As used in this Chapter: Board means the board of directors of the Silver Spring Business Improvement District corporation. Commercial tenant means a lessee or other lawful occupant, other than the owner, of nonexempt property within the District. Condominium means property subject to a condominium regime as stated in §11-101 of the Real Property Article of the Annotated Code of Maryland. Cooperative housing corporation means a corporation where each stockholder or member, by virtue of such ownership or membership, has a cooperative interest in the corporation as defined in §5-6B-01 of the Corporations and Associations Article of the Annotated Code of Maryland. Department means the Department of Transportation or another County department or office designated by the Executive to perform functions under this Chapter. District means the Silver Spring Business Improvement District established under this Chapter and covering the geographic area of the County described in Section 62-2. District corporation means the Downtown Silver Spring Business Improvement District, Inc. which was formed to operate the Silver Spring Business Improvement District in accordance with this Chapter. Homeowners association means an incorporated or unincorporated association with the authority to enforce the provisions of a declaration imposing a mandatory fee for the benefit of some or all of the lots in a development as defined in §11B-101 of the Real Property Article. Members of the district means the owners of nonexempt property in the District. Nonexempt property means all real property in the District that is not exempt from paying real property taxes except a: (1) condominium unit or cooperative housing corporation unit that exists on or before the date this law takes effect; (2) homeowner’s association; and (3) residential property with fewer than 4 dwelling units.

(a) Findings. The Council, after receiving an application to establish a district corporation and conducting a public hearing on the application, as required by §§12-608 and 12-609 of the Economic Development Article of the Annotated Code of Maryland, finds that a business improvement district would promote the general welfare of the residents, employers, employees, property owners, commercial tenants, consumers and the general public within the downtown area of Silver Spring. (b) Established. The Silver Spring Business Improvement District is established pursuant to §§12-601 to 12-612 of the Economic Development Article of the Annotated Code of Maryland. (c) Boundary. The Silver Spring Business Improvement District includes all land in the thirteenth election district of the County within the area described as follows: (1) Beginning at a point on the Maryland-District of Columbia boundary line at the intersection of the west right-of-way of Georgia Avenue with the Maryland-District of Columbia boundary line, and running in a northwesterly direction along the Maryland-District of Columbia boundary line, and crossing Sixteenth Street along an extension of that boundary line to its intersection with the west right-of-way line of Sixteenth Street; (2) Then in a northerly direction along the west right-of-way line of Sixteenth Street, crossing East-West Highway to its intersection with a southwesterly extension of the northerly right-of-way line of Spring Street; (3) Then in a northeasterly direction along that extension crossing Sixteenth Street to its intersection with the east right-of-way line of Sixteenth Street; (4) Then in a northeasterly direction along the northern right-of-way line of Spring Street, crossing Second Avenue, First Avenue, Georgia Avenue, and Alton Parkway, then southeasterly to its intersection with the northwest right-of-way line of Fairview Road; (5) Then in a northeasterly direction approximately 390 feet along the northwest right-of-way line of Fairview Road to its intersection with the westward extension of the southwest line of Lots 1 and 2, Block B, Section 4, Woodside Park, as recorded January 30, 1923, in Plat Book 3, Plat 244, among the land records of Montgomery County, Maryland; (6) Then crossing Fairview Road in a southeasterly direction along the southwest line of Lots 1 and 2, Block B, Section 4, Woodside Park, to its intersection with the southwest right-of-way line of Noyes Drive; (7) Then in a southeasterly direction along the southwest right-of-way line of Noyes Drive to its intersection with the northwest right-of-way line of Colesville Road; (8) Then crossing Colesville Road in a southeasterly direction to the intersection of the southeast