Project Restore will come to rescue of downtowns, Main Street programs

By Greg Ellison

(July 1, 2021) Gov. Larry Hogan made a stopover in Berlin on Monday to unveil Project Restore, a $25 Million economic recovery initiative to revitalize downtown districts and Main Street communities throughout Maryland.

Hogan spoke in front of the Calvin B. Taylor House Museum after completing a brief tour of Main Street to shake hands with constituents and converse with small business proprietors.

“Today we’re here to announce the launch of Project Restore, a transformative $25 million initiative to help incentivize new business growth, create more jobs on Main Street and in downtown communities all across our state,” he said.

In thanking the numerous local elected officials on hand, including Mayor Zach Tyndall and Berlin Council members Jay Knerr, Shaneka Nichols and Jack Orris, Hogan also expressed gratitude to re-visit America’s Coolest Small Town.

“The sun always shines in Berlin,” he said.

Hogan applauded area merchants who successfully navigated the troubling economic landscape during the covid-19 pandemic.

“We just talked to some of the small business owners down the street who were … able to innovate and pivot during this really difficult time,” he said.

In many instances, business proprietors accessed funding through federal and state agencies to survive and even make improvements.

Photo by Greg Ellison
Berlin Police Chief Arnold Downing checks in with Gov. Larry Hogan during a tour of Main Street to announce the $25 million state economic initiative Project Restore on Monday.

“Hopefully, they’re going to be doing even more business now that we’ve got things back on track,” he said.

The continuing economic recovery in Maryland has outpaced most regions in the country.

“We’re creating jobs at a rate faster than the country and faster than 40 other states,” he said.

Maryland has recorded 13 consecutive months of job growth, with roughly 266,000 positions added during that period.

“More people are going back to work and more jobs are available than ever before in the history of the state,” he said.

Tempering the positive forecast is an increasing number of shuttered businesses in downtown areas and Main Street communities throughout the state.

“Berlin is doing a lot better than some of our other smaller towns,” he said.

In many instances, small communities with just a few vacant storefronts suffer irreparably.

“We have a choice, we can either accept empty storefronts as the new status quo or we can see it as an opportunity for growth and renewal,” he said.

Hogan said the state has now reached a significant crossroads as the covid-19 state of emergency is lifted.

“Despite the unprecedented challenges … the mission of our state government continues to be trying to keep Maryland open for business,” he said.

In total, Maryland has provided $2.1 billion in emergency assistance for residents and small businesses struggling to stay afloat financially during the pandemic.

“This year we enacted the RELIEF Act, a $1.45 billion package with the largest tax cut in state history to help struggling … families and small businesses,” he said.

Project Restore, which is being administered by the Maryland Department of Housing and Community Development, looks to provide financial incentives for business owners or developers that occupy or revitalize vacant retail properties.

“If you’re a small business that starts operations in a vacant storefront this program will provide you with up to one year of rental subsidies to help offset start up costs,” he said.

Rental grants max out at $2,500 monthly.

Additionally, investors or developers of vacant commercial storefronts in downtown regions or Main Street corridors will qualify for one year of sales tax rebates of up to $250,000 annually.

Businesses located in Baltimore City or any of the 149 “Opportunity Zones” statewide are eligible to receive the sales tax relief rebates for an additional year.

Photo by Greg Ellison
Gov. Larry Hogan makes his point to Berlin Mayor Zach Tyndall, while shadowed by Town Council members Shaneka Nichols and Jack Orris in conversation with Sen. Mary Beth Carozza (R-38) during a morning stroll down Main Street on Monday.

“These opportunity zones are fostering a new environment of economic opportunities in areas that need it most,” he said.

Hogan said the intent behind Project Restore is to drive investment through an innovative method to utilize federal relief funds.

“We’re not just committed to fully recovering from the pandemic but committed to coming back stronger and better than ever before,” he said.

Ocean City Development Corporation Executive Director Glenn Irwin said both the resort and Berlin are designated Main Street communities and have designated opportunity zones.

Irwin said one positive end is that Project Restore is providing rental assistance and sales tax rebates.

“It’s primarily looking at new businesses, which is interesting because when you look at the Boardwalk and downtown there’s been so many new businesses that came in,” he said. “That actually had to do with the number that didn’t return after last year.”

Traditionally, the initial year in operation provides the greatest challenges for most retail establishments.

“That first year is touchy,” he said. “I think his approach is right on because there have been so many new businesses coming online.”