The Board of County Commissioners of Cecil County met in regular session in Courtroom 1 at the County Office Building, Elkton, Maryland, on Tuesday, February 1, 2000.  The following members of the Board were present:

Nelson K. Bolender, President
Harry A. Hepbron, Commissioner
Phyllis Kilby, Commissioner

constituting a full Board.

The meeting was called to order by President Bolender at 7:00 p.m. and opened with the Pledge of Allegiance.

-         MINUTES – JAN. 11 & 18, 2000 –

The minutes of January 11 and 18, 2000, were approved as written.

-         PUBLIC HEARING – POS – CECILTON –

A public hearing was held on a Program Open Space application for the Town of Cecilton for excavation of the land for the ballfields, improvements to the entrance and Route 282, including engineering and inspection fees, sidewalks, curbing and gutters at the Cecilton Town Park.

Mr. Ed Slicer, Parks and Recreation Manager, advised that the Town of Cecilton has been working on the Cecilton Park and has done a good job of developing the park for the southern part of the County.  He stated the project involves a new entrance for the park and sidewalks.  There will be acceleration and deceleration lanes on Cecilton-Warwick Road.  The Town has completed a master plan for the project, as well as engineering.

Mr. Slicer advised that the total cost of the project is $48,500.00 with $36,375 being requested from the State and $12,125 being provided by the Town of Cecilton.

Mr. Ronald Rae spoke in support of the project.

Mr. John Bunnell, Mayor of Cecilton, stated he hopes the Town can proceed with the project and break ground in the Spring.

Motion was made by Commissioner Kilby, seconded by Commissioner Hepbron, and unanimously carried to approve the Program Open Space project for the Town of Cecilton.

-         COMMISSIONER COMMENTS –

President Bolender complimented the Roads Department in the clearing of snow.

Commissioner Hepbron also commended the Roads Department for the outstanding job that was done.

Commissioner Kilby reported that last Saturday she attended the annual meeting of the tributary strategies team.  She heard various speakers from the State, particularly from DNR.

-         PRESENTATION – ROOKIE DRIVER BUMPER SIGN SAFETY PROGRAM –

Sgt. Walter Campbell, of the Department of Motor Vehicle, gave a presentation on the Rookie Driver Bumper Sign Safety Program which began in July.  He stated the reason the program came into inception is that there were 290 drivers between the ages of 15 and 24 who were killed in the last four years.  The Maryland learner’s permit has been extended from six months to one year.  Applicants must have completed driver’s education with 40 additional hours of driving experience.  Sgt. Campbell stated there are three steps to a full license:  learner’s permit, provisional license, and full license.  A provisional license must be held for a year, and if a ticket is received the license will start again.

-         PRESENTATION – TAX INCREMENT FINANCING –

Mr. Paul Gilbert, Director of Economic Development, gave a presentation on tax increment financing which is a method of having industrial development pay for itself.  If an industrial prospect could consider locating or expanding in the County, except that certain infrastructure is needed such as water, sewerage, or an access road, the difference between the tax revenues brought about by the increased assessment due to the construction of the project and the original, smaller assessment, i.e. the tax increment, can be used to repay bond debt that was borrowed to finance the key pieces of infrastructure.  In effect, the development finances itself.

Mr. Gilbert presented the following example:  There is a 100-acre industrial parcel that is of interest to a major industrial prospect, who would construct a $25 million distribution center and create at least 400 jobs.  However, access to the parcel is poor, and a new road needs to be constructed.  The price of that road is estimated at $1 million.

If the existing, unimproved parcel has a present full market assessed value of $10,000 per acre, or $1 million in total, then FY00 real property tax revenues to the County are approximately $9,800.  If, however, the distribution center project is constructed then the post-construction real property tax revenues to the County would be about $245,000 per year.  The difference of about $235,000 is the tax increment.  Assuming that the 100-acre parcel is designated as a tax increment financing district, then the $235,000 generated as the incremental increase in property taxes may be dedicated to paying off the bond debt for construction of the access road which enabled the project to go forward in the first place.

