Montgomery County planning massive tax-cut for developers as they raise taxes on you

This Thursday, Montgomery County will raise your taxes to the highest level ever. And next week, they will discuss the biggest developer tax cut ever. 

Awk-ward.

On Thursday, the Montgomery County Council is expected to unanimously approve an FY-2017 budget that raises your taxes to a record, all-time high. It will include a property tax hike so massive, it required a unanimous vote by the Council last week to exceed the County's charter limit on property taxes. And it will hike the recordation tax you will pay when selling your home, or even just refinancing your mortgage. Notably, the budget shifts the cost of school construction from developers to taxpayers.

But the Council isn't done helping developers, who account for over 80% of councilmembers' campaign contributions, yet.

The Montgomery County Planning Department is now proposing a massive tax cut for developers.

That is not a misprint.

Just as the County has rejiggered its traffic congestion measurements to reduce taxes for developers, now the County political cartel is proposing to do the same for school capacity and construction costs.

Three key school funding equations would be changed under the planning staff's recommendations, and would result in developer tax cuts up to 59.4%!

Here's how the scam will work:

New math will make it
appear fewer students
are being generated
by new development

First, much like the "new math" planners now legally use to make failing intersections and overburdened roads appear to pass traffic tests, planners are proposing to change the equation for student generation rates. The "new math" will base the forecast only on housing built in the last ten years, which will - surprise! - slash the student generation rate significantly (anybody remember a little thing called "The Great Recession"?). Just a quick glance at the "before and after" colored bars in the graph above shows you just how drastic the change will be (green represents the number of students forecast under the proposed new math).

Massive developer tax cut
number one

The new, lower student generation rate will be combined with a biennial recalculation of school construction costs, to - surprise again! - massively slash school facility payments for developers. For example, the elementary school payment for a mid-rise apartment unit is currently $2,838. Under the new tax cut, that ES payment would drop to $1,495. How about a high-rise payment for the high school level in Bethesda, Silver Spring or Rockville? It will absolutely plunge from $804 to $394.

Sounds like a sweet deal, right? "But, wait - there's more!"

Massive developer tax cut
number two

Impact taxes developers pay will also be lowered under the new biennial formula. As the planning staff acknowledge in their report, under the new formula, "all School Impact Taxes will decrease." The mid-rise apartment building school impact tax per unit would drop from $12,765 to an astoundingly cheap $4,659.

In an additional proposed change, the current .9 multiplier in the school impact tax would be removed. This would preserve the type of massive tax cuts proposed for all but single-family homes. Which would also further discourage developers from building single-family homes, which cannot be built in the same density as townhomes and apartment buildings, and therefore generate fewer students on a lot of the same size than multi-family housing.

Think back to recent development fights in places like Westbard, downtown Bethesda, Rock Spring, White Oak and Lyttonsville, as well as the Adequate Public Facilities battle royale in the City of Rockville. At the outset of many of those discussions, the County Council and Planning Board Chair Casey Anderson told us they were going to "start a conversation" about how they could allow the massive development their developer supporters wanted, and somehow provide the infrastructure that would be required to support it.

Would you have imagined at that time that the plan was actually a ruse to open up the formulas and instead give those same developers a massive tax cut?

Well, if you read my blog back then, you might have known something was up.

It's unlikely anyone has any doubts about how arrogant and patronizing the County Council and Planning Board are at this point. You can be sure there's much "mansplaining" ahead from both, as they try to educate us to understand schemes and treachery - er, sorry, "Subdivision Staging Policy" - so complex it is simply beyond the small mind of you, the citizen.

Are you ready for term limits yet?

The Planning Board is expected to hold a public hearing on the proposals, and the rest of the SSP, on June 2, 2016.

So, to summarize, this Thursday, Montgomery County will raise your taxes to the highest level ever. And next week, they will discuss the biggest developer tax cut ever. You can't make this stuff up, folks! This is what happens when you have a political cartel where government policy is for sale to the highest bidder. And more than 80% of the money is coming from developers.

