Lakeforest Mall Added to Gaithersburg Enterprise Zone

After state action Thursday, Lakeforest mall has been added to Olde Towne Gaithersburg’s enterprise zone, an effort to attract new development to underused properties.

Enterprise zones, through a program established in 1982, provide local property and state income tax credits to businesses that create jobs and make capital investments.

In a news release, Gov. Larry Hogan said that over the last five years, businesses that constructed in the state’s enterprise zones have made more than $13 billion in capital investments.

As of December 15, 2017, Maryland has 36 enterprise zones. Businesses located in the state’s enterprise zones have received roughly $45 million in property tax credits in fiscal 2018 based on more than $3 billion in capital investments made in fiscal 2017.

Maryland’s Commerce Department approves the enterprise zones, while local governments handle the administration. Businesses operating within an enterprise zone may be eligible for a tax credit towards their state income tax filings based upon the number of new jobs created, and a tax credit on their local real property taxes based upon their overall capital investment into a property.

Since opening in 1978, Lakeforest has struggled with high vacancy rates, low rents and disinvestments, the state said. The city hopes that the renewal and expansion of this enterprise zone designation will attract new development to underutilized properties.

Mayor Jud Ashman said that over the past 10 years, the enterprise zone has supported projects that have added to the vitality of the city’s historic commercial center. The expansion of the zone to include properties in and around Lakeforest, combined with the completion of the new I-270 interchange at Watkins Mill Road, will further enhance Gaithersburg’s ability to attract significant new investment, he said.

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