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Department of Housing and Community Development

Hogan Administration Announces $15 Million for Redevelopment of Former Military Base in Washington County

Catalytic Revitalization Tax Credit Awarded for Redevelopment of Property into Retail and Housing

NEW CARROLLTON, MD (January 9, 2023) – The Maryland Department of Housing and Community Development today announced the second recipient of the State of Maryland’s Catalytic Revitalization Tax Credit, designed to rehabilitate formerly government-owned properties for economic and community development purposes. The redevelopment of Fort Ritchie in Washington County will receive a state tax credit worth up to $15 million for the comprehensive redevelopment and reuse at the historic site of the former military base.

“The redevelopment of Fort Ritchie will preserve a piece of history in Washington County, and be transformative for the surrounding community,” said Governor Larry Hogan. “This project will create jobs and housing opportunities in a rural part of the state.”

During World War II, the property in Cascade, Maryland, served as the War Department Military Intelligence Training Center. Fort Ritchie was closed in 1998 under the Base Realignment and Closure Act. The project will work in phases to adapt the existing historic stone buildings into retail and manufacturing, as well as provide new infill housing. The Maryland Department of Housing and Community Development also awarded the project a Community Legacy program grant earlier this year to turn a dilapidated structure at Fort Ritchie into an artisan village, as well as to preserve an historic Japanese Nisei mural inside.

Passed in the 2021 General Assembly session and signed into law by Governor Hogan, Senate Bill 885 created the Catalytic Revitalization Tax Credit. It supports the rehabilitation and renovation of a campus of properties formerly owned by the State of Maryland or the federal government, including: colleges or universities; public schools; hospitals and mental health facilities, and; military facilities or installations. These properties have typically been vacant for a significant time and often require mitigation of a variety of environmental and health hazards. 

“The Catalytic Revitalization Tax Credit is one way the Department of Housing and Community Development can foster economic growth and revitalize areas across the state,” said Acting Secretary Owen McEvoy. “The Fort Ritchie project is a great example of a worthwhile redevelopment that will serve the community.”

The tax credit was a recommendation of a study conducted by the Maryland Department of Planning. It is designed to fill financing gaps between the cost of rehabilitation and the market-rate value of the redeveloped property. Proposed revitalization projects related to the rehabilitation of these government-owned properties must foster economic growth, job creation, affordable housing, and other community improvements and services.

For more information about the Catalytic Revitalization Tax Credit and other revitalization and redevelopment programs, visit https://dhcd.maryland.gov.

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