The Gaithersburg Planning Commission on Dec. 3 recommended the mayor and city council approve a zoning map amendment and a related abandonment to facilitate a proposed redevelopment of the Rosedale Apartments site.

Planning staff presented application Z100302025 and abandonment AB100542025 for properties at 2 O'Neil Drive and 3 Nancy Place. Staff said the schematic development plan (SDP) would replace existing garden-style apartments with a phased, mixed-income rental community of up to 434 units across nine buildings with a maximum height of five stories and about 65,000 square feet of outdoor amenity space. "The SDP proposes replacing the existing apartments with a new mixed income rental community," planning staff member Laura said during the presentation.

Staff described two waiver requests tied to the application: an environmental waiver for impacts to the stream-valley buffer behind the KC Community Center (staff noted a maximum limits-of-disturbance of about 2.25 acres as a worst-case construction scenario, with final mitigation acreage to be refined at final site plan) and an affordable-housing waiver. The waiver request stems from an existing annexation agreement that exempts one parcel; the owner, identified in the record as the Casey Foundation, proposes to restrict 75% of units to households making 50%–80% of area median income under a draft declaration of covenants. "The covenant states that 75% of the units will be restricted as affordable," staff said, adding the covenant would be binding on future owners and would include the city as a signing party so it could not be amended without city approval.

On tenant relocation, staff said the applicant will coordinate with residents and move-in/move-out timing but will not pay for movers; neighborhood services will monitor compliance with city and county relocation requirements. Staff also reported an estimated project completion in 2031.

Parking and site design were focal points during questioning. Staff said the applicant requests a parking ratio of 1.39 spaces per unit; the record notes a minor parking shortage relative to the city's ordinance (the staff report text includes an unclear shorthand of the shortage as "24 21" spaces). Staff also noted the SDP would supplement surface parking with approximately 41 on-street spaces and that final unit locations (whether blended across buildings or building-by-building) will be set at final site plan. On noise mitigation, staff pointed to an existing sound wall and a noise study indicating some units will need treatments to meet standards, with further analysis to occur at final site plan.

After discussion, Commissioner Phil moved and the chair seconded both recommendations: approval of zoning map amendment Z100302025 with the four staff conditions and approval of abandonment AB100542025. Both motions passed by voice vote with unanimous approval recorded in the meeting minutes.

What the commission recommended and next steps: staff asked the commission to include any additional comments on the waiver requests in the memo to council; the recommendations now move to the mayor and city council for public hearings and final action. The project will return at final site plan for detailed review of mitigation, noise treatments, exact unit locations and parking calculations.