On February 24, Executive Director Michael Sanderson provided in person testimony on behalf of Karrington Anderson is support of HB 506 – Economic Development – Transformational Project Financing Program – Establishment.
This bill establishes the Transformational Project Financing Program within the Maryland Economic Development Corporation (MEDCO) to support large, high-impact development projects in areas where a local government has approved a Tax Increment Financing (TIF) plan and pledged local property tax revenues.
Counties across Maryland rely on TIF to fund critical infrastructure that makes new development possible—roads, utilities, structured parking, and site preparation that unlock private investment and expand the local tax base.
By dedicating net-new State tax revenues generated within designated development districts, the program would complement locally approved TIF plans and help close funding gaps that can stall catalytic projects. With safeguards to promote geographic and population diversity, this approach offers a structured, performance-based strategy to support housing, mixed-use development, smart growth, and long-term economic expansion statewide.
HB 506 represents a meaningful partnership model. It layers State revenue-
sharing on top of local TIF financing to help close funding gaps for projects that otherwise would not move forward. By bringing net-new State dollars into locally approved districts, the program provides important State participation needed to unlock catalytic projects—particularly those advancing housing, mixed-use development, and smart growth goals.
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