At tomorrow’s meeting, the Council will discuss a public financial assistance request for the proposed Bozzuto redevelopment at the Quality Inn and Plato’s Diner site.
The site was acquired by the University of Maryland Foundation and subsequently transferred to the Terrapin Development Company (TDC), which is a new entity created by the University of Maryland and the University of Maryland Foundation. Bozzuto requested that the County provide a 75% abatement of property taxes for 15 years (in
the form of a ‘Payment in Lieu of Taxes’, or PILOT) and the City provide 75% tax relief, in the form of Tax Increment Financing, or TIF in order to meet a gap in the project financial projections.
Based on Bozzuto’s projected value of the project upon completion, a 75% tax credit equals $14,003,990 in County tax revenue and $5,044,448 in City tax revenue over the term of the credit. The City would continue to receive 100% of the City property taxes on the current or base value ($50,935).
John
Is this request average? What did they get from DC for their Catholic University project? Seems like what they are trying to do is too expensive. What is the city’s return on investment? Should College Park look for another developer who has the resources to get it done without asking for such tax credits?