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Council Supports a New Tax Incentive Program

I came across a good amount of discussion about last Tuesday’s vote about the new tax incentive program that the Council supported at last Tuesday’s meeting.

The Council had two votes on this matter. The first vote was about creating an enabling legislation to support tax breaks to future developments. The ordinance was about giving up to 0 – 60% tax breaks over a 15 year period.  An amendment by Kabir-Mitchell failed by 2-6. The final vote motion passed 8-0.

The second vote was about how much the Council will be giving to Bozzutto. The motion was to give 60% over a 15 year period. This motion also passed by 7-0-1. Kabir abstained. While I liked the proposed Bozzutto development a lot, I thought the amount of break was too high. Please see the chart in my previous post comparing the amount of tax break we gave to Bozzutto and other developments.

The new tax credit is contingent upon a development getting a similar tax credit through County’s PILOT tax credit program. The Varsity and other developers did not get a PILOT tax credit when they developed their properties and thus are not eligible for receiving a tax credit from the City under the new program.

The new and the old programs allow the Council to give a credits upto a certain limit. For example, in the new program, the Council can decide to give a new elligible developer an amount between 0% to 60%. It is and will be completely upto the Council to set the amount, thus the other developers cannot go after the City because they did not get the same amount the City gave to another developer. The same applies to the credits the Council gave to developers as part of the previous program.

Here are the resolutions that we believe approved PILOTs issued by the County Council pursuant to §7-516 of the Tax Property Article. We did not see any for 2018. None of these are in College Park. The tax credit law was adopted in 2012.

CR-110-2013 approves the terms and conditions of a negotiated Payment in Lieu of Taxes (“PILOT”) agreement for Laurel II LLLP.

CR-132-2013 approves the terms and conditions of a negotiated Payment in Lieu of Taxes (“PILOT”) agreement for ECHO-UTC, LLC.

CR-87-2014 approves the terms and conditions of a negotiated Payment in Lieu of Taxes (“PILOT”) agreement for BE NC Station Holdings, LLC for the Carrollton Station Project.

CR-36-2017 approves the terms and conditions of a negotiated Payment in Lieu of Taxes (“PILOT”) for New Carrollton Station Project.

CR-94-2017 approves the terms and conditions of a negotiated Payment in Lieu of Taxes (“PILOT”) for One Town Center, LLC for the United States Citizenship and Immigration Services Project.

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