BRIAN D. LEE TIM SHANKLIN KENT GUBLER Principal VP Tenant Service Strategic Accounts O: 212.372.2370 O: 301.831.8575 O: 240.436.6416 C: 516.487.7770 C: 443.422.4600 C: 301.606.9402 [email protected] [email protected] [email protected]

One East Pratt Street Suite #805 Baltimore, MD 21202

Procuring broker shall only be entitled to a commission, calculated in accordance with the rates approved by our principal only if such procuring broker executes a brokerage agreement acceptable to us and our principal and the conditions as set forth in the brokerage agreement are fully and unconditionally satisfied. Although all information furnished regarding property for sale, rental, or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by our principal. CHILD CARE CENTER

CAMPUS OVERVIEW • 61 acres of spacious property which includes buildings One, Two & Three plus the Family & Child Care Center • Full access 24/7/365 • Common area entry lobby • Citicorp will remain in one (1) building • 374,466 RSF / 2 stories • Redundant power with UPS & back up generators • Zoning: HI – Highway Interchange Zoning - Flexible permitted uses including: Office; Industrial; Retail; Hospitality; - Distribution and Athletic uses 2 • Multi–building complex • Easy access to multiple highways • Citicorp Family Center located right across the ample parking lot

4 CHILD CARE CENTER

1

3

5 HAGERSTOWN SITE PROFILE

Campus Bldg # 1 Bldg # 2 Bldg # 3 Child Care Center After School Center A. SITE PROFILE COST CODE: 00038/0000007901 00038/0000007901 00038/0000007901 08371/100020163 08371/100020163 Size (RSF) 423,288 126,127 129,147 109,252 48,162 10,600 Land Size (acres) 61.19 Total # of Parking Spaces 2,380 # of Handicap Parking Spaces 75 # of Visitor Parking Spaces 71 Other Type Motorcycle 7 Employee Appreciation Spaces Reserved 8

B. AMENITIES ATM Yes Cafeteria Full Service (Provider) Aramark Catering Services Yes Fitness Center Yes Mail Services Yes A/V Availability Yes Total Meeting Capacity 520 Training Rooms (#) 14 Video Conferencing Yes

C. SPACE & OCCUPANCY DATA AS OF 8/19/13 Total Area (SF) 423,288 Common 113,250 Offices 223,487 Amenities 86,551 Total Seats 2,952 Workstations 2,812 COB -44 seats as of Aug 2013 Offices 140 7 1 Classrooms 29 29 0 Commons 9 4 5 Conference rooms 30 10 10 10 Restrooms 28 8 10 8 26 3 Training rooms 14 - 4 10 42.1 Adjacent for Available Land (acres) possible purchase

6 Campus Bldg # 1 Bldg # 2 Bldg # 3 Child Care Center After School Center D. SITE INFRASTRUCTURE # of Buildings 5 # of Stories 2 2 2 1 1 Year Built 1986 1990 1996 1997 1990 Structure Steel Framed Steel Framed Steel Framed Steel Framed Steel Framed Façade Brick Veneer Brick Veneer Brick Veneer Cedar Siding Brick Veneer Interior Walls Gypsum Walls Gypsum Walls Gypsum Walls Gypsum on wood studs Gypsum on wood studs Roof Type Ballasted single ply rubber Ballasted single ply rubber Ballasted singly ply rubber Shingle Shingle Roof Installation Date 1986 1990 1996 1997 1990 Roof Warranty Expiration Expired Unknown Expired Unknown Expired Unknown 2007/2017 2005 Column Spacing 30' centers 30' centers 30' centers N/A N/A Floor Load Capacity (lbs/sf) 250 psf 250 psf 250 psf Slab on grade Slab on grade # of Loading Docks 4 4 1 1 0 # of Passenger Elevators 1- 4000 # Cap 1-3500 # Cap 1-3500 # Cap N/A N/A # of Freight Elevators 1- 10000 # Cap 1- 10000 # Cap 1 - 10000 # Cap N/A N/A Slab to Slab Dimension 15' - 0" 15'-0" 15'-0" N/A N/A Raised Floor Height / Type is Tate 14" 14" 14" N/A N/A Type of Systems furniture Steelcase / Teknion Steelcase Steelcase / Teknion N/A N/A Sprinklered/Bldg Dry Dry Wet Wet Wet Fire Protection/Computer Rm Pre-Action Pre-Action Wet PA System? Yes Yes Yes No No UPS Size/Manufacturer Leibert, 2-375KW modules parallel redundant Leibert, Single Module 450KW (original) Leibert, Single Module 375KW (original) N/A N/A Quantity 2 1 1 UPS age 3 16 14 Items covered by UPS Tech/Lan/Sw Rms, all Critical Workstation Outlets Tech/Lan/Sw Rms, all Critical Workstation Outlets Tech/Lan/Sw Rms, all Critical Workstation Outlets Current Load 110KW 135KW 56KW Duration at Full Load 15 minutes 15 minutes 15 minutes Battery Type Gel/Sealed Wet Cell Gel/Sealed Battery Install Date Sep-09 Apr-04 Mar-12

