La Plata's Pinegrove: Who Really Pays for Growth?

By: Paul Guttenberg, Candidate for Town Council Ward I

In 2009 the Heritage Green Special Tax Zone was established in La Plata for a previously planned development “Heritage Green” that did not come to be. Today that same area is being developed as “Pinegrove”. I thought it would be valuable during this election cycle to give a clear explanation of how this special tax zone works.

What's Happening in Pinegrove?

Pinegrove is approximately 1,000 acres approved for development in the town of La Plata. Within the site master plan there is room for up to several thousand new residential units ranging from single family homes, town homes, multifamily apartment buildings, and senior communities. There are also plans for mixed use commercial properties in Pinegrove. This growth requires La Plata to make investments in streets, water and sewer to support this new area of our town. Many dozens of homes have already been built with associated roads and other town service infrastructure put in place. La Plata’s Planning Commission and Town Council are incrementally approving neighborhoods in phases within the Pinegrove development.

How Are Pinegrove Improvements Funded?

To pay for projects like new town streets, access to drinking water, and sewer systems and stormwater management in Pinegrove, the special tax zone originally created for Heritage Green is being used.

What is a Special Tax Zone?

Think of it as a way for the residents of a specific area to pay for the new infrastructure for their homes to be connected to town services. Property owners in Pinegrove pay a special tax, in addition to their regular property taxes. The new growth infrastructure being installed for the Pinegrove community within La Plata is paid for by the town issuing bonds (i.e. we took out a loan) and then repaying those bonds (loans) with the revenue from the Heritage Green Special Tax Zone. In 2024 the bonds issued totaled $15.7 million dollars to install roads and water management infrastructure in the Pinegrove section of La Plata.

How Does the Special Tax Work?

The amount of the special tax is calculated each year based on property values within the special tax zone (Pinegrove). This special tax is applied to property owners who reside in this district. This system was put in place so that the property owners pay for the initial improvements that directly benefit them. These special taxes are projected to be in place until 2053 when the towns bonds used to build the new town services infrastructure in Pinegrove are paid in full.

Why This Matters to La Plata Now:

Understanding the Heritage Green Special Tax Zone helps us understand how a significant portion of infrastructure growth related to town services is paid for in La Plata. It is a crucial mechanism for funding the already approved growth in Pinegrove by paying for necessary new infrastructure in a fair way.

This is important because the town finds itself in a period where it must address both the costs of new growth infrastructure and the costs of upgrading older infrastructure that would be needed even without significant growth in La Plata.

I hope this information helps you as we consider candidates and their approaches to issues before the 2025 general election for Town Council and Mayor. If you did find this useful, please share it with other residents.

If this sparks your interest to learn even more, the best source for reading more about infrastructure projects is the Capital Improvement Plan (CIP) within the 2025 adopted budget, available on the town web site.

Please plan to vote on May 6^th and I ask that you consider me, Paul Guttenberg for your vote as the Ward I councilman. Thank you.