right-of-way line of Colesville Road and the southwest line of the Silver Spring Public Library site, Parcel No. P959; (9) Then along that line to the southeast right-of-way line of Ellsworth Drive; (10) Then in a southwesterly direction along the southeast right-of-way line of Ellsworth Drive to its intersection with the common line of the Academy of the Holy Names site and the northeast line of Evanswood Sec. 1 Subdivision, also shown as the common lot line of Lot 9 and Lot 10, Evanswood Section One, as recorded March 2, 1932, in Plat Book 5, Plat 439 among the land records of Montgomery County, Maryland; (11) Then in a southeasterly direction along the northeast lot lines of Lots 1 through 9 as shown in Plat Book 5, Plat 439, recorded March 2, 1932, among the land records of Montgomery County, Maryland, crossing Pershing Drive along an extension of that line to its intersection with the southeast right-of-way line of Pershing Drive; (12) Then in a southwesterly direction along the southeast right-of-way line of Cedar Street; (13) Then in a southeasterly direction along the northeast right-of-way line of Cedar Street, crossing Wayne Avenue, to its intersection with the southeast right-of-way line of Wayne Avenue; (14) Then in a southwesterly direction along the southeast right-of-way line of Wayne Avenue for approximately 750 feet, to its intersection with the east lot line of Lot 24, Block 4, in Jordan’s and Smith’s Addition to Silver Spring Park, as recorded June 2, 1925, in Plat Book 4, Plat 301, among the land records of Montgomery County, Maryland; (15) Then in a southeasterly direction along the east line of Lot 24 to the southeast corner of Lot 24; (16) Then in a southwesterly direction approximately 15 feet to the northeast corner of Lot 14, Block 4, Jordan’s and Smith’s Addition to Silver Spring Park, as shown in Plat Book 4, Plat 301, recorded June 2, 1925, among the land records of Montgomery County, Maryland; (17) Then in a southeasterly direction along the east line of Lot 14, as shown in Plat Book 4, Plat 301, recorded June 2, 1925, among the land records of Montgomery County, Maryland, to the northwest right-of-way line of Bonifant Street; (18) Then in a southerly direction crossing Bonifant Street to the intersection of the southeastern right-of-way line of Bonifant Street and the northeast corner of Lot 5, Block U, Silver Spring Park, as shown in Plat Book 1, Plat 99, recorded April 4, 1909, among the land records of Montgomery County, Maryland, which is also the same as the northeast corner of Montgomery County Public Parking Facility 29; (19) Then in a southerly direction along the common lot line, which is the east line of Lot 5 and the west line of Lot 6 as shown in Plat Book 1, Plat 99, recorded April 4, 1909, among the land records of Montgomery County, Maryland, crossing Easley Street along the southern extension of that line to its intersection with the south right-of-way line of Easley Street; (20) Then in a westerly direction along the south right-of-way line of Easley Street approximately 50 feet to its intersection with the common lot line, which is the west line of Lot 7 and the east lot line of Lot 28, Block P, Silver Spring Park, as shown in Plat Book 1, Plat 99, recorded April 4, 1909, among the land records of Montgomery County, Maryland; (21) Then in a southerly direction along the common line of Lot 7 and Lot 28, Block P and the common line of Lot 18 and Lot 19, Block P, Silver Spring Park, as shown in Plat Book 1, Plat 99, recorded April 4, 1909, among the land records of Montgomery County, Maryland, crossing Thayer Avenue to the intersection of the south right-of-way line of Thayer Avenue and the common lot line which is the east lot line of Lot 5 and the west lot line of Lot 6, Block G, as shown on a “Map of Building Sites for Sale at Silver Spring,” as recorded May 23, 1904, in Plat Book 1, Plat 54, among the land records of Montgomery County, Maryland; (22) Then in a southerly direction along the common lot line of Lot 5 and Lot 6, Block G, and with an extension of that line to the south right-of-way line of a 20-foot alley dividing Block G and Block H, as shown on the “Map of Building Sites for Sale at Silver Spring;” (23) Then in a westerly direction approximately 50 feet along the south line of that alley to its intersection with the common lot line, which is the east line of Lot 4 and the west line of Lot 5, Block H, as shown on the “Map of Building Sites for Sale at Silver Spring;” (24) Then in a southerly direction along the common lot line of Lot 4 and Lot 5, Block H, to