Maryland Department of Business and Economic Development

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Maryland Department of Business and Economic
Development
Title 24 Economic Development Arts and
Entertainment Districts

• Utilizing the Arts as a Revitalization Tool for
  Smart Growth

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The Stats on Arts

• 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
• Twenty years ago, arts and cultural events drew
  larger crowds than all professional sports teams
  combined!

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Maryland Arts Stats

• In 2001, the Maryland Arts Industry contributed
  817 million to the States economy.
• 10.6 million people attended arts events
• For every 1 of direct spending of direct
  spending by audiences attending arts events,
  2.30 is generated on goods and services.
• 18,217 direct jobs, full-time and part-time, were
  generated by the arts industry
• 31 million in state and local taxes was
  generated by the arts industry.

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What is an AE District?

• Arts and Entertainment Districts have been
  defined by the Americans for the Arts as
  well-recognized, labeled, mixed-use areas of
  cities in which a high concentration of arts and
  cultural facilities serve as the anchor
  attraction.

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What is an AE District?

• Nationally, AE Districts are found in cities and
  towns of all sizes many are in downtown areas,
  but they can flourish in suburban, rural and
  neighborhood locations
• Each reflects a local mission, history, and
  cultural development
• Takes the form of a local marketplace
• To attract people, it must be seen as clean,
  attractive and distinctive
• The district should be culturally diverse.

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What is an AE District?

• Successful features include thoughtful
  landscaping and signage, renovation of existing
  buildings and attracting complimentary businesses
• Components of a successful AE District are the
  location, management, content and funding.
• The district should be
• Accessible Easy to navigate
• Dynamic A good mix of established, emerging and
  start-up artists and cultural organizations, and
• The whole must be stronger than the sum of its
  parts!

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AE Districts in Maryland

• In 2001, Title 24 was signed into law
• (Subtitle 05, Chapter 26),
• making Maryland the first state in the country to
  develop Arts and Entertainment districts on a
  state-wide basis.

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Summary of Title 24

• Authorizes the Secretary of the Department of
  Business and Economic Development to designate
  arts entertainment districts
• Requires local jurisdictions to grant property
  tax credits
• Provides an income tax subtraction modification
  for a qualifying residing artist

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Summary of Title 24

• Requires an abatement from the local admissions
  and amusement tax
• Authorizes financing from the Maryland Economic
  Development Assistance and Authority Fund for
  both arts and entertainment enterprises and
  projects

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Definitions

• A qualified residing artist
• Must own or rent residential real property in the
  AE district
• Must conduct an arts or entertainment business
  in the AE district
• Must derive income from the sale or performance
  of an artistic work created in the AE district

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Definitions

• The arts and entertainment district
• Must be contiguous
• Must be wholly within a Priority Funding Area or
  a Designated Neighborhood
• May cross jurisdictional boundaries to create a
  regional district with special coherence

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Secretarys Role

• Designates AE districts (within 60 days
  following the submission deadline)
• Provides the Comptroller notice of the
  establishment of an AE district on or before
  July 1 prior to the effective date of its
  establishment

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Selection Process

• Application Deadlines April 1 and October 1
• A review committee consisting of staff from DBED,
  DHCD, the Governors Office of Smart Growth, and
  the FORVM for Rural Maryland will make
  recommendations to the Secretary.
• No more than six designations will be approved
  per calendar year (one per county).

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Local District Responsibilities

• Comply with application requirements
• Offer tax incentives
• Designate a management team
• Conduct voluntary artist and AE Enterprise
  registration
• File complete annual reports on time

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Things to Consider

• Arts already in the area
• Available Building/Studio/Living space
• Available Funding for Projects
• Effect of Tax Credits on City, County
• Zoning Changes
• Potential Building Code Changes
• Management of the AE District
• Effect of potential AE District on Economic
  Development and Tourism

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Resources

• DHCD
• The Governors Office of Smart Growth
• The Governors Office of Business Advocacy and
  Small Business Assistance
• The Maryland State Arts Council
• MEDAAF
• Maryland Citizens for the Arts
• Comptrollers Office
• MD Dept. of Assessments and Taxation

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Current AE Districts

• Station North, Baltimore City
• Gateway, Prince Georges County
• Hagerstown, Washington County
• Silver Spring, Montgomery County
• Bethesda, Montgomery County
• Cumberland, Allegany County
• Cambridge, Dorchester County

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For More Information

• Contact
• Carol A. Vitale, Senior Project Coordinator, MD
  Division of Tourism, Film, and the Arts, DBED
  410-767-6299