The Anne Arundel (Maryland) County Council last week approved a bill granting the Live! Casino and Hotel (formerly Maryland Live!) up to million in property tax relief in exchange for property owner Cordish Companies building a larger convention center than originally planned.
The payment-in-lieu-of-taxes (PILOT) measure is based on a deal with Cordish to expand the convention center attached to its new hotel from 1,500 seats to 4,000 seats to house Anne Arundel County school graduations and other events. Schools currently hold large graduation ceremonies outside of the county. Under the agreement, the county will have use of the building for free.
Under the legislation, Cordish is forgiven property taxes of up to $1.2 million for 30 years, paying $1 a year. Cordish officials say the deal is a win for the county, because it would cost the county more to build a convention center than the property taxes would yield—even though a county auditor found the benefits of the PILOT bill to be $7 million less than the property taxes the county would receive over the 30-year period.
“This agreement grants a significant tax break to one business entity,” auditor Jodee Dickinson wrote in her report. “If the council approves a PILOT for a single business, there should be a significant public benefit, and the business should be a significant economic driver for the county, including additional county revenues.”
Greg Goodman, president of the Mills—owner of the Arundel Mills Mall adjacent to the Live casino—told the Capital Gazette the PILOT deal does indeed provide significant public benefit. “The Mills is very supportive of the PILOT to build a convention facility next to the Live Casino,” Goodman said. “The casino and mall are a destination. The convention center will spur visitation to that destination and economic development to the county, which is important to the mall and to the citizens of the county.”
