Baltimore Leaders Considering Tax Break For New Exelon Headquarters
Updated: Friday, August 2 2013, 09:22 PM EDT
City leaders will soon decide whether to grant another huge tax break to a major developer that could wind up costing taxpayers several millions of dollars.
Harbor East has plans to grow again and will soon become the headquarters of Exelon, the energy company that brought in $23 million last year.
The energy giant plans to build a 22 story skyscraper downtown, but developers also want to add retail, office and residential space.
However, the company is asking for a $107 million tax break that is expected to be approved by the mayor.
The tax break would come in the form of Tax Increment Financing - meaning the city would essentially take out a loan to help fund the project then use the developer's property taxes to pay down the load.
TIF's are typically used to help spur developing in blighted areas, which Harbor East is not.
The Baltimore Development Corporation gave preliminary approval to the tax deal for the project last week.