Subject
title
Approval of a Resolution to Designate the Rockville Metro Station and the Surrounding Area as a Maryland Transit-Oriented Development (TOD) Site.
end
Department
CPDS - Management & Support
Recommendation
Staff recommends that the Mayor and Council authorize the filing of the TOD application and approve the attached resolution.
Discussion
Background:
The State Transit-Oriented Development (TOD) Designation program was established in 2008 and is designed to encourage the implementation of dense, mixed-use development in a ½ mile around a transit station. The Moore-Miller 2024 State Plan highlights TOD as an important tool in tackling the affordable housing shortage and leveraging infrastructure to bolster inclusive economic growth. The Maryland Department of Transportation (MDOT) actively promotes TOD as an approach to help increase transit ridership, support economic development, and maximize the efficient use of transportation infrastructure.
Proposed designation of Rockville Metro Station and the surrounding area as a TOD site:
Staff recommends Rockville Metro Station for designation as a Maryland Transit-Oriented Development (TOD) site, given its competitive advantages not found at other stations. In addition to WMATA’s Red Line, the Rockville Metro Station also serves MARC and Amtrak trains. A variety of bus routes operated by WMATA and Ride On serve the Rockville Metro Station. Since 2013, Montgomery County has planned to construct Bus Rapid Transit (BRT) routes along MD355 (Hungerford Drive and Rockville Pike) and MD586 (Veirs Mill Road) as a part of a larger envisioned countywide BRT network. Both routes intersect in Rockville at the Metro station. The Veirs Mill BRT is currently at 95% design and the MD355 BRT is at 35% design. The County intends to secure construction funding for the Viers Mill BRT through the Federal Transit Administration (FTA)'s Capital Investment Grant Small Starts program, and for the MD 355 BRT through the FTA's Capital Investment Grant New Starts program. Both projects have been granted entry into their respective Capital Investment Grant programs.
Additional information on the Montgomery County 2026 budget document for both BRT’s can be found below at the following links:
<https://www.montgomerycountymd.gov/OMB/Resources/Files/omb/pdfs/fy26/cip_pdf/P501913.pdf>
<https://www.montgomerycountymd.gov/OMB/Resources/Files/omb/pdfs/fy26/cip_pdf/P502005.pdf>
Per State guidelines, Transit-oriented development generally refers to dense, mixed-use development in the ½ mile radius around a transit station. The area proposed for TOD designation is shown below in Figure 1 and included as Exhibit A in the resolution (Attachment 1). The area is proximate to several forms of public transportation and includes most properties in the City’s Town Center Master Plan <https://ehq-production-us-california.s3.us-west-1.amazonaws.com/191146c23ebb629d0b151aa7156a1eed8bc4e965/original/1747860505/c2ae1ba92bfbd0c1909d9d85d5380e17_TCMP%20Adopted%20Final%20Updated.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIA4KKNQAKIJHZMYNPA%2F20251031%2Fus-west-1%2Fs3%2Faws4_request&X-Amz-Date=20251031T142017Z&X-Amz-Expires=300&X-Amz-SignedHeaders=host&X-Amz-Signature=0e11d3e29a3218c8e3b72b598917cb37e4c35a65e97247c596a8ca439b6e7c24> and a part of the East Rockville Planning Area <https://www.rockvillemd.gov/wp-content/uploads/2025/06/Rockville-2040-Comprehensive-Plan-Planning-Area-2.pdf> (Planning Area 2). In consultation with MDOT, staff identified additional properties outside the ½ mile radius of Rockville Metro Station to include in the proposed designation area to potentially avail of the benefits that come with the State designation, such as the potential to access funds for infrastructure improvements, including bikeways and sidewalks connecting Town Center to Montgomery College, to encourage walking and bicycling by residents, employees and others
Figure 1 - Proposed TOD designation area
Rockville Metro Station Concept Plan - On December 6, 2024, the Mayor and Council approved a resolution for a concept design plan for Rockville Metro Station, with a mixed-use development of 1,180 residential units, retail and other amenities that serve as a gateway to Rockville and a central point between various transit services (Attachment 2). The concept plan provides clear guidelines and a path for WMATA and a future potential developer to move forward. As a result, the WMATA Joint Development work plan <https://www.wmata.com/business/real-estate/upload/2025-Workplan-Final.pdf>, released in June 2025, notes that there is interest in moving forward with joint development planning at the station in the near term. The Joint Development Plan notes that to facilitate the implementation of the project, Rockville must identify funding for the train hall as proposed in the concept design. The Mayor and Council also directed staff to identify funding sources for the vision in the concept design that treats the extension of the pedestrian bridge as an add-on option over the station platform (eliminating the up and down movements that currently exist).