Res ipsa loquitur.

First look: World of Beer in Rockville (Photos)

Here's a sneak peek inside World of Beer in Rockville Town Center. The restaurant a beer list numbering 500 brews is scheduled to open on May 30 at 11:00 AM. 

World of Beer is located at 196 E. Montgomery Avenue, on the ground floor of the Upton apartments (which has a public parking garage; the entrance is steps away around the corner from World of Beer on Helen Heneghan Way).

MoCo Council budget: So easy, a caveman could do it

As Paul Harvey used to say: "And now...the rest of the story." While the Montgomery County political cartel is congratulating itself on the biggest heist of County residents' money in history, it is indeed time for the rest of the story on the Montgomery County Council's FY-2017 budget disaster.

Being sold as an "Education First" budget, it is in fact exactly like every other budget this Council has passed, except costing you a lot more than ever before. Forget that the Council has just robbed your bank account, or is slamming the working family trying to refinance their mortgage with a recordation tax. The budget that pulls off the 100 Maryland Avenue equivalent of The Italian Job promises to flush $90 million more down the Montgomery County Public Schools toilet, where schools have been in decline since 2010 according to the report by the Office of Legislative Oversight.

Great. But how does that make any sense without a definitively new plan to spend it? The budget will reduce class sizes by 1 or 2 students at some schools. It will add more auxiliary personnel, not actual teachers. But that's it. There's no new strategy to tackle the achievement gap here, just more expensive deck chairs being added to the Titanic.

Where is the universal Pre-K? Where are the additional early education initiatives? Where are the new partnerships with high-wage employers? Hint, none of these sure-fire solutions to the achievement gap are in this massive tax hike budget.

We will only have standardized tests to gauge student results at this point. I agree that testing has been oversold in recent decades. But, ironically, by recently dumbing down its grading system and eliminating final exams, MCPS has only now increased the importance of standardized test scores. If all of the classroom work is going to be graded with the new powder puff grading scale, grades are almost certain to rise across the board. That's not improvement, nor is it how education works. Outside of MCPS, such tactics are correctly termed, "cheating."

As far as school construction funds generated, note that the Council is raising those funds from you, not from the developers who are creating the need for more classrooms and schools. They didn't have the guts to go after the developers who provide 80% of their campaign funds, but they were eager and ready to pick your pocket.

Moreover, the Council has just dug us deeper into the structural deficit hole that we already had no immediate ability to climb out of. By going so far over the Maintenance of Effort requirement, we will now be required to match or exceed that level of spending next year, and in perpetuity. This was not leadership. It was a reckless, irresponsible vote passed to cover the Council's fiscal irresponsibility over the last two decades.

Did the Council make "history," as they claimed? Yes, in two regards: They have finally triggered the ultimate tax revolt, by unanimously voting to exceed the charter limit. The brilliance of the Ficker Amendment that created that cap is that each councilmember becomes the deciding vote when all 9 agree to exceed the cap.

And secondly, Council President Nancy Floreen made history by giving the longest speech regarding the passage of a budget I've ever heard. Ms. Floreen and her colleagues should probably save their "emotional" speeches for the 2018 election, when they have to actually face the voters.

Most disgustingly, the Council is the only player in this budget that slithers away with no skin in the game. They didn't give up any of their pet projects or spending that goes towards their political patrons. They sure as heck didn't give up any of the money they funnel to their developer puppet masters.

All they did was pick the pocket of the taxpayer, rob your bank account, and kneecap County employees by breaking signed labor contracts the Council had agreed to pay. Even a caveman could do that. I've heard complaints from individual teachers, first responders and other County employees. But where are the comments from union leaders in the County? Where's the outrage? This was a horrible deal, and a horrible precedent for labor. If you want to limit wages, that's something you proactively do when you negotiate and approve labor contracts. Breaking contracts is beyond the pale.

Being an incompetent councilmember, and then robbing the taxpayer and County employees to make up for it, is not leadership. It is not ingenious. It is not wise. It is cowardice. It is impotence. It is contempt for your constituents. It is a firing offense.

