Baltimore’s spending board approved $39.3 million more in tax increment finance bonds Wednesday for the city’s Harbor Point development, the final piece of public financing for the high profile waterfront project.
In 2013, the city approved $125 million worth of public financing for Harbor Point in what’s known as tax increment financing or TIF bonds. TIF bonds are designed to help ambitious developments get off the ground, typically by covering the costs of infrastructure improvements. Additional property taxes generated under a TIF go toward paying off the debt — instead of city coffers.
Until now, Harbor Point has used about $86 million of that bond financing, according to bond disclosure documents.
The five-member Board of Estimates unanimously approved the latest round of financing without discussion Wednesday. A memorandum of understanding with Harbor Point Open Space Corp. and the Waterfront Management Authority of Baltimore City also was approved to govern maintenance of parks and open space in the waterfront development.