GENERATOR Size/Manufacturer Caterpillar - 2@1000KW Caterpillar - 2@1000KW Caterpillar - 1 @ 1000KW N/A N/A Quantity 2 2 1 Items covered by Generator Total Bldg Load Total Bldg Load Total Bldg Load Current Load 565KW 450KW 650KW Load Shedding Capabilities Yes Yes Yes Fuel Tanks - Type UST UST UST Total Fuel Tank Capacity (# gal) 8,000 per unit 8,000 per unit 6,000 Duration Full Load 5 days 5 days 4 days Tank monitoring Yes Yes Yes Back-up water source available? No No No Boilers Installed Installed 2008 HVAC System - Enter type 160 Water source heat pumps( 2009)/ 153 Water source heat pumps (2008)/ 108 VAV systems with redundant 435 ton chillers 2 - H. B. Smith G028 1997 7 Rooftop Weil McClain Boiler 310 5 Split System AC 2 cooling towers (original) cooling towers (2008) W9; 1,941,000 BTU/HR Units - Cooling Only Ultra 310,000 BTU/HR UNITS RTU's A & D - 16 yrs - RTU E - 16 yrs 27 Tons; 45 Tons; RTU C1 - 16 RTU K 16 yrs - 20 Tons; 22 yrs old Three @ 7.5 Two at 5 Tons each; Roof top age & size N/A N/A 1 @ 16 yrs 25 Tons; 1 @ 3 yrs 25 Tons yrs 30 Tons; RTU C2 RTU B - <1 yr 45 Tons; Tons each; Total 32.5 Tons - 16 yrs 25 Tons; Total 237 Tons Cooling tower quantity & size 2 - 500 Ton 2 - 580 Ton 2 - 458 Ton N/A N/A CER Cooling Dedicated Dedicated Dedicated N/A N/A BMS/EMS remote dial up? Yes Yes Yes Yes Yes Equipment monitored remotely Yes Yes Yes Yes Yes Tech & LAN rooms cooled by redundant Leibert Tech & LAN rooms cooled by redundant Leibert Tech & LAN rooms cooled by redundant Leibert Additional Infrastructure A/C units (5) A/C units (4) A/C units (8) N/A N/A Leibert AC age Two @ 26 yrs; One @ 22 yrs; Two @ 14 yrs Four @ 16 yrs Two @ 15 yrs; Five @ 15 yrs; One @ 5 yrs N/A N/A

7 FLOOR PLANS Building One | Floor One

8 Building One | Floor Two

9 Building Two | Floor One

10 Building Two | Floor Two

11 Building Three | Floor One

12 Building Three | Floor Two

13 Child Care Center

01004E 01013E Classroom Classroom

01077G 01086G Classroom Classroom

J40010 J41010 Classroom Support Classroom Support

01077L 01086L Classroom Support Classroom Support

01004N 01013N Classroom Classroom 01077P 01086P Classroom Classroom

Vest

01027X Classroom Support 01053X 01065X 01013Y Y22010 Y13010 01050Y Classroom Support 01057Y 01062YClassroom Support 01069Y 01077Y Indoor Playground moorssalC moorssalC Y63010 Y64010 Classroom Classroom Classroom Classroom Indoor Playground Childcare Support Childcare Support

01041AB Reception Area

GA22010 GA13010 01050AG 01057AG 01062AG 01069AG moorssalC 01027AH moorssalC Classroom 01053AH Classroom Classroom 01065AH Classroom Classroom Support Classroom Support Classroom Support

01044AT Childcare Support

01027BG 01053BG HB22010 Classroom Support HB13010 01050BHClassroom Support01057BH moorssalC moorssalC Classroom Classroom

01036BJ 01046BJ Childcare Support Childcare Support

01041BN Reception Area

PB63010 PB64010 01013BQ 01022BQ 01031BQ Childcare Support Childcare Support 01050BQ 01057BQ 01065BQ Indoor Playground Indoor Playground Classroom 01027BQ Classroom Classroom 01053BQ Classroom Classroom Support Classroom Support

Vest

01065BY 01074BY Classroom Classroom ZB40010 ZB31010 moorssalC moorssalC

CC56010 CC47010 Classroom Support Classroom Support

01004 01014 Classroom Support Classroom Support

01065 01074 Classroom Classroom

01004 01013 Classroom Classroom

14 After-School Center

Closet

Cafeteria Game Room Playroom

Closet

Servery

Meeting Rm

Arts/Crafts Area

Vest

Storage Reception Area

After School Office

After School Support After School Support

Toilets Toilets

TV Rm

Homework Area Medical Area

Mech Rm Mech Rm

15 CONNECTIVITY

Digital, fiber optic, wireless data and cellular technologies are all part of the state-of-the- art communications infrastructure. Services are provided through public and private local and regional vendors with broadband speeds up to 1 Gigabit and Ethernet speeds up to 10 Gigabits. AT&T, Sprint, and Verizon operate Points-of-Presence within Washington County.

1 Gigabit Internet Service The City of Hagerstown is among less than 300 cities in the United States with high speed internet up to and beyond 1 Gigabit service for businesses and residents. 1 Gigabit service is available downtown and in many other parts of the City of Hagerstown, and the fiber-optic internet connection offer speeds of 1,000 Megabit per second.

The dedicated connection allows for uploads and downloads of data at equal speeds. This makes Hagerstown an ideal location for businesses that do large volume of data transfers to clients. This service also benefits businesses that backup their own data and engage in collaboration through file sharing, online conferencing and screen sharing. It is also ideal for businesses that are moving their business processes such as email servers, customer contact management and database applications to the cloud.

For more information, visit https://www.gigahubcity.com/ or watch the video at https://www. youtube.com/watch?time_continue=285&v=cNpp_DK59SU.

