The Waterfront at Westport

M A R K E T O V E R V I E W

FINANCIAL INCENTIVES Federal Opportunity Zone (“The Zone”): The Waterfront has been designated by the State of Maryland as a designated Federal Opportunity Zone. The Zone was established as part of the Tax Cuts and Jobs Act of 2017 (IRS code sub chapter Z), establishing a series of tax benefits for investors in The Zone. Such benefits include deferral of any capital gains invested under certain conditions, an increased basis at certain milestone points and exclusion of capital gains tax for appreciation of funds over a 10-year period. New Market Tax Credits: The Waterfront is located in a New Market Tax Credit-eligible district allowing projects to compete for below- market financing by meeting certain economic development and business and employment creation goals. Historically Underutlized Business (HUB) Zone: The Waterfront is located in a federally designated HUB Zone. As such, small businesses that locate in Westport may be eligible to receive federal contracting preferences. Westport is conveniently located between Fort Meade and the Aberdeen Proving Ground, which are expanding under the Base Realignment and Closure (BRAC) process. Base Realignment and Closure (“BRAC”) Revitalization and Incentive Zone: The BRAC program is used to focus growth in areas already designated for growth and provide local governments with financial assistance for public infrastructure in these well-defined areas. The program also aligns other state resources and programs to local governments and businesses located in the BRAC zones for a coordinated state effort on making the zones the focus of BRAC growth. The BRAC revitalization incentives offer property tax benefits based upon site specific infrastructure investments.

TRAFFIC AND PARKING A Transportation Impact Study (TIS) has already been completed by the Baltimore City Department of Transportation as part of the initial PUD process. The City will be forming a Middle Branch Transportation Management District to promote non-single occupant vehicle transit options including bicycling, walking, ride-sharing and public transit within the communities surrounding the Middle Branch. The impact fees will be utilized to further these initiatives. To encourage transit use, shared parking is allowed under the PUD for complementary uses. Developers must pay an additional fee of $1,000 for each parking space in excess of the PUD requirements. The Waterfront at Westport will be eligible to seek Transit Oriented Development (“TOD”) status by the Maryland Department of Transportation. TOD designation will produce eligibility for benefits in technical assistance, priority status for state project where appropriate and other state-supported programs. PARCEL DESCRIPTIONS The Owner is currently offering the Property in all or part, with Parcels L, M, N and Q (Area II) for immediate development. These four residential parcels will be the first undertaking and set the stage for the balance of development at The Waterfront at Westport. With more than 278 acres of new development slated for the Middle Branch in the next decade, the Baltimore City Planning Commission adopted the Middle Branch Master Plan in 2007 to help guide development along the entire Middle Branch and promote economic development that is balanced with the goal of restoring the ecology and neighborhoods of the Middle Branch estuary and waterfront.

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