If the industrial project and the TIF District are in a municipality which is supportive of the project, the municipality may also dedicate its real property tax increment to the repayment of the bond debt.  For example, a municipal tax rate of $1.00 per $100 of assessed value would generate existing taxes of $4,000 per year to the town on the existing unimproved property.  After construction of the proposed facility, the project could produce taxes of about $100,000.  The tax increment is $96,000 per year.

This would generate a combined tax increment of $331,000 per annum to provide for the repayment of debt on a $1 million access road.  Annual debt service on a 20-year bond at 5% is about $80,000.  With contributions to the debt on a 5/2 basis, the County would still collect more than $175,000 in new tax revenues, and the town would collect more than $70,000 per year.

Even in an enterprise zone where there are tax credits of up to 80%, one-half of the credit is reimbursed to the County and the town by the State.  So, the County’s tax increment, including the reimbursement, is, at worst, about $140,000 in new revenues, and the town’s is about $57,000.  After meeting the annual debt service, the two jurisdictions would still share almost $120,000 in net tax revenues.  Additionally, racking systems and other equipment are guaranteed to generate new personal property taxes, in many instances exceeding the revenues derived from the real property tax and the piggyback income tax should generate more than $150,000 annually.

Mr. Gilbert stated by most standards this is an excellent alternative way to finance improvements needed to attract new businesses.  This is not done speculatively but only when a company commits to a project.  The sale of bonds actually depends on the real estate deal occurring.  The improvement can be located outside of the TIF District so there is no confusion over who is in the District and who pays.  Payment of real property taxes, even in bankruptcy, is virtually a certainty.  The decision to support this type of financing and debt is quite localized to the extent that residents living in Cecilton should not feel that it is obligated to pay for a project that is more directly beneficial to, say, Perryville or Port Deposit.

-         PUBLIC COMMENT –

Mr. Roland Wills stated department heads need a legal system to back them up.

Mr. Stan Strencejewksi commented on the County attorney not following through with recommendations of department heads.
He feels that stormwater management waivers should be issued only in special circumstances.
In regard to Mr. Gilbert’s presentation, Mr. Strencejewski stated existing space should be used first.  Also, taxes should not be raised to put infrastructure in place.

Mrs. Chris Ronald thanked the Department of Public Works for their efforts in remedying the odor problem at the landfill.  She has noticed a vast improvement.

Mr. Fred Orr, Deputy Director of Public Works, stated additional flares have been installed.  There are currently 13 flares in place, and remote monitoring is still being considered.

Mr. Joe Carabetta stated the road crews have been working a lot of hours without sleep, and there needs to be a better system.
He asked about tax abatements in regard to the tax increment financing proposal, and Mr. Gilbert advised that tax credits are statutory provided for in the enterprise zone.

Mr. Carabetta commented on the dirt pile in Rising Sun stating the developer should be made to abide by the agreement.

Mrs. Jacque Broomell stated she agrees with Mr. Carabetta relative to the dirt pile in Rising Sun and there needs to be accountability.
She feels the appointment of Dwight Thomey as County attorney is a conflict of interest since he previously represented several large developers in the County.

Mrs. Broomell referred to the decision on the Thomasville stormwater management appeal.  She requested that Commissioner Hepbron abstain from voting on this issue since he has retained the services of Northern Bay.  She stated Northern Bay did work for Montgomery Brothers.

Ms. Diana Broomell asked about the tax increment financing.
She referred to the dirt pile in Rising Sun stating there should be a penalty for developers who don’t follow the law.

-         PERSONNEL ITEMS –

Ms. Linda Anguish, Director of Human Resources, appeared before the Board.  Upon recommendation by Ms. Anguish, motion was made by Commissioner Hepbron, seconded by Commissioner Kilby, and unanimously carried to accept the resignation of Donna J. Sampson, Temporary Seasonal Babysitter at the Domestic Violence Shelter, effective December 28, 1999.

Upon recommendation by Ms. Anguish, motion was made by Commissioner Hepbron, seconded by Commissioner Kilby, and unanimously carried to appoint James P. McBreen as part-time Janitor in the Maintenance Department at an hourly rate of $8.52.

