Baltimore City business and development leaders want the Maryland General Assembly to ease a cap on state funds the city gets to preserve and develop historic buildings.
Civic leaders said $10 million left in the state fund that wasn?t spent because of the cap should go to worthy Baltimore projects.
Last week, Gov. Robert Ehrlich announced which local historic renovation projects would get funding under the State Rehabilitation Tax Credit Program.
This year, $30 million was available for projects, but because of a cap adopted by the Maryland General Assembly in 2004, Baltimore is limited to receiving $15 million. With the cap and funding all other local projects in the state, $10 million remains available in the program, said Donald Fry, president of the Greater Baltimore Committee, which represents business and civic leaders.
“State tax credits play an important role in preserving our past, revitalize communities and fostering economic development,” Ehrlich said in a statement announcing the grant awards.
About 50 groups ranging from the Harlem Park Community Church in Baltimore City to the Old Princess Anne Hotel in Somerset County received grants ranging from $2,349 to $3 million.
The credits are available for owner-occupied residential property and income-producing property. Eligible properties include those listed in the National Registry of Historic Places, those designated as a historic property under local law and those located in a historic district.
No jurisdiction can get more than 50 percent of the available state funds, under the law approved by the assembly.
That provision was specifically addressed in Baltimore City, which before 2004 was getting 90 percent of the funds, according to a statement by Sheila Hixson, chairman of the Ways and Means Committee in the House.
The unintended effect is that all other local projects in the state were funded, but Baltimore was capped at 50 percent, or $15 million.
Fry said it?s too late this year to do anything about the $10 million because the Maryland General Assembly won?t meet again until January.
Hixson said in a statement that she is open to changing the law.
“While I am open to discussing changes, I will not support any alterations that will hurt efforts in various jurisdictions around the state to fund rehabilitation of historic properties,” Hixson said.
Fry is hopeful.
“We are still going have to do some educating and hard work with the General Assembly to show them restoration is a benefit to the entire state,” he said.
