Public Hearing Horizon Zone

On August 17th 2021 at 10 a.m., at 125 N. Division St. Room 301. the Wicomico County Council will hold a public hearing on the proposed approval of the Horizon Zone.

The Horizon zone is a designated area in the downtown area of Salisbury that would be available for large scale developers to obtain large tax reductions (tax abatements) on redeveloped or undeveloped property. The city of Salisbury has passed this legislation and is now requesting the county to do the same. State legislation was passed this year to enable this process to move forward. However, the state legislation also allows this in Wicomico County where development could occur. So, hotels or multifamily housing could be constructed and receive tax abatements with council approval. The County Executive has requested the Council to pass this bill that could give future developers millions of dollars in tax relief. That’s tax revenue that would fail to go into the county coffers to help pay for the multitude of expenditures that you and your county government is responsible for. Examples are Education, Police & Fire depts, Court system, States Attorney office, Library, Roads, Detention Center, Emergency Management and so on. Homeowners, hardworking citizens and retirees of Wicomico County would continue to pay the full taxable amount while developers could reap huge tax breaks.

The first slated project and the project that initiated this legislation for this tax break is the ROSS, a high rise building complex for student housing that is to replace three recently demolished buildings on Salisbury’s Main St. The developer and the City have said these tax breaks are needed to make this project succeed. But, while they are begging for tax relief, they are also promising a 15% RETURN TO ANY INVESTER THAT INVESTS $50.000.00 OR MORE to the project plus TAX BENEFITS. It seems obvious that this tax break is needed to reward their investors, THIER 15% RETURN ON INVESTMENT. As I stated previously the city of Salisbury has already approved this tax abatement. This is to the tune of almost 1.3 million dollars plus over $300.000.00 in forgiven infrastructure fees – water and sewer. The county tax relief proposed would be appox $597,000.00. This is over 2 million dollars in tax abatements and fees on this one project. There has already been a failed proposal to reduce the requirements. Will they be back to the table if this project starts to fail? Should not these ventures be able to stand on their own as other developments have in the past.

THE REAL DANGER
Some have said that $597.000.00 over ten years is not that big of a deal when we have a 150 million dollar budget. However, the danger lies ahead as these tax breaks requested will set a precedent that can turn into millions and millions of dollars in tax breaks in the future. How do we pick the winners and losers? Is it those well connected that will reap the benefits, friends of a friend or a special interest? And while it is true that the county has given tax and fee relief in the past, nothing has ever been passed of this magnitude. The enterprise program has been used as an example of why we should move this legislation forward. However, the enterprise program has different requirements and the state does reimburse 50% of that tax abatement. The enterprise zone program has recently came under scrutiny in a review by the General Services Administration as possibly not being that beneficial. Portions of the Ross and any other projects in this program may even qualify for Enterprise Zone status. Again, how much tax relief do these projects need? Yes, we have given small tax and fee relief in the past but the county has also raised countless fees on its citizens. In the past 8 years, fees have been increased for health dept programs and services. Our Public Works Dept has had service fees increased, the rabies clinic has had fee increases, as has mosquito control, the tipping fee at the landfill has been raised multiple times, fees at the airport have been increased as has the fee on everyone’s cell phone for money to go to emergency services. Even our Rec and Parks programs that everyone knows is so vital to the youth of Wicomico county have had mutable fee increases. No doubt in the future these depts will be asking for more fee increases with the reasoning being that these services and programs should be increased so they pay for themselves. And that reasoning is exactly why the Horizon Zone legislation should not be passed. Let these large scale projects pay their fair share as do the rest of the homeowners in Wicomico County.

In closing, those who vote no on this legislation will probably be labeled as unfriendly to businesses and growth in Wicomico County. My voting record will show that I have always supported reasonable, intelligent, well planned growth in Wicomico Count but I cannot support legislation that profits a few at the expense of the majority of our citizens. That is why I adamantly voice my objections to this proposed legislation. It is an unfair and unjust piece of legislation and it has the potential of giving away a huge portion of our tax base.

It is of utmost importance that citizens attend and voice their concerns on this matter. PLEASE attend the public hearing if possible or contact County Council office at 410-548-4696

Thank you,
Joe Holloway
County Council, District 5
443-880-3082