A resolution designed to increase the number of local workers employed on new development projects in Prince George’s County could actually prohibit most local contractors from being able to bid on certain contracts. The Prince George’s County Council passed a resolution requiring all contractors to hire workers trained in five-year apprenticeships for new developments funded by special tax districts.
Most of the county’s contracting firms don’t use apprenticeship programs, meaning a majority of local businesses would be left out of the bidding process, according to Brad Frome, deputy chief of staff to County Executive Rushern Baker.
“We understand and appreciate the intent of the bill,” Frome told the council. “The crux of our concern is making sure that county businesses can actually compete for these contracts.”
The special tax district — also known as a tax increment finance plan, or TIF — creates a designated area where the county assesses current property values. A percentage of the growth in value is then set aside as funding for new development in the area.
Though not awarded often in Prince George’s County, TIF plans have helped build the National Harbor and the Woodmore Towne Center at Glenarden, some of the county’s larger developments in recent history.
Neighboring Arlington County and Alexandria also have adopted special tax districts for developments in Crystal City and the construction of a new Metro station at Potomac Yard.
Baker has pledged to make development around Metro stations a priority of his administration, often pointing to Arlington County as a model for transit-oriented development. If he’s successful, special tax districts may become a more common financing mechanism for future developments.
Councilwoman Karen Toles, D-Suitland, added a waiver to the bill that would make exceptions for developers able to prove they were unable to meet the apprenticeship hiring guidelines.
But once 30 percent of a developer’s workers are hired locally, the waiver would no longer apply. That benchmark would fall short of the Baker’s own vision for hiring Prince George’s County workers, Frome said.
Councilwoman Leslie Johnson, D-Mitchellville, was the only council member to vote against the resolution.