Verizon Verizon FiOS Maryland is currently providing services to the property located at 14700 Citicorp Drive in Hagerstown, MD. They are expanding services across the State and branching fiber optic network to better serve the State of Maryland.

16 17 TAX STRUCTURE AND INCENTIVE PROGRAMS Current Tax Structure 2019:

CORPORATE INCOME TAX PERSONAL INCOME TAX SALES & USE TAX REAL PROPERTY TAX BUSINESS PROPERTY TAX Washington County – Zero Washington County – 2.80% Washington County – Zero Washington County – Zero Washington County – 2.80% State of Maryland – 8.25% State of Maryland – 2.0% - 5.75% State of Maryland – 6.0% State of Maryland – 8.25% State of Maryland – 2.0% - 5.75%

County Research and Development Equipment Tax Exemption – Washington County EXEMPTS a company’s research and development equipment from County Business Personal Property Tax. The State of Maryland does not tax business personal property.

County Manufacturing Machinery and Equipment Tax Exemption - Washington County EXEMPTS a company’s manufacturing machinery and equipment from any County Business Personal Property Tax. The State of Maryland does not tax business personal property.

County Business Inventory Tax Exemption - Washington County EXEMPTS a company’s inventory (raw materials, goods in process, and finished goods) from any County Business Personal Property Tax. The State of Maryland does not tax inventory.

18 DOWNTOWN HAGERSTOWN MARYLAND SALES & USE TAX EXEMPTIONS

Maryland exempts from state Sales & Use Tax (6%) several items including the following:

• Sales of equipment and materials used or consumed in research and development,

• Sales of capital manufacturing machinery and equipment, including equipment used for testing finished products, assembling, processing or refining,

• Sales on tangible personal property consumed directly in manufacturing, testing of finished products, assembling, processing or refining, and

• Local jurisdictions in Maryland cannot and do not impose a sales tax.

Other Maryland Tax Policy Advantages There are NO

• Unitary tax on profits • Income tax on foreign dividends (if the corporation owns 50 percent or more of the subsidiary) • Gross receipts tax on manufacturers • Corporate franchise tax • Separate school taxes • State personal property tax on business personal property

It should be noted that the Comptroller of Maryland (www.marylandtaxes.gov) is the state's primary tax collector. The Comptroller's web site has information about tax regulations, withholding, tax forms, unclaimed property, as well as numerous fiscal reports. New businesses can register through the Maryland State Combined Registration On-line Application. The State Department of Assessments and Taxation, or DAT (dat.maryland.gov) administers and enforces the property assessment and property tax laws of Maryland, allowing for uniformity of property assessment throughout the state. The DAT web site has information on property tax rates, exemptions, credits, and forms. For more information, please see: www.marylandtaxes.com.

DOWNTOWN HAGERSTOWN 19 WASHINGTON COUNTY PROGRAMS

Fast Track Approval Washington County assembles a team of permit and planning professionals for faster approvals and permits. This team will oversee and facilitate the approval processes for a business’ construction project. The benefits of a quick turnaround and phased permits create up to a 50% time-savings during the planning processes. The guidance and coordination of all departments involved in construction approvals can significantly reduce costs.

High Performance Commercial Building Tax Incentive Program This program is a three (3) year tax credit program for the construction of the new or renovated space that achieve LEED Platinum, Gold or Silver Certification. The credit shall be applied only against the increase assessed value of a property as determined by the Maryland State Department of Assessments and Taxation resulting from new construction or renovation. The amount of the credit shall be:

• LEED Certified Silver – 20% of the increase • LEED Certified Gold – 25% of the increase • LEED Certified Platinum – 30% of the increase

Once granted, the tax credit shall be applied for three (3) consecutive years and may not be applied again. The credit may not exceed the increase of the assessed value of the property and may not be carried over to another year.

The tax credit for a property shall terminate if during the credit period, the County determines that a building has been altered so that it no longer complies with the LEED rating system, version or level that was the basis for granting the credit at the time the credit was granted.

This tax credit may not be used in conjunction with other state, county and municipality property tax credit programs. However, the cumulative total of tax credits cannot exceed the amount of property tax levied on the property.

The tax credit granted shall run with the land.

20 REGIONAL WORKFORCE DRAW

Population1 Labor Force Employed Unemployed Unemployment Commuters entering Commuters leaving Rate % Washington County2 Washington County3 STATE OF MARYLAND 6,042,718 3,216,385 3,094,280 122,105 3.8 UNITED STATES 327,167,434 162,646,000 156,758,000 5,888,000 3.6 MARYLAND4 WASHINGTON COUNTY 150,926 75,414 72,621 2,793 3.7 21,987 Allegany County 70,975 32,308 30,815 1,493 4.6 588 Frederick County 255,648 131,188 126,987 4,201 3.2 1,968 PENNSYLVANIA5 Franklin County 154,835 78,400 75,900 2,500 3.2 9,284 Fulton County 14,523 8,000 7,700 300 3.9 1,142 WEST VIRGINIA6 Berkeley County 117,123 57,400 55,550 1,850 3.2 5,290 Jefferson County 56,811 30,300 29,480 820 2.7 442 Morgan County 17,787 8,200 7,920 280 3.4 882

REGIONAL TOTALS 838,628 421,210 406,973 14,237 19,596 21,987

Employment and unemployment data are seasonally adjusted. 1 - U.S. Census Bureau - 2018 Population Estimates 2 - Commuters entering the County; U.S. Census Bureau ACS Data 2010 - Journey-to-Work Commutation 3 - Residents commuting out of county; U.S. Census Bureau ACS 2010 - Journey-to-Work Commutation 4 - MD Monthly Labor Review - May 2019 5 - PA Dept. of Labor & Industry - Work Stats - County Profile - May 2019 6 - WV - WorkForceWV.org-LMI - May 2019

21 JOB CREATION & CAPITAL INVESTMENT REAL PROPERTY TAX CREDIT PROGRAM

Tax Credit Program This tax credit program ranges from six (6) years to fifteen (15) years in tax credits on the County portion of real estate taxes for qualified businesses that either expand or locate and increase employment in Washington County.

