The Montgomery County Council reached a new low this week, taking an action of fiscal irresponsibility so bonkers, it should cost them their seats in the 2026 election. They have approved legislation that will exempt any redevelopment of an office property into housing from property taxes for 20 years, if the new development provides 17.5% affordable units. Meanwhile, the same Council is planning a massive property tax increase for you, the residents of Montgomery County. Yes, this continues a pattern of shifting the tax burden from the Council's developer sugar daddies onto you, the struggling homeowner or business property owner. But it goes beyond almost any corrupt action they've taken before, as it could end up bankrupting the County, which is already under fiscal stress from a structural budget deficit and a massive debt load.
More Housing N.O.W. - a name that anyone who struggles to navigate closed streets and sidewalks around apartment tower construction sites in downtown Bethesda and Silver Spring would find laughable - is a legislative package cooked up by Councilmember Andrew Friedson (D - District 1). Loaded with developer giveaways, it appears to have been written by the developers themselves. Much like their plan to gift developers land taxpayers paid to acquire for a critical highway the Council canceled, forgoing billions in tax revenue and shifting the tax burden to you is a dereliction of duty by the Council.
Why would Friedson bring forward such an audaciously-corrupt tax break for developers? He's running for County Executive, and needs the money developers so generously provide to each of the current Councilmembers. And it's going to take a lot of money to win, especially if David Blair decides to take a third shot at the County Executive office in 2026. The seat is essentially Blair's for the taking, having lost by a handful of votes to Marc Elrich each of the previous times he ran. None of the candidates running next year have Elrich's name recognition, base of support, or voter goodwill that crosses party and demographic lines.
But barring Blair's entry into the field, developers will support Friedson. How did the unknown Friedson defeat the far-more-qualified and known former Kensington Mayor Peter Fosselman and the legendary Ana Sol Gutierrez, the first Latina ever elected to public office in Maryland, in a Democratic primary? It's not entirely clear even today, but the developer money didn't hurt. Developers haven't just mailed the checks to Friedson's campaign - they actually host fundraisers for him at their mansions.
More Housing N.O.W. is similar to another legislative victory developers enjoyed during the previous Council term, in that it simply juices the profits for development that would already happen without it. That was the bill that gave a 15-year property tax exemption (sound familiar?) to developers building residential housing on WMATA-owned land at Metro stations. Not only had such development taken place previously without this outrageous tax-free provision, but it was demanded by a development firm that had already committed to a project before attempting - and succeeding - in getting the Council to provide this tax exemption as a sweetener. Imagine their shocked and surprised delight when the knees of the Council buckled so easily to deliver such a windfall of cash, on top of the already massive profits they would be raking in.
It's no surprise they went back to the well again. After all, this Council is the biggest bunch of pushovers yet for their developer sugar daddies. The public is almost entirely unaware that this robbery of the public coffers is taking place. Or that they might be spending over $1000 more on their own property taxes next year, if they live anywhere in Bethesda, Chevy Chase, Potomac, or parts of Kensington, Silver Spring, Rockville, or even Aspen Hill. Because if your home is valued at $1 million or more, that's how much your property tax bill will be going up under the tax hike currently before the Council.
Why would the tax exemption approved Tuesday potentially bankrupt the County, and/or require your property taxes to reach unimaginable heights in the coming decades?
First and foremost, we already know that residential housing generates more new costs in public services and infrastructure than it does in property tax revenue. That, along with the County Council's out-of-control spending this century, and anti-business policies that have scared companies away from locating here, is what has created our structural budget deficit in the first place. Now imagine what the deficits will be if a majority of new apartment buildings will be paying no property taxes at all for 20 years!
Second, the legislation has a misleading talking point behind it. Most people think of "office to housing conversion" as the reconfiguration of an office building into apartment or condo-sized residential units. But the package approved Tuesday provides the same 20-year tax exemption and expedited approval for demolishing an office building, and constructing an entirely new residential building in its place.
Third, because of the allowance for demolitions, the 20-year tax exemption will apply to a huge number of projects that were - or will be - planned without the More Housing N.O.W. developer giveaways in place. In fact, a large percentage of the new buildings constructed since the "Great Recession" have been built on the ashes of office buildings that were demolished to make way for them.
We've seen that even true office-to-housing conversions have taken place without these outlandish incentives, include a new condo development and new apartment property in downtown Silver Spring. Now think about all the other apartment and condo buildings that were torn down for residential over the last 15 years alone, where the developers did not demand a 20-year property tax exemption. Gallery Bethesda I and II, Sophia Bethesda, 4909 Auburn, Stonehall Bethesda, The Wilson/The Elm (7272 Wisconsin Avenue), 8001 Woodmont, Hampden House, The Met Rockville, AVA Wheaton, and the Fairchild Apartments in Germantown are just a few examples of post-"Great Recession" redevelopments of office properties.
