Prince George’s County is tired of losing out on shiny new developments and big-name tenants. That’s why officials are proposing a new $50 million economic development fund that would entice builders who will bring new jobs and increase the suburban county’s tax base.
“There are hundreds of deals not done because there’s a [financial] gap that couldn’t be closed,” said David Iannucci, an economic development team member. “For the first time, we’re in a position to help commercial projects go forward that otherwise might be stalled.”
It also finally gives the county a little leverage when competing with its surrounding jurisdictions for big tenants. Prince George’s wasn’t even in the running when Northrop Grumman was shopping around the Washington region last year for a new headquarters. Fairfax County eventually won out with an incentives package that included using money from a state economic development fund to pay for renovations to buildings.
Most recently, the county lost out to neighbor Montgomery County when the U.S. Department of Health and Human Services announced it was signing a 15-year lease in Rockville.
“With the HHS project, it may have been that Montgomery County put resources on the table there to turn the corner with that,” said Aubrey Thagard, also a member of the economic development team. “It’s those types of situations we want to avoid.”
The $50 million for the fund is taken from surplus funds from the fiscal 2011 budget. A portion would be available each year to loan to applicants including small businesses, developers of projects near transit stations and businesses considering relocation.
Although the county executive can request more money to be allocated in any given year if needed, initial estimates outline $7 million available for next year, $11 million for 2013 and $13 million in funds available through 2016.
With loan repayments and interest accrued, the goal is for the fund to be fully self supporting after the county’s initial startup investment.
The fund is proposed as part of the fiscal 2012 budget, which the County Council must approve by June 1.