There are three (3) opportunities:

• Section 4(a) – An existing business entity (1) must obtain at least an additional 1,500 square feet of new or expanded premises; (2) must employ at least one (1) individual in a new, permanent full-time position during a 12-month period during which the business entity must obtain and occupy the new or expanded premises. The tax credit is 52% during years one (1) and two (2); 39% during years three (3) and four (4); and 26% during years five (5) and six (6).

• Section 4(b) – (1) Must obtain at least 2,500 square feet; (2) employ at least five (5) additional new, permanent full-time employees during a 24-month period. The tax credit is 30% during years one (1) and two (2); 20% during years three (3) and four (4); and 10% during years five (5) and six (6).

• Section 4(c) – (1) Must invest $10,000,000 in capital improvements; (2) create 100 new, permanent full-time employees. Tax credit is 100% for each of the first five (5) taxable years; 75% for year six (6) through ten (10); 50% for years 11 through 15.

Under no circumstance(s) will this ordinance permit bundling of tax credits granted under this ordinance, rule, regulation or code to result in a tax refund or other payment to the business entity.

NORTH POTOMAC STREET WASHINGTON STREET AERIAL VIEW OF DOWNTOWN HAGERSTOWN

22 New Jobs Tax Credit Program This program provides a six (6) year tax credit for qualified businesses that either expand or relocate in Washington County. The credit applies to Washington County’s real property tax on real property owned or leased by the business and on personal property owned by that business.

The amount of the New Jobs Tax Credit a business may claim against County taxes imposed on the assessed value of the new or expanded premises in which the credit is allowed is:

• 52% during the first (1st) and second (2nd) taxable years • 39% during the third (3rd) and fourth (4th) taxable years • 26% during the fifth (5th) and sixth (6th) taxable years

To qualify for the program, a business must:

• Either construct or expand its operations in Washington County by a minimum of 10,000 square feet

• Employ at least 25 persons in new, permanent full-time positions located at the new or expanded premises in Washington County

• Pay 50% of those new jobs at least 135% of the average weekly wage per Washington County worker as reported by the Maryland Department of Labor at the end of the previous calendar years

• Be in a Priority Funding Area as designated in Title 5, Subtitle 7B of the State Finance and Procurement Article

NORTH HAGERSTOWN HIGH SCHOOL AERIAL VIEW OF HAGERSTOWN

23 MARYLAND JOB CREATION TAX CREDIT (JCTC)

Job Creation Tax Credit Clients may be eligible for a Job Creation Tax Credit if it establishes or expands a Maryland business facility that is primarily engaged in an eligible activity such as agriculture, manufacturing, transportation, communications, research, development, testing, computer programming, data processing or other computer related services; central financial services; the operation of central administrative offices or a company headquarters; or warehousing. The new or expanded facility may also qualify for the credit if it is primarily engaged in business services and is located in one of the following priority funding areas: an incorporated municipality, within the Baltimore Beltway, within the Maryland portion of the Washington, D.C. Beltway, in a federal empowerment zone, in a Maryland Enterprise Zone, in a sustainable community as defined in Section 6.01 of the Housing and Community Development (“DHCD”) Article, in any area in a county designated by the county as a priority funding area, or in that portion of the port land use development zone that has been designated as an area appropriate for growth in the county comprehensive master plan.

For businesses applying for certification for the Job Creation Tax Credit after December 31, 2017, to qualify, most business entities must create at least 60 “qualified positions” (permanent newly created Maryland positions of at least 1,680 hours per year resulting from the establishment or expansion of a business facility in a single location in the state and paying at least 120% of State minimum wage) within a 2-year period. The 60 new job minimum is reduced to 25 new jobs if the facility is in one of the “JCTC priority funding areas” listed above and reduced to 10 jobs if the business is in a County with average annual employment less than 75,000 or median household income two-thirds of the statewide median household income. Washington County currently has a minimum of 10 new jobs eligibility for the JCTC program. Qualified positions must be full-time and pay at least 120% of Maryland state minimum wage. As of July 1, 2018, 120% of State minimum wage is $12.12/hr. HAGERSTOWN PREMIUM OUTLETS

24 Beginning on January 1, 2018, the basic credit granted will be $3,000 per qualified position. If the new or expanded facility is in a “revitalization area” (a federal empowerment zone, a Maryland Enterprise Zone, or a DHCD sustainable community), then the credit is $5,000 for each qualified position. Commerce can certify no more than $4 million Job Creation Tax Credits per year. The credits will be certified on a first come, first serve basis.

