This story was updated at 5:33 p.m. Oct. 16, 2012.
A proposal to annex parts of Annapolis Road and Veterans Parkway into New Carrollton could mean more tax dollars coming into the city, officials said.
The city is looking to annex the right-of-way for a one-mile stretch of Annapolis Road, also known as Maryland Route 450, from its intersection with Riverdale Road to Ardwick-Ardmore Road and nearly one mile of Veterans Parkway, known as Maryland Route 410, from its intersection with Ellin Road to 4800 Veterans Highway.
“It is a business corridor, and that’s why we’re targeting it,” Graham Waters, New Carrollton’s acting city administrative officer, said during a Tuesday workshop meeting. “It diversifies our tax base. It keeps us from relying so heavily on residential property taxes.”
With permission to add portions of the state roads from the Maryland State Highway Administration, the annexation could allow business property owners on those state highways to opt into being a part of the city and begin receiving city services such as city police patrols, Waters said. The properties are currently on unincorporated Prince George’s County land.
The SHA has been in contact with the city since 2011 about annexing the rights of way, and the state will still be responsible for maintaining the condition of the roads, said Charlie Gischlar, an SHA spokesman.
“The administration has been approached by some businesses that said they would like to come into the city,” said New Carrollton Mayor Andrew Hanko.
Socrates Yakoumatos of Laurel owns and manages the Pancake House Family Restaurant at 7701 Annapolis Road, located in a section the city is thinking of annexing. Yakoumatos said though his business hasn’t been robbed in 24 years, he would still like to see the city’s police force frequent the area more often.
Yakoumatos also said annexation would coincide with the proposed Metroview development, a combination of apartments and retail planned alongside the state’s Department of Housing and Community Development headquarters that will move from Crownsville to New Carrollton in 2013.
“I would go for [annexation] because with the redevelopment of New Carrollton in the next 20 or 30 years it would work to its advantage,” Yakoumatos said of the city.
For the annexation effort to proceed, officials must get approval from businesses that combined would make up at least 25 percent of the targeted area’s total assessed value, Waters said. If the city were only annexing single-family homes, it would need a total of 25 percent of homeowners who were registered county voters saying they wanted to be a part of the city to move forward, Maryland law states.
Waters said the city receives about $4.5 million annually in residential property taxes but only about $470,000 in additional tax revenues, which includes $253,000 from city businesses. Waters said the city’s business tax revenue comes from the Shoppes at New Carrollton, the Plaza 30 Shopping Center and the New Carrollton Town Center — all of which are along Annapolis Road.
Waters did not have an estimate for how much additional revenue could come in if businesses requested to be annexed. Approximately 70 businesses face the parts of routes 450 and 410 the city seeks. There are no residential properties in the targeted area.
There are 17 police officers who patrol the city, including David G. Rice, New Carrollton’s police chief. Additional revenue coming from businesses that want to annex would go back into city services, Waters said.
Annexation for the legislation will be read at Wednesday’s City Council meeting and a Dec. 17 public hearing is anticipated, Waters said.
If there are no objections, the annexation would be approved Dec. 19 and go into effect in February, he said.