Clarksburg residents will no longer be on the hook for tens of thousands of dollars in development fees following an agreement struck between Montgomery County and three Clarksburg developers this week.
In a letter of intent, the Clarksburg developers have agreed to accelerate construction on roadways from Snowden Farm Parkway to Route 27, from Little Seneca Parkway to Route 355 and at the intersection of Route 355 and Brink Road, said developer David Flanagan, president of Elm Street Development. In exchange, County Executive Ike Leggett will recommend the county allocate about $15 million in his upcoming capital budget proposal toward what Flanagan said is $35 million in road construction and improvements. Developers agree to pay all costs above the amount coming from the county.
As a result, Clarksburg residents will no longer be responsible for paying a controversial development tax that amounted to about $1,500 to $2,000 annually per house, according to County Councilman Craig Rice, D-Germantown.
“It was really time to put an end to the specter of the development district tax that was looming over so many people in Clarksburg,” said Councilwoman Nancy Floreen, D-at large, who proposed legislation in 2010 that would have gotten rid of the tax. “Residents of Clarksburg will be treated like everybody else in the county.”
The Clarksburg special taxing district was created in 2003 to pay for development in the area, but residents never paid the additional fees. The years-long dispute included bouts of litigation by developers who were upset at losing money they relied upon to complete their projects.
“There was a lot of back and forth about whether residents knew about this when they signed on,” said Rice.
The disputes caused development of the Clarksburg Town Center to come to a halt, and there were a large number of property liens.
“My determination was to find a way to put all of this to rest,” Leggett said.
The agreement would spur economic development in the area, and eventually raise more property tax revenue for the county, said Rice. It sends the message to developers that, “Clarksburg is back on track. Things are still happening in Clarksburg,” he said.
For the developers, the agreement raises questions about how they will fund these projects, said Flanagan.
Still, he said, it is very likely that the deal will get finalized.
