* 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 R
(Resolution)
Introduced by: Councilmembers Henry, Clarke, Reisinger, and Middleton
A Resolution Entitled
A Council Resolution concerning
title
Oversight Hearing - Private Development Incentives
For the purpose of requesting that the Baltimore Development Corporation (BDC), the Department of Finance, and other City agencies involved in offering incentives to spur private sector development report to the Council on the current and planned uses of these incentives, how these incentives can be used more equitably in the future, and options to improve transparency and accountability to Baltimore’s citizens in how incentives are awarded.
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Recitals
In recent years Baltimore has made use of a variety of incentives to attempt to spur private sector development in our City. While these efforts have undoubtedly spurred some development, they have not been without controversy and it is not clear which approaches have been most successful and which may be falling short.
In order to properly assess the City’s incentive strategies, the Council needs a thorough briefing from the relevant City agencies on what has been done to date including:
• a comprehensive and detailed account of existing incentives awarded in the City’s private development portfolio;
• information about the nature of each project’s specific incentives in revenue awarded/delayed/foregone; and
• the specific returns negotiated by and for the City’s fiscal benefit in return for these incentives, including timetables, amounts, and conditions - in other words, the schedule of projected positive fiscal impact on City revenues, if any.
Beyond these questions about the incentive strategies in general, the Council also requires information about BDC and City efforts to address widespread concerns about the equitable distribution of City supported development by shifting subsidy priorities to neighborhood-based development projects for affordable housing and mixed-use development projects. This information should include:
• an overview of required affordable housing and local commercial infrastructure to meet the needs of our city’s current and future population;
• available and specific subsidy capacity and geographic priorities;
• a timeline and strategy to incentivize citywide private sector and private/public partnership implementation;
• citywide goals and objectives by geographic quadrants and neighborhoods; and,
• discussion of channels for private interest applications based on these criteria.
Finally, any discussion about current and future private development incentive strategies would be incomplete without an examination of the City’s process for creating TIFs and PILOTs. Specifically, there needs to be discussion about increasing transparency and accountability to Baltimore’s citizens by expanding this process to either allow the City Council greater flexibility in altering the size of incentives during the legislative process, or involving the City Council in some formal fashion prior to the introduction of legislation.
Now, therefore, be it resolved by the City Council of Baltimore, That the Council requests that the Baltimore Development Corporation (BDC), the Department of Finance, and other City agencies involved in offering incentives to spur private sector development report to it on the current and planned uses of these incentives, how these incentives can be used more equitably in the future, and options to improve transparency and accountability to Baltimore’s citizens in how incentives are awarded.
And be it further resolved, That a copy of this Resolution be sent to the Mayor, the President and CEO of the Baltimore Development Corporation, the Director of Finance, and the Mayor’s Legislative Liaison to the City Council.