| ANNAPOLIS, MD Fri, May 23, 2008 Continuing to enhance economic development and job creation in Maryland’s targeted revitalization areas, Governor O’Malley today announced that Olde Towne, Gaithersburg in Montgomery County would become the State’s 29th Enterprise Zone. The designation will provide income and real property tax credits to businesses that locate in the approximately 300-acre site.
“Protecting and revitalizing Maryland’s cites and small towns is a core mission for the O’Malley-Brown administration and central to our vision for growing One Maryland,” said Governor Martin O’Malley. “Maryland’s Enterprise Zone program is an effective and powerful incentive to help steer economic development to Maryland’s established communities.”
Olde Towne, Gaithersburg is the City’s original mercantile district, spurred by the arrival of the B&O Railroad in 1873. The area flourished for decades as shops and businesses served the needs of the local agricultural based economy. However, in the 1930’s a six-lane bridge, erected to address a rail safety issue, virtually obscured the view of Olde Towne and further distanced potential shoppers. The continued growth of MD Route 355, the advent of shopping malls, and the proliferation of commercial shopping strips further impaired the district’s recovery. In 1995, a group of concerned merchants challenged the City to develop a more vigorous revitalization program, which later leads to the creation of the “Downtown Plan for Olde Towne Gaithersburg.” Ten years later, that document was updated and a master plan was created. The Enterprise Zone designation provides real property and income tax credits to businesses who locate within the district, potentially key incentives to help Olde Towne realize its revitalization goals.
“Maryland’s Enterprise Zone Program is a valuable economic development tool for the City of Gaithersburg,” said Mayor Sidney Katz. “It will help leverage the aggressive local efforts underway to nurture the expansion and retention of quality businesses in Olde Towne.”
The Department of Business and Economic Development approves the State’s Enterprise Zones while local governments are responsible for their administration. Currently there are 29 Enterprise Zones established throughout the State. Businesses operating within an Enterprise Zone may be eligible for a tax credit towards their state income tax filings based upon the number of new jobs created, and a tax credit on their local real property taxes based upon their overall capital investment into a property.
“I’m extremely pleased with the State’s decision to designate Olde Towne Gaithersburg as the State’s 29th Enterprise Zone,” said Montgomery County Executive Isiah Leggett. “This designation will encourage new business investment and job creation, and will help strengthen the economic viability of this area.”
|