Source: 2025-Workplan-Final.pdf <https://www.wmata.com/business/real-estate/upload/2025-Workplan-Final.pdf> page 6
TOD designation is one way of facilitating access to State-provided resources, to accelerate development at the Rockville Metro Station.
Rockville’s Mayor and Council adopted the Town Center Master Plan in January of 2025 <https://ehq-production-us-california.s3.us-west-1.amazonaws.com/191146c23ebb629d0b151aa7156a1eed8bc4e965/original/1747860505/c2ae1ba92bfbd0c1909d9d85d5380e17_TCMP%20Adopted%20Final%20Updated.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIA4KKNQAKIJHZMYNPA%2F20251013%2Fus-west-1%2Fs3%2Faws4_request&X-Amz-Date=20251013T193154Z&X-Amz-Expires=300&X-Amz-SignedHeaders=host&X-Amz-Signature=c67be7b4c740143c8cc966c870e9382b17325c67ba5a8ac7fcb70b6df70a59f2> (TCMP), which constitutes a major part of TOD designation. One of the goals of the TCMP is to target the area for new higher-density development to reach 3,000 new residential units by 2040. The Plan reimagines the surface parking lots as high-intensity mixed-use development to support the City’s land use and development goals.
Residential properties on the east side are included as a strategic and equitable approach to fostering affordable, walkable neighborhoods. Prioritizing development near transit ensures that new affordable housing units are not isolated but integrated into thriving, connected neighborhoods, creating long-term opportunities for residents to live, work, and thrive without dependence on personal vehicles.
Properties on the east side of the proposed TOD area are designated in a variety of mixed use and residential zonings, including RMD zones. The City’s Residential Medium Density (RMD) zones permit duplexes, small multi-unit dwellings with up to four units and townhouses as a matter of right. The RMD-Infill Zone has been implemented in single-family neighborhoods in close proximity to the Metro station on what had previously been single-family lots prior to rezoning. In addition, missing middle housing is possible in other RMD zones that allow for higher density on larger tracts near Metro. Additionally, as of April 9, 2024, attached accessory dwelling units (ADUs) are allowed to be constructed either within or as an addition to single-unit detached homes, if certain conditions are met. With the TOD designation, financing options for ADUs are likely to become more accessible.
The City's master plans and action plans provide direction and guidance to City staff to provide comprehensive pedestrian, bicycle, transit, and personal mobility options throughout the proposed TOD area.
Once approved, the designation is valid for 10 years and can be extended for another 10 years by applying for a renewal. City staff plans to also seek TOD designation for the Twinbrook Metro Station, and when annexed, the Shady Grove Metro Station.
Process for designation:
The process to apply for State TOD Designation requires the local jurisdiction to complete the TOD Designated Application Form <https://forms.mdot.maryland.gov/TOD>. The application asks for a local resolution in support of a state transit-oriented designation (Attachment 1). As a part of the application, the City needs to demonstrate that there is a deliberate plan for the TOD that addresses various categories, including land use, bike and pedestrian networks, housing goals, parking strategy, green infrastructure, and others. Attachment 3 is responses to the questions in the application, outlining strategies to address a TOD Plan in the designation area.
State TOD Designation benefits:
State TOD Designation comes with several benefits, including:
• Eligibility for MDOT's TOD Capital Grant and Revolving Loan Fund
• Sustainable Community Designation (to be eligible for Sustainable Communities incentives, the TOD site must also have an approved Sustainable Community plan)
• Projects located in State TODs receive additional points in competitive application rounds for Low Income Housing Tax Credits administered by DHCD
• State Procurement: When the Department of General Services (DGS) or MDOT uses a point system to evaluate proposals to lease or purchase office or laboratory space, additional points shall be awarded to proposals located within a State-designated TOD
In addition to the general benefits of TOD for Maryland, a State Designation of TOD may facilitate access to tools for planning and development. MDOT and other State agencies may be able to support more ready access to technical and financial tools to improve, facilitate, or accelerate project delivery. Types of assistance that may be available include:
Technical Assistance - Feasibility, Planning, and Market Studies may be supported. It may also be possible for MDOT to assist in addressing accessibility concerns (transit and roadway access or bike/ped connections) or with conducting pre-development activities.
