Montgomery County officials envisioned development districts as an innovative way for new communities to grow without having to compete against entrenched neighborhoods for local dollars. But they have been embroiled in controversy since their inception.
Under the arrangement, residents pay higher taxes for infrastructure improvements near their homes.
The West Germantown Development District, created in 1998, is just the latest troubled example, as some county officials have highlighted double payments for a water pump made by the county and Washington Suburban Sanitary Commission — both sides pumped millions of dollars into the station.
In the Clarksburg Town Center Development District, residents accused the developer, Newland Communities, of rampant building violations and clashed with county officials about paying higher taxes.
The Montgomery County Council recently pulled the plug on the Clarksburg district. County officials said they were worried that opened the door for possible legal challenges from Newland to recoup money it was promised for investing in the area.
The district was created in 2003, but residents never paid the additional tax.
Now, no plan is in place to jump-start the envisioned community — expected to be lined with shops, restaurants and parks — as county officials focus their attention instead on transforming White Flint, a disconnected series of strip malls along Rockville Pike.
And County Executive Ike Leggett recently proposed a similar district for White Flint, a plan that some developers say puts too much pressure on the business community.
