVF Board meeting on October 27, when new Treasurer Bob Carey was appointed. Berry noted earlier in the year that she was resigning the position, but would stay until a replacement was found. Village resident Bob Carey volunteered for the position and reviewed his qualifications with CFO Greg Snellings and the Board last month. Berry has served on the Board since September 2009.
To continue her service to the community in another capacity, Berry was appointed to serve on the Audit Committee, a role she is familiar with from her service as Treasurer. Additionally, Village resident Mario Salazar was appointed to the Committee on the Environment (COE), adding to that committee’s membership and dedication to the environmental aspects of the community.
Other Agenda Items
In other COE-related items, the Board voted not to act on recommendations from the committee at this time. The first recommendation from the COE was to send a letter to the county council opposing a two-lane highway option for M-83. The Board determined it would be in their best interest to wait for the study on this alternative—which should be released in the next month—before taking a position on the matter. The second COE recommendation asked that no pruning be done around the Lake Whetstone shoreline this fall.
Regarding financial matters, the Board adopted the 2017 MF Budget and 5-year Plan, as well as set the MVF and Designated User (DU) assessment rates for 2017. The MVF fee will see a slight increase at $.24/month and the DU fee will increase $1.40/month as expected in the draft budget. The Board also authorized the Executive Vice President (EVP) to negotiate and execute a contract for audit services with Draper & McGinley, per the Audit Committee’s recommendation.
The EVP was also authorized to negotiate a contract with Smartwebs for mobile violations software implementation. The Smartwebs platform will interface with the resident database Jenark and provide Architectural Standards and Community Management staff improved inspection reporting while in the field. Additionally, process efficiencies such as eliminating current manual processes and enhanced inspection and violation reports will help both departments’ staff get information to residents in a more timely manner.
In Recreation news, a bid to replace the Watkins Mill playground was awarded to Playground Specialists Inc. This decision was supported by community input and a recommendation from the Recreation Committee. Additionally, change orders were approved for the Apple Ridge Pool renovation project. Some adjustments like permit allowances and roofing costs were necessary, while others, including adding a slide to the wading pool were desired changes that will enhance the pool for residents.
Finally, the EVP was authorized to negotiate the Third Supplemental and Amended and Restated Declaration and Grant of Easements, Covenants and Restrictions of the Montgomery Village Professional Center. This negotiation will allow for uses of the Professional Center under the newly established zoning on the site.
President’s Remarks
MVF Board President Pete Young commented on the recent Great Pumpkin Race and Ribbon-Cutting Ceremony at South Valley Park. He noted the time and effort that went into both projects, and thanked staff and elected officials for making both events a success.
EVP Report
EVP Dave Humpton noted that the focus of the Community Retail Forum scheduled for November 3 is to be about national, regional and local retail trends, and how they can impact the future of the Village. He also mentioned a county public hearing scheduled for November 1 to discuss bills that can help the Department of Housing and Community Affairs. Humpton said the bills propose additional tools that can help DHCA in dealing with foreclosed and vacant properties, which in turn could help the Village.
Humpton reminded the Board that the M-83 studies regarding the recent two-lane parkway option was scheduled to be completed in the near future, and that would be a good time to study and respond to any findings. He also noted that Governor Hogan took the Corridor Cities Transitway out of the consolidated transportation program; without funding for planning, this could mean major delays to the project.
Treasurer’s Report
Treasurer Beth-Ellen Berry gave the financial report for both the month of September and the year-to-date (YTD), noting the overall solid financial position of MVF.
Berry noted that Revenue was favorable to the budget for both September and YTD, with Investment Income being the primary driver; Assessments Fees and Advertising are running slightly unfavorable to the budget. Personnel Costs are favorable to the budget for both the month and YTD due to some unfilled positions and lower than expected seasonal employee costs.
Operating Expenses were also reported as favorable to the budget for September and YTD, with landscaping services as the only area running over budget; overall, MVF is approximately $200,000 favorable to the budget YTD.
Contributions to Reserves were made in accordance with the budget; $85,434 in September and $768,909 YTD. The Capital Contribution Fee garnered an additional $18,091 for the month and totals $118,668 YTD. To date, MVF has spent nearly $589,000 on Reserve Assets.
A Net Loss of $28,000 for the was unfavorable to the budget by $19,000, however, Net Income YTD is $879,000, which is favorable to the budget by approximately $450,000.
The Balance Sheet shows MVF holding $8.2 million in Cash and Investments, and maintaining a strong financial position. This includes $1.8 million in Undesignated Reserves and over $6 million in Designated Reserves. The Delinquency Rate is at 6.9%, which is the lowest rate in several years.
Berry reported that the Investment Committee met to review the investment portfolio, which is currently performing with a 4.9% Return on Investment (ROI), which is at the 5% ROI benchmark set in the Investment Policy.
