Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Transformational project financing bill aims to unlock major redevelopment by sharing tax gains
Summary
House Bill 506 would authorize state participation in tax‑increment financing (TIF) through Medco for qualifying transformational projects, allowing use of net‑new state income and sales tax revenues to support local bonds; developers and county executives said the tool would boost bond capacity and revive stalled projects without upfront state outlays.
Delegate Chee told the Economic Matters Committee HB 506 establishes a Transformational Project Financing program at the Maryland Economic Development Corporation (Medco) to enable the state to participate in tax‑increment financing for projects that produce net‑new state revenues. The sponsor framed the bill as a targeted, performance‑based tool that would require local commitment, independent economic review and displacement adjustments to protect the general fund.
Developers and finance consultants described Maryland’s TIF statute as among the most restrictive in the country and said unlocking state participation in net‑new income and sales taxes would materially increase bond capacity for mixed‑use, transit‑oriented and redevelopment projects. Bill Streaver (Cross Street Partners), Matt Hugel (Catalytic Infrastructure Development Group) and Tom Cole discussed case studies (East Baltimore Choice neighborhood, Viva White Oak, Port Covington) and concluded the measure could make otherwise infeasible projects financeable.
Montgomery County Executive Mark Elrich testified in support, saying local projects like Viva White Oak could move forward with the additional bonding capacity and that the approach shares risk and rewards. Witnesses emphasized safeguards in the bill — independent fiscal review, caps and displacement adjustments — and several said the program need not be a general‑fund spending program but a mechanism to capture a portion of growth generated by the projects.
No vote was taken; the sponsor urged a favorable report and proponents said the measure would be refined through technical comment and fiscal analysis.
