The Bowie City Council just backed a tax credit for the Mill Branch development, which will include retail, a hotel, and housing, but some members are worried about the rushed process and whether it really benefits residents.

Here are the highlights:

  • A letter of support for a county tax credit for the Mill Branch development was introduced at a Bowie City Council meeting on short notice.
  • The county resolution aims to designate the Green Branch project as a tax revitalization district for public improvements.
  • The Mill Branch project includes 70,000 square feet of retail, a hotel, 190 townhomes, and 400 multi-family units.
  • The tax credit would help offset costs for road improvements associated with the development.
  • The credit can now apply to retail projects creating 100 full-time jobs with $10 million in investments.
  • Concerns were raised by Council Member Dufour Woolfley regarding the financial necessity of the tax credit for the developer.
  • Council members expressed dissatisfaction with the lack of prior notice for the letter of support.
  • Council Member Michael Estève criticized the effort as a tax giveaway, highlighting residents’ concerns about road congestion and loss of green space.
  • Estève drew parallels to a previous Tax Increment Finance deal, suggesting it would burden the city financially.
  • Support for the tax credit was voiced by Council Member Henri Gardner, who stated it would benefit the City of Bowie.
  • The council voted 5-2 in favor of the letter of support, with dissenting votes from Estève and Woolfley.
  • The Mill Branch and South Lake developers contributed to a pro-development political action committee.

Originally Published on October 18, 2022Last Modified on October 18, 2022

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Last Minute Tax Credit Recommended for Mill Branch Development

A letter of support for a county tax credit benefiting the Mill Branch development project was introduced on short notice at a Bowie City Council meeting Monday night.

The county resolution would designate the Green Branch development project as a tax revitalization district, the first step in receiving tax credits for certain public improvements.

The Mill Branch project, located on the east side of 301, south of Rips, includes 70,000 square feet of new retail, a hotel, 190 townhomes, and 400 multi-family units. The tax credit would offset the cost of certain road improvements.

A representative for the developer described the complex process through which the development could benefit from the tax credit. Previously, the credit applied only to projects dealing with transit and urban renewal. The credit can now include enumerated retail projects creating 100 full-time jobs with $10 million in investments and would apply to public improvements.

According to a representative for the developer, the Green Branch project will include new road construction, intersection improvements, a pedestrian crossing, and a widening of the street access to Green Branch Regional Park, funded by the credit. The latter road improvement was previously the responsibility of the Maryland National Capital Park and Planning Commission.

Council Member Dufour Woolfley took exception to the idea of crediting the developer for the improvements. "You came to us a while ago to have this reviewed. At that time, there was no conversation about tax incentives. The applicant was willing to make road improvements without a deferral of taxes. I don't see how there's a financial necessity there."

Council members also took issue with the lack of prior notice on the letter of support. The legal text of county bill in question and draft letter of support from the Mayor were circulated to council members at the beginning of their meeting.

Council Member Woolfley remarked, "The whole thing is pretty complicated. We got this just as we were sitting down, which is a little disconcerting."

According to city officials, the measure was introduced on short notice because of an impending county hearing on the resolution the following morning. Under normal city procedures, council votes involving formal measures with attached documents must be published in advanced of council meetings, normally the previous Thursday.

Council Member Michael Estève described the effort as a tax giveaway. "Residents have been telling us for years they're sick of the worsening road congestion, delayed school and road improvements, and loss of green space. It'd be one thing if these projects funded major improvements. Instead, we're increasingly asking residents to foot the bill."

Estève described parallels to a 2016 Tax Increment Finance deal signed by the city, county, and the developer of the South Lake project at 301 and 214. Estève stated the South Lake deal will result in the city having to pay for public services for 30 years before seeing tax benefits.

Estève pointed out that the stated goal of both the South Lake agreement and the Green Branch tax credit was revitalization, taking issue with the characterization. "The developers keep describing this as revitalization when they're just clearing forests and green space for more car-dependent subdivisions."

Council Member Woolfley shared a similar sentiment, stating, "This is not revitalization," adding, "I find the timing and substance problematic."

Other council members chimed in to express support. Council Member Henri Gardner spoke favorably of the tax credit, stating, "The City of Bowie only stands to gain here. I am very supportive of the project and the revitalization tax credit district."

Council Member Harrison motioned to approve the letter of support, seconded by Council Member Ndebumadu. The vote was 5 – 2 with Council Members Estève and Woolfley casting the dissenting votes. The two council members were also the lone votes against the previous $30 million dollar TIF at South Lake.

Council Member Harrison will be replacing County Council Member Turner, who is expected to be appointed head of the County's Ethics Commission.

The Mill Branch and South Lake developers were both major contributors to the Jobs 1st PAC which supported a slate of ostensibly pro-development candidates in the Prince George's County Council primary in July.

The discussion and vote can be viewed on the city's Youtube channel here.