The Prince George’s County Council on Tuesday approved a $95 million incentive package for Carillon, a massive mixed-use development underway near the Largo Town Center Metro station and an important component of the county’s economic development vision.
At full build out, the $974 million project, located on 38 acres at 801 Capital Centre Blvd., would comprise some 2.7 million square feet, including 407,000 square of office and more than 1,700 multifamily units. The first phase, already underway and anticipated to deliver next spring, includes about 126,000 square feet of medical office and retail. The full project will advance in 11 phases through 2034.
The incentive, called a payment in lieu of taxes, or PILOT, is a deal where a developer, instead of paying full property taxes on the improved property over a specified period, pays some negotiated lesser amount to a local government. In this case the county’s deal is with RPAI Capital Centre II LLC, an affiliate of Kite Realty Group Trust (NYSE: KRG), a real estate investment trust, which is now spearheading Carillon after merging with Retail Properties of American Inc. (NYSE: RPAI) last year.
