Baltimore County is pumping more money into a struggling Essex redevelopment project considered the hallmark of its “renaissance” campaign — sending costs far beyond what lawmakers said they expected.
Lawmakers have agreed to grant a $3.3 million tax break to the developers of the former Kingsley Park, a once-blighted apartment complex and the first project to follow the county’s landmark renaissance redevelopment program. The county has already given the developers, Enterprise Homes and the Mark Building Co., the 18-acre site at no cost in addition to a $4 million infrastructure subsidy.
“We had a very heated debate,” Councilman Kevin Kamenetz said of the 4-3 vote. “This project cost us a lot more than the council was led to believe when we first approved it.”
The county purchased the apartments for $2.8 million in 2005, displacing about 300 families. Under federal regulations, about half of the replacement units must be reserved for low-income residents — a mandate that county officials said discouraged interest from developers.
But some lawmakers said interest may have been greater if developers knew the county was willing to consider the subsidies they’ve approved for Enterprise, which plans to build 81 rental apartments for low-income seniors by December 2009.
Enterprise also will receive $7.7 million in Maryland tax credits, according to Les Pittler, a member of the state panel that reviews subsidy applications. The attorney represented the former owner of Kingsley Park in its negotiations with the county.
Pittler said he remains concerned that lawmakers didn’t have enough information to determine whether an additional tax break is necessary.
“I think the issue of concern to some was whether it was all too much,” Pittler said.
Pittler also represented the former owners of Yorkway, a crime-ridden apartment complex in Dundalk acquired by the county for more than $20 million and recently sold to a developer for less than $2 million.
Lawmakers have said the projects are worth their cost, even if the price is higher than anticipated. Councilman Sam Moxley, a Catonsville Democrat, voted against the Yorkway sale, arguing the county could get more money for the property if it waited until the economy rebounds.
Still, Moxley said he supports the philosophy behind the renaissance projects.
“To remove the blight from the community and ease the crime, I’m not sure you could put a price tag on that,” Moxley said.
Mary Harvey, director of the county’s Office of Community Conservation, said the projects also allow low-income residents to live in mixed-income communities.
She said the county hopes to recoup some of its expenses in increased tax revenues from nearby homes that will likely see a spike in value.
“In the case of Yorkway, [nearby residents] felt like they won the lottery — suddenly they could sell their house or reinvest in their house,” Harvey said. “So, ultimately, I think this will translate into dollars and cents.”