The term limit petition proposed for the ballot this fall may give voters the chance to give at least a few of the pink slips this Council so richly deserves.

Report: MoCo traffic congestion costing you $1834 per year

The failure of the Montgomery County Council to complete the County's master plan highway system is costing each resident an average of $1834 per year, according to a report released this week by the national transportation research non-profit TRIP. You lose about 82 hours a year idling in traffic jams, the report says, and the incomplete road network is costing Maryland $4.1 billion dollars a year in lost productivity and wasted fuel.

How much fuel? 85 million gallons. Which translates into significant additional pollutants and greenhouse gases that would not exist if traffic could keep moving smoothly.

According to the TRIP study, Montgomery County is home to the worst bottleneck in the state, at the Capital Beltway and I-270 spur in Bethesda. The Council's failure to build a planned Potomac River crossing north of the American Legion Bridge, and the Midcounty Highway Extended (M-83) - among other unbuilt freeways - creates traffic jams averaging 12.3 miles in length at the spur, lasting an average of 168 minutes per day there.

TRIP's latest numbers on vehicle miles traveled show most commuters still aren't "getting out of their cars." Vehicle miles traveled haven't declined in Maryland - in fact, they've increased: 12% since 2000, and 2% in the last 12 months alone. Metro ridership has declined over the same period. The report forecasts that VMT will increase another 20% by 2030, requiring new highway capacity to meet the demand. 

VMT increases almost 1% for every 1% of added population in Maryland, a damning statistic for those who claim that infinite growth is possible in Montgomery County.

Other County bottlenecks caused by unbuilt highways on TRIP's list include the Beltway at Connecticut Avenue (unbuilt Northwest Freeway, Outer Beltway, Rockville Freeway, I-95 through D.C.) in Kensington and the Beltway at Georgia Avenue (the unbuilt roads mentioned for the Connecticut exit, plus the unbuilt North Central Freeway and Northern Parkway) in Silver Spring. Multiple other I-270 interchanges made the list, as well.

The report notes that a 2013 survey of corporate executives found that Highway Accessibility is the top factor - after skilled labor - that firms consider when relocating their headquarters. Montgomery County has failed to attract a single major corporate headquarters in almost 20 years.

"Increasingly, companies are looking at the quality of a region’s transportation system when deciding where to re-locate or expand," the report says. "Regions with congested or poorly maintained roads may see businesses relocate to areas with a smoother, more efficient and more modern transportation system." Intelsat reportedly was considering moving its D.C. headquarters to 4500 East-West Highway in Bethesda, but ultimately chose Tysons with its superior highway access with Express Lanes, and direct highway access to Dulles Airport. In the near future, there will also be direct Metro access to Dulles from Tysons, to boot.

"Highways are vitally important to continued economic development in Maryland," the report argues, "particularly to the state’s tourism, agriculture, energy and manufacturing sectors."

The only good news in the report is that Maryland Gov. Larry Hogan's emphasis on addressing failing infrastructure appears to be bearing immediate fruit. There were 97 bridges rated "structurally-deficient" across the state in 2012; that number has fallen to 69 during Hogan's first term.

“From Governor Hogan’s $2 billion investment in highways and bridges to innovative projects and practical design, Maryland is committed to improving safety and reducing hours lost every day to congestion,” Maryland Secretary of Transportation Pete K. Rahn said in a statement reacting to the TRIP report.

But without completing Montgomery County's master plan highway system, economic development and quality of life will continue to decline. “Without additional transportation funding, Maryland’s transportation system will become increasingly deteriorated and congested, the state will miss out on opportunities for economic growth, and quality of life will suffer,” TRIP Executive Director Will Wilkins said in a statement.

World of Beer sets opening date in Rockville

Beer lovers rejoice - there is now an opening date for the restaurant and bar promising us a selection of 500 brews. World of Beer will open on Monday, May 30, at 11:00 AM at 196 E. Montgomery Avenue in Rockville Town Center. It is located in the ground floor of the Upton apartments/Cambria Hotel and Suites building across from the Regal Cinemas.

