Developers of the HarborView condominium tower, part of a planned $600 million, harbor-front village on Key Highway, have reached a settlement with the state that lowers the property's assessed value by $24 million and resolves an earlier property tax dispute.
HarborView Properties Development Co. has agreed to a state offer to reduce the value of land surrounding the high-rise from $26.4 million to $2.4 million. The action lowers HarborView's property tax bill by around $500,000 a year.
But HarborView must still pay taxes on the state's original $18.9 million assessment of the 248-unit tower overlooking the Inner Harbor, said Owen Charles, of the state's Department of Assessments and Taxation.
The developer had appealed $17.1 million of the tower assessment in an effort to lower that amount, he said.
Since the tower opened last fall, about 24 condominium units have sold, with about 17 others under contract for sale, Stuart Hettleman, HarborView's executive vice president, said yesterday. The tower is the first of six proposed high-rises in what would become the city's biggest private residential development.
The state agreed to a $24 million reduction in the value of the land after reviewing the developer's appeals and finding that assessors had mistakenly included a waterfront promenade and other public areas within and near the tower, said Mr. Charles, who heads the city tax office within the state department. The $2.4 million assessment applies only to an underground garage, which will serve as the base for a second tower that developers plan to start building next year. As part of the agreement, concluded yesterday, the state will drop its pending appeal that began in 1991 when the 42-acre site was divided into seven lots.