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Chair proposes task force on impact taxes to explore office‑to‑housing conversions

Montgomery County Economic Development Committee · October 14, 2024
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Summary

Chair Natalie Fanny Gonzales said the council will create a task force to study impact taxes and options — including using impact fees to encourage office conversions — and that a formal resolution will be required to form the group.

Chair Natalie Fanny Gonzales told the Economic Development Committee that the County Council is moving toward creating a task force to review impact taxes and options for encouraging office‑to‑housing conversions.

"If we have buildings that have a high vacancy rate, we should be doing everything in our power, especially as government, to activate and encourage either conversion, if that's what the property owner wants to do, or something else," Gonzales said, urging that impact taxes be one of the tools under review.

Gonzales said the task force would include stakeholders across planning, transportation and the state delegation and that a County Council resolution will be required to form it. She said task forces typically take about a year to deliver recommendations.

Council members expressed general interest but acknowledged tradeoffs. Bill Tompkins and other panelists cautioned that replacing revenue from any newly imposed fees would require design work. One council member noted the need to monitor effects on small‑business rents as redevelopment proceeds.

The committee did not vote on any ordinance or fee at the session; members asked staff for future briefings and signaled that the task‑force recommendation would appear at the full council soon for formal consideration.

Next procedural steps include drafting a resolution to establish the task force and scheduling the task force charge for council consideration.