|For Immediate Release (01-48)
Date: August 1, 2001
Contact: Steve Simon, 240-567-7952 (Montgomery College)
Barry Scher, 301-341-4710 (Giant Food)
College Takes Ownership of Former
Giant Food Bakery Property in South Silver Spring
Purchase Will Help to
Bolster College's Long-term Growth Opportunities;
$6 Million Price is $1.25 Million Below Market Value, Thanks to
Montgomery College has reached settlement
on its purchase of the former Giant Food bakery site in south
Silver Spring, as a result of an agreement between the community
college and the grocery chain that allowed for the property to
be acquired for $1.25 million below its market value.
Dr. Charlene R. Nunley, president of
Montgomery College, hailed the transaction as "a move that will
help ensure the College will be well-positioned for future
growth needs, and one that will compliment immediate expansion
plans that will take part of the Takoma Park into south Silver
Spring." The College is set to embark on a $90 million,
three-building expansion project -- complete with a new
pedestrian bridge over the CSX railroad and Metrorail tracks --
that will connect the existing Takoma Park side of the campus
with a new portion along Georgia Avenue, in south Silver Spring.
Construction will begin on the project in early 2002 and is
slated for completion in 2005.
"Giant has long been an outstanding
corporate leader in our community and has once again
demonstrated that leadership, through its generous contribution
to the College, in the below-market value sale of this
property," added Nunley. While thanking Giant, the Montgomery
College president also reiterated the College's appreciation of
the County's support for part of the funding and authorization
for the purchase. "I would particularly note the leadership of
County Council Education Committee Chair Michael Subin, who was
really instrumental in bringing this together, and of County
Executive Doug Duncan, who has certainly recognized the pivotal
role Montgomery College will play in the successful
revitalization of Silver Spring."
The 175,000-square-foot former bakery
building -- located on a four-acre parcel just off of Georgia
Avenue, south of Burlington Avenue -- sit adjacent to other
recently acquired College property that is to be developed as a
state-of-the-art health sciences building and community clinic,
as part of the planned expansion. It is also next door to the
Jesup Blair Park, in which part of the College's planned Violet
Blair Janin Cultural Arts Center is to be built. The third new
building of the expansion will be a new student services center,
along Fenton Street, adjacent to the existing campus property.
Recognizing the strategic importance of
the former bakery site to the College's future growth
possibilities, Giant agreed to sell the property to the College
for $6 million, a price estimated to be $1.25 million below the
fair market value. In exchange, the College agreed to provide
the company with a charitable contribution acknowledgment letter
and certain naming rights, with respect to the property.
Giant Food is a subsidiary of Royal Ahold
(NYSE: AHO), a leading food provider in the United States and
elsewhere in the world with total 2000 consolidated sales of
close to $50 billion. Over 60% of its worldwide sales are
currently generated in the United States. Its five U.S.
supermarket operations generate sales of over $27 billion.
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