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Baltimore’s Harbor Point Development By the Numbers

As Baltimore moves towards the next Harbor Point hearing on August 7 at 5pm, there is a lot of information circulating from proponents and opponents of the project. In the interest of saving everyone time I wanted to create a central page where raw facts can be seen. Please feel free to review and share as needed.

The site:

$10,000,000 – The current value of the Harbor Point site.
$1,800,000,000 – Estimated value of the site if the project is completed.
Source

Job Benefits:
7,175 – Number of (temporary) construction jobs that are estimated to come to the site because of the project.
6,611 – Estimated number of permanent jobs that will come to the site.
2,547 – Estimated number of indirect jobs that will come as a result of the project being approved.
Source

Tax Benefits:
$19,623,928 –Average annual tax revenue that Harbor point is expected to provide once completed (for the next 30 years).

For the sake of comparison…

$3,576,500,000 –  Baltimore’s complete FY 2014 budget, including the operating and capital budget.
0.548% – Percentage of Baltimore’s 2014 budget that Harbor Point’s average tax revenue would equal.
$30,000,000 – The 2014 Fiscal Year budget shortfall that was closed by Mayor Stephanie Rawlings Blake.
Source

Tax Credits:
$88,000,000 – The amount of enterprise zone tax credits given to the site. These tax credits are typically reserved for communities that are in need for development.
9/11/2012 – The day that the Baltimore City Council voted to give the enterprise zone tax credit to Harbor Point. The site was not in the original drawing of the map but was adjusted after the Baltimore Development Corporation requested the change.
2 – The number of Baltimore City Council members who voted against the map change (Nick Mosby [7th] and Carl Stokes [12th]).
$24,000,000 – The amount of brownfield tax credits that will go to the site, which is awarded to assist contaminated sites in development (Harbor Point will be located at the former Allied Signal Chromium plant site).
$44,191,8602 – The amount of tax reimbursements that Baltimore will receive from the State of Maryland as a result of the Enterprise Zone tax credit.
Source

The TIF (Tax Increment Financing) proposed:
$59,131,248 – the amount that the proposed TIF would allocate towards a series of parks to be built towards the site. Advocates argue that the amount is needed due to the environmental sensitivity of the site.
$21,634,628 – Amount allocated towards building a new promenade for the site.
$13,317,399 - Amount allocated towards utilities for the site, which will include roads and sidewalks.
$10,400,000 - Amount allocated towards a new bridge that will extend from south central avenue to the site.
$2,000,000 - Amount allocated to expansions of the Crossroads Academy, a local charter school. Portions of the expansion will be on the Harbor Point site.
$448,001 - Amount allocated for a new Water Taxi stop and piers at the site.
————————————————————————————————
$106,900,000 – Total amount of the TIF

2025 – the year that Harbor Point will actually begin to pay taxes to the general fund. Until that point the site’s funding would be used to pay the debt accumulated for the site. It should be noted that the annual revenue owed will be reduced due to the tax credits awarded.
Source
Source
Source

Developer benefit:

$124,000,000 – the amount that developers for the project (led by Michael Beatty) will receive for the projectwithout the $106.9 Million TIF.
$174,000,000 – The profit that developers for the project will receive for the project should the $106.9 Million TIF be passed.

2.138/1 – Ratio of public dollars allocated to the project to profits received by Harbor Point Developers.

Source

Developer threat:
6/6/2013 – The day Michael Beatty threatened that Exelon – a confirmed tenant at the Harbor Point property – may keep their operations in Chicago if the TIF is not approved.
Zero – Chance that Exelon may indeed stay in Chicago, as the company committed to building a regional headquarters in Baltimore in an agreement reached with Maryland’s Public Service Commission.
Source

Other funding: 

$27,000,000 – the amount of federal and city funds that have currently been authorized to work on South Central avenue in addition to what has already been allocated.
Source

The Parks:
$59,000,000 – As previously mentioned the amount allocated towards the parks that would be built on the site.
9.5 – the number of acres on which TIF revenue will be used to build parks.
$6,200,000 – The amount per acre that will be spent on the site.
$6,210,526 per acre.

By comparison:
$5,800,000 – The 2014 budget for the maintenance of Baltimore’s current entire park system.
7,000 – the approximate number of acres of the entire Baltimore City park system.
$828 per acre. And dwindling every year.

Taking it one step further:
$36,208,265 – The recommended entire budget for the Department of Parks and Recreation for Fiscal Year 2014.
Source
Source
Source

Costs:
$106,900,000 – the principal of the TIF.
$174,000,000 – the additional costs of the debt that will be accumulated by the TIF. To pay for the costs, property tax revenue from the site will be earmarked to pay the debt.
$200,000,000 – the amount of education funding that the city would lose if Harbor Point were approved, according to Ronald Kreitner. Because the site would add new property value to the city the formula for state aid would reduce the mount of assistance received by Baltimore’s School System.
$480,900,000 – Total cost to the citizens of Baltimore.
Source

Housing:
2007 – the year the Baltimore City Council passed the Inclusionary Housing act. The law required public financed projects that will have at least 30 units of housing to reserve 20 percent of the locations as low cost units.
2010 – the year that this same act was renewed by the City Council.
914 – the projected number of apartment units that are currently expected to be built on the Harbor Point site.
0 – the amount of low cost units that harbor point will be required to build since it will receive public assistance.
0 – the percentage of low cost units that Harbor Point will provide.
Source

Transparency:
5/20/2013 – the day that media was barred from a meeting pertaining to the Harbor Point Project. The Baltimore City Board of Finance violated the state’s open meetings act when it met behind closed doors to approve $100 million in financing for Harbor Point.
2 – Number of entities that filed complaints before the state’s Open Meetings Compliance Board (The Baltimore Sun and Fox 45).
1 – violations that were noted as a result of the complaints.
0 – amount of fees that the city will need to pay because of the violation (possible $100 violation for a first offense).
Source

What’s next:
15 – number of Baltimore City Council members that will decide the fate of the TIF (and by extension, this project) in the weeks to come. You can contact them using this page: http://baltimorecitycouncil.com/members.htm
202 (and climbing) - number of people who have signed a petition opposing Harbor Point and pledging to not vote for anyone who supports this project. If you agree, please sign the petition here: https://www.change.org/petitions/baltimore-city-we-cannot-support-the-proposed-tif-for-harbor-point
4/28/2013 – The day Paul Gardner posted “The Value of Free Money and the Shame of Harbor Point,” a good write up about events that led to the August 7th vote. Check it out.

Dennis McIver

A lifelong Marylander, Dennis writes primarily about fiscal waste, ethics, and transparency issues in Baltimore City. However, he has been known to dabble in statewide and national issues as well.

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Categories: Budget and Finance, Government Transparency, Must Read, Uncategorized
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