[RP TownTalk] Fwd: Friends and neighbors,

[Vernon Archer]

Friends and neighbors,

Based on several postings today it is clear that I need to give an
overview of what is to be proposed regarding building and financing a
crossing of the CSX railroad if the Calvert tract goes forward.

First, the bridge proposal sets a series of triggers that will insure
that a bridge will not just get built, but will be completed promptly
after the first businesses open--within 18 months of Whole Foods Opening
the bridge will be open.

Second, we now have a good/dependable estimate of what the crossing
will cost--while the developer's numbers are $8.6 million, the county PW
office says we should plan on 10.6 so that is what we will
utilize.

Third, the developer had to agree to pay a substantial portion of the
cost out of their pocket directly. The number on the table is $5
million or 50% of the cost.

Regarding the other half or $5.6 million, we and the county have
agreed that a Tax Increment Financing (TIF) is in principal a way to
pay the difference, though we expect that the developer will seek other
funding
sources as a TIF will be very cumbersome for them.
Should it come to a TIF, how would it work? Here is an outline:

   - A TIF utilizes the increased tax revenue from ONLY the new development
   to finance infrastructure that is associated with that new development.
   - There is no change to any one's tax rates; the developer pays the
   exact same amount of tax as they would anyway, it's just a portion of it is
   earmarked to be spent in or immediately adjacent to the project.
   - While I cannot speak for the county, it is clear that Riverdale Park
   would still bring in substantially more new revenue than we would ever
   commit to a TIF *and* the increased services the development will
   require. Thus the town would still bring in substantially more revenue than
   it would expend.

While this is an abbreviated outline, I hope it lays to rest any concerns
or misunderstandings regarding this matter.

I would again encourage any and all to join us tonight at town hall.

Best wishes,

Vern



Sent from my iPad




-- 
Vernon Archer, Mayor
Town of Riverdale Park, Maryland
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