East Rockville residents organize against Westmore bus depot

The second front of the battle to stop a Montgomery County Public School bus depot from being located in Rockville is taking shape in the Lincoln Park area of East Rockville. MCPS has proposed a second bus depot for the former WINX radio property at 1000 Westmore Avenue. Citizens have created an online presence to oppose the plan, similar to the Carver Coalition effort against a depot at that site.

Calling themselves the East Side Coalition, they now have a blog and their first post - blasting the idea of using Lincoln Park and East Rockville as a dumping ground for something no one wants. Mayor Bridget Donnell Newton and the City Council unanimously agreed Monday to write a letter opposing the Westmore initiative. Like the Carver plan, the Westmore site is adjacent to homes, and would degrade a historic district.

A Montgomery County Council worksession on the controversy over the plan to abandon the existing Shady Grove bus depot, and allow a developer to turn it into residential property, is now scheduled for June 21.

All nine County Council members voted to approve design and construction of the Carver depot on February 9, but are now backpedaling furiously in the face of strong and organized community opposition. On Monday, County Council President Nancy Floreen astonishingly blamed residents for the Council's own failure to find an alternative site.

Mayor and Council vote to deny Chestnut Lodge amendment

Chestnut Lodge in 2003

Rockville's Mayor and Council voted 3-2 to deny an amendment to the Chestnut Lodge Planned Residential Unit (PRU) agreement that would have permitted townhomes to replace a multifamily condominium renovation of the historic sanitarium. The building burnt down in a suspicious fire in 2009.

Councilmember Virginia Onley said she would not oppose the developer's plan, citing her concern that the City could face legal action in the case if it denied the amendment. Other elected officials, past and present, have asserted that the City's legal position is strong, in that the PRU remains binding and in effect, and required the original building to remain in order to execute the agreement.

Onley referred to comments by Twinbrook Citizens Association President Richard Gottfried during a public hearing earlier in the evening, in which Gottfried warned of the danger of "spot zoning" on the different topic of the Rockville Pike Neighborhood Plan. Gottfried mentioned the legal action now pending against the City for its decision in the EZ Storage case.

While she said she opposes building townhomes on the site, Councilmember Julie Palakovich Carr said the City is "held to certain legal standards" it may not be able to get out of in a case like this. She asked City staff to clarify its assessment of the criteria that is to be applied to the PRU and the proposed amendment. Zoning chief Jim Wasilak replied that, "We didn't see anything necessarily that was in conflict with the [Master] Plan." The site is in the W. Montgomery Avenue Historic District.

Mayor Bridget Donnell Newton, who has long made clear her opposition to the townhome plan, said approval of it would "undermine" the entire W. Montgomery Avenue Historic District. She also objected to the applicant's proposal to greatly increase the footprint of the building beyond that of the original Chestnut Lodge. An out-of-character development would result in the loss of a historic site of not just local, but national, importance, she argued. In particular, rear decks and garages would negatively impact the site itself, as well as surrounding homes in the historic district.

Following the Mayor's remarks, Councilmember Beryl Feinberg moved to deny the amendment, but was questioned as to her reasoning by Councilmember Mark Pierzchala.

Then, Pierzchala made his own motion to deny the amendment. His motion instructed staff to bring back a resolution to the Mayor and Council that states the townhome project is in conflict with the Master Plan. It stated that the historic district the site is in would be "profoundly affected" by the out-of-character development.

Pierzchala's motion also zeroed in on specific issues related to the PRU agreement. He said the agreement was "expressly conditioned" on the retention of the main lodge building. He added that any proposal needs to be "more consistent" with the existing PRU. The townhome concept "does not meet the spirit or the intent of the original understanding," Pierzchala said.

The motion passed 3-2, with Onley and Palakovich Carr opposed.

Photo courtesy City of Rockville