Arts and Entertainment District Application Booklet – Set Up



Smart Growth:

Arts and Entertainment Districts

Application

The Department of Business and Economic Development

Parris N. Glendening, Governor

Kathleen Kennedy-Townsend, Lt. Governor

David S. Iannucci, Secretary

Sandra F. Long, Deputy Secretary

Susan Smith-Bauk, Assistant Secretary, Division of Tourism, Film, and the Arts

If you need assistance in using this publication, contact the Division of Tourism, Film, and the Arts:

Voice: (410) 767-6299

TDD/TTY: Please use Maryland State Relay

(800) 735-2258

Large print and audiocassette versions are available upon request.

Readers and foreign language interpreters will be arranged with two weeks advance notice.

Those receiving State designation as an Arts and Entertainment District must comply with Section 504 of the Rehabilitation Act of 1973, as amended, and the Americans with Disabilities Act of 1990, which states that no otherwise qualified person shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination related to the Arts and Entertainment District.

NOTE: THE PURPOSE OF THIS MANUAL IS PROVIDE JURISDICTIONS THAT ARE APPLYING FOR ARTS AND ENTERTAINMENT DISTRICT DESIGNATION WITH SPECIFIC INFORMATION ABOUT THE APPLICATION PROCEDURE IN ORDER TO FACILITATE THE APPLICATION PROCESS. THIS MANUAL SHOULD NOT BE CONSIDERED A SUBSTITUTE FOR THE ARTS AND ENTERTAINMENT DISTRICTS STATUTE AND REGULATIONS.

Table of Contents

Letter from the Governor and the Lt. Governor……………………..…………………………4

Introduction……………………………………………………………………………………..5

Eligibility – Who can Apply?…………………………………………………………………..6

Applications Deadlines and Review Process…………………………………………………...7

Application and Checklist……………………………………………………………………8, 12

Q&A ……………………………………………...……………………………………………14

Annual Report Requirements………………………………………………………………..…21

Definitions……………………………………………………………………………………...22

Contact Information…………………………………………………………………………….24

Additional Resource Information………………………………………………………………25

Dear Friends:

The State of Maryland is proud to be the first state in the country to sponsor Arts and Entertainment Districts for economic development purposes beginning in 2001. This Smart Growth legislation enables local jurisdictions – municipalities, counties or a combination – to apply for state designations for the Arts and Entertainment Districts within their boundaries and offer tax incentives provided by the new law.

Evidence shows that a creative strategy to draw attention to arts and entertainment is good for residents, for business and for artists. Performances, festivals, art shows, and other forms of cultural arts generated $765 million into the state economy last year.

Nationally, the arts generate approximately $37 billion in economic activity; every year, workers in the arts industry generate $25.2 billion in salaries and wages. More than 1.3 million people are employed in the nonprofit arts industry. Twenty years ago New York Yankees’ manager Billy Martin shocked fans when he said that arts and cultural events drew a larger audience every year than all professional sports teams combined! More recently, a study of arts and culture in New England revealed that their events outdistanced professional sports by about 20 to 1.

Arts and entertainment districts are about more than just dollars and cents. The many cultural districts that have emerged around the country demonstrate that they stimulate neighborhood revitalization, improve the attractiveness and safety of areas, stimulate business activity in the evenings and on weekends, attract both residents and tourists, build the tax base, supplement educational opportunities, and provide programs to distressed neighborhoods – the list goes on and on. Arts and entertainment activities are catalysts that bring excitement and new business development while also improving the quality of life for the entire community.

We encourage you to incorporate arts and entertainment in your local economic development plan. This application booklet is designed to assist you in developing your arts and entertainment district proposal for this exciting new designation. It will also assist you in creating a framework for a future arts and entertainment proposal. Best of luck in your efforts, and thank you for helping to make Maryland a leader in cultural economic development.

Sincerely,

[pic] [pic]

Parris N. Glendening Kathleen Kennedy Townsend

Governor Lieutenant Governor

Introduction

What is an Arts and Entertainment District?

