South County Development
Originally Published: February 6, 2024
Big Plans for Historic St. Mary’s City
In 2021, the Maryland Stadium Authority (MSA) hired Crossroads Consulting to create a market and economic study on Historic St. Mary’s City (HSMC), which was completed in 2023. The study provides suggestions for the potential growth and development of HSMC in support of its goal “to become a nationally recognized center for the study and interpretation of 17th century archaeology and public history.” The market study was split into two phases. Phase 1 “identifies potential future development opportunities that could support the Fort in HSMC and drive additional tourism.” Phase 2 “estimates the potential economic and fiscal benefits that could be derived from Fort Site operations in a stabilized year assuming…the development opportunities in Phase 1 are developed.”
This study “does not include a future development or implementation strategy,” Crossroads Consulting specified. It is just a piece of the overall puzzle under the umbrella of the HSMC Master Plan from 2021. Peer group studies included “significant historical sites attracting tourism and smaller public state colleges” up and down the East Coast. Notably, no “direct interviews with the development community” were conducted to evaluate proposed “concepts and land uses.” Demographics within a 30 minute drive time showed the population as “young, educated and affluent” while noting the county has “more aerospace engineers per capita than any place in the country.” The data also shows just over 41% of households within the drive time are below the national median income of $72,353.
One of the primary findings said “it is unlikely HSMC could capitalize on the recent discovery of the Fort and maximize visitation with only the existing offerings in the area.” Those include 46 retail trade businesses and 18 food & drink businesses within a five mile radius of St. Mary’s College of Maryland (SMCM). There is a positive retail gap, meaning demand outpaces supply, for these categories “indicating the community can support additional retail and/or food & drink.” Crossroads Consulting suggests the Visitor Center area “could provide for a Village District that could accommodate” future retail, designed to “compliment the colonial landscape.” This area of the HSMC Master Plan, called “Welcome & Visitor Services” is scheduled for construction between now and FY2028.
Another conclusion found the supply of hospitality related businesses inadequate. “Lexington Park has 10 limited-service type hotels supplying an estimated 1600 rooms” which support PAX-related business travel. Although “most visitors to the HSMC area are likely day trippers,” Crossroads said within five years “there could be the need for a hotel in the immediate area…with additional considerations for a conference center…assuming infrastructure, zoning and economic feasibility supports it.” A waterfront overlook is suggested for the hotel. The study does reference “local hotels and inns appear extremely attractive to a weekend or extended stay guest.” Finally, in regards to residential development, an idea offered is “a live/work residential pod…situated in the area of Route 5 and Rosecroft Road.” There was also a noted demand for “short-term rentals,” along with discussion of about a dozen properties owned by HSMC that may fit this need and could net $460K per year.
Crossroads Consulting listed several barriers to market entry, or obstacles preventing investors/businesses from entering an area. These included, in this order: “economics of scale, product differentiation, capital requirements, changing costs, access to distribution channels, government policy, competition, and threat of substitutes.” Many of these items are tied to the remoteness of HSMC, with only two primary points of entry–Route 5 and Mattapany Road–and a lack of infrastructure and utilities. Also, the area is zoned as Rural Preservation which limits what can be developed there. To fix this, Crossroads Consulting says “the County or the State will have to rezone or create a master plan overlay district…for any future commercial and/or residential development to occur.”
St. Mary’s County, and Maryland, will both benefit economically from the development of HSMC as a historic destination. The top line numbers are huge–$40.5M in total economic output, supporting 350 jobs producing $19.4M in labor income for the State. Annual tax revenue generated for the State could be around $2.3M, generated from $1.4M Sales & Use Tax, $794K Personal Income Tax, and $135K Corporate Income Tax. Meanwhile the County’s annual tax revenue would be $228K from $119K in Personal Income Tax, $87K in Public Accomodation’s Tax, and $22K Admissions & Amusement Tax. Regarding the 350 jobs, the study notes “a person can hold more than one job, so total jobs is not necessarily the same as the number of employed persons.”
A timeline from the HSMC Master Plan, included in Crossroad Consulting’s study, outlines plans for development over the next decade. Here is a list of projects:
-Maryland Heritage Interpretive Center, construction in FY24 (now)
-Visitor Amenities Building, construction FY25-27
-Anne Arundel Hall Expansion, construction completing FY31
-Retail Village, possible completion in FY34 pending feasibility study
-Leonard Calvert House, complete by FY29
-Beachfront development/canoes by FY29
-Maritime Exhibit, complete by FY24
-Priest’s House, construction by FY32
-Education Center (old Visitor’s Center), complete by FY27
-Artisan Woodworking Center, complete by FY27
-Maintenance Facility, Carr Collaboration Center, Admin Building & Costume Shop, Grounds Shop, and Outdoor Classrooms built between FY24-34
-Waterfront Lodge, construction begins by FY28 dependent on feasibility study
-Residential Housing, by FY28 pending feasibility study
-Shuttle Service implementation by FY25
