The administration of Howard County Executive Allan Kittleman introduced plans this week to provide $90 million to help downtown Columbia's master developer, Howard Hughes Corp., finance development of the Crescent property along Broken Land Parkway.

The mixed-use project will bring nearly 1,600 rental units and more than 960,000 square feet of office space to downtown. MedStar Health, the first confirmed tenant of the development, is moving its headquarters as part of the project.

The administration's plan creates a special taxing district and proposes three bond sales over the next several years to raise some $128 million toward road improvements and three parking garages.

The package is the product of two years of negotiations and public hearings as the county grapples with how to build affordable housing in downtown Columbia and set the pace for development. Howard Hughes initially requested $171 million from the county roughly a year ago.

Tax increment financing is a tool in which the county uses property taxes generated by future development to pay off debt for funds given to the developer. If approved by the County Council, the deal would be the largest TIF in county history. Critics say TIFs must be heavily scrutinized to determine whether funds generated can cover legitimate public goals.

Nearly a year of negotiations culminated in the first deal for the Crescent development, which will fund a 2,450-space garage and improvements along intersections and other roadways affected by the new development. The developer plans to spend $618 million for the development of the Crescent area.

Down the line, the county plans to also fund a 598-space parking garage and a 2,000-space parking garage.

“Creating this plan has demonstrated the highest level of collaboration among county government, affordable housing advocates and the private sector, showing we will work together to produce the best results for residents,” said Kittleman. “Through this plan, Downtown Columbia will experience an enormous economic boost over the next 30 years.”

Stan Milesky, county finance director, cautioned that the total TIF could vary depending on the pace of development.

Officials say the project could produce roughly $408 million in net revenue, which will help fund “critical infrastructure needs” such as a new elementary school, a fire station, an arts center, a transit center and improvements to transportation.

The proposal is part of a series of bills before the council that, if passed, could transform the look, feel and nature of downtown Columbia, a planned community long envisioned as a thriving economic hub for the county.

A 40-year binding agreement with the developer — only the second in the county's history — lays out a plan for 900 affordable-housing units using a series of land transfers, fees and construction projects.

The agreement freezes zoning regulations and includes existing affordable housing finance programs such as the Low Income Housing Tax Credit Program. Another 110 units would be built outside the downtown zone in the former Patuxent Publishing building on Little Patuxent Parkway.

The administration contends the agreement represents a consensus between the administration, the developer, the county's public housing authority and the downtown housing corporation -- parties that have long debated how to ensure affordable housing is incorporated in downtown Columbia.

County Councilwoman Jen Terrasa filed a competing measure, also before the council next month, that is more in line with an initial proposal from the housing corporation that sought a 15 percent affordable housing requirement.

fwaseem@baltsun.com