Next Meeting
Due to Thanksgiving, the next MVF Board of Directors meeting is scheduled for 7:30 p.m. on Thursday, Dec. 8 in the North Creek Board Room, 20125 Arrowhead Road. The meeting begins promptly at 7:30 p.m. with Residents Time. Residents are invited and encouraged to attend. The meeting agenda and information packet will be available online at www.montgomeryvillage.com the week of the meeting.
by Mike Conroy
When the Professional Center was built by the Kettler Brothers, the Declaration of Covenants attached to the property stated that once Kettler ceased to own the property, Montgomery Village Foundation (MVF) had certain rights and responsibilities, including amending the Declaration which permitted uses for the property. The original uses for the property were defined by Kettler to be “professional pharmacies, doctors, dentists, lawyers, accountants, engineers, chiropractors, osteopaths, opticians and related, supportive or similar type uses.”
Currently, the new CRT zoning established with the Montgomery Village Master Plan allows for a broad range of uses to the site. However, in order to market the site to potential developers, the owner, NorthStar, wants to add to the list of potential uses for the property beyond Kettler’s original designation; MVF would have to change the Declaration for this to happen. In keeping with the Vision 2030 Plan and the new Montgomery Village Master Plan—which both encourage reinvestment in several commercial sites—the MVF Board of Directors set out to establish appropriate uses for the site, with cooperation from Whetstone Homes Corporation, whose property abuts the Professional Center.
The Zoning Ordinance list of uses was the basis for determining what could potentially work on the site. NorthStar’s attorney, Tim Dugan, along with MVF Executive Vice President Dave Humpton and MVF General Counsel Christopher Hitchens narrowed the list into a use table for further examination.
Humpton and Dugan attended the September 29 Whetstone Homes Corporation (WHC) meeting to discuss the need to update the Declaration and received direction from WHC as to what other uses would be tolerable that close to their borders. Prior to the WHC board meeting, Whetstone held a community meeting to discuss the use table.
Of the 58 items on the original use table, MVF staff eliminated several more based on the WHC board’s recommendation, including: community gardens; categories of household living; personal living quarters; major impact home health practitioners; hotels and charitable, philanthropic institutions. In total, 26 uses were eliminated from the use table.
In addition to specific parameters in the CRT zone (design standards, including public amenities), the county’s site plan regulatory requirements would protect the neighboring Whetstone residences. County planners have taken into account buffers, storm water management, landscaping, lighting, height and massing of buildings, rooftop structures (HVAC equipment), dumpster enclosures, etc. Within the Declaration, MVF retains architectural review, which again provides a level of control to help plan and build a project that is in harmony with the adjoining residential community. WHC’s concerns about compatibility and impacts such as increased traffic, schools, too much density, etc. can be addressed during the multi-step regulatory process which encourages public participation.
Along with the use table, other modifications to the zoning have been negotiated with the owner and will be incorporated into the final Declaration. These include: no drive thru (including gas service pumps or gas stations); no single retail store exceeding 30,000 sq. ft.; no pawn shops; commercial and residential “floor area ratio” (FAR) restrictions; and a maximum height of 75 feet.
The Declaration also allows MVF to retain the right to oversee maintenance of the property and requires the owner to reimburse MVF for any maintenance costs. Additionally, a new section was added that establishes a basis for future residential units to be annexed into MVF or for units to be brought in via a contract, if the property were to be developed with residential units.
At present, there are no plans on the table for changing the Professional Center, however NorthStar is looking to market the site to the appropriate buyers, given the agreed use table. As with any potential development, future concepts and other plans are subject to county processes and multiple opportunities for public and resident input.
To view the Third Supplemental and Amended and Restated Declaration and Grant of Easements, Covenants and Restrictions for the Montgomery Village Professional Center, including the use table, visit www.montgomeryvillage.com. Select “Development & Projects” from the “About MV” menu on the blue bar, then expand the section on “MV Professional Center.”
by Mike Conroy
At its October 27 meeting, the Montgomery Village Foundation (MVF) Board of Directors approved the 2017 Operating Budget, which includes a $1.40/month increase in the Designated User (DU) assessment and $.24/month increase in the MVF Fund. 2017 rates are $21.03/month for the MVF assessment and $34.42/month for the DU assessment.
The MVF Fund was proposed to increase $.85/month; however, after review of year-to-date (YTD) financials and careful consideration of risks for the remainder of the year, Executive Vice President (EVP) Dave Humpton and CFO Greg Snellings felt that 2016 would end favorably, without the need for the majority of the subsidy from Undesignated Reserves. Thus the savings from 2016 is available for use in 2017, reducing the increase in the MVF Fund.
Assessment rate notices will be mailed in November, and coupon books will be mailed to residents in December. Property owners who do not receive coupon books by Saturday, Dec. 31 should call 301-948-0110 for replacement coupons.
