By Alex McCrary
Past president of the
Bay Ridge Civic Association

On March 20, 2003, the community of Bay Ridge completed the purchase of 110 acres of forests and beaches just outside Annapolis.

In a transaction valued at more than $6 million, residents of this small, economically mixed neighborhood preserved a historic community, conserved the environmental benefits of a large parcel fronting the bay, and provided a blueprint for community-based efforts to control development.

At the heart of the effort were two elements:

Bay Ridge's 400 households showed an extraordinary commitment to the purchase. Residents, well off and of modest means, sacrificed to pay for it through taxes and donations, and gave generously of their time and services.

Government supported Bay Ridge's purchase because the community vision's coincided with public goals. State Smart Growth and environmental objectives were realized. So were county goals expressed in the Annapolis Neck Small Area Plan.

For the county, the purchase supported a law requiring application of modern subdivision standards to new development. It also reduced the traffic impact on surrounding communities and on the overstressed Forest Drive corridor.

The keystone of Bay Ridge's funding approach, available to other communities, was the use of its Special Taxing District to provide a strong source of repayment for a bank loan.

A taxing district gives civic associations a mechanism to assess each property owner. The assessment appears on the homeowner's annual real estate tax bill and is paid to the county. Banks can then turn to these collected funds for the repayment of a loan.

Bay Ridge maximized the use of its taxing district through a low-interest, long-term loan program. Federal funds -- administered through the Maryland Department of the Environment, in partnership with a bank -- are available for the conservation of land to protect water quality. So in Bay Ridge, 400 households, paying only $250 per tax account per year, were able to borrow $2.25 million.

Another strategy is available to communities: sale of some of the land for development. Sometimes communities view development issues as all-or-nothing propositions. But the sale of some of the land can become another source of funds for the acquisition. The community, as the seller, can then control the location and impact of any development.

Of the 110 acres Bay Ridge purchased, just two acres were sold in the form of four building lots. The location of the lots was chosen to spread the impact of development, enhance environmental benefits, and maintain the streetscape of the entrance road to the community.

Also, covenants were placed on each lot to ensure environmentally responsible but practical development of the land -- in perpetuity. Bay Ridge grossed almost $1.1 million from this source.

Individual contributions can also be a significant source of funds. In this case, the personal commitment of Bay Ridgers and members of surrounding communities was extraordinary.

In addition to the long-term debt incurred, Bay Ridgers, each giving what they could afford, donated another $1.1 million. Because the project's importance reached beyond Bay Ridge, almost 200 individuals elsewhere on the Annapolis Neck contributed an additional $34,000.

Fiscal issues limit government financial support for land conservation. But Bay Ridge is an example of a project that attracts support because public policy goals are met.

Project Open Space provided $450,000, demonstrating the governor's commitment to the environment and to community-based Smart Growth.

The Anne Arundel County Conservation Fund gave $137,700 to support conservation in an area targeted for preservation by the Annapolis Neck Small Area Plan.

State and local agencies also supported the project by cooperating with Bay Ridge and addressing its financial and development needs. The Maryland Environmental Trust and the state Department of the Environment, as well as Anne Arundel County's Land Use Office, Office of Planning and Zoning, Office of Law and Office of Finance all worked together.

The result: a plan that could be financed through our taxing district; that was salable to our lot buyer, Elm Street Development Inc.; and that met the underwriting requirements of our lender, The Columbia Bank.

We in Bay Ridge are excited about the happy outcome of our effort. We also hope other communities can use some or all of our plan to control and enhance the impact of development in their areas. With neighborhood commitment and the cooperation of local and state agencies, communities can determine the future course of development.