An Arts and Entertainment district has been defined by Americans for the Arts as a “well-recognized, labeled, mixed-use area of the city in which a high concentration of arts and cultural facilities serve as the anchor attraction.” Nationally they can be found in cities and towns of all sizes – each one is uniquely reflecting a local mission, history, and cultural development. Some districts succeed with thoughtful landscaping and signage, while others are involved in the renovation of existing buildings and attracting complimentary businesses. Many are found in downtown areas, but they can flourish in suburban, rural, and neighborhood locations as well. The components of a successful arts and entertainment district are its location, management, content and funding.

Arts and Entertainment Districts in Maryland

Maryland is the first state in the country to develop Arts and Entertainment Districts on a statewide basis. The benefits offered to selected districts include property tax credits for renovation of certain buildings that create live-work space for artists and/or space for arts and entertainment enterprises, an income tax subtraction modification for income derived from artistic work sold by “qualifying residing artists”, an exemption from the Admissions and Amusement tax levied by an “arts and entertainment enterprise” or “qualifying residing artist” in a district, and access to financial assistance from the Maryland Economic Development Assistance Fund. Arts and Entertainment Districts will further the goals of Smart Growth by locating within a Priority Funding Area and by carefully coordinating with local plans and policies for economic development.

Current designated districts include the Station North A&E District in Baltimore City, Gateway A&E District in Prince George’s County, encompassing four municipalities and the A&E Districts in the downtown areas of Cumberland, Hagerstown, Bethesda and Silver Spring.

Who Can Apply – Eligibility Requirements

County Applicants

A county may apply for designation of an area within its corporate or political boundaries as an arts and entertainment district, but if all or any portion of the area is within a municipal corporation, the governing body of the municipal corporation must consent.

❖ The County shall state in its application that, if the district is designated, it will offer a property tax credit and exemption from the admissions and amusements tax.

❖ Written consent from the municipal corporation must be obtained before submitting the application, and the consent document should be included as part of the application.

A. Municipal Applicants

A municipal corporation may apply for designation of an area if, before it applies, the municipal corporation:

❖ Obtains acknowledgement in the form of a letter or resolution from the County in which it is located that the income tax subtraction modification to be offered in the district may affect the county’s income. The county’s acknowledgment must be included in the application.

❖ Obtains a statement from the county as to whether, if the district is designated, the county will offer a property tax credit and the exemption from the admissions and amusement tax.

❖ The municipal corporation shall state in its consent, if the district is designated, what property tax credits it will offer and acknowledge the exemption from the admissions and amusement tax, and the income tax subtraction modification.

❖ Written consent shall be in the form required by local law or the governing body of the municipal corporation, or both.

B. Two or more political subdivisions may jointly apply if the proposed area is within each of their common boundaries.

Application Requirements and Review Process

Application Requirements:

All applications and cover sheets must be typed. The application shall be complete, meet all stated requirements and be properly signed by the chief elected officer or officers in the case of a joint application, or, if none, by the governing body of each of the political subdivisions. An application signed by the chief elected officer shall include a written expression of sentiment of the local elected governing body or bodies regarding the filing of an application for designation. This may be in the form of a letter or a resolution at the discretion of the local jurisdiction.

Applications must be received (not postmarked) by 5:00 p.m. on Monday, April 1, 2002, or Tuesday, October 1, 2002. Twelve (12) complete, signed copies* of each application will need to be delivered to:

The Secretary of Business and Economic Development

Division of Tourism, Film, and the Arts

217 East Redwood Street, 9th Floor

Baltimore, MD 21202

Attn: Carol A. Vitale, Senior Project Coordinator

* Please note materials will not be returned.

Review Process:

Staff Review: Applications will initially be reviewed for completion and adherence to regulations. An application must be complete to move forward in the review process.

Committee Review: An internal review committee comprised of staff members from the Department of Business and Economic Development, the Department of Housing and Community Development, and the Governor’s Office of Smart Growth will review the applications and forward recommendations to the Secretary of Business and Economic Development.

Secretary Review and Approval: Within sixty (60) days after a submission date, the Secretary may designate one or more arts and entertainment districts for a designation period of up to ten (10) years from among the applications submitted. The Secretary will notify all applicants of their status in writing within the 60 days. No more than one designation per county per calendar year may be selected. No more than six (6) designations per calendar year may be made. All decisions made by the Secretary are final.

The Secretary shall give the Comptroller of the Treasury notice of the establishment of an arts and entertainment district on or before July 1 before the effective date of the district’s establishment. The income tax subtraction modification is applicable to the taxable years beginning December 31 after the July 1 deadline.

