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Developers seek tax break from city
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Related Topics: BALTIMORE
BALTIMORE (Map, News) - To keep financial giant Legg Mason within Baltimore City limits, the president of the Baltimore Development Corp. introduced a bill before the City Council Monday that would enable Harbor East developers H&S Properties Development Corporation and Struever Bros. Eccles Rouse to forgo paying 95 percent of real property taxes to the city for up to 25 years.
Harbor East is estimated to cost $518 million. The bill would provide for a 15-year tax deferral on the project’s office building and a 25-year deferral on the underwater parking garage. In addition, the city would provide a $2.9 million infrastructure grant for public utilities and a promenade.
“We did extensive due diligence in arriving at the decision to seek the PILOT [payment in lieu of taxes],” said BDC President Jay Brodie. “We wanted to keep [Legg Mason] in the city. The developers could not have done this deal without city assistance, and this project will keep 600 jobs in the city and bring 500 more from Owings Mills, and the average salary of a Legg Mason employee is $111,000.”
According to the BDC, nearly 22 percent of Legg Mason employees live in Baltimore City.
The developers also plan to lure other office tenants to the project to create 523 jobs paying an average $75,000 a year, of which they estimate 20 percent will go to city residents. They also expect 70 percent of hotel jobs, at an average $25,000 a year, and retail jobs, at $10 per hour, to go to city residents, for a total of 1,885 jobs of which 494 are expected to be filled by city residents.
Brodie said that “this is new money to the city. Currently the site is not generating any money in taxes to the city at all.”
“Even with the PILOT the city can still expect to see close to $10 million in city taxes by 2012, three years after the project is complete, and by 2036, $162 million,” said Irene Van Sant, project analysis director for the BDC. “This deal is not going to enrich the developers; it will help them get the deal done.”
Once the bill is introduced it will then go to the council’s Taxation and Finance Committee, chaired by Councilwoman Helen Holton.
“When you bring people into Baltimore to work, I think it does add value to the city,” Holton said. “I still have questions about the project, but without [PILOT] you’ve got nothing.”
Examiner researcher John Davisson contributed to this story.
rchappelle@baltimoreexaminer.com
Comments from Examiner Readers
8:22 PM MST on Tue., Apr. 15, 2008 re: "Post offices stay open late for tax procrastinators"
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5:30 PM MST on Tue., Apr. 15, 2008
re: "Post offices stay open late for tax procrastinators"
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4:39 AM MST on Mon., Mar. 31, 2008
re: "Tax pros: Don’t forget deductions for education, savings, contributions"
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5:22 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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5:14 AM MST on Tue., Oct. 30, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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4:42 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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4:12 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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4:06 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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3:05 AM MST on Tue., Oct. 30, 2007
re: "‘No new taxes:’ Md. groups rally against O’Malley’s tax hike plan"
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12:24 PM MST on Tue., Aug. 7, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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4:40 PM MST on Fri., Aug. 3, 2007
re: "Republicans say poll a sneaky way to increase taxes"
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2:28 PM MST on Fri., Aug. 3, 2007
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10:43 AM MST on Mon., Jun. 18, 2007
re: "Thousands of city properties on the market in tax auction"
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Examiner Reader said:
What post offices are open today later than 7:30 p.m.?
7 agree | 7 disagree
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Gizmo said:
It's pay day in the congress and Ted Kennedy is waiting for my check, it's his turn to buy a round at the Senate Bar.
7 agree | 8 disagree
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Examiner Reader said:
This article should have been written in January... Better late than never...
6 agree | 7 disagree
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Martin O'Malley said:
Stop criticizing me, you'd do the same thing if you were in my position. I'm the governor, I have the right to have more power and control over money. And the best way to do that is take it from the rich. They have the most of it, and besides, they don't protest and complain because they're too busy working.
158 agree | 151 disagree
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Examiner Reader said:
The poll was done by "Alliance for Tax Fairness, a coalition of liberal advocacy groups". I'm sure that wasn't biased at all... What really cracks me up are these far left groups that throw "Progressive" in their title. Progressive to who/what, other than your socialist agenda? Is huge government "progress"? I don't think so, anyway.
151 agree | 150 disagree
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reader said:
I think the politicians should stand and say to O'Malley, make the cuts and see where that lying, sack of crap will lay the blame then. Oh I forgot he can always blame Bob Ehrlich, even for the BGE lies he told us.
156 agree | 164 disagree
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VJC College Republican said:
If Thomas Jefferson thought taxation without representation was bad, he should see it with representation!
168 agree | 170 disagree
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Examiner Reader said:
Thanks Baltimore City and Prince Georges county for electing this tax and spend Democtat. You deserve all the taxes this wimp can impose
200 agree | 162 disagree
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Sven said:
Makes no never mind. O'Malley has got them where he wants them. Don't give him his tax increases and he will cut the funds to your county, teachers retirement, green programs and anything else to blackmail the legislators. M.O. WINS!
180 agree | 187 disagree
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Examiner Reader said:
Tax fairness” lol. How is it fair the I might be taxed more just because I happen to be successful? Am I using more State resources then someone who is less successful? I've got two kids in college but I don't qualify for any state aid on tuition because I've committed a sin against liberal sensibilities by making to much money. A lower income citizens kid gets the State tuition aid my kids are denied how’s that for fair. The 4% state tax on a $200,000 salary equates to a bigger contribution to the state coffers the 4% with held from a $35,000 salary so don't talk to me about fair taxation.
223 agree | 211 disagree
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Examiner Reader said:
Simple solutions to taxes, No Taxes except on purchases.... The rich would then pay and the poor would save. No employment tax!!
212 agree | 193 disagree
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Examiner Reader said:
Why is it that the folks who conduct these polls never speak with anybody I know?
208 agree | 186 disagree
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Examiner Reader said:
I've searched everywhere for the list, including the Times for the list of properties. It has not yet made it to the OTR website. Anyone know where you can find this other than the original newspaper ad?
265 agree | 227 disagree
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