* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: The Council President
At the request of: The Administration (Baltimore Development Corporation)
A RESOLUTION ENTITLED
A RESOLUTION OF THE MAYOR AND CITY COUNCIL concerning
Title
Payments in Lieu of Taxes - Ward 03, Section 06, Block 1799-A, Lot #001 "800 Aliceanna Street"
FOR the purpose of authorizing an economic development project to be known as "800 Aliceanna Street", in order that the Board of Estimates may enter into a Payment in Lieu of Taxes Agreement with Harbor East Parcel B-Commercial, LLC, its successors or assigns ("Owner"), covering a portion of the Owner's property consisting of (i) office space consisting of approximately 205,000 square feet, (ii) approximately 20 live/work units, and (iii) a structured parking facility containing approximately 665 parking spaces; generally relating to payments in lieu of taxes for the 800 Aliceanna Street development; and providing for a special effective date.
Body
BY authority of
Article - Tax - Property
Section 7-504.3
Annotated Code of Maryland
(As enacted by Chapter 643, Acts of 1999)
Recitals
Pursuant to that certain "Air Rights Plat (Parcel B-1, B-2, B-3) Inner Harbor East II (a Re-Subdivision of Parcel B, Ward 03, Section 06, Block 1799-A, Lot 1, Baltimore, Maryland" dated September 6, 2005, and to be recorded in the Land Records of Baltimore City, Parcel B-2 is a commercial parcel that has been subjected to a condominium regime that contains "Unit B-2-A" and "Unit B-2-B". Included within the uses in Unit B-2-B are (i) approximately 205,000 square feet of office space (the "Office Space"), (ii) 20 live/work units (the "Live/Work Units"), and (iii) a structured parking facility containing approximately 665 parking spaces (the "Garage"). The Office Space, the Live/Work Units and the Garage are collectively referred to as the "Improvements". Parcel B-2 is located in the Harbor East Urban Renewal Area.
Section 7-504.3 of the State Tax-Property Article, as enacted by Chapter 643, Acts of 1999, authorizes the Board of Estimates of Baltimore City, subject to certain findings by the Board and to the enactment of an authorizing Resolution of the Mayor and City Council, to negotiate a payment in lieu of taxes (a "PILOT") for major economic development projects that meet certain criteria.
It is understood that the PILOT Agreement for the Improvements will include at least the minimum provisions required by law for minority and women participation in this economic development project.
SECTION 1. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That, subject to the conditions specified in this Resolution, the Improvements are authorized for purposes of allowing the Board of Estimates to enter into a PILOT Agreement with Harbor East Parcel B-Commercial, LLC, its successors or assigns, for the Improvements, in accordance with Section 7-504.3(b) (3) of the State Tax - Property Article.
SECTION 2. AND BE IT FURTHER RESOLVED, That this authorization is subject to the condition that the Improvements not house or otherwise involve (i) gambling activities beyond that allowed by law as of January 1, 1999, or (ii) related to any game not authorized by the Maryland State Lottery; and is further contingent upon the Owner entering a lease with a commercial office tenant for a minimum of 130,000 square feet, which tenant is either moving into Baltimore City or being retained in Baltimore City with the goal to create or retain approximately 300 jobs.
SECTION 3. AND BE IT FURTHER RESOLVED, That this authorization is in the best interest of the City and will achieve significant public benefits and purposes, including (i) the encouragement of the economic development of the City, including the use of resources and entrepreneurial talents of the private sector to develop the Inner Harbor East Urban Renewal Area; (ii) the creation of job opportunities; and (iii) the general promotion and improvement of the City and its facilities in order to foster and maintain the City and its image as a positive environment for the growth of business and industry and the continuing well-being of its residents, thereby further encouraging the health, welfare, and safety of the citizens of the City.
SECTION 4. AND BE IT FURTHER RESOLVED, That this authorization is subject to the following conditions:
(a) The PILOT Agreement for the Improvements shall be for a period of 15 years after the effective date specified in the PILOT Agreement.
(b) The negotiated payment in lieu of taxes for the Improvements shall be (i) the amount of the existing taxes on that portion of the land comprising Parcel B that is allocable to Unit B-2-B as of January 1, 2005, plus (ii) payment in years 1-15 equal to 5% of the incremental real estate taxes as determined by the State Department of Assessments and Taxation ("SDAT") based on the information and assessments provided in SDAT's worksheets for the Improvements.
(c) The PILOT shall only be for the Improvements and shall not apply to any other part of the development on Parcel B-2.
SECTION 5. AND BE IT FURTHER RESOLVED, That this Resolution takes effect on the date it is enacted.
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