Economic development office’s view differs from assessment out of Annapolis
For the Cumberland Times-News
OAKLAND — Maryland’s Enterprise Zone Program has helped fuel dramatic growth and private investment in Garrett County for more than a decade, according to the Garrett County Office of Economic Development. Contrary to conclusions released by the Maryland Department of Legislative Services deeming the program cost ineffective, the initiative has catapulted employment and capital expenditures throughout the county, according to county officials.
“We are extremely proud of our Enterprise Zone businesses. While the state may be of the opinion that the program is not cost effective, we have leveraged it to great results in Garrett County,” said Mike Koch, executive director of Garrett County’s Department of Community Planning and Development. “Maryland’s Enterprise Zone Program has increased employment opportunities for residents and assisted in the expansion of local businesses.”
Created in 1982 to combat national trends of overseas relocations and job loss, the program was designed to stimulate growth and improve employment within distressed areas of the state. Since its inception, Enterprise Zone businesses have qualified for specific tax credits in return for job creation and capital investments.
Within the county’s Enterprise Zones, the program has powered profitability, business growth and new industrial ventures. Between fiscal 2000 and 2012 in the Northern Garrett Enterprise Zone, employee numbers for the five businesses located there increased 26.5 percent. Capital expenditures totaled $39.4 million; real property assessments on physical improvements increased by 3,372.8 percent; and two of the businesses expanded multiple times.
“The Enterprise Zone program has expanded our economy in a powerful way,” said Koch. “Companies in the zone help us reinvent our rural economy, investing in capital expenditures and new employee hires. The Enterprise Zone program is the backbone of business growth in underserved areas across Maryland. It helps us stand tall and proud.”
The 12 businesses located in the Southern Garrett Enterprise Zone experienced similar growth. Between fiscal 2000 and 2012, employee numbers for these businesses increased 184.9 percent; business capital expenditures totaled $9.3 million; and real property assessments increased by 413 percent. Four businesses also expanded during this time span.
