Council saves Costco grant, political ally’s job Montgomery County Executive Ike Leggett scored two major political victories Monday, as the County Council decided to allow a $4 million grant to bring a Costco to Wheaton and a longtime political ally of the leader to keep a position widely criticized as unnecessary in the face of widespread fiscal woes.
In a stunning reversal, the council voted 6-3 against a measure to block a subsidy for the big box retailer just weeks after a majority of the group came out against the deal.
“Apparently, we have to honor our word, even when our word is flat-out stupid,” said Councilman Marc Elrich, D-at large. “They caved. They caved to Ike. They caved to Westfield. It’s just wrong. There is no way around that.”
Council panel OKs property tax increase
Montgomery County residents on average would pay 1 percent more in property taxes under a proposal recommended by a County Council panel Monday.
| The council committee endorsed a recommendation from County Executive Ike Leggett to raise the tax rate 4.2 cents to 94.6 cents per $100 of taxable valuable. Councilman Phil Andrews had proposed reducing the property tax credit by $285 next fiscal year instead of raising the rate, but other members balked, saying residents would save more money next year under Leggett’s plan. |
Leggett pushed the contentious deal through the previous council, saying the multimillion-dollar sweetener was needed to transform a Wheaton pocket, riddled with strip malls, shuttered stores and an array of economic ventures that never materialized. However, the funding was placed in next fiscal year’s budget, and with a new council, the grant for the store planned at Westfield Wheaton Mall appeared on life support.
In recent weeks, Council members Valerie Ervin, D-Silver Spring, Craig Rice, D-Germantown and Hans Riemer, D-at large each told The Washington Examiner they would vote against the subsidy for Costco. On Monday, however, each voted for the financial assistance.
“My vote is an institutional vote as president of this council,” Ervin said. “I still don’t like the deal. But we can’t vote to undo the previous work of the council just because we don’t like it.”
A majority of the council said they were against the merits of the project but said they simply didn’t want to back out of an agreement and damage the county’s standing with the business community.
“We’re not keeping pace [with Fairfax County],” said Councilman George Leventhal, D-at large. “Our tax base is not as healthy as theirs and our job base is not as healthy as theirs. The only way out of the conundrum we are in is to strengthen our economy.”
Mall operator Westfield posted a $1.1 billion profit in 2010 — the county is facing a $300 million shortfall — and critics said it was inconceivable that a $4 million grant would put the brakes on a project expected to produce windfall profits for both the mall and Costco.
The council also will spare the job of former County Councilman Michael Subin, who will make $195,000 next year to head a commission that formally meets four times a year and performs additional zoning duties. The position came under fire when The Washington Examiner first reported the salary for the previously unpaid post — as well as Subin’s extensive ties to Leggett — but the council did not raise objection to the arrangement on Monday.