its intersection with the northern right-of-way line of Silver Spring Avenue; (25) Then crossing Silver Spring Avenue to the intersection of the southern right-of-way line of Silver Spring Avenue and the common lot line, which is the east line of Lot 4 and the west line of Lot 5, Block I, as shown on the “Map of Building Sites for Sale at Silver Spring;” (26) Then in a southerly direction along the common lot line of Lot 4 and Lot 5, Block I, crossing a 20-foot alley dividing Block I and Block J, as shown on the “Map of Building Sites for Sale at Silver Spring,” to its intersection with the south right-of-way line of that alley and the common lot line, which is the east line of Lot 4 and the west line of Lot 5, Block J, as shown on the “Map of Building Sites for Sale at Silver Spring;” (27) Then in a southerly direction along the common lot line of Lot 4 and Lot 5, Block J, to its intersection with the northern right-of-way line of Sligo Avenue; (28) Then along a southern extension of that common lot line of Lot 4 and Lot 5, Block J, to its intersection with the southern right-of-way line of Sligo Avenue; (29) Then in a northwesterly direction along the southern right-of-way line of Sligo Avenue to its intersection with the northeast corner of Lot 19, Block A, shown on a plat of Blair Section 1, recorded June 7, 1922, in Plat Book 3, Plat 229 among the land records of Montgomery County, Maryland; (30) Then in a southerly direction along the east line of Lot 19, Block A, to its intersection with the remainder of Lot 25, Block A, as shown on the plat of Blair Section 1, recorded June 7, 1922, in Plat Book 3, Plat 229, among the land records of Montgomery County, Maryland; (31) Then in an easterly direction approximately 15 feet to its intersection with the northwest corner of Lot 51, Block A, as shown on a plat of Blair Section 1, recorded November 16, 1935, in Plat Book 8, Plat 626, among the land records of Montgomery County, Maryland; (32) Then in a southerly direction along the west line of that Lot 51 to its intersection with the northern right-of-way line of Gist Avenue; (33) Then along a southerly extension of the west line of that Lot 51 to the southern right-of-way line of Gist Avenue; (34) Then in a westerly direction along the southern right-of-way line of Gist Avenue to its intersection with the eastern right-of-way line of Fenton Street; (35) Then in a southerly direction along the eastern right-of-way line of Fenton Street crossing Philadelphia Avenue, Isington Street, and New York Avenue to its intersection with the corporated limit line of the City of Takoma Park; (36) Then in a southwesterly direction with the corporate limit line of the City of Takoma Park crossing the northeast right-of-way line of the B&O Railroad to its intersection with the southwest right-of-way line of the B&O Railroad; (37) Then in a southeasterly direction with the southwest right-of-way line of the B&O Railroad to its intersection with the northeast right-of-way line of Blair Road; (38) Then in a northwesterly direction along the northeast right-of-way line of Blair Road to its intersection with an extension of the southeast line of Parcel One, Yost’s Addition to Silver Spring, as shown in Plat Book 85, Plat 8874, recorded March 13, 1968, among the land records of Montgomery County, Maryland; (39) Then in a southwesterly direction along that line to its intersection with the northeast line of Eastern Avenue, which is also the Maryland-District of Columbia boundary line; (40) Then in a northwesterly direction along the Maryland-District of Columbia boundary line to the point of beginning; and (41) Any lot that is partially within and partially outside of the areas under paragraphs (1) through (40).

(a) Establishment. The owners of nonexempt property in the District established a district corporation called the Downtown Silver Spring Business Improvement District, Inc. located at 8757 Georgia Avenue, Silver Spring, MD 20910, and applied to the County to manage the District. The application included: (1) a statement setting forth: (A) the proposed name and address of the district corporation; and (B) the street address of each owner of nonexempt property within the District; (2) a statement expressing the intent to establish a district corporation that is signed by: (A) owners of at least 51% interest in the assessed value of the nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation within the proposed district; and (B) owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation within the District; (3) a proposed 3-year business