White Oak’s long-awaited $2.8 billion redevelopment plan is moving forward, the Montgomery County Council voted unanimously on Tuesday. As part of the project, the county is partnering with a private company on a tax increment financing plan for the first time.

Viva White Oak is a 294-acre planned community near Adventist HealthCare White Oak Medical Center and the U.S. Food and Drug Administration’s White Oak campus. The development will include up to 12.1 million square feet of commercial, residential, retail and public space.

Council member Kristin Mink, who represents the White Oak neighborhood, said she is “thrilled” for the development to help correct “long-held historical wrongs and underinvestment on this side of the county.” She cited the development of a “100% affordable” senior housing facility as one of the project’s highlights.

The public-private partnership with Baltimore-based MCB Real Estate will allow the county to use tax increment financing to subsidize the project. Local governments can use this funding mechanism to pledge future property tax revenues from the project area to fund core public infrastructure such as roads, utilities and open space, without impacting existing resources and services or affecting the county’s bond rating.

MCB Real Estate entered a contract with the county to redevelop the Viva White Oak property in 2023. The redevelopment has faced several debates over site plans, as well as changing partnerships between developers and the county, since 2021. The May 2025 announcement about the tax increment financing agreement marked a major step forward.

According to county officials, the development is expected to generate 17,000 construction jobs, 9,000 permanent jobs and an estimated $62 million in annual county revenue once completed. The project is slated to be built in two phases over 18 years, with full build-out expected by 2043.

Nearly 5,000 homes, including apartments, are expected to be built, along with new retail, hotel and medical office space. The plan also reserves land for a new elementary school, active parks, bike lanes and community trails.

County Executive Marc Elrich has said he sees the tax increment financing plan as a victory for the county.

“Viva White Oak is a transformational development for East County,” Elrich said in a statement. “For too long, this part of Montgomery County has not seen the level of investment it deserves.”

For several years, he has praised Northern Virginia’s special taxing districts, which can collect taxes to fund transportation projects, and he has advocated for the practice in the county. He says this would help the county invest in transportation infrastructure without relying on its operating budget base.

But the county can’t implement similar taxes unless the General Assembly passes legislation that would enable this practice. The tax increment financing mechanism may be the closest Elrich can get to this funding method, unless state law changes.

While the new financing plan allows the project to move forward, Council President Natali Fani-González voiced frustration Tuesday that the developer is only required to dedicate 12.5% of new housing in the project to “moderately priced dwelling units.” The county mandates that 12.5% to 15% of the housing units in every new development of 20 or more units be moderately priced.

Fani-González said she had suggested that the county increase its requirement to 17.5% for the Viva White Oak development, but was willing to compromise at 15%. She said it’s disappointing that the developer is only planning to build the minimum required by county law.

“The point is not just to say that we have a lot of affordable housing in this particular area,” Fani-González said. “The point is for people within the project area to be able to afford to live there.”

A representative for MCB Real Estate did not immediately respond to a request for comment on Tuesday.

This story has been updated to include a comment from County Executive Marc Elrich.