Arts and Entertainment District Application

Note: Please present your application in the following format:

1. Table of Contents

2. Cover Sheet – Please provide the following information:

➢ Name of proposed A&E District

➢ Name of Local Jurisdiction Applying (city/county)

➢ Legislative District(s)

➢ Location of A&E District (county)

➢ Approximate Area of A&E District (acreage of total area)

➢ Contact Person’s Name (please include Dr., Mr., Mrs., or Ms.)

➢ Contact Person’s Title

➢ Contact Person’s Mailing Address, including city, and zip code

➢ Contact Person’s Telephone Number (please include area code, and direct line or extension number)

➢ Contact Person’s Fax Number

➢ Contact Person’s Email

➢ Website URL

➢ Signature of Chief Elected Official in jurisdiction (please also print name, give title, full address, and telephone number) and date signed.

3. Endorsement by Chief Elected Official – In the form of a letter on C.E.O.’s letterhead

Note on Maps: When including maps, please include an 8 1/2” x 11” copies (make sure they are legible) for the application copies. If they are color maps, color copies should be included. Make sure legends are included with the maps, and that all parts of the map are legible. Only one set of large maps needs to be included. Digital copies of maps may be submitted in addition to the paper maps in ESRI Shape or CAD file format – please note data projection.

4. Vicinity Map and plan of the proposed district indicating:

➢ Existing improvements and, if known, their historic significance;

➢ Existing transportation facilities;

➢ Existing arts, entertainment, and tourist facilities;

➢ Any proposed State or local capital improvements projects that affect the proposed district;

➢ Existing and proposed handicap accessibility features;

➢ Existing arts facilities/organizations;

➢ Make sure that Vicinity map reflects the written Narrative (especially for the description of the district boundaries - see narrative description).

5. Tax Map or Block Plat identifying:

➢ Properties in the proposed district, and their property valuations by class (a listing of properties in the district is encouraged);

➢ An indication of those properties publicly or privately held;

➢ An analysis of current building use or uses including their zoning;

➢ Zoning designations of the area;

➢ The availability of affordable housing, studio and performance space;

➢ Any other information that is pertinent.

6. Map showing geographic relationship to Smart Growth Priority Funding Area – (this can be included with Vicinity Map)

7. Written Narrative Must Include:

A. General

➢ Detailed description of the proposed district boundaries, including street names and directionals, sides of the streets, blocks, etc. that adequately describe exactly which properties are included in the district;

➢ Potential for affordable housing (rental or purchase), studio and performance space

➢ Details of proposed activities and time frames for completion;

➢ Explanation of goals and objectives of the proposed district and their expected outcomes;

➢ Description of how the A&E designation will benefit the proposed district, and if applicable, the surrounding area;

➢ Area to be served, identifying each governmental unit, i.e. town, county, etc. to be affected by the proposed district;

➢ Description of how the proposed district will coordinate economic development and Smart Growth initiatives with other economic development activities in the area (include other designations received, such as Hot Spots, Heritage areas, etc.);

➢ Description of how the proposed district complements the county/municipal economic development plan;

➢ Transportation/walking plans for the proposed district (may include signage, parking, shuttle buses, walking maps, etc.)

➢ ADA Accessibility features of the proposed district (individual enterprises as well as transportation and common areas);

B. Management Plan

➢ Proposed district leadership/management team and their demonstrated capability in providing the proposed district assistance, including experience of key staff members and persons who will be managing projects. Also note their anticipated roles and responsibilities, chain of command, and which entity (i.e. county, municipality, or CDC) has ultimate responsibility for the proposed district;

➢ Proposed budget for district management – note from where funding is coming;

➢ Plans to market the proposed district to artists, businesses, and tourists. Include the manner is which the state designation will be recognized in publications and other marketing efforts;

➢ Voluntary Registration procedures to be used for the artists and businesses that will be included in the district.

8. Listing of Artists and Arts and Entertainment Enterprises located in the area – not necessarily just those that are in the district, but in the immediate area. This information will establish what your local arts base is for the committee.

