The Sykesville Town Council gave the go-ahead Monday to Raincliffe Center by introducing three ordinances and two resolutions that would pave the way for an Ellicott City developer to receive a state-Carroll County loan package.
The measures for the 32-acre industrial park passed unanimously, with Council President Charles B. Mullins abstaining because of a potential conflict of interest.
"I'm interested in possibly purchasing some of the Raincliffe property," he said. "I would have voted for it, but I thought it might look like I was trying to get something out of it."
A public hearing on the measures is set for the March 25 council meeting.
After the vote, David W. Moxley, project manager for developer Security Enterprises Inc. of Ellicott City, asked to withdraw his previous requestfor deannexation from the town. Since no action had been taken on the deannexation, Moxley was told to write a letter to the town withdrawing his request.
The new financing proposal, offered by Security Enterprises at a
special March 5 meeting with the council, included additional security on the $1.5 million loan package that will partially pay for the project.
"We got a better deal," Mullins said when asked why he and other council members changed their minds from a decision earlier this year that had all but killed the center. "We got a $150,000 line of credit and a $2 million additional loan in place. After the developer gets the $1.5 million (state-county loan), he will have to go to a bank for a $2 million loan as a first mortgage onthe property."
The ordinances authorize a $500,000 Maryland Industrial Land Act loan, a $250,000 county loan, and a $750,000 Maryland Industrial and Commercial Redevelopment Fund loan, on the creation ofa special taxing district for the center.
The resolutions create the tax district, impose a special tax on the center and set up a fund for the county and state loans.
The measures call for two tax districts to be set up because two taxes will be put on the center to cover the loans, Town Manager James L. Schumacher said.
The park isexpected to increase the town's industrial tax base by 25 percent, he said.