Smarter growth will expand Prince George's tax base

Capitol Heights Metro station is undeveloped. Image from WMATA.

Prince George's County Executive Rushern L. Baker III wants to raise real property tax rates by 16% to increase funding to public schools. The real way to boost Prince George's economy is to develop around its gateway Metro stations near the DC line.

Prince George's is home to the lowest median home values and highest property tax rates in the region, largely because of the low home values in its older, deteriorating communities that border the District of Columbia. Seven of the county's 15 Metrorail stations are in these gateway neighborhoods, but they all are devoid of any substantial transit-oriented development (TOD).

Improving existing home values will strengthen the tax base

Like many other suburbs, Prince George's County has historically been a bedroom community. The county's largest source of tax revenue comes from real property taxes, and 61% of taxable real estate is residential property.

It stands to reason, then, that even small increases in existing home values in the county would go a long way to raise revenues even without any major large-scale development.

Currently, median home values in the five Prince George's county subdivision areas bordering the District of Columbia fall 10-31% below the countywide median value of $269,800. If existing home values in these areas simply rose to that level, the county's taxable real estate base would increase by approximately $2.47 billion. That would add approximately $23.7 million annually in revenue to the county.

Of course, if the county got serious about developing the seven Metro stations located in these struggling communities (Capitol Heights, Addison Road, Cheverly, Southern Avenue, Naylor Road, Suitland, and West Hyattsville), real property revenues would soar much higher than the median.

Undeveloped transit station areas undermine economic growth

Shockingly, Prince George's current General Plan doesn't recommend any substantial growth around six of the seven Metro stations near the DC border over the next 20 years. (The Suitland station, next to the U.S. Census Bureau, is the exception.) Indeed, the county's planners believe there are currently "too many" Metro stations in the county and that developing all of them would "undermine economic growth."

More specifically, planners say that the six gateway Metro stations bordering DC, plus the four stand-alone MARC stations, plus all the planned stand-alone Purple Line stations should only account for 15% of the county's future growth in the next 20 years. That equates to fewer than 600 new housing units per transit station.

By contrast, the General Plan recommends putting 30-40% of the county's projected growth and development over the next 20 years—or up to 25,000 new housing units—far away from transit and mostly outside of the Beltway. This recommendation appears despite county-funded research that concludes that failing to focus on TOD puts the county "at a continued disadvantage relative to its neighbors."

Prince George's has continually squandered opportunities to focus its attention on revitalizing its neighborhoods inside the Beltway. Continuing to encourage scattered development away from transit has crippled the county financially, environmentally, and aesthetically.

Gateway communities can't wait 20 more years to redevelop

Old Central Ave at Southern Ave SE. Image by author.

The close-in Prince George's neighborhoods and Metro station areas near the DC line are likely the first thing the region's current and prospective residents think about when determining whether they would like to live and work in the county.

Until Prince George's County improves its gateway neighborhoods, it will be difficult for it to attract the region's best and brightest. The county can't wait another 20 years for that transformation to happen.

County executive Baker is rightly concerned with diversifying the county's revenue base, creating more jobs, and expanding the county's commercial tax base. To that end, he has advocated strongly for developing the end-of-line Metro stations at the Beltway's edge.

For example, he's called for the FBI to relocate its headquarters to Greenbelt Metro, for the state housing agency to relocate to New Carrollton Metro, and for a new regional medical center to come to Largo Town Center.

Likewise, the General Plan's strategy to direct 50% of future growth to the seven largest Metro stations (including the three mentioned above) plus National Harbor, and to create three "downtowns" at Largo, New Carrollton, and Prince George's Plaza, is sensible.

Still, the county's economic development strategy should also reach beyond downtown, and deeper inside the Beltway, to the neighborhood Metro stations near the District's edge. Most of the new development that the General Plan currently contemplates for outer-Beltway suburbia should instead be directed to these gateway areas.

Prince George's County cannot simply tax itself out of its last-place position in the region. Instead, its leaders need to become better stewards of the public's trust and the public's resources. The county's transit-rich gateway neighborhoods are economic engines ready and waiting to be fired up, but county leaders have to ignite the switch.

Prince George's must get serious about revitalizing its old streetcar suburbs. These vital neighborhoods can't be left to languish for another generation.



(This article is cross-posted on Greater Greater Washington.)