9. Local Standards that will be imposed by the local jurisdiction on the A&E enterprises or qualifying residing artists, whether initially or continuously, as a precondition to receiving any additional local benefits (such as special signage, publicity, local grants, etc.) not described above from the A&E District. Examples could be local annual reporting requirements of artists or enterprises to the district administrator, or a review process that might be required for permits by an historic commission, etc.

10. Evidence that the county, municipal corporation, or both in the case of a joint application, will offer the following incentives to arts and entertainment enterprises and qualifying residing artists if the request for designation is approved (Please be as specific as possible with the incentives offered):

(If local law requires a resolution, the resolution needs to be passed prior to submission of application, but it may include a statement that the resolution is rescinded if the proposed district does not receive the Arts and Entertainment Designation.)

➢ A property tax credit;

➢ Exemption from the Admissions and Amusement Tax;

➢ Acknowledgement of the potential effect of the income tax subtraction modification;

➢ Any additional incentives and initiatives the political subdivision may provide or establish to encourage arts and entertainment enterprises and qualifying residing artists to locate within the proposed district.

***Please also include a statement from the attorney representing the jurisdiction(s) certifying that the enclosed resolutions, ordinances, public hearings, etc., meet local requirements.

11. Evidence and certification that the political subdivision, before submission of application, held a public hearing with adequate notice and publicity on the application (Please include a copy of the public notice, an attendance list and either minutes from the hearing, or a resolution that has passed.)

12. If the size of the proposed district exceeds one hundred (100) acres, include a written justification of the size of the district.

13. A certification from the county or municipality that is applying that the entire proposed arts and entertainment district is located in a priority funding area as defined under State Finance and Procurement Article ss 5-7B-03, Annotated Code of Maryland.

14. Included as an attachment any reports, feasibility studies, visioning results, news articles, etc. that may have been generated regarding your proposed arts and entertainment district.

Arts and Entertainment District Application Checklist

___________ Table of Contents

___________ Cover Sheet

___________ Endorsement by Chief Elected Official

Existing Status of Proposed District (One large map with corresponding maps in application)

___________ Vicinity Map

___________ Tax Map or block plat

___________ Map showing geography relationship of district to Smart Growth areas

Written Narrative

___________ Brief Overall Description – include boundaries of district

___________ Affordable housing and studio space described

___________ Goals and timelines present

___________ Benefits of proposed district

___________ Area(s) to be served

___________ Coordination with Economic Development and Smart Growth initiatives

___________ Proposed Economic Impact

___________ Proposed Tourism Impact

___________ Maps reflect the written narrative whenever possible

___________ Traffic/Movement patterns throughout the proposed district

___________ ADA features

Management Plan

___________ Management Team

___________ Proposed District Budget

___________ Marketing Plan

___________ Optional Certification Procedures

___________ Listing of Artists and Arts and Entertainment Enterprises

___________ Local Standards

Local Incentives

__________ Property Tax Credit (specific)

__________ Admissions and Amusement Tax Abatement

__________ Recognition of Income Tax Subtraction Modification

__________ Additional Incentives

__________ Letter from Jurisdiction attorney verifying legal requirements have been met.

Other requirements:

___________ Evidence that a public hearing was held

___________ Justification for more than 100 acres

___________ Certification that all the properties to be included in the district are in priority funding areas defined under State Finance and Procurement Article ss. 5-7B-03, Annotated Code of Maryland.

Optional:

___________ Additional Reports/Studies

Responses to Inquiries from

Arts and Entertainment Districts Workshops

Property Tax Credits

1. What percent property tax credit is available in an A&E district, how long will it last,

and is it consistent over the term offered?

The local jurisdiction may choose any period of up to 10 years for the duration of

the property tax credit and any percentage up to 100%, but whatever it chooses

must apply to all qualifying taxpayers. For example, there could not be different

rates for space for qualifying residing artists than there are for arts and

entertainment enterprises. Please be sure to note the percentage and the manner

in which it is applied in the A&E application.

2. Will the property tax credits be granted to new buildings as opposed to buildings that

are just renovated?

No, there is no provision for property tax credits for new buildings in the statute.

3. Will an addition onto a building be considered a renovation?

All plans for additions to buildings for A&E District use will need to be reviewed by the Department Assessments and Taxation (D.A.T.) for use and proportionality of the project to ascertain the eligibility for the property tax credit. Please call Bob Young, of D.A.T. (410) 767-1191 for assistance.

