Maryland Constitution Article XI-I - City of Baltimore - Industrial Financing Loans
Maryland Constitution – Article XI-I: City of Baltimore – Industrial Financing Loans
Overview:
Article XI-I of the Maryland Constitution grants the Mayor and City Council of Baltimore the authority to make or guarantee loans for the purpose of industrial and economic development. This article is part of the broader economic development efforts in the City of Baltimore, aimed at promoting job creation, business retention, and revitalization.
Key Provisions:
Authority to Provide Loans or Guarantees:
The City of Baltimore is empowered to make loans or guarantee loans to individuals or private entities.
These loans are specifically for financing industrial projects, including the acquisition, construction, or improvement of industrial buildings or facilities.
Purpose:
The primary goal is to encourage economic development and job creation within the City of Baltimore.
These efforts are meant to attract or retain businesses, especially in areas that may be economically disadvantaged or underdeveloped.
Conditions and Regulations:
The exercise of this power is subject to laws enacted by the Maryland General Assembly.
The City Council must also adopt ordinances or resolutions to govern the process.
There are usually limitations placed on the total amount of loans or guarantees that can be issued.
Public Financing:
The loans or guarantees may be funded through revenue bonds or other financial instruments, but not general obligation bonds (which are backed by the full faith and credit of the city).
This ensures that taxpayer liability is limited.
Context and Significance:
This provision is an example of constitutional economic development powers granted to local governments.
It reflects a recognition of the need for local autonomy in addressing industrial decline and urban renewal.
It supports public-private partnerships in city redevelopment projects.
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