"I know that these alternatives are viable," Frank said. "It is in our interest for the project to move forward sooner rather than later. I'm excited about the possibilities."
The goal of the federal program is to increase infrastructure building so more development can be done, explained Jason L. George, a Columbus, Ohio-based bond attorney with the firm Benesch. He called the new bonds among the "most exciting things we've seen," explaining that bond laws have not changed much in the past two decades.
Nationally, the federal government will allow $10 billion worth of bonds under this program, and it has allocated $20.5 million of that for Baltimore. So far, city officials are considering using the bonds only for Westport but ultimately extending them to other projects.
"It is a good tool," said Turner, the developer. "You know that famous word[s], 'shovel ready'? That is what we are." He estimates that the initial phase infrastructure work would employ 300 people and start by the end of the year.
Turner has finished knocking down buildings on the site and done some environmental remediation work. The property is now valued at $4.2 million, but after the first phase, when infrastructure is built, along with 438 homes and 300,000 square feet of office space, the value of the property is projected to grow to $140 million, said Kennan Rice, the president of MuniCap Inc., a public financing firm that is advising the city.
But some conditions must be met before using the recovery zone bonds. The city might need to pass legislation declaring Turner's development an area "with significant unemployment, poverty, home foreclosures or general distress," according to a presentation given to city officials by the law firm Ballard Spahr Andrews & Ingersoll.
Brainstorming about how to handle that designation at a recent meeting with other city officials, Deputy Transportation Director Jamie Kendrick suggested introducing City Council legislation that defines the entire city as a recovery zone.
The idea surprised Kelly Briscuso, a mayoral intern at the table. "Is there a negative connotation to that?" he asked. "If you designate the entire city as economically distressed? From a marketing perspective?"
Some nodded their heads, wondering if the City Council would be willing to sign off on such a designation, but Kendrick explained that it could be the swiftest way to ensure that the city can take advantage of the federal program.
City officials expect to decide how to use the bonds in the coming weeks.
Even without the federal help, Turner said in an interview that there are "a lot" of other potential funding sources for the infrastructure at his project.
"You know how tenacious I am," said Turner, whose other developments include the upscale apartment complex at Silo Point in Locust Point.
The project already benefits from a separate state designation - it is one of five areas called a BRAC zone where officials hope to spur development to house an expected influx of military workers.
Despite the current lack of market for TIFs, the city is still optimistic that investors will return. Frank said plans are in the works to send legislation to the City Council to authorize a TIF for Harbor Point, a planned 27-acre project along South Caroline Street backed by John Paterakis.
