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The Maryland state senate recently pledged $5 million of state capital budget funds to the University of Maryland, College Park to subsidize the first phase of the East Campus Redevelopment Initiative, which lawmakers hope will provide the financial boost needed to continue the project as planned.

The East Campus Redevelopment Initiative is a $900 million planned housing and retail development covering more than 38 acres along the intersection of Paint Branch Parkway and Route 1 in College Park.

Despite the funding, there is still a potential holdup if the university fails to reach an agreement with College Park city officials, as the legislation states that the funds will only be released after the city and university agrees on the layout of the site.

The money would be used to relocate the university facilities that are currently housed on the East Campus and move them to another part of the campus.

"I have been talking to both university officials and the development team members for onward of two years now and there are numerous points that [the city] has that we need to discuss with the university," said Mayor Stephen Brayman. "One of these hurdles is to understand the financing model for the project and we have not been provided with much detail at all."

East Campus has been in the planning process for about three years and is expected to provide relief to UM's housing shortage by offering more than 1,500 housing units to graduate and undergraduate students as well as retail stores, restaurants, a grocery store, movie theater and potentially a luxury hotel, said State Sen. James C. Rosapepe (D-Dist. 21) of College Park.

Rosapepe added that with a weak economy, the university will pursue an additional $20 million from the state over the next four years.

"We will need the full $25 million to build East Campus as planned," said Ann Wylie, vice president for Administrative Affairs.

Wylie said other financial backing will come from the Maryland Economic Development Corporation for graduate student housing, Tax Increment Financing for infrastructure, and private aid for the retail, office and hotel space.

Despite the fact that the project will be the biggest development for the city in almost 50 years, Rosapepe said the university is still not in agreement with the developer Foulger-Pratt based in Rockville.

"I hope to reach agreement between the university and the developer on the scope of the project within a month, then obtain city approval as soon as possible so we can begin the relocation process," said Wylie.

Now with more funding on the table, the university is working to develop a scope of the project that delivers a package that will please both the city and university, Wylie said.

"There is a long way for this project to go, but if it's done well, it will be good for the university and the city; everybody is concerned about it being done right," said Rosapepe.