When the City has been worried following the news of lost tax revenues due to the UMD’s decision to buy the Washington Post’s old plant, there is a bit of good news – the UMD is considering to pay some compensation to the city.
The UMD, being a state entity, is not obligated to pay the city any property taxes. This means that the city is going to lose hundreds of thousands worth of tax revenues from the old Washington Post. The WashPost used to pay more than a quarter million dollars of taxes to city when it was operational.
The UMD is however saying it will pay around $50,000 / yr to the city to compensate the lost revenues.
Though this compensation is far less than what the city used to get from the Washington Post plant before, some may happy to see the goodwill gesture on part of the UMD. However there is another reason why the UMD is willing to pay this compensation – they need the city’s support in this purchase, a decision the UMD’s Public Works will adopt in its Feb 25 meeting.