Based upon the qualified positions at the proposed Maryland project site(s), the business may qualify for a significant tax credit, subject to the availability of credits at the time of certification. The maximum credit allowed during any credit year for a single facility is $1 million. If, during the 3 years succeeding the credit year, the average number of qualified positions falls below the applicable minimum number of qualified positions, all credits shall be recaptured. If the number of qualified positions falls more than 5%, but not below the applicable minimum number of qualified positions, then the credit is recaptured in proportion to the decline in qualified employees.

Please note, the proposed project site location at the former Fort Ritchie property in Cascade, Maryland is believed to be within a Priority Funding Area (PFA) and in a “sustainable community” in Maryland.

Before it hires new workers, an interested company must notify Commerce in writing that it intends to claim the credit. Maryland JCTC program is subject to an annual state-wide cap.

A business that qualifies for the JCTC may also qualify for other income tax credit programs, however, with one exception that a business may not claim both the One Maryland Tax Credit and JCTC in the same tax year.

25 One Maryland Tax Credit A qualified business entity with a qualifying project may claim project tax credits against State income taxes in an amount equal to up to $5 million of the eligible project costs of an eligible economic development project located in a priority funding area in Baltimore City, Allegany, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico, and Worcester Counties and approved by the Secretary of Commerce.

Benefit – The amount of income tax credit that a business will qualify for depends on the amount of capital investment it makes in the project and the number of new qualified jobs it creates in a 24-month period. A business may qualify for the following maximum credit amounts:

• For businesses that have at least $1 million of eligible project costs and create 10-24 qualified positions: maximum $1 million in credits • For businesses that have at least $2.5 million of eligible project costs and create 25-49 qualified positions: maximum $2.5 million in credits • For businesses that have at least $5 million of eligible project costs and create at least 50 qualified positions: maximum $5 million in credits

Eligibility – A business must locate or expand in a "Priority Funding Area" in a Tier 1 County. Tier 1 Counties are subject to change. Please verify with the Maryland Department of Commerce (Commerce) that the project location is in a PFA and Tier 1 County. Note: Beginning July 1, 2018, Tier 1 Counties include: Baltimore City and Allegany, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico and Worcester Counties.

• Declaration of Intent - A business may not claim any expenses incurred or jobs created prior to notifying Commerce in writing of its intent to seek certification for a One Maryland Tax Credit.

• Certification - A business must be certified as a qualified business entity eligible for the One Maryland Tax Credit. Applications for certification are available from Commerce.

• Job Creation Minimums - The business must create at least 10 new, full-time qualified positions at the project within 24 months. However, to receive the maximum $5 million credit, the business must have at least 50 new qualified positions within 24 months.

• The positions must be full-time, pay 120% of State Minimum Wage, be filled for 12 months, and be a “net new” job to Maryland. The business must create the minimum number of jobs in a 24-month period. Note: As of 7-1-18, 120% of State Minimum Wage is $12.12/hour.

• Have at least $500,000 of eligible costs.

• The facility must be engaged in an eligible activity.

26 Application Process

• Business provides Notice of Intent to Commerce in writing. The business may count eligible costs and qualified positions after that date.

• The business will receive notification from Commerce that the Department received its intent and will be provided with a Preliminary Application and Employment Affidavit.

• Upon acceptance of the Preliminary Application and Employment Affidavit, Commerce will issue the business a Preliminary Certificate of Eligibility if the business is projected to qualify for the tax credit.

• The business may apply for final certification when it has incurred the eligible project costs, created at least 10 qualified jobs and those jobs have been filled for 12 months. To qualify for the maximum $5M credit, the business must have 50 qualified positions and at least $5M of eligible project costs.

• The final application will include a list of the qualified positions and employees in those positions, list of eligible costs and other information. Commerce will require the business to provide documentation to confirm expenditures for a sample of the costs.

• Commerce will issue the business a Final Certificate which the business will attach to its tax return. The certificate will include the amount of credit for which the business qualifies.

Claiming the Credit – The business may claim the credit against its state income tax liability. Insurance companies may claim the credit against the insurance premiums tax. The first year it qualifies is its “credit year”.

• Beginning four years following the credit year, the business may apply the credit against its state income tax liability (or insurance premiums tax) and claim a refund. The amount of the refund is limited annually to the payroll withholding of the qualified positions.

• The credit can be carried forward for 10 years following the credit year.

• If the number of qualified positions falls below the required job number, the business may be able to claim a prorated credit, if: ° The number of qualified positions does not fall below 10. ° The business maintained the required number of jobs (25 for a maximum $2.5M credit, 50 jobs for a maximum $5M credit) for five years.

The business must report to Commerce each year it claims the credit, the amount of project tax credit that it claims on its tax return. Failure to provide this information to Commerce will disqualify the business from claiming any unclaimed amount of credit.

Exclusions – For any Tax Year the business claims the One Maryland Tax Credit, it may NOT also claim the Job Creation Tax Credit.

27 TRANSPORTATION AND KEY CONNECTIONS INFORMATION Air Hagerstown Regional Airport (HGR) is a Part 139 Facility providing commercial service on Allegiant. HGR offers fixed base operation services to general aviation, corporate and military aircraft. More than 12 businesses offer clients a variety of aviation services for all types of aircraft. Approximately 1,500 people are employed at the airport. Travelers are also within 70 miles of Hagerstown via Dulles International, Baltimore/Washington Thurgood Marshall International and Ronald Reagan Washington National.