Imagine if all of these were paying no property taxes for 20 years! Now realize that the long-anticipated redevelopment of the massive GEICO campus in Chevy Chase - to name just one mega project - will bring in ZERO property tax revenue to County coffers for 20 years! This is criminal.
The good news is, it's not too late to stop the madness. You can stop the More Housing N.O.W. legislation by calling or emailing your Councilmember, and all of the At-Large Councilmembers, and telling them you want no more developer giveaways. It's very easy: the Council website shows all of the Councilmembers, and there's even a tool to help you learn who your district member is (the At-Large members also all represent you, which is why you want to contact all of them, as well).
County Executive Marc Elrich is expected to veto the More Housing N.O.W. legislation when it reaches his desk. The County Council will then have to override the veto to save the developers' 20-year property tax exemption. Tell your Councilmember you will vote them out, and you certainly won't vote to promote them to County Executive if they are running for that office, if they vote to override Elrich's veto. If for some crazy reason Elrich were to sign the tax break - or let it become law by not signing it - let the Council know you will vote them out just the same, if they don't repeal it.
You can also stop the massive property tax increase by telling your Councilmember at the same time that you will vote them out if they vote to raise your property taxes again this year or next year. And if they do - VOTE THEM OUT! You don't even have to vote for a Republican; you can just vote for the new Democrats who are running against the incumbents in the primary next year. But if they squeak through again to the general election, you have to seriously consider voting for any Republican, Green, or other party challenger who remains in their way. It's the inability to vote out the Council that has led to their outrageous misbehavior.
Are you really going to vote again for the politicians who insiders say refer to you as "losers" and "suckers" in private, willing to pay any tax, accept any reduction in your quality of life, and countenance the totally incompetent leadership they dish out?
The voters of Montgomery County need to wake up. Some of you are awake and on-the-ball. That's likely why you are reading this article now in the first place. But it's not enough. I worry about some of the other residents in this county. What will it take for you wake up and rise up against the Montgomery County cartel and its handpicked Councilmembers, who have held a majority on the Council since 2002?
You've gotten a property tax hike every year except for FY-2015, when you received a tax "cut" of about $12. The next year, the Council dropped a 9% property tax increase anvil on you like Wile E. Coyote. They seemed to pay a price for that, when voters approved term limits a few months later in 2016. But...when it came to the 2018 Council election, the cartel's candidates won every seat again. Much like their victory over the Columbia Country Club with the Purple Line, they realized they could get away with anything, and you wouldn't do a thing about it come Election Day. Invincibility. Absolute power. Such things do not a Republic make.
One of the greatest political cartoons of all time that sums up this phenomenon once ran in The Gazette. It showed a Montgomery County voter bending over in front of then-County Executive Doug Duncan, who was wielding a large paddle with the words "tax hike" on it. The voter, with his head crooked around to look back toward Duncan, said, "Thank you, Sir. May I have another?"
Don't be that guy anymore. It's not a good look. It's a sad state of affairs, really. Break smelling salts under your nose, if you have to.
You're mad as hell, and you're not going to take it anymore. Go to the Council website. Pick up the phone, fire up the email, and let them know, "Enough is enough!" No 20-year property tax exemption for developers, and no property tax hikes for you.
39 comments:
Elriich will veto it, *wink-wink.* Still looking for more than the 14 votes that reseated the incompetent incumbent last time. Maybe we will wise up? Doubtful.
The NIMBY voters here are perfectly happy with Elrich and the council as spending other people's money is a way of life.
If they got a “D” after their name MoCo voter will pull the lever.
What the. Did Will Jawando take over this blog?
Who is in the Montgomery County cartel and how do they influence local politics?
Vote for Donald Duck if you want. But vote them out indeed. And in related news that you can't make up, MoCo is doubling down on their refusal to cooperate and assist ICE. So, they are making our community unsafe on purpose and knowingly? Please reply if I have that wrong but how could anyone see that any other way? We have violent gangs here who have raped, murdered, trafficed drugs and women yet they won't help protect us by aiding ICE to get them out of here? ICE requests that the county release any illegal immigrant that they have a detainer on. And what do the police brass and knucklead elected officials do, tell them to pound sand. This is insane and right out of the far Left wacko, blue city and state playbook. Tax increases are of course worthy of voicing your opposition to. But not working with the feds just because they are anti-Trump and anti-GOP, is derelict and damn dangerous. That is worthy of immediate expulsion and deserving of never being elected again. Will that happen, no. Smartest electorate in the country and yet rubber stamp these losers every time.
