As some storefronts in Riverdale Park's town center continue to remain empty, the loss of Chips and Deli on Route 1 and the development of EYA properties in Hyattsville, Riverdale Park is looking for ways to draw businesses into town.

Councilman Alan Thompson (Ward 2) and the finance committee discussed earlier this month possibly giving business owners tax credits to open shops within town limits and to essentially keep current business owners in town.

Patch spoke with Thompson about the plan and when it might come into fruition.

Riverdale Park-University Park Patch: Can you explain how the tax credits discussion came up?

Alan Thompson: There has been a general level of frustration in the town about empty storefronts, particularly in town center, for a long time.  Some of the property owners are good about keeping their storefronts rented out, while others have left them empty for years.

Ward 1 resident Jack Jones brought up "land value taxation" as a possible solution years ago, and it was discussed by the council at the time, but not acted on (I reviewed it and thought it wouldn't work because the assessments for property - as opposed to improvements - was not consistent with the assumptions of the land value taxation model). 

This summer, inspired by a session I attended at the Maryland Municipal League conference, I realized that a way to encourage property owners to have their storefronts occupied was to give them a tax credit for doing so, and brought it up with the Finance Committee for review. 

We would, of course, try to implement it in a revenue-neutral way (the cost of the tax credit would be balanced by raising the increasing the tax rate on commercial properties. Owners of occupied commercial property would, in the end, pay less than now and owners of empty commercial property would, in the end, pay more than now).

Patch: Why do you think tax credits will help businesses stay or come to the area?

Thompson: I think that by financially motivating the property owners to have their storefronts filled, it encourages them to put more time and energy into finding businesses to be tenants.

Patch: Did the committee discuss details of the plan? If so, what are they?

Thompson: This was the first discussion, and the main decision was that we should ask the town attorney to let us know if there were any legal barriers to creating a tax credit like this. 

I think implementing a policy like this will be complicated, particularly by having to define what "occupied by a business" means.  Further complications will include properties that were occupied for only part of the year, different zoning categories and how to treat them, properties that are partially occupied, etc.

Patch: When will you bring it in front of the board?

Thompson: I think we will be discussing this in committee for several months at least before bringing it before the council.  There are a lot of details to work out.