Baltimore County’s offer of expanded tax credits to revitalize Owings Mills’ Metro Centre and redevelop Woodlawn’s againg Security Square mall could result in the loss of millions in property tax revenue over the next three decades.
But an in-house county analysis of the deal predicts the incentives could pay out more than fivefold in economic development and, crucially for Baltimore County, provide more affordable housing.
Taking a project at one of those two sites as an example, if one had $50 million in qualified improvements, its annual property tax bill would be $550,000 — an amount that totals $16.5 million of forgone tax revenue over 30 years, according to a county analysis.
At the same time, it could generate substantial economic activity. Assuming what the county considers a “conservative” multiplier effect of $1.70 per dollar invested the improvements could project an $85 million impact, according to the county analysis.
“These are precisely the kinds of complex, large-scale mixed-use projects that we should incentivize when it comes to redevelopment,” Sameer Sidh, the county’s senior deputy administrative officer for economic development and infrastructure, told the Baltimore County Council last week.
Legislation approved by the council this month expands the county’s existing revitalization tax credits for the two properties, providing millions of incentives over the next 30 years. The tax credits would be provided if developers make specific improvements to residential buildings on those properties and as long as at least 10% of the units are set aside as affordable housing.
“Affordable” in this case is based on 60% of the area’s median income, meaning that rent cannot exceed 30% of a person or family’s annual income.
Additionally, any residential building or senior housing that is at least 60 feet tall and is built and ready for residents would be eligible. The tax credit could continue for 20 years if a developer makes more than $10 million in qualifying improvements to buildings in those areas.
But Councilman David Marks questioned how the deal would get future county executives “off the hook” from future financial commitments and the possibility of raising taxes. His question came days after County Executive Kathy Klausmeier ended negotiations for a new library branch in Middle River — a decision she said was made to avoid “lengthy and sizable financial commitments” for future executives.
Marks, an Upper Falls Republican, said he hoped the county would consider property tax credits to help projects like community halls on the eastern side of the county. Councilman Izzy Patoka, a Pikesville Democrat, suggested potentially considering property tax relief for volunteer fire companies that own their land, as well.
Large-scale mixed-use developments are not the typical recipients of the county’s existing incentives — what the county offers is generally most effective for small businesses and redevelopment projects under five acres, according to a county analysis of the legislation.
Metro Centre, a state-designated transit-oriented development with apartments, retail shops, eateries, a Marriott Hotel and a library, is more than 200 acres, Sidh said. Security Square, meanwhile, is smaller at roughly 88 acres. Baltimore County has acquired 39 acres of the Woodlawn mall, and if it’s successful, Sidh said, Security Square could look like Metro Centre within 10 to 15 years.
Though the projected $85 million in benefits would not entirely be recovered as tax revenue, the investment in housing and jobs could lead to more economic development at either site, according to the county analysis.
The county analysis also does not account for revenue that could be generated from nearby projects that could see benefits from the built-out mixed-use developments. Development at Metro Centre, for instance, spurred additional development at nearby Foundry Row, which has a Wegmans, fast-casual eateries and an apartment complex.
For Security Square, county officials are also envisioning a mixed-use development there. A 2023 report summarizing input from county residents outlined a vision for places for recreation and entertainment and green spaces for walking and biking, as well as residential, office and retail offerings.
Incentivizing redevelopment at Security Square could potentially increase the value and tax revenue from nearby shopping centers and an office park — “potentially offsetting revenue impacts from the proposed tax credit,” according to the county analysis.
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