Economic development is a major theme for the two mayoral candidates and three council candidates on the ballot next month in the City of Gaithersburg.

The economy has stalled or slowed several approved projects that would bring more than 1 million square feet of commercial space and 3,600 residences to the city.

"We need to be developing an overall strategy for the entire city, keeping in mind that we need to have a strategy for each unique commercial area of the city as well. Each area has its own special needs that we need to be helping to address," said Mayor Sidney A. Katz, 59.

For example, city leaders should consider whether to add parking garages on two surface parking lots in Olde Towne, he said. Parking connected to live/work units in the Kentlands and Lakelands may need a higher requirement. In Lakeforest, parking requirements may be too high and readjustment could allow room for redevelopment.

"Redevelopment for Lakeforest is needed," said the mayor, who hopes to work with mall management to alter and add on to the mix of businesses and see whether expansion is needed.

Richard Koch, a Kentlands resident and regional real estate developer challenging Katz for his seat, has said he is "disappointed that although seven months have passed since the February retreat, the city still has no economic development plan, formula or strategy."

He developed a proposal in two weeks, the developer said. Koch, 55, proposed terminating sales contracts with two developers who have promised to buy the city-owned Wye Site and Fishman Building in Olde Towne.

"The city should not be selling these city-owned properties," he said.

The city should use budgeted capital funds earmarked for a $1.7 million clock tower and public plaza at the Wye Site, a former train turnaround along Olde Towne Avenue, to complete engineering, architecture and planning applications for the sites and file plans for the projects. Following approval, the city should market the plans to developers and builders, Koch said, requiring developers and builders to begin construction begin by a certain date and return the clock tower funds to the city budget. The city should lease the two properties on ground leases to reduce developers' financing needs and provide revenue to the city long into the future.

In his vision, the city will own both projects in 50 years and could ask developers to build a senior center on the first floor of the Wye Site.

Koch said he proposed an unprecedented economic development incentive package the city recently used to lure GXS, a global communications leader, to relocate within city limits. The developer, who has two pending projects on the Frederick Avenue Corridor, supports expansion of the city's enterprise zone by 50 percent to encourage developers to build in and around Olde Towne.

Marraffa, a West Riding resident, small businessman and retired contractor, believes Gaithersburg needs to be proactive in extricating itself from the economic downturn.

He believes the city can show banks that it backs development projects by providing incentives such as tax abatement and/or lower permit fees. He is working on "a community bank" proposal where the city would deposit funds in a local bank and the bank would leverage those deposits to lend money to businesses in Gaithersburg, Marraffa said.

Marraffa, 71, described the project as a "no-risk" proposal where "the city basically buys a CD in a bank and then the bank has a formula on how they leverage their lending."

Montgomery County and Washington D.C. are considering similar proposals, said Marraffa, who also believes city leaders need to continue focus on stimulating revitalization of Olde Towne and manifesting plans from a 2005 city-sponsored charrette.

Tom Rowse, 39, a consultant to small businesses who serves as chairman to the city's Olde Towne Advisory Committee, is also a proponent of providing tax incentives and expanding the city's enterprise zone by 50 percent to encourage more development and redevelopment in and around Olde Towne. The enterprise zone should encompass parts of the Frederick Avenue Corridor, said Rowse, who believes that city leaders need to be deliberate about connecting the Kentlands and Lakelands, Olde Towne, West Riding and the area surrounding Asbury Methodist Village through current and future transportation so that businesses and residents will be enticed to come to the city.

The city needs to establish "a clear city center" by putting the senior center adjacent to Bohrer Park and Gaithersburg High School, said Rowse.

Councilman Michael Sesma, 56, has said that economic development is not just adding new businesses and residences and that the city needs an overarching comprehensive plan.

"I think we need a comprehensive plan that includes branding and marketing the city to business investors of all sizes," said Sesma. "I think we need a plan to help businesses already here in the city." The city needs to focus on the qualities and characteristics that already make Gaithersburg a high-quality city to live in, such as good schools, public services, diversity, ample recreation and proximity to the nation's capital "because that contributes to the business environment as well."