• Release ID: 07-102
• Release Date: 10/23/2007
• Contact: Brian Jones 240-777-7951
• From: Office of Mike Knapp

Councilmember Knapp Calls for End to ‘Development Districts’ in Clarksburg

Says ‘We Need to End the Mess’ of Tax Plan to Fund Infrastructure in Emerging Montgomery Community

ROCKVILLE, Md., October 23, 2007—Montgomery County Council Vice President Mike Knapp (D-District 2) today announced his intent to abolish “development districts” in the emerging northern Montgomery County community of Clarksburg. Further, he will introduce legislation to modify and clarify the County’s Development District Act to ensure better implementation and oversight in the future.

A development district is a special taxing district created to finance infrastructure items, such as libraries, fire houses and roads, required to serve new development. Development district bonds are funded by special taxes and assessments levied on property located in a district, and are not an obligation of the County itself. A decade ago development districts were proposed as a way to have new development pay for itself and ensure that infrastructure was built to coincide with the new growth.

“I have heard the on-going concerns of the residents of Clarksburg and have seen first-hand the failure of county government’s oversight and implementation in the development of this emerging community,” Knapp said. “I cannot support an additional burden of taxes on those residents.

“The Clarksburg community needs to move ahead without additional bureaucratic delays. We need to end the ongoing mess in Clarksburg and we need to do it now. It’s been more than three years of chaos and delays. Enough is enough.”

Knapp, whose upcounty district includes Clarksburg, expressed frustration with the County government’s oversight.

“We need to eliminate the development districts in Clarksburg and focus on better management of our existing resources,” said Knapp. “Right now, the major project programmed in our capital budget with development district funds is the Clarksburg library. However, there is still time to fund this project in the traditional manner, and with the Council’s oversight.”

In September, the Council received an analysis from an appointed County Council staff group and the County’s Office of Legislative Oversight staff that thoroughly reviewed issues related to the implementation of the Clarksburg Town Center Development District. The Council held a briefing and there have been two follow-up worksessions in the Council’s Management and Fiscal Policy (MFP) Committee.

“I fully understand that we are investigating additional funding streams for infrastructure and I intend to keep this tool in our toolbox,” said Knapp. “But in order for it to be effective, there are a series of legislative and policy modifications that need to be made. Specifically, we need to consider how development districts relate to other sources of funding, re-evaluate the types of infrastructure that are eligible for development district funding and clarify notification requirements.”

Knapp said the development district model is not working for Clarksburg.

“Sometimes, in the life of a business, you hit the point at which you recognize that mistakes have been made, that it’s time to cut your losses and move on,” said Knapp. “I believe we have hit that point with development districts in Clarksburg. We could continue to drag this out for years to come and continue to have this cloud over our community. I believe the better option is to give the community a way to move ahead and finally begin to realize the vision that is Clarksburg. This community needs an opportunity to flourish now, not years from now.”

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