-         PERRYVILLE – GROWTH ALLOCATION REQUEST –

Mr. Eric Sennstrom, Director of Planning and Zoning, advised that the Board is in receipt of a letter from the Town of Perryville requesting growth allocation for 40 acres of industrially zoned land in order to change the Chesapeake Bay Critical Area designation from Limited Development Area (LDA) to Intensely Developed Area (IDA).

Mr. Sennstrom stated the parcel was located in the corporate limits of Perryville at the time that the County’s Critical Area Program was adopted.  He advised that the request is consistent with the County’s Comprehensive Plan and Critical Area Program, as well as the Town’s Comprehensive Plan.

Motion was made by Commissioner Kilby, seconded by Commissioner Hepbron, and unanimously carried to approve the request of the Town of Perryville as described by Mr. Sennstrom.

-         DECISION – THOMASVILLE STORMWATER MANAGEMENT APPEAL –

Commissioner Kilby stated she does not think the applicant has proved conclusively that there will not be an adverse impact on the streams.  She feels the waiver should not be granted.  Commissioner Kilby stated the natural resources should be protected since they support tourism, industry, and economic development.

President Bolender stated he does not feel that the party who is objecting to the waiver has proven that what the Department of Public Works did was not legal.  President Bolender feels the Department of Public Works made the right decision.

Commissioner Hepbron stated the Board hires department heads to make these decisions.  They have the technical ability and background to deal with these type of issues, and the Board should rely on their expertise in these situations.

Motion was made by Commissioner Hepbron, seconded by President Bolender, and carried to uphold the decision of the Department of Public Works.  Commissioner Kilby is opposed.

A copy of the decision is incorporated as a part of these minutes.

-         PUBLIC WKS. AGREEMENT – THOMASVILLE-

Mr. Fred Orr, Deputy Director of Public Works, presented a Public Works Agreement between this Board and Thomas A. Gibney and Montgomery Brothers, Inc. pertaining to 548.27’ of McIntosh Drive, 600’ of Sterling Nesbitt Court, and 388’ of Get Around Drive in the subdivision known as Phase 1 of Thomasville located in the Sixth Election District.

Commissioner Kilby referred to a letter sent by the Office of Permits and Inspections to Mr. Montgomery stating several items that need to be corrected.  Also, there would be no further issuing of permits until the items are corrected.  Commissioner Kilby stated Mr. Montgomery has not corrected these items.

Motion was made by Commissioner Hepbron, seconded by President Bolender, and carried to approve the Public Works Agreement.  Commissioner Kilby is opposed.

-         DEEDS – WHEATLEY RD. BR. –

Mr. Orr presented Deeds between this Board and John D. and Barbara A. Young, The Estate of W. Frank Crane and Cora D., his wife, William S. Gibb, Gerald Ellis Hamm, and Harold E. and Dianna S. Demond for right-of-way acquisition for the Wheatley Road Bridge.

Motion was made by Commissioner Hepbron, seconded by Commissioner Kilby, and unanimously carried to execute the Deeds.

-         PUBLIC WKS. AGREEMENT – BEULAH LAND –

Mr. Orr presented a Public Works Agreement between this Board and Dorothy Hudler pertaining to 763.01’ of Dave Moore Boulevard in the subdivision known as Section 6 of Beulah Land located in the Ninth Election District.

Motion was made by Commissioner Hepbron, seconded by Commissioner Kilby, and unanimously carried to approve the Public Works Agreement.

-         BUDGET AMENDMENT NOS. 94-98 –

Motion was made by Commissioner Kilby, seconded by Commissioner Hepbron, and unanimously carried to approve Budget Amendment Nos. 94-98.  Copies of the Budget Amendments are incorporated as a part of these minutes.

Motion was made by Commissioner Kilby, seconded by Commissioner Hepbron, and unanimously carried to adjourn.

Alfred C. Wein, Jr.
County Administrator

APPROVED:
Nelson K. Bolender, President