28 29 BRIEF ECONOMIC FACTS WASHINGTON COUNTY, MARYLAND Brief Economic Facts Brief Economic Facts WASHINGTON COUNTY, MARYLAND WASHINGTON COUNTY, MARYLAND

New Yo rk Washington County is a major industrial LABOR AVAILABILITY3,4,5 (BY PLACE OF RESIDENCE) EMPLOYMENT4 (2017, BY PLACE OF WORK) Hagerstown and transportation hub in the Mid-Atlantic Washington, DC Labor Mkt. Estab- Annual Avg. Emp. Avg. Wkly. region. Interstates 81, 70 and 68, coupled Baltimore Civilian Labor Force (2017 avg.) County Area* Industry lishments Empl. % Wage with excellent rail service, provide easy Total civilian labor force 76,209 338,602 Federal government 32 582 0.9 $1,061 market access. The Hagerstown Regional Airport is a fully instrumented airfield Employment 72,697 324,906 State government 12 2,030 3.0 1,022 Washington, DC with the second-longest commercial Unemployment 3,512 13,696 Local government 65 5,970 9.0 857 runway in the state. In fact, assets such Unemployment rate 4.6% 4.0% Private sector 3,406 58,018 87.1 789 as the airport helped the county earn Washington County is a major industrial and transportation Residents commuting outside the Number Percent Natural resources and 29 173 0.3 1,045 recognition as one of the country’s “Top hub in the Mid-Atlantic region. county to work (2013-2017) 22,368 33.8% mining Five Defense Destinations” by Expansion Employment in selected occupations (2013-2017) Construction 348 2,802 4.2 905 Solutions magazine in 2011. Hagerstown, the county seat and business center, is Management, business, science and arts 22,360 33.2% Manufacturing 140 6,360 9.5 1,135 Maryland’s sixth largest city and is easily accessible to both announced in 2018 is a $62.5 million investment by Trammell Service 13,033 19.3% Trade, transportation 936 17,474 26.2 679 Baltimore and Washington, D.C. Crow to construct a 1.2 million-square-foot distribution center. Sales and office 15,885 23.6% and utilities Washington County’s private sector industries generate $7.1 Other projects under development include a joint venture Production, transp. and material moving 9,227 13.7% Information 40 681 1.0 910 between the county and the City of Hagerstown for an Urban billion in econmic output. Key employers include The Bowman * Washington and Frederick counties, MD, Franklin Co., PA and Berkeley Co., WV Financial activities 317 5,719 8.6 1,034 Group, Citi, FedEx Ground, First Data, Fives Cinetic, Meritus Improvement Plan with a $40 million renovation to the Maryland Theatre. Professional and business 491 5,707 8.6 862 Health System, Sierra Nevada, Staples Distribution, and Volvo services Group. Washington County is home to more than twenty Major tourist attractions in the county include the Antietam MAJOR EMPLOYERS6,7 (2018) Education and health 441 10,940 16.4 868 industrial, technology and business parks, Foreign Trade Zone National Battlefield, Chesapeake & Ohio Canal National services Employer Product/Service Employment #255, and two State Enterprise Zones. A significant project Historical Park, and Fort Frederick State Park. Leisure and hospitality 369 6,452 9.7 314 Meritus Health Medical services 2,740 2,3 Other services 289 1,708 2.6 574 LOCATION POPULATION Citi Credit card processing 2,300 Total 3,517 66,602 100.0 804 Driving distance from Hagerstown: Miles Kilometers Washington County Western First Data Credit card processing 2,185 Includes civilian employment only Atlanta, Georgia 642 1,134 Households Population Maryland* Maryland Volvo Group Diesel engines, transmissions 1,300 Baltimore, Maryland 71 114 2000 49,726 131,923 236,699 5,296,486 FedEx Ground Mail and package delivery 900 2010 55,687 147,430 252,614 5,773,552 The Bowman Group Hotels management. and 745 Boston, Massachusetts 451 725 HOURLY WAGE RATES4 (2017) Chicago, Illinois 614 987 2020** 60,185 156,800 261,250 6,141,900 logistics Selected Occupations Median Entry Experienced New York, New York 239 384 *Allegany, Garrett, and Washington counties Hagerstown Comm. College Higher education 545 **Projections Accountants $27.26 $19.91 $35.19 Philadelphia, Pennsylvania 152 245 Merkle Response Data entry and fulfillment 545 Selected places population (2010): Hagerstown 39,662; Management Group. Bookkeeping/accounting clerks 16.72 11.19 19.81 Pittsburgh, Pennsylvania 156 250 Halfway 10,701; Robinwood 6,918; Fountainhead-Orchard Hills Arc of Washington County Medical and social services 500 Computer systems analysts 34.76 22.55 43.34 Richmond, Virginia 164 264 5,666; Boonsboro 3,336; Maugansville 3,071 Direct Mail Processors Data entry and fulfillment 500 Customer service representatives 13.60 10.48 16.46 Washington, DC 68 109 Brook Lane Health Services Medical services 485 Electrical engineers 40.93 29.31 53.84 Dot Foods Food distribution 440 Electronics engineering technicians 27.93 20.38 34.94 CLIMATE AND GEOGRAPHY1 POPULATION DISTRIBUTION2,3 (2017) Staples Office supplies retail, distrib. 390 Freight, stock and material 15.36 11.13 18.12 Yearly Precipitation (inches) 41.1 Age Number Percent A.C. & T. Convenience stores, gas 350 movers hand Yearly Snowfall (inches) 20.6 Under 5 8,754 5.8 stations Industrial truck operators 17.77 13.18 22.43 Summer Temperature (ºF) 72.8 5 - 19 27,682 18.4 Lehigh Phoenix Printed book covers 335 Inspectors, testers, sorters 18.35 13.42 22.30 Winter Temperature (ºF) 32.5 20 - 44 46,855 31.1 Sierra Nevada Aircraft maintenance 335 Machinists 20.89 16.25 23.93 Days Below Freezing 117 45 - 64 41,966 27.9 JLG Industries Aerial work platforms 300 Maintenance workers, machinery 23.02 15.37 26.02 Land Area (square miles) 455.0 65 and over 25,321 16.8 ThompsonGas Propane gas prod. and svcs. 275 Network support specialists 19.19 13.13 27.45 Water Area (square miles) 12.1 Total 150,578 100.0 UPS Mail and package delivery 275 Packaging/filling machine operators 15.89 11.82 21.08 Elevation (feet) 250 to 2,140 (primarily 500 to 800) Median age 40.6 years CertainTeed Roofing products 255 Secretaries 15.77 10.69 19.11 Tempur Sealy International Mattresses 225 Shipping/receiving clerks 16.50 11.72 19.64 Home Depot Home improvement 195 Stock clerks and order fillers 11.81 9.54 15.05. products distribution Team assemblers 12.00 10.58 14.65 Excludes post offices, state and local governments, national retail and national 2019 Wages are an estimate of what workers might expect to receive in Western foodservice; includes higher education Maryland (Allegany, Garrett and Washington counties) and may vary by industry, employer and locality