4. What is the relationship between the number of years property tax credits may be

granted and the designation term?

The statute states that a property tax credit may not be granted for more than 10 years. Each jurisdiction may decide what percentage credit to offer and for how many years, not to exceed ten. Even if the designation of an A&E district expires, the property tax credit continues to be available for a qualified renovated property in the district for the designated term of the credit. The determination of the A&E designation is independent of the possible length of term of the property tax credits. The term of an A&E district designation is ten years with the possibility of renewal or expansion.

5. Can the property tax credit be granted for renovations exclusively for use by an arts

and entertainment enterprise?

Yes, a property tax credit may be granted for the increased assessment due to renovations on a manufacturing, commercial or industrial building that is located in an A&E district and is wholly or partially renovated for use by a qualifying residing artist or an A&E enterprise.

6. Is the property tax credit for real estate or personal property?

Real property only.

7. How substantial must renovations be to a business for the A&E property tax credits to

apply? (Example scenario – there is a café that renovates space or adds space for a jazz band. How much of the café, space-wise, must be dedicated to jazz band for the property tax credit to apply?)

In general, for the property tax credits to apply, the entity or café, for example, must meet the definition of an “arts and entertainment enterprise” which is statutorily defined as a for-profit or nonprofit entity dedicated to visual or performing arts. Hence, if at the completion of renovation, the establishment is not dedicated to visual or performing arts, it will not be considered as an A&E enterprise, and therefore, is not eligible for the property tax credit that applies in the A&E Districts Program. Ultimately, the local office of the State Department of Assessments and Taxation will determine on a case-by-case basis if an establishment is an A&E enterprise.

8. How is the property tax credit determined?

The State Department of Assessments and Taxation will determine the increased value of the renovated arts related space. Please note that personal property (example: special lighting) and some improvements do not substantially add value to the real property. The local tax credit percentage is applied to the taxes attributable to the amount of the increased value.

9. How are renovations assessed?

The Department of Assessments and Taxation will not be aware of renovations unless a building permit is obtained. If a residential unit were subdivided out of the overall property, then this one property would receive an individual assessment that would reflect the increased value for that particular unit. Otherwise, for renovations that require the use of a building permit and are on units that are not legally subdivided, the assessment will be made on the total building structure’s value. Further details may be obtained from your local office of Department of Assessments and Taxation.

10. Will the county be reimbursed half of the property tax credits just as the county is

reimbursed in the Enterprise Zone Program?

No, there is no provision for reimbursement by the State. The income tax subtraction modification reduces both State and county income taxes. The county and/or municipality property tax credit as well as the admissions and amusement tax exemption reduces county and/or municipality tax revenues.

11. Is the local municipal real property tax affected?

If a municipal corporation applies for an A&E district designation, it must offer the real property tax credit upon approval. If a county applies, it is advisable for the municipal corporation to offer the real property tax credit for the portion of the district lying within the municipal corporation, to improve the chances of the district being approved by the Department of Business and Economic Development. In either case, the local municipal real property tax credit would be affected.

Income Tax Subtraction Modification

1. How does the income tax subtraction modification work?

The income tax subtraction modification works in the following manner: Qualifying residing artists will not pay any State or local income tax on qualifying income (although they pay federal tax on it). Qualifying residing artists will deduct the qualifying income on the tax form before their state and local taxes are calculated.

2. Can a qualifying residing artist whose business is organized as a Limited Liability Company (LLC) take the income tax subtraction modification?

Even though an LLC is an entity, not an individual and therefore does not meet

the statutory definition of a “qualifying residing artist,, the state income tax law

affords special treatment to a one member LLC. If the LLC has only one member,

the LLC may be treated as in individual. Therefore, the LLC may be eligible for

the income tax subtraction modification.

3. If most of an artist's income is made inside an A&E district but the artist also makes some Internet sales, can the Internet sales be counted toward the artist’s income for the purposes of taking advantage of the income tax subtraction modification?

The Comptroller of the Treasury will determine this response and issue

Regulations.

4. Will the income from the sales made by a qualifying residing artist in a State

designated A&E district outside of the one in which the artist owns or rent property be counted toward the income tax subtraction modification?