The Montgomery Village Foundation (MVF) Board of Directors is seeking volunteers to serve on the MVF Investment Committee. Residents (homeowners or renters) with financial backgrounds are encouraged to apply.
The Investment Committee advises the Board on matters related to the Foundation’s investment activities. The committee meets quarterly at 7 or 7:30 p.m. on Monday evenings (dates to be determined). Responsibilities include making recommendations to the Board on investment strategy and policy and approving investment transactions that are in line with the policy. Currently, MVF has approximately $8 million invested. Certified Financial Advisors, Investment Advisors, Chief Financial Officers or others with expertise in investment management/banking are encouraged to apply.
For more information, contact MVF CFO Greg Snellings at 240-243-2323 or e-mail
by Mike Conroy
On November 3, Montgomery Village Foundation (MVF) hosted a retail forum to discuss national, regional and local trends in retail development and how these concepts impact potential development in the Village. A panel of retail experts spoke to the 50-plus residents at Lake Marion Community Center and answered their questions about keeping Montgomery Village relevant in the retail market.
MVF Executive Vice President (EVP) Dave Humpton opened the forum giving nod to the members of the former Transportation, Development and Public Facilities Committee, and the Retail Subcommittee whose idea it was to have community discussions regarding retail in Montgomery Village. He said this forum was the first in a series of economic and community development workshops to be held in the Village. Humpton introduced the panelists: Maureen McAvey, former Senior Fellow of the Urban Land Institute; Tom Lonergan, Director of Economic Development for the City of Gaithersburg; and Jaynie VanGilder, Retail Leasing Director for Atlantic Realty Companies (ARC), the new owner of the Village Center.
McAvey said that on a national level, the retail industry is going through an identity change. More consumers are buying goods online and the need for traditional brick and mortar stores is on the decline. For those establishments seeking a physical store, location is everything, and they will pay top dollar for a prime position. She noted that companies are relying on “big data,” or analytics about consumers’ shopping habits, to establish where they need to be in the retail market to remain successful. McAvey said that food and specialty food item retailers, as well as retailers that offer an “experience,” are the two categories seeing an increase in physical locations.
At the community level, McAvey noted that factors like density, median/disposable income, traffic and ability to maintain an online presence will attract retailers to an area. Her advice to garnering desired retailers was to negotiate and follow the current trend of making a center “walkable.”
Lonergan continued the community level discussion, saying that within the City, there are many micro markets. He noted that in Gaithersburg, retail is healthy, but constantly evolving; for example, the current job centers support the retail, especially in areas like the Kentlands. Building on McAvey’s points, he said that the 355 corridor has plenty of traffic, but not a lot of room to expand. The result of this combination is mid-market retail establishments—not high end, but useful and affordable retail accessible by local and drive-through traffic. Lonegran noted that the current retail centers complement each other and build on their strengths.
Lonegran also addressed the decline of the retail stores at Lakeforest Mall (not the anchor stores). He said that many of the leases for the interior stores are coming up, and the City is not seeking to purchase the property. In fact, he said that having the property sold at foreclosure may be an advantageous way to foster change in that area. He also said the property needs to be rezoned to accommodate the needs of today’s consumers; a lot could happen on the 100-acre site.
VanGilder gave a nod to the history of The Village Center, relating stories of when she visited the center in its hay-day. While she was surprised to see the current state of the center, she said that ARC President David Ross has outlined a great vision to bring the center to the next level. Through ARC’s unique connection with retailers, they are looking to turn this center around and make it an important hub in the middle of Montgomery Village once again.
She said that bringing an established grocery store to the Village Center is paramount on their list. “A good grocer is the key to a good neighborhood center,” VanGilder said. ARC’s plan also calls for a new façade; to right-size some of the current retailers; redo the pad sites in the parking lot of the center; fix the traffic flow by extending some of the roads through the center; and add pedestrian traffic through incorporation of residential units on the property. Her colleague Matt Copeland of CBRE added that ARC was looking to bring brands that residents wanted to the center, such as Starbucks, as well as food/fast-casual dining establishments with outdoor seating. He noted that about 90% of the current retailers in the center were expected to stay.
Questions from the audience addressed concerns and support, asking how residents can help foster change in the retail landscape, in particular at the Village Center. The panel, along with EVP Humpton, agreed that change is happening in the Village, but it takes some time. For years, the MVF Board of Directors has been planning for the future, addressing issues with aging infrastructure, and some of those plans are starting to come to fruition. VanGilder noted that the Village Center would be neighborhood-oriented, but to make it successful, ARC is addressing density and transportation hurdles on the site. Pending plan review and approvals, as well as lease timing with current stores, VanGilder estimated a fall 2017 start to some changes at the center.
For information about development in the Village, please visit www.montgomeryvillage.com; click “Development & Projects” from the “About MV” menu on the blue bar.