Varsity development on Route 1
At tonight’s Council meeting, the Mayor and Council will vote to decide if it should grant a tax credit to the Varsity project, located on Route 1, near Paint Branch avenue.
In 2009, City staff received an application from the owners of The Varsity mixed-use development at 8150 Baltimore Avenue, Student Housing College Park, LLLP , for a revitalization tax credit under Ordinance that it passed last year, which established the City’s Revitalization Tax Credit Program. The purpose of the Program is to provide financial incentives to encourage economic development and redevelopment through a five-year property tax credit against the City’s property tax imposed on real property.
The Project meets all of the basic threshold requirements except that it was completed before the ordinance was adopted. Per our staff, this requirement may be waived as the Detailed Site Plan was approved after January 1, 2009 and the Project has been constructed.
Prior to construction of the Project, the properties were assessed at a value of$2,372,798. Upon completion of the Project, the total assessment of the property is $97,562,200, which leaves the increased assessment as $95,189,202. Given the City’s current real property tax rate of$.335 per $100, which is subject to change, the Property’s annual tax bill on the increased assessment is $318,883.82.
In the last week’s worksession, the Council discussed the matter further and accordingly, will consider giving Varsity a total of $500,000 over five years period, starting $60K in FY 2015, with an increase of $20K every year.