The Comptroller of the Treasury will determine this response and issue

regulations.

5. For authors who write books, what constitutes a sale and how will it be verified?

The Comptroller of the Treasury will determine this response and issue

regulations.

Application or Programmatic Priorities

1. Does the size of the district hurt the application, especially if the boundary is going to exceed 100-acres?

No, in and of itself, the size of the arts and entertainment district will not hurt the application. However, if a district exceeds 100 acres, the applicant must provide justification that is reasonable and makes sense.

2. Because the Arts and Entertainment District Program designates districts in Smart

Growth areas, will this program be a priority for Smart Growth-related initiatives?

Almost all state financing programs are limited to Smart Growth areas, so this program will likely be treated like the other Smart Growth programs.

3. How will the Maryland Economic Development Assistance Authority and Fund

(MEDAFF) applications be prioritized?

MEDAAF applications are reviewed on a case-by-case basis.

4. When reviewing applications to designate districts what will be given priority

consideration?

Ultimately, the completion of required documents and quality of materials and responses are the most important aspects of the application. Specifically, all things being equal, applications that express the following will be more competitive: the support of the county and municipal corporation (if part or all of the district is in a municipal corporation); strong outline of the management plans (including plans to market the districts); districts that serve an existing population of artists and arts and entertainment enterprises or indication through the goals and objectives that the district will attract these populations.

Application Issues

1. If a jurisdiction is not awarded the Arts and Entertainment District during the first round of application submissions in April, may it reapply for the second round of applications in October?

Provided that from the April submissions no more than six A&E districts were

designated and no A&E district from the same county was designated, a

jurisdiction may re-apply by the second submission deadline.

2. If a jurisdiction wants to reapply during the second submission deadline because the jurisdiction was not granted an A&E District designation during the first application deadline, will the Department provide information on how the application could be improved?

Yes, the Department is willing to discuss how a jurisdiction can strengthen its application and if requested, provide technical assistance.

3. Is it acceptable to submit an application (by or on the deadline) if a resolution is

scheduled to occur shortly after the deadline?

No. The application must be received by the Division of Tourism, Film and the Arts either by April 1 or by October 1 and the resolution must accompany the application.

4. In the case of a municipal applicant, can the proof of the required acknowledgement from the county regarding lost revenue due to the subtraction modification be in the form of a certified return receipt and a carbon copy of the letter sent to the county indicating the proposal to create an A&E district and the possible loss of income from the county's tax base?

No, there must be a specific acknowledgement from the county.

5. Who signs the letter by the county verifying acknowledgement that the income tax subtraction modification to be offered in the A&E district may affect the county’s income?

Consent documents are in the form required by local law.

6. Is it worthwhile to mention how the A&E district complements a municipal economic development plan in the management plan?

Yes. In addition, it is required that the applicant describe how the proposed A&E

district complements the county economic development plan, should one exist.

7. Should artists who rent property in the district be mentioned in the application?

Artists who rent property in the district should be acknowledged in the application. The written narrative asks for information on how the designation will benefit the district and surrounding area. Also, the vicinity map asks for information of existing arts facilities/organizations.

State Resources

1. What is the State doing to market the program?

When the State designates an Arts and Entertainment District, a press release will be issued. In addition, the State has provided flyers at the conference sponsored by the Maryland Association of Counties and the State intends to continue the biannual workshops regarding the application, selection and regulation processes. Correspondence regarding the establishment of the new program has been sent to all members of the Maryland General Assembly, all economic development directors, local arts councils, heads of all municipalities, and all county executives and commissioners.

2. What kind of technical assistance does the State provide?

The State intends to provide biannual workshops regarding the Arts and

Entertainment Districts Program. Should assistance be needed on how to

complete an application or other requirements, a representative from the

Maryland State Arts Council or the State Administrator of the A&E Districts

Program will address these needs via phone or in person.

3. What is the definition of the area to be served as referenced in the manual

application?

The area to be served includes areas such as the arts and entertainment district itself, surrounding neighborhoods, governmental units or specific areas outside the boundaries of the A&E district. A strong application is one that includes service to the surrounding neighborhood. For instance, if the application states how certain institutions in the A&E district will attract residents to live in the neighborhood surrounding the district and increase the tax base, for example, then, the neighborhood should be considered as part of the definition of the area to be served. Additional examples include areas that are impacted by increased public transportation that are used by residents who do not live in the district or areas outside the boundaries of the district that benefit from education outreach initiatives on projects administered within the Arts and Entertainment district.

