The Gaithersburg Mayor and Council on Jan. 5 voted unanimously to approve a zoning map amendment, an environmental waiver, an affordable‑housing waiver and a street-abandonment request that together allow a phased mixed‑income redevelopment of the Rose Hill/O'Neil Drive area sponsored by the Casey Foundation.

City staff described the proposal as a rezoning to CD (conditional) with an associated schematic development plan for up to 434 units across nine buildings. The submission includes an affordable-housing commitment: the applicant will restrict 75% of units to households earning 50–80% of area median income and record a declaration of covenants to bind the requirement and allow city monitoring. Staff and the applicant said the SDP is phased to avoid displacing current residents and includes about 65,000 square feet of open amenity space and active play areas.

The applicant requested an environmental waiver for potential stream-buffer impacts associated with required utility work; staff said the waiver is acceptable provided mitigation and finer acreage are determined at final site plan. Staff also recommended approval of a tree-removal variance (eight trees requested to be removed, three root-zone impacts) and said the applicant will be required to comply with county and city relocation assistance provisions.

Council members praised the project's affordable-housing yield and its phased relocation approach. The council approved the zoning map amendment with the planning commission's four recommended conditions and then approved three additional items: the environmental waiver, the affordable housing waiver (conditional on recording the draft declaration of covenants), and the right‑of‑way abandonment tied to the SDP. Each motion carried by unanimous vote (5–0).

Next steps: staff will finalise conditions at final site plan, monitor recordation of covenants and oversee relocation assistance for existing tenants under city and county code.