NATIONAL HARBOR

DEVELOPER TO

BRING NEW MOVIEPLEX,

RETAIL TO

ROCK SPRING PROJECT

IN

BETHESDA

Site Will Also House 200 Room Hotel, 161 Condos;

Is There A Casino in Bethesda's Future?

Another Robert Dyer @ Bethesda Row Exclusive

The Peterson Cos., developer of National Harbor, has rescued the long-languishing Rock Spring development in Bethesda from the abyss.

Peterson will help finance, build and 50% pre-lease 300,000 square feet of retail, restaurant and entertainment space. The other 700,000 square feet will consist of Class A office space, a 200 room hotel and 161 luxury condos. That portion will be developed by DRI Development Services, LLC.

The only specific component revealed by Peterson is a multi-screen movieplex, which will directly compete with a new 15-screen theater at next-door neighbor Westfield Montgomery Mall, and a new iPic Entertainment Theaterplex being built by Federal Realty at its new Pike and Rose development at Rt. 355 and Montrose Parkway.

In general, this sounds like great news. National Harbor, for all of the negative talk about Prince Georges County, may well be the nicest development project in the entire DC area. Only Bethesda Row, Reston Town Center and the Rio/Washingtonian Center in Gaithersburg can match it in terms of atmosphere, design and tenants, in my opinion.

But in terms of scope, scale, planning and economic potential, I think National Harbor is in a class by itself. It has more of a resort feel, and makes ridiculously great use of its waterside setting. Washingtonian Center did this on a smaller, manmade scale. The use of water features really takes a development or resort to the next level, a concept that apparently escapes developers in Montgomery County.

National Harbor also has an incredible lineup of 5-star restaurants. It doesn't have as many famous chefs as Bethesda Row, but you're never going to get tired of dining out if you are a tourist staying at National Harbor.

One thing Rock Spring and National Harbor have in common is great transportation planning. We know from data that at least 85% of residents and patrons of any development will drive, even if the site is adjacent to Metro. National Harbor is placed right off of the Beltway, and the project was almost solely responsible for the construction of the new Woodrow Wilson Bridge (which would have been unnecessary had I-95 been built through Washington as originally planned!).

Likewise, Rock Spring is right off of both I-270 and the Beltway. The only problem is that the sections it is right off of are among the most-congested in the DC area. This is because of several missing roads that had been designed to accomodate development in the area: the Rockville Freeway, the Outer Beltway, the Northwest Freeway, the North Central Freeway, M-83 Midcounty Highway extended.

Now do you understand why our existing roadways are jammed?!

So we really need to build those roads, starting with the Rockville Freeway and Outer Beltway (I-370) in particular. But in terms of planning, when you're moving a lot of cars, highway access is essential.

Finally, with Peterson pumped up about a proposed National Harbor casino, it's worth contemplating just what the future holds for gaming in Montgomery County.

Casinos are only placed within X-number of yards of an Interstate Highway, and here there are two.

Just 6 years ago, Martin O'Malley described slots as "morally bankrupt." Two years later, he was the preeminent champion of casino gambling in the state of Maryland. Montgomery County's councilmembers and legislators fell aside to allow slots. Voters who previously condemned slots statewide when Bob Ehrlich was governor, mysteriously developed a passion for one-armed bandits once the narrative changed.

Now the last bastion of anti-gaming resistance - Prince Georges County - is considering becoming the biggest gaming capital outside of Vegas and the Atlantic City boardwalk.

If we could learn to sing along with Kenny Rogers so easily then, what will stop casinos in Montgomery County when the time is convenient again?

To play devil's advocate, National Harbor sure is a great spot to put a fancy casino. Conventiongoers are amongst the easiest of targets for a gaming palace. A National Harbor-style development with casino could really turn around the economy in the Burtonsville area off I-95. Politicians need the money.

And this has all been planned anyway. I've heard that hotels at National Harbor and newer ones in Ocean City are all pre-wired and configured for slots. Voters have proven to be eager to flip-flop on any previously-inconceivable gaming proposal. Even in a mall!

Could slots come to Rock Spring or other developments in Montgomery County?

"Impossible!," you might say.

And you'd be right. For now.