Quarterly: Summer 2004 - GWCAR - Greater Washington Commercial Association of REALTORS

CBQ >> Summer 2004 Issue

Strategic Plan Approved

In late April, GWCAR testified at the Montgomery County Council's public hearing on a proposed "Strategic Plan for Economic Development" along with about 30 other individuals and organizations. GWCAR focused its testimony on a few keys sections that discussed businesses, jobs and growth in the county. Here is a portion of GWCAR's testimony:

Progressive Business Climate: GWCAR generally agrees with the goal to "cultivate a business climate that supports economic growth, new job creation and commercial development." We agree it is important to continue to focus on developing mixed-use buildings and revitalizing town centers. It is also extremely important to "engage the business community in the review of proposed business regulations, permits & taxes and in identifying their impact on local companies." However, we strongly urged the council to be careful with the implementation of this plan and not take any actions that will perpetuate the county's lack of competitiveness with the key surrounding jurisdictions. For example, of particular interest to the real estate industry are any further increases to the recordation tax and impact taxes. An increase in these taxes is detrimental to business expansion and economic development. The real estate development industry, which in addition to providing affordable office, industrial and retail space for Montgomery County businesses helps to create affordable housing through the construction of new homes and rehabilitation of old homes.

Finally, we agree with the "HIGHEST PRIORITY: Promote long-term expansion of the county's commercial facilities by adding adequate new commercial space on an annual basis equal to the average amount produced over the prior three-year period." We have some concerns with the language and implementation of the priority. GWCAR is concerned that this language might read as a cap on development. We suggest adding the words "at least" after "equal to" and before "the average." The county should allow the market to dictate the amount of commercial space needed each year and not place an artificial cap that will stymie the market. Also, many of the items listed in this section must be used as steps to achieve the highest priority. Expediting the permitting process is extremely important because time will kill all deals and the more cumbersome the process the harder it is to expand businesses growth.

On June 22, the County Council approved the final plan, which includes a 2 percent annual job growth goal. Only Councilmember Andrews dissented.