Momentum is gaining on the Golden Mile. Seen in the recent kick-off of the mall re-tenanting project and the advancing plans for Westside Regional Park, the aging retail corridor is attracting significant new investments — both public and private—, and is positioning for a renaissance.
Below we explore two major incentive programs stimulating capital investment along “the Mile,” and available to even more new & existing businesses:
Enterprise Zone
Last year, the Maryland Department of Commerce announced the designation of the City of Frederick's first Enterprise Zone. New and existing businesses within the 530-acre area along Route 40 now potentially qualify for substantial new real property and state income tax credits.
There are two separate tax credits available through the Enterprise Zone program. A business may qualify for one or both of these credits:
Real Property Tax Credit
A 10-year County and City tax-credit based on the increase in real property
tax assessments resulting from commercial capital investment. The credit is
calculated during the first five years as 80 percent of the assessed property
improvement, and then decreases 10 percent annually to 30 percent in the
10th year.
State Income Tax Credit
- A one-time $1,000 state income tax credit for each qualified employee
filling a newly created position.
OR
- A three-year state income tax credit for each qualified new economically
disadvantaged employee, earned at $3,000 in Year One, $2,000 in Year
Two, and $1,000 in Year Three.
To capture the property tax credit, capital projects must receive certification PRIOR to the commencement of work. Income tax credits can be claimed within the year of the employee's hire.
Contact the City’s Department of Economic Development with questions and for application forms.
Facade Improvement prOGRAM
The Facade Improvement Project is administered by the Golden Mile Alliance and offers conditional matching grant money to street-facing exterior building improvements made along Route 40.
Building and/or business owners may apply for up to 50 percent of the cost of their improvement project, up to $10,000. The GMA may also consider approval of a higher amount for large catalytic projects —- projects that would contribute significant improvement to the physical appearance of the Golden Mile and anticipated to significantly increase business traffic to all businesses on the Golden Mile.
Full program details may be found here.
The Facade Improvement Project program has a track record of success. Over the past years, nine improvement projects have been completed and four more are currently in progress. To date, the $60,000 in facade grant funding deployed along the Golden Mile has stimulated approximately $164,000 in total renovations.
For additional information on other resources, programs and incentives in the City of Frederick, contact the Department of Economic Development at 301.600.6360 or business@cityoffrederickmd.gov .