Gaithersburg officials, trying to inject life into a series of dormant streets and vacant shops in the Olde Towne area, are hoping additional tax breaks will finally usher in development that has been missing in action.
The city is seeking county approval for an expanded Olde Towne Enterprise Zone, which gives those within the area income and property tax credits and waivers for utility fees.
Olde Towne property owners watched nearby Rockville and Germantown thrive while Gaithersburg officials blocked economic projects that didn’t mesh with the former agricultural haven’s aesthetic.
“Due to a variety of economic, social and market conditions, Olde Towne has been unable to draw the type or scale of projects that would constitute a ‘critical mass’ of development,” said Gaithersburg Mayor Sidney Katz. “While access from Interstate 270 has been addressed by a series of roadway connections, visibility continues to be a major obstacle.”
The development pocket would primarily extend along Frederick Avenue, where for years, upscale residential units have been planned but never materialized. The expanded area would also be subject to affordable housing standards, which led to the deterioration of Gaithersburg housing values, some say.
Katz says the tax breaks would be enough to spur development that fell to the wayside amid tighter lending requirements during the recession. But some longtime Olde Towne business owners aren’t so optimistic.
“I think it’s a good idea in theory,” said Ali Akbar, owner of the once-bustling Olde Towne Cafe. “But there have been talks like this for years, and it hasn’t changed anything. They’ll just say it’s a bad economy, and we’ll see more of the same.”
Since it was created in 2008, the Olde Towne Enterprise Zone has facilitated the completion of just one project. Under state standards, the zone can only be expanded to areas where most households make substantially less than the region’s median income.
Katz conceded that many of the properties within the current development district are not practical candidates for redevelopment, and some initial critics of the plan contend that by widening the zone, the core of Olde Towne will be left behind.
The Montgomery County Council is expected to approve the new enterprise zone this month before the plan is sent to state officials.