"Tell your Councilmember you will vote them out, and you certainly won't vote to promote them to County Executive if they are running for that office, if they vote to override Elrich's veto."
LMAO! Next?
"Incompetent incumbent" is excellent wordplay.
The county council (for the most part) and the county planning board members don't give a crap about what we residents and taxpayers want and clearly express to them, repeatedly. It's all lip service and BS from them.
6:56 - Now, that's a good one.
You are exceptionally out of touch.
I remember that political cartoon very well, also the Gazette, Express, Washington Star and everything else not DENSITY related...
If only the orange man could somehow punitively punish, penalize and remove comrade hellrich.
That's no way to talk about the Council VP (;-)
No news here. The MCPS needs $$$ to pay their legal bills.
Maybe Jawando, Elrich, and Dyer can get together and hold a rally! Save the vacant, functionally obsolete office buildings! No new private investment! Down with tax credits (unless it's NoVa doing it)!
Montgomery County, wake up. These councilmembers' monopoly over policy has failed at demonstrating good judgment, common sense, understanding of economics, community planning, economic development, job growth. They have made messes with our security vis a vis the police recruitment problem, supporting policies that enhance crime in certain urban areas and then call it a problem of perception of crime , pass legislation against economic development and have failed to bring in businesses to raise wages and offer employment opportunities. They failed to diversify the economy and continue to loose businesses to Va. why do you vote for them?
Consistently negative return on investment.
Looking at all the goofs, gaffs, mistakes, errors, etc. that bunch of SS Stormtroopers makes daily, I wouldn't allow any police force to cooperate with either. Seventy percent of those arrested and shipped to hell on earth, reportedly have no criminal records here or in their homeland. In addition, they have no known gang affiliation. But who cares about accuracy when you're an autocrat. It's what they say that counts, PERIOD!
6:43: Maybe you, Friedson, and Fani-Gonzalez can get together and figure out how you are going to make up for the billions in lost revenue over the next three decades if this becomes law.
However they are in sync with "The Peter Principle."
Is it accurate that the Ravel/Royale at Grosvenor ("Home of the $10,000/mo 3BR") is exempt from property tax? Can you provide a source for that?
Words that go well together.
1:31 You must be part of the county coup.
7:46 is quoting MSDNC statistics. Here's a clue: If you're in the country illegally, (crossing or missing the scheduled hearing), you've broken the law. Defending TDA members is exactly what we expect from liberals so keep it up through the midterms.
@1:31PM Our entire neighborhood is going through a developer takeover, courtesy of the planning board and county council. We have had meetings with our council member as well as members of the board, submitted testimony and letters, etc. The county recently replied in writing to say that even though the developers are not complying with the law, the county doesn't care. The letter stated that the county believes we would lose if we challenged their position(s)/decision(s) in court, and so ... eff you! Yes, we have retained counsel. From @12:17PM
MoCo is quickly becoming the major cesspool for leftist politicians who enjoy laundering money to themselves and criminal buddies. They have no sense of fairness, logic, economics, nor morality
Along those lines, I inquired as to what it takes to place a speed hump on our block to enforce the 20 MPH speed limit. They replied that we need to elect a block captain who would collect the signatures of all block residents and forward them, along with a $500.00 nonrefundable check, for consideration.
The County Council Consistently Censures Constituent Concerns.
What do you mean "is quickly becoming?" You must be a new resident.
Yes, of course a couple $3M buildings being turned into $70M buildings will cost the county "billions in lost revenue." That makes so much sense.
You seriously think the council keeps getting reelected by exceptionally wide margins because no one likes what they're doing? You honestly think that's more likely than you simply being out of touch?
2:36. If what you say about the $500 fee is true I will be not only moving away, my daughter and son in law will be canceling a build in a 'very nice' section of CC. It's egregious. I will get on the phone Monday.
--Once a 'die hard' Liberal
5:05: Most people don't even know who is on the County Council, or what it does. A small group of voters is enthusiastic about their radical agenda; the majority are just voting for the D after the name.
5:02: Did you read the article? There's NO property tax revenue for 20 years under this scheme! Now what is your brilliant idea to fill that budget gap?
I've had it too, too much crazy.
BTW If you ask your council member for help on a pressing issue, by the time you get a token answer it is time for reelection.
By now, the fee will probably be even higher.
Battery Lane needs a block captain post haste, because if speed humps were ever needed anywhere, it's on Battery Lane from the BCCRS driveway entrance all the way down to Wisconsin Ave. Seriously.
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