The recommendation by the Baltimore Development Corporation to the city council that it help developers of the Harbor East project with a tax break down to 5 percent of their real property taxes for up to 25 years has local observers and some city tax payers outraged.
“I think its outrageous,” said Tommy Price who owns a row house in west Baltimore.
“Does the city council expect me to believe that Legg Mason will set aside one of those $111,000 jobs for me if they retain them here? As high as my property taxes are, I wish the city would forgive my taxes for 25 years, that would add up to the average salary of a Legg Mason employee.”
“It is kind of ironic that the city would give incentives to help keep a business in downtown Baltimore and on the other side of town give away the business of a small employer,” said John Murphy, a lawyer representing Nam Seo “George” Koo in the Superblock development.
“Harbor East is the gold coast of Baltimore and it receives tax credits to erect it and they are paying virtually nothing on property taxes, and I doubt that the projected $162 million the BDC says the project will generate in taxes over 25 years factors in increases in the assessment rate,” he said.
The bill to grant H&S Property Development Corporation a PILOT (payment in lieu of taxes) has council support, so far.
“Obviously, when I weigh the city forgoing $33 million in taxes that we aren?t even getting right now, compared to gaining $162 million in taxes over the next 25 years that we wouldn?t normally get, I have to say that the project is vital to the city?s economy,” said council Vice President Robert Curran.
“By helping businesses like Legg Mason stay in the city, we are actually helping ourselves. The only downside to this deal is that I wish the BDC would find Harford Road and steer some development over there,” he said.
“This is new money to the city. Currently the site is not generating any money in taxes to the city at all. … Part of the city?s emphasis was to start economic development depressed abandoned areas to create a thriving economy.” said BDC President M.J. “Jay” Brodie.
“I still have some questions about the project but this is a new revenue stream for the city,” said Helen Holton, who chairs the city?s taxation and finance committee.
“I intend to specify as part of the PILOT a living wage of $11 per hour minimum wage for all jobs, even the janitor. Also, I want to ensure minority- and women-owned business equity participation as part of the deal.”
