Maryland approves tax-incentive zones around 3 colleges

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Maryland has approved the creation of three tax-incentive zones around universities in the state.

The Maryland Department of Commerce authorized three Regional Institution Strategic Enterprise Zones, also known as RISE Zones, around Morgan State University in Baltimore, Salisbury University, and Montgomery College’s Germantown campus. These designations allow targeted businesses that expand or move into the area access to property and income tax credits.

“These important designations will help our outstanding higher education institutions unlock more of their economic development potential,” Gov. Larry Hogan said in a statement. “Strengthening Maryland’s economy is one of our administration’s top priorities, and this program plays a vital role in attracting new companies, encouraging businesses to expand, and creating jobs.”

Targeted industries for the zones, according to the state, include cybersecurity, engineering, and additive manufacturing companies.

The RISE Zone around Morgan State University includes 10 acres as well as the planned Northwood Commons redevelopment. Last month, the university announced plans to demolish the Northwood Plaza shopping center and complete a $50 million overhaul.

MLR Partners and MCB Real Estate, in partnership with shopping center’s current owners, will redevelop the site. Redevelopment plans call for roughly 100,000 square feet of retail and 20,000 square feet of office space. The development, which is expected to be delivered in 2020, will include a Barnes & Noble, Starbucks and offices for the school’s police and public safety employees.

Mark Renbaum, of MLR Partners, credited the state for creating the program and the Baltimore Development Corp., for pursuing the zone designation. The RISE Zone will be “very beneficial to the project,” he said, adding that it’s “helpful to all the different stakeholders that are involved.”

“It’s designed as a town center for northeast Baltimore City that will build upon the tremendous renaissance started by Morgan State University,” Renbaum said. “It is going to integrate the university community, and the community surrounding the university, into a bustling town center.”

Salisbury University’s RISE Zone covers 129 acres around the Eastern Shore campus, including downtown Salisbury and Peninsula Regional Medical Center. The city of Salisbury want to build stronger ties between itself, the hospital and the university.

The 28 acres designated as a RISE Zone around Montgomery College’s Germantown Campus cover the Pinkey Innovation Complex for Science and Technology. It’s hoped the zone will spark creation of an innovation district. Firms located in the designated area will have access to the campus cyber lab, the Germantown Innovation Center and Bioscience Education Center.