30

Brief Economic Facts WASHINGTON COUNTY, MARYLAND Brief Economic Facts WASHINGTON COUNTY, MARYLAND

SCHOOLS AND COLLEGES3,8 INCOME3 (2013-2017) TRANSPORTATION UTILITIES Educational Attainment - age 25 & over (2013-2017) Percent Households Highways: I-81, I-70, I-68, U.S. 40 and U.S. 11 Electricity: Potomac Edison, a First Energy company, serves the county; City of Hagerstown’s Electric Division distributes High school graduate or higher 87.0% Distribution Washington Co. Maryland U.S. Rail: CSX Transportation, and Norfolk Southern Railway electricity to many parts of the city; customers of investor- Under $25,000 20.6 14.2 21.3 Truck: 130 local and long-distance trucking establishments are Bachelor’s degree or higher 21.5% located in Western Maryland owned utilities may choose their electric supplier $25,000 - $49,999 22.7 17.1 22.5 Public Schools Water: Served by the Port of Baltimore, 50’ channel; a leading Gas: Natural gas supplied by Columbia Gas of Maryland, Inc.; customers may choose their gas supplier Number: 25 elementary; 8 middle/combined; 8 high $50,000 - $74,999 19.3 16.5 17.7 U.S. automobile and break-bulk port; seven public terminals $75,000 - $99,999 13.5 13.1 12.3 including the state-of-the-art Intermodal Container Transfer Water: Municipal or county systems serve Boonsboro, Enrollment: 22,681 (Sept. 2018) Facility Clear Spring, Funkstown, Hagerstown, Hancock, Keedysville, $100,000 - $149,999 14.1 18.7 14.1 Cost per pupil: $12,748 (2016-2017) Air: Hagerstown Regional Airport offers scheduled passenger, Sharpsburg, Smithsburg and Williamsport Students per teacher: 15.8 (Oct. 2017) $150,000 - $199,999 5.8 9.7 5.8 freight, and express service; 3160’ and 7000’ runways Sewer: Municipal or county systems in Boonsboro, Clear Spring, Funkstown, Hagerstown, Hancock, Highfield, Keedysville, $200,000 and over 3.9 10.7 6.3 High school career / tech enrollment: 4,019 (2017) Sharpsburg, Smithsburg and Williamsport; publicly-owned High school graduates: 1,611 (July 2017) Median household $58,260 $78,916 $57,652 industrial pretreatment facility provides treatment and disposal RECREATION AND CULTURE of non-regulated liquid waste for businesses Nonpublic Schools Average household $75,383 $103,845 $81,283 Recreation: Black Rock Golf Course; Hagerstown Ice & Telecommunications: Predominant local carrier - Verizon Number: 35 (Sept. 2017) Per capita $28,742 $39,070 $31,177 Sports Complex; Class A professional baseball; hiking on the Maryland; state-of-the-art infrastructure, including digital, fiber Appalachian Trail; biking and hiking on the Chesapeake & Higher Education Enrollment (‘18) Degrees (‘17) Total income (millions) $4,221 $226,495 $9,658,475 optic, wireless data, and cellular technologies; services provided Ohio (C&O) Canal towpath; swimming in a mountain lake at via public and private local and regional vendors; Comcast and 2-year institution Greenbrier State Park; seasonal recreation available at nearby Antietam also offer broadband services; AT&T, Sprint, and Whitetail Ski Resort Hagerstown Community College 4,148 622 HOUSING3,10 Verizon PoPs in the county Historical: Antietam National Battlefield, site of the bloodiest The University System of Maryland at Hagerstown offers more single day battle in American history; the Miller House, than 20 undergraduate and graduate degree programs through Occupied Units (2013-2017) 55,999 (64.5% owner occupied) collections of dolls and clocks, period furniture and a turn-of- 11 the following Maryland institutions: Coppin State, Frostburg Housing Transactions (2018)* the-century general store; Chesapeake & Ohio Canal National GOVERNMENT State, Salisbury, and Towson universities; University of Maryland Historical Park; Fort Frederick State Park; and Jonathan Hager County Seat: Hagerstown Eastern Shore; and University of Maryland University College. Units sold 1,634 House and Museum Government: Five commissioners elected at large for four-year Purdue Global University offers certificate and degree Median selling price $190,088 Cultural: The Washington County Museum of Fine Arts terms; commissioner form of government programs at its Hagerstown campus. *Alll multiple listed properties; excludes auctions and FSBO features art exhibits, chamber music concerts and special Jeffrey A. Cline, President, Board of County Commissioners events; the city of Hagerstown is host to the Hispanic Festival 240.313.2200 and AugustoberFest Robert J. Slocum, County Administrator 240.313.2216 TAX RATES9 BUSINESS AND INDUSTRIAL PROPERTY6 Arts & Entertainment