ROBERT L. EHRLICH, JR., Governor                             Ch. 405

[(13)] (16) "Tax increment" means for any tax year the amount by which
the assessable base as of January 1 preceding that tax year exceeds the original
taxable value, divided by the assessment ratio used to determine the original taxable
value.

[(14)] (17) "Tax year" means the period from July 1 of a calendar year
through June 30 of the next calendar year.

(c) All proceeds received from any bonds issued and sold pursuant to this
section shall be applied solely for:

(1)     the cost of purchasing, leasing, condemning, or otherwise acquiring
land or other property, or an interest in them, in the designated development district
area or as necessary for a right-of-way or other easement to or from the development
district area;

(2)     site removal;

(3)     surveys and studies;

(4)     relocation of businesses or residents;

(5)     installation of utilities, construction of parks and playgrounds, and
other necessary improvements including streets and roads to, from, or within the
development district, lighting, and other facilities;

(6)     construction or rehabilitation of buildings provided that such
buildings:

(I)      are to be devoted to a governmental use or purpose;

(II)     ARE ABANDONED PROPERTY;

(III)   ARE DISTRESSED PROPERTY; OR

(IV)    WILL PROVIDE UNITS OF AFFORDABLE HOUSING;

(7)     reserves and capitalized interest on the bonds;

(8)     necessary costs of issuing bonds;

(9)     structured and surface parking facilities that are:
(i) publicly owned; or

(ii) privately owned but serve a public purpose; and

(10)   payment of the principal and interest on loans, money advanced, or
indebtedness incurred by the Mayor and City Council of Baltimore for any of the
purposes set out in this section.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2004.

Approved May 11, 2004.

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