Proposed removal of development cap in downtown Bethesda raises concerns

Proposed amendment to master plan aims to build upon 2017 vision

Montgomery County planners are recommending the removal of a development cap for downtown Bethesda as part of an update of the community’s master plan, raising concerns among some residents about the pace of the community’s growth.

At Monday’s Planning Board public hearing on a draft for the Bethesda Downtown Minor Master Plan Amendment, several residents said they were worried about fast-paced growth of development in the urban center. The session was held online and in-person at the Maryland-National Capital Parks and Planning Commission’s (M-NCPPC) headquarters in Wheaton.

“I hope that you will rethink this amendment with more balance,” David Barnes told board members and planners at the hearing. “And then, if you still think the 32.4 million-square-foot cap is insufficient, set a new cap. Don’t remove it. Clearly explain what that higher cap is and why it’s needed and what it might mean. And then please, require regular monitoring to track the results.”

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Barnes spoke on behalf of the Edgemoor Citizens Association, which represents a neighborhood adjacent to Bethesda’s central business district.

“Sure, more development means more PIPs and fees to pay [for] amenities. But packing Bethesda with more development is a double-edged sword,” Barnes said. He was referring to the Park Impact Payment (PIP) that developers of projects in downtown Bethesda pay to Montgomery Parks to help fund construction of parks in the area.

In June, county planners began the process of amending the 2017 Bethesda Downtown Plan, a 20-year vision that includes a 32.4 million-square-foot cap on “total development in the downtown area, including existing and approved new development,” according to the Montgomery Planning website. A Minor Master Plan Amendment (MMPA) “provides an update of an existing Master Plan or Sector Plan, with a more narrow focus, either in terms of geography or the topics to be covered,” the website says.

According to Montgomery planning, the development cap was reached in September 2023 – six years into the 2017 plan – leaving the approval of future projects in the downtown area uncertain. Planners argue that the cap must be removed because the 2017 downtown plan’s “vision of affordable housing near jobs and community amenities will not be realized” without “private development and the public investment it funds.”

The proposed amendment also calls for continuing to build transportation-related projects as M-NCPPC Capital Improvement Program projects and those by private developers as well as increasing the Park Impact Payment for developers. Other recommended changes include creating incentives for the creation of a new recreation center and extending existing incentives for the inclusion of higher percentages of moderately priced dwelling units (MPDUs) in housing projects.

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The 2017 Bethesda Downtown Plan resulted from a four-year collaboration among residents, property owners, Montgomery Planning staff, the planning board and the County Council, according to the planning department. The plan encompasses the planners’ vision for affordable housing, new parks and open spaces as well as pedestrian and bicyclist safety improvements.

During Monday’s hearing, Chevy Chase Mayor Irene Lane also shared her concern about the proposed removal of the development cap.

“We believe a holistic review process for Bethesda as an activity center should be established before the planning board considers removing” the development cap, Lane said. “Such a process would enhance future decision-making on density and development as the underlying plan ages.”

Lane noted that without the “holistic reviews,” removing a cap on development in the area “risks undermining the plan’s goals and leaves no assurance that transportation metrics will be assessed nor that promised amenities will be delivered.”

Those who support the cap’s removal include the Bethesda Downtown Implementation Advisory Committee. Jack Alexander, the committee’s co-chair, said during the hearing that the committee believes the development cap should “go away.”

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“And the big reason is to provide certainty for developers and investors and the people that want to come to develop in Bethesda,” Alexander said. “If you start on it in one year, it could take four or five years to get a building built and to have the rug pulled out from under you because of the cap just doesn’t make sense.”

Increasing the Park Impact Payment

In the Minor Master Plan Amendment, county planners are also recommending that the base Park Impact Payment rate be increased to $15.57 per square foot of proposed development. Initially the plan set the PIP rate at $10 per square foot adjusted for inflation every other year, according to planning documents. In 2023, the Planning Board increased the PIP to its current rate of $12.49 per square foot.

The PIP is a fee that developers must pay to the parks department when building in the downtown Bethesda area – specifically the Bethesda Overlay Zone, which covers the downtown, according to the planning department. The fee is intended to be used to help pay for the development of new public parks and amenities.

Dedun Igram, co-chair of the Bethesda Downtown Implementation Advisory Committee, told the Planning Board that while the committee supports the proposed rate increase, it also urges planners to explore other financing opportunities for delivering new parks.

“The plan proposed 13 new parks comprising 13 new acres of parkland. Under the plan, about 7 million square feet of new development has been approved for Bethesda, and Bethesda’s population has increased by 17% but none of the new parkland identified in the plan has been delivered,” she said.

In addition to the proposed PIP increase, planners are recommending new incentives to encourage construction of a new recreation center in downtown Bethesda, including reducing the PIP for developers who pursue construction of the center. The 2017 plan recommends building a new recreation center but does not provide incentives for the construction.

Hannah Hutton, who lives in east Bethesda, spoke virtually at the hearing to emphasize the need for more construction of affordable housing while ensuring there is funding for the amenity projects for the community.

“As Bethesda grows, it’s critical to ensure that the existing community infrastructure is not left behind,” Hutton said. “So our county departments and agencies must have the necessary budget funding to serve both our current and future residents.

“We need to avoid a situation where developers receive their incentives but county departments and agencies don’t have the resources to carry out their components of the plan, like we heard about with parks,” she said.

What’s next?

The public can submit comments and share feedback with the planning department about the amendment until 5 p.m. Monday, according to the planning department. Additional testimony can be sent via email to mcp-chair@mncppc-mc.org or by mail to Chair, Montgomery County Planning Board, 2425 Reedie Drive, Wheaton, MD 20902.

After the public comment period ends, planning staff will hold a Dec. 12 work session with the Planning Board to revise the draft amendment before it is sent to the Planning Board for approval. The board’s final draft of the amendment is expected to be sent to the County Council and county executive for review and consideration by the end of the year, according to the planning department.

The council will hold its own public hearing and work sessions on the proposed amendment while the county executive is also expected to provide comments, according to the planning department.

After the council approves a final version, the Maryland-National Capital Park and Planning Commission will adopt the amendment.

An exact timeline for approval by the Planning Board and the council hasn’t been determined, though the planning department estimates the council will take up the amendment early next year.

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