A Development Rights and Responsibilities Agreement (DRRA) is a contract between a developer and the County outlining commitments to the County, such as infrastructure improvements or community investments, and development rights related to the project.  

Catellus, the master developer of the Frederick Digital Campus located on the former Eastalco Property, submitted an application for a Development Rights and Responsibilities Agreement on September 1, 2026.

Their proposed agreement applies ONLY to the Frederick Digital Campus. It would keep in plan current zoning and development standards for projects within that property for the duration of the contract in exchange for a robust package of community benefits.

This is only a draft agreement. The County Executive has not accepted it yet. The County is currently gathering public comments until September 10. You can read the draft agreement and submit comments through the County’s public portal. 

Read the draft agreement and submit comments on this site.

The process for the County to enter into a DRRA is outlined in Frederick County law (Chapter 1-25: Development Rights and Responsibilities Agreements (§§ 1-25-1 — 1-25-14)) and Maryland State law (Md. Ann. Code, Land Use Article, § 7-302(b)).

The process includes these steps:

1. The applicant submits a petition to enter into a proposed agreement. (September 1).

2. The County Executive (CE) shall first review the petition and negotiate terms of the agreement in open session (Public comment period).

3. The CE shall determine whether to accept the petition and initiate this process.

4. If the CE accepts the petition, the draft agreement goes to the Planning Commission for review. The Planning Commission determines whether the proposed agreement is consistent with the Comprehensive Plan.

5. If the Planning Commission determines that the Planning Commission determines that the proposed agreement is consistent with the Comprehensive Plan, the proposed agreement is sent to the Council to hold a public hearing.

6. The County Council holds a public hearing on the proposed agreement.

7. To take action on the proposed agreement, the County Council must adopt a resolution authorizing the execution of the agreement.

8. Once the Council has passed the authorizing resolution, the CE and the applicant may sign the agreement.

This proposed agreement is contingent on a separate process to amend the applicant’s existing Adequate Public Facilities Ordinance, which will lock in the reduced square footage and water usage and lock in the land that can be used for development. The APFO Amendment process runs separately through County Divisions and the Planning Commission.

If enacted, this proposed agreement and the APFO Amendment would amend the terms of the already existing development agreement with Catellus established in 2021 for the Frederick Digital Campus.

This proposed agreement only applies to the Eastalco property, as shown on this map.

The proposed agreement is contingent on an APFO Amendment that will allow Catellus to make changes to its project. These changes include:

• Moving where development will occur on the property
• Reducing the size of planed data centers by approximately 20%
• Reducing the amount of potable water usage by 80%

These changes must be approved by the Planning Commission.

If approved, the DRRA and APFO amendment together would update the original development agreement made in 2021.

The County Executive convened a Data Centers Workgroup. This group recommended that developers should be required to provide community benefits. In February 2026, the County held listening sessions where residents shared what they wanted, including support for schools, community spaces, lower utility costs, and workforce training.

These priorities are reflected in the first draft of the agreement, which was submitted by Catellus and published on September 1.

This draft agreement is open for public input, consistent with the County’s laws on DRRAs. Community benefits proposed in the draft agreement may change based on the input given by the public.

The draft agreement proposes $110 million in developer-funded benefits to the residents of Adamstown and Frederick County:

• $30 million for renovations to Carroll Manor Elementary School.
• $40 million for a community center and recreational space.
• $14.5 million for a workforce development training center and career and technical education.
• $10.5 million for agricultural land preservation.
• $10 million for additional landscaping, berms, and trails.
• $5 million for a community solar project, which will reduce energy bills for Adamstown residents.
• $1 million for a new fire engine for the Carroll Manor Volunteer Fire Company.
• 433 acres of nature reserve at the campus

The proposed agreement also includes a commitment from Catellus to publicly support State legislation to give Frederick County the authority to levy a business personal property tax on data centers.

The proposed agreement is contingent on an APFO Amendment that will allow Catellus to make changes to its project, including where on its property the development will occur (see map) and a reduction in the square footage of data center development and potable water usage.

If the proposed agreement and APFO Amendment goes into effect, the proposed agreement will lock in today’s zoning classifications and development standards for the Frederick Digital Campus similar to the vesting rights that developments receive with a site plan approval.

Catellus already has these rights on part of the property, and the proposed agreement would extend them to the rest.

No. If adopted, this agreement ONLY applies to the Frederick Digital Campus, consisting of the original Eastalco Property, as indicated on this map. 

It does not prevent the future County Council from reducing the size of the overlay. The only way to change the Data Center Overlay Zone is through a Comprehensive Plan amendment that redraws the map. This process would require the County Executive to propose an amendment and new map, which would be reviewed by the Planning Commission and adopted by the Council.

The draft agreement prevents the County from rezoning, downzoning, or otherwise reducing the eligibility of the Catellus property for data center development during the term, except for health, safety, or welfare reasons applied county-wide. This would only apply to the property subject to the proposed agreement, as shown on this map.

Consistent with County law in Chapter § 1-25-12, the proposed agreement runs for eight years from the effective date, with a possible extension of up to five years.

If signed, the proposed agreement would become a legally binding contract between the parties. Either the County or the developer can use arbitration or go to court if they believe the agreement was violated.

Arbitration means a neutral third person hears the case and makes a decision.

If the County violates the agreement, it could be required to return funds and pay penalties.

The initial public comment period was set by the County Executive to provide staff time to review the application and provide the public an opportunity to provide comment during the County's data center open houses in early September.

Frederick County has never entered into a Development Rights and Responsibilities Agreement as a Charter Government or since the County amended its laws around DRRAs. When the developer indicated an interest in using a DRRA to commit to community benefits, the County Executive's Office consulted the Office of the County Attorney to determine the best way to review and potentially negotiate this proposed agreement in “open session,” as the law requires.

Based on that guidance, the CE determined that the most transparent approach, consistent with the law, would be to publicly share this first draft of the agreement and provide an opportunity for the public to provide input.

The law does not require the CE to accept the application under any specified timeline. The County could have additional public comment periods as part of the process.

The County Executive held two community benefit listening sessions in February 2026 and hoped to announce an agreement earlier this year. The County suspended its negotiations with the developer because of a lawsuit filed in March. The County Executive announced immediately after the resolution of the lawsuit at the end of June that the County would continue its work to secure a community benefit agreement.

The County Executive provided the input received by the public to the applicant (Catellus) to consider for community benefits. On September 1, Catellus submitted the first draft of the agreement along with its DRRA application.