St. Mary's County EDC approves revised targeted-industry list and readies property-tax credit process

The St. Mary's County Economic Development Commission on Sept. 21 approved a revised list of industries targeted for incentive support, adding retail in narrowly defined underserved locations and instructing staff to forward applications for a state-authorized property tax credit to the county commissioners for final approval.

The change stems from a new state law referenced in the meeting as SB 998 that allows St. Mary's County to offer a property tax credit for businesses that create 10 or more full-time jobs in targeted industries. Chris, a staff member in the St. Mary's County Department of Economic Development, said the credit may apply to both personal and real property and can run for up to 10 years under a contract with a company and a clawback provision if job-creation targets are not met. "This allows us to give, offer a property tax credit, for businesses that create 10 or more full time jobs in an industry targeted for St. Mary's County," Chris said.

Under the policy change the commission approved, retail is included among targeted industries only when the business would locate in a specifically identified underserved area — examples cited during the discussion included Lexington Park, Charlotte Hall and the town of Leonardtown. Staff described the intent as allowing incentives for retail in locations where a grocery store, hotel or similar retail would serve an underserved market rather than broad countywide retail incentives.

Commission members asked for clarification about the program timeline and administrative steps. Chris told the commission that an eligible business would file a simple application with the economic development office; staff would make a recommendation to the county commissioners; the commissioners would approve a contract; and if approved, staff and the company would negotiate a developer's rights and responsibilities agreement containing clawback provisions. The staff estimate for getting a recommendation to the commissioners is on the order of six weeks under routine conditions, though Chris said that timetable can be accelerated for high‑priority prospects.

A motion to approve the revised targeted-industry list was made and seconded; the commission voiced its approval and no opposition was recorded. Chris said staff would put the recommendation on a county commissioners' agenda for consideration.

The commission also discussed the county's sustainable community designations for Lexington Park and Charlotte Hall, which staff said could enable additional tools for development, including tax-increment financing without returning to the General Assembly for each project. Staff said those designations, combined with the new property-tax credit, would give St. Mary's County a broader set of incentives than it previously had.

The commission packet included two documents referenced during the discussion: the version of the Business Incentives Policy the commission had previously approved and a marked-up draft titled "Saint Mary's County business incentive policy and guidelines," which adds the geographic restrictions applying to retail and explains administrative procedures.

The commission did not specify a dollar cap per award at the meeting. Chris said any award recommendation would be accompanied by a legal agreement requiring repayment if the job targets were not met.

The commission voted to approve the revised industry list and directed staff to proceed with the application and recommendation process to the county commissioners.