Gaithersburg City planning staff is recommending approval of a major redevelopment plan for Rio-Washingtonian Center that would bring 463 new apartments, more than 41,000SF of retail space, and several new public amenities to the popular Gaithersburg destination. The Gaithersburg Mayor and City Council is expected to hold its policy discussion and take final action on Monday, July 20.
The proposal, submitted by Washingtonian Associates LLC, includes four new residential buildings spread throughout the property. Two buildings would be constructed along the lake, another would replace the existing Kohl’s store with a mixed-use building featuring ground-floor retail and apartments above, and a smaller building of stacked apartments would be built along Washingtonian Boulevard.
The project also includes a relocated playground, a new dog park, outdoor fitness area, lakeside pocket parks, and an expanded boardwalk intended to maintain a continuous public walking path around the lake. The recommendation comes after months of public review, including a joint public hearing in January where dozens of residents voiced concerns about traffic, the loss of green space, filling in part of the lake, the project’s architecture, and the decision to build rental apartments instead of homes for sale.
While staff concluded the proposal is consistent with the City’s long-term vision for Rio and recommends approval, the report acknowledges that traffic remains the project’s most significant unresolved issue. According to City engineering staff, the developer has proposed several changes aimed at improving vehicle circulation, including roadway modifications behind Barnes & Noble, improvements near the Target loading area, changes along Washingtonian Boulevard near the Kohl’s site, and the removal of on-street parking along Rio Boulevard to reduce traffic delays.
However, engineers say additional work is still needed before final approval. The report notes that the proposed traffic improvements require further study and warns that the development could significantly increase existing traffic backups, particularly at Rio Boulevard and Grand Corner Avenue, unless additional modifications are made. Traffic impacts near the I-370 interchange also remain under review.
Residents also raised concerns about the two lakeside apartment buildings having only one primary vehicle access point. The developer said it attempted to negotiate a second entrance through neighboring properties, including the Marriott, but was unable to reach an agreement. Instead, the proposal focuses on improving the existing internal road network.
Another major point of discussion has been the loss of open lawn and trees near the lake. While portions of the existing green space would be replaced by new buildings and parking, the developer says the project will introduce new public amenities including a dog park, outdoor fitness course, pocket parks, an enhanced playground, public art, and an expanded boardwalk designed to bring visitors closer to the water.
The development would also include affordable housing. City requirements call for 15% of the apartments to be designated as Moderately Priced Dwelling Units. The proposal includes 72 affordable units, exceeding the required 70, although staff is requiring revisions to better distribute those units throughout the development.
All 463 apartments are proposed as rentals. The developer says maintaining single ownership and management will help preserve a unified experience throughout Rio, an approach that planning staff agreed is appropriate. According to the City’s school capacity analysis, Fallsmead Elementary School, Frost Middle School, and Wootton High School are all projected to remain below the City’s school capacity thresholds, meaning the project satisfies adequate public facilities requirements.
Overall, planning staff concluded the proposal is consistent with the City’s Master Plan, would strengthen Rio as a mixed-use destination similar to developments such as Crown, generate additional tax revenue, and maintain public access around the lake. Staff recommends approval of the schematic development plan while noting that several technical issues, including the final traffic analysis, will continue to be refined during the next stage of the approval process.