Miscellaneous Issues

1. If there is a jurisdiction where zones overlay one another for mixed use, can these zones for mixed-use satisfy the required residential zoning component that is necessary for a qualifying residing artist to rent residential real property?

Because zoning laws differ from county to county it is best to consult the

local office of the Maryland Department of Planning (MDP) to address this question. You may reference the local planning directors at the following State MDP website address: mdp.state.md.us.

2. If residential space is donated in-kind, can it be considered rented?

Some amount of consideration must be paid for a property to be considered rented.

3. Does Ocean City charge the admissions and amusement tax?

Yes. Details may be obtained at the Comptroller’s website at

p.state.md.us. Under the tax information sub-titles, select business taxes in the first screen, and admissions and amusement tax in the second screen.

4. If a businesses is already in an Enterprise Zone, what additional benefits can a business receive from being in an Arts and Entertainment District?

It is hard to compare and depends on what the local jurisdictions offer. The property tax credits are not closely related and should be considered separately.

5. What benefits apply to a gallery or non-profits?

An art gallery, much like any other arts or entertainment enterprise could

qualify for property tax credits, and the artists who show their work there might qualify for the income tax subtraction modification. Depending on the function of non-profits, if they pay property taxes, they may qualify for the property tax credit.

6. Please clarify on what annual schedule will A&E designations be made.

The statute states that the Secretary may not designate more than one Arts and Entertainment District in a county in any calendar year. Only six designations will be made in any calendar year. Designations will be made within 60 days of the two submission deadlines of April 1 and October 1.

Annual Report Requirements

Annual Reports must be provided by the jurisdiction by August 31 for the preceding fiscal year (July 1 to June 30). Final reports should include the following information:

A. Narrative (three to five pages in length)

1. List and describe Arts and Entertainment District accomplishments for the past fiscal year as they relate to the goals set forth in your application. (Information may included status of renovation and other capital projects; infrastructure improvements; marketing efforts; impact on tourism; vacancy rates; crime rate, etc.

2. List and describe proposed activities for the upcoming fiscal year.

3. List any additional local incentives offered to businesses and/or qualifying residing artists in the district.

3 Statistical

4. Number of artists certified

5. Number of property tax credits granted

6. Number of businesses eligible for the admission and amusement tax exemption

7. Vacancy Rates

*Vacancy rates for the first two years should be figures prior to designation. You may add an additional year(s) to show projected figures.

FY200_ FY200_ FY200_

Commercial ______ ______ ______

Industrial ______ ______ ______

Residential ______ ______ ______

8. Impact on property values

4 Supplementary Materials

9. Promotional materials: brochures; web site notices; any marketing collateral

10. Publicity: newspaper, magazine, TV/radio; web postings

Final Reports should be mailed to:

Secretary of Business and Economic Development

217 E. Redwood Street, 9th Floor

Baltimore, MD 21202

Attn: A&E District Project Coordinator

Definitions

1. Artistic Work – means an original and creative work, whether written, composed, or executed within the designated A&E District that falls within one of the following categories:

[pic] A book or other writing;

[pic] A play or performance of a play;

[pic] A musical composition or the performance of a musical composition;

[pic] A painting or other picture;

[pic] A sculpture;

[pic] Traditional or fine crafts;

[pic] The creation of a film or the acting within a film; or

[pic] The creation of a dance or the performance of a dance.

An artistic work does not include any piece or performance created or executed for industry-oriented or industry-related production, such as a commercial or advertising copy.

2. Arts and Entertainment (A&E) District - means a developed district of public and private uses that:

[pic] May be a portion of a county or municipal corporation or a district with a special coherence that crosses jurisdictional lines;

[pic] Is distinguished by physical and cultural resources that play a vital role in the life and development of the community and contribute to the public through interpretive and educational, and recreational uses; and

[pic] Is a contiguous geographic area of a county that is wholly within a priority funding area.

3. Arts and Entertainment Enterprise – means a for-profit or nonprofit entity dedicated to visual or performing arts, excluding adult entertainment.