Discretionary Program Funding - Where discretionary programs are identified as appropriate to site development needs, MDOT may be able to assist with developing applications, conducting cost-benefit analyses, or providing letters of support. Some projects may also be allocated additional points by virtue of their designation (or proximity to transit) in competitions for state funding programs.
Financing Tools - TOD designation is one way for local jurisdictions to gain access to more flexible terms in deploying Tax Increment Finance (TIF) to support TOD project outcomes. Special provisions associated with the Designation make it possible for local jurisdictions to draw on a broader range of resources, including special revenues and support of the Maryland Economic Development Corporation, to help finance TOD infrastructure.
Below is a summary of the eligible activities and award limits that the City can apply in the proposed TOD area once the designation is approved:
|
Eligible Activities and Award Limits |
|
Applicant Type |
Eligible Activities |
Funding/Financing Options |
Award Limits |
|
Local Jurisdictions |
Design Plans |
Grant with 10% match) |
Up to $250,000 |
|
|
Public Infrastructure Improvements (non-revenue generating) |
Grant (10% match) |
Up to $750,000 |
|
|
Public Infrastructure Improvements (revenue generating) |
Loan |
Up to $1,000,000 |
|
Non-Profit/Private Developers (with local government co-applicant) |
Gap Financing |
Loan |
Up to $1,000,000 |
Note: More information on the Capital Grant and Revolving Loan Fund is available at the following links:
Transit-Oriented Development (TOD) Capital Grant and Revolving Loan Fund - MDOT <https://www.mdot.maryland.gov/tso/pages/index.aspx?PageId=217>
Maryland Department of Transportation Launches Grant Program to Support Transit-Oriented Development Projects, Spur Economic Growth - MDOT <https://www.mdot.maryland.gov/tso/pages/newsroomdetails.aspx?newsId=907&PageId=38>
Impact Statements
Equity
Once designated, the TOD program provides financial assistance to support equitable and inclusive development around Maryland transit stations, helping local governments and private partners enhance access to public transportation. Including properties within a half mile of transit stations is a strategic and equitable approach to fostering affordable, walkable neighborhoods.
Actions that work to further equity are integrated into the designation, such as facilitating the development of a variety of housing types, including ADUs and other affordable housing types, and improving connectivity and non-automotive transportation. By concentrating a variety of housing type developments in the area, the City will maximize the value of public investments in transit while reducing household transportation costs, a major driver of overall affordability.
Census data shows that the proposed area has a high percentage of renters, primarily because a large number of multifamily units are located here. There is also a high percentage of residents with one or more disability, and walkability and a variety of transportation options are critical for this population. TOD funding can be applied to infrastructure improvements that are accessible and available to all and constitute a public benefit.
Environment
This proposal relates to two actions within Rockville’s Climate Action Plan:
• C-10: Work with WMATA, MDOT and Montgomery County to maximize transit accessibility and ridership and enhance mobility options.
• C-16: Implement the Comprehensive Plan to steer the densest development/redevelopment to mixed-use, transit-served locations, reduce VMT and emissions, and conserve/restore environmental areas.
Additionally, the WMATA Rockville Metro Station property is currently completely developed with impervious surface with minimal to no stormwater management. While the proposed development will consist largely of impervious surfaces, stormwater management features will be incorporated into the project, reducing water runoff from the existing condition.
Walkable, transit-oriented communities not only expand access to jobs, education, and services but also reduce congestion and emissions, aligning with sustainability and climate goals. For these reasons, approval of this project plan is anticipated to have a positive impact on the environment in Rockville.
Economy
Access to the general benefits associated with the TOD designation and tools for planning and development will facilitate economic activity. Development of the surface parking lots at the WMATA property has the potential to transform Town Center into an economic magnet that will attract more investment.
Additionally, new housing developments will bring hundreds of new customers to Town Center’s businesses, generating spin-off economic activity. Concentrating a variety of housing types near transit magnifies their impact, ensuring equitable access to mobility, opportunity, and economic security while demonstrating a long-term commitment to sustainable and inclusive neighborhood growth.
Mayor and Council History
This is the first time the Mayor and Council will review the agenda item.
Next Steps
After approval of the resolution by the Mayor and Council, staff will include the approved resolution in the application to MDOT for the purpose of designating Rockville Metro Station and the surrounding area as a Maryland Transit-Oriented Development (TOD) site.