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RESOURCES > NEWS > Mayor and City Council Approve Amended Split-Parcel Annexation and Several Economic Development Incentives

Mayor and City Council Approve Amended Split-Parcel Annexation and Several Economic Development Incentives

7/26/2011

After several weeks of discussion and public input, Mayor and City Council approved an amended version of the split-parcel annexation resolution Tuesday night.

 

“I think that the compromise accomplishes one of the goals of this administration which is to increase our boundaries,” said Mayor Robert Bruchey. “These annexations will allow more citizens to receive the high-quality services that our current residents enjoy.”

As recommended by Councilmember Forrest Easton, all 95 properties will be annexed into the City of Hagerstown effective September 9, 2011, however, property owners will only see a graduated City tax over a five-year period. The graduated tax rate will become effective on July 1, 2012 and annexed property owners will be taxed in 20 percent increments until the fifth year when the City tax will be 100 percent. Maryland Senate Bill 350 gives municipalities the power to annex in split-parcel land until September 30thof this year. Currently, almost half of the 95 property owners already pay partial or full City tax.

“Some of these property owners who have been paying City taxes will actually see a reduction to their current City tax bill come July 1st, 2012,” said City Administrator Bruce Zimmerman.

Councilmembers praised the work that led to the compromise as reflected in Councilmember Easton’s proposed amendment.

In economic development news, a public hearing was held for the annexation of the former Food Lion owned by Stone Soup, LLC and Eddie’s Tire Service, Inc. Stone Soup, LLC petitioned to be a part of the City in an effort to expedite their permit process. Stone Stoup, LLC has proposed a redevelopment of the site for medical offices. “We’re very excited about being a part of the City and all that the City has to offer,” said Bob Toft, managing member of Stone Soup, LLC. “We’ve had a positive experience with the City since our first conversation.” As an adjacent property to the former Food Lion, Eddie’s Tire Service, Inc. has petitioned to be annexed to facilitate the annexation of the Food Lion property into the City of Hagerstown.

In addition, at least thirty-five new jobs will be available in Hagerstown and Washington County by the end of 2013. On Tuesday night, Mayor and City Council approved a financial incentive agreement with Dynamark Monitoring, Inc. that allows the City to loan the security and alarm company $25,000 in their expansion efforts. Dynamark will lease approximately 3,000square feet on Northern Avenue in their plans to establish a headquarters and monitoring facility for the company. In exchange for the loan Dynamark has agreed to create 35 eligible positions by December of 2013, and invest approximately $600,000 in building improvements. The loan will become a grant if Dynamark meets all of the terms and conditions in the agreement with the City. Dynamark will also receive $25,000 from Washington County Government, and $70,000 from the State of Maryland Department of Business and Economic Development.

A third economic development initiative approved by the Mayor and City Council was a modification to the road assessment fee for all new non-residential and non-retail development on Eastern Boulevard. In an effort to spur job creation and economic development, City Council agreed to a modification that allows for a 50-percent reduction in the road assessment fee up to December 31, 2012. Additional reductions of a lesser amount will occur up until 2014. The Eastern Boulevard Road Assessment fee was established back in 2004 as a way for developers to share in the widening and improvement costs incurred by the City.

In lieu of next week’s Mayor and City Council meeting, City officials will attend the National Night Out at Fairgrounds Park at 6:00 p.m. The Mayor and City Council’s next work session will be held August 9th, 2011 at 4:00 p.m.

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