4. Department – means the Department of Business and Economic Development.

5. District Incentives – means the financial incentives offered for an arts and entertainment district and a qualifying residing artist in an arts and entertainment district.

6. Political Subdivision – means a county or municipal corporation in the State;

7. Qualifying residing artist - means an individual who:

[pic] Owns or rents residential real property in an arts and entertainment district; and

[pic] Derives income from the sale or performance within the arts and entertainment district of an artistic work, excluding adult entertainment, that the individual wrote, composed, or executed wholly or primarily within the district, either solely or with one or more individuals.

8. Secretary - means the Secretary of Business and Economic Development.

9. State Calendar Year - means the period from January 1 through December 31.

10. State Fiscal Year - means the period from July 1 through June 30.

11. Submission Date - means April 1 and October 1 of any calendar year.

Contact Information

Ms. Carol A. Vitale

Senior Project Coordinator

DBED – Division of Tourism, Film, and the Arts

217 E. Redwood Street, 9th Floor

Baltimore, MD 21202

Phone: 410-767-6299

Fax: 410-333-6643

Email: cvitale@

Mr. Robert Young

Associate Director

Department of Assessments and Taxation

301 West Preston Street, Room 808

Baltimore, MD 21201

Phone: 410-767-1191

Fax: 410-333-5873

Email: ryoung@dat.state.md.us

Mr. James Dawson

Assistant Director – Legal

Revenue Administration Division

Comptroller of the Treasury

110 Carroll Street

Annapolis, MD 21401

Phone: 410-260-7645

Fax: 410-974-3456

Email: jdawson@comp.state.md.us

Website: p.state.md.us

Mr. Johns Hopkins

Maryland Building Rehabilitation Code Program – Smart Codes

Maryland Department of Housing and Community Development

Maryland Revitalization Center

1201 West Pratt Street, Suite D

Baltimore, MD 21223

Phone: 410-209-5800

Fax: 410-685-8270

Email: Hopkins@dhcd.state.md.us

Website: codes

Additional Resource Information

Arts and Entertainment Initiatives:

Theresa Colvin

Executive Director

Maryland State Arts Council

175 W. Ostend Street, Suite E

Baltimore, MD 21230

Phone: (410) 767-6555

Fax: (410) 333-1062

Email: tcolvin@mdbusiness.state.md.us

Website:

Small Business Assistance:

James H. McLean

Executive Director

Governor’s Office of Business Advocacy and Small Business Assistance Maryland Department of Business and Economic Development

217 East Redwood Street

Baltimore, MD 21202

Tel: (410) 767-6541

Toll Free: 1-800-541-8549

Website:

For small business start-ups: blis.state.md.us

Smart Growth Related Initiatives:

John W. Frece

Communications Director

Governor’s Office of Smart Growth

Maryland State House, Room 208

100 State Circle

Annapolis, MD 21401

Phone: (410) 974-5292

Fax: (410) 974-5093

Email: jfrece@gov.state.md.us

Website: smartgrowth.state.md.us

Maryland Department of Planning Smart Growth Link: mdp.state.md.us/smartgrowth/

Arts and Entertainment Models:

Ms. Pamela Holt

Executive Director

Maryland Citizens for the Arts

3697 Park Avenue

Ellicott City, MD 21043

Phone: (410) 203-1301

Fax: (410) 203-1317

Email: mdarts@

Website:

Maryland Economic Development Assistance Authority and Fund:

James Henry

Managing Director

Department of Business and Economic Development

Division of Financing Programs

217 East Redwood Street, 22nd Floor

Baltimore, MD 21202

Phone: (410) 767-6353

Fax: (410) 333-6931

Email: jhenry@mdbusiness.state.md.us

Other Resources:

Stephen Lafferty

Director, Office of Regional Assistance

Department of Housing and Community Development

Division of Neighborhood Revitalization

Maryland Revitalization Center

1201 W. Pratt Street, Suite D

Baltimore, MD 21223

Phone: (410) 209-5814

Fax: (410) 685-8270

Email: lafferty@dhcd.state.md.us

To obtain copies of the DBED or Comptroller’s regulations for the A&E Districts, or the original legislation, please call Carol Vitale, Division of Tourism, Film, and the Arts at (410) 767-6299.

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