District: The Arts & Entertainment Website: www.washco-md.net Washington Co. Maryland (A&E) District is located in downtown Hagerstown and County Bond Rating: AA+ (S&P); Aa1 (Moody’s); AA+ (Fitch) Approximately 20 business and industrial parks in Washington is home to the Maryland Theatre which offers year-round Corporate Income Tax (2019) none 8.25% Washington County Department of Business Development County, including a technology park, are concentrated in the performances and events, including Maryland Symphony Base – federal taxable income Hagerstown and Williamsport areas with easy access to I-70 Orchestra concerts; artist space and lofts are available in the Susan Small, Director 100 West Washington Street, Suite 1401 Personal Income Tax (2019) 2.80% 2.0% - 5.75% * and I-81. More than 2,178 acres are ready for development, A&E District; a diverse selection of restaurants and shops are while six million square feet of office, commercial, warehouse accessible Hagerstown, Maryland 21740 Base – federal adjusted gross income and manufacturing space are available. Telephone: 240.313.2283 *Graduated rate peaking at 5.75% on taxable income over $300,000 Attractions: Artisan, farmers and other specialty markets; Two State Enterprise Zones (5,900+ acres) allow tax incen- Email: [email protected] Sales & Use Tax (2019) none 6.0% Crystal Grottoes Caverns; Discovery Station at Hagerstown; www.hagerstownedc.org tives for capital investment and job creation. The New Jobs Tax Hagerstown Roundhouse Museum; Hagerstown Speedway; Exempt – sales for resale; manufacturer’s purchase of raw materials; Credit, geared toward companies with well-paying jobs, offers Hagerstown Premium Outlets; Washington County wineries Sources: manufacturing machinery and equipment; purchases of materials and real and personal property tax credits on new or expanded (Big Cork, Knob Hall and Red Heifer, etc.) 1 National Oceanic and Atmospheric Administration (1981-2010 normals); equipment used in R&D and testing of finished products; purchases facilities. Foreign Trade Zone #255 includes seven sites in the Events: Alsatia Mummers Parade; Miss Maryland Pageant; New Maryland Geological Survey of computer programs for reproduction or incorporation into county (1,866 acres) where customs duties can be deferred, another computer program for resale Year Celebration and Donut Drop; Salute to Independence 2 Maryland Department of Planning reduced or eliminated to improve a company’s international Celebration at Antietam Battlefield; Washington County Ag 3 U.S. Bureau of the Census Real Property Tax (FY 19) $0.948 $0.112 competitiveness. Expo & Fair; Western Maryland Blues Fest; Wings and Wheels 4 Maryland Department of Labor, Licensing and Regulation, Office of Workforce Effective rate per $100 of assessed value Business Incubator Event Information and Performance In an incorporated area, the county rate will vary and a municipal Technical Innovation Center, Hagerstown 5 U.S. Bureau of Labor Statistics rate will also apply 6 Washington County Department of Business Development Business Personal Property Market Profile Data(2018) Low High Average 7 Maryland Department of Commerce Tax (FY 19) $2.37 none 8 Maryland State Department of Education; Maryland Higher Education Land – cost per acre Commission Rate per $100 of depreciated value Industrial $30,000 $240,000 $100,000 9 Maryland State Dept. of Assessments and Taxation; Comptroller of the Treasury Exempt – manufacturing and R&D machinery, equipment, materials 10 Maryland Association of Realtors and supplies; manufacturing, R&D and warehousing inventory Office $150,000 $750,000 $340,000 11 Maryland State Archives; Maryland Association of Counties In an incorporated area, a municipal rate will also apply; municipal Rental Rates – per square foot exemptions may be available Warehouse / Industrial $2.75 $7.00 $4.00 Major Tax Credits Available One Maryland, Enterprise Zone, Job Creation, More Jobs for Flex / R&D / Technology $4.00 $16.00 $10.00 Marylanders (Tier 1), R&D, Biotechnology and Cybersecurity Class A Office $10.69 $25.11 $17.04 Investment, New Jobs, Arts & Entertainment District

31 APPALACHIAN TRAIL TO ANNAPOLIS ROCKS AND BLACK ROCK (SOUTH MOUNTAIN STATE PARK, MD)

32 33 BRIAN D. LEE TIM SHANKLIN KENT GUBLER Principal VP Tenant Service Strategic Accounts O: 212.372.2370 O: 301.831.8575 O: 240.436.6416 C: 516.487.7770 C: 443.422.4600 C: 301.606.9402 [email protected] [email protected] [email protected]

One East Pratt Street Suite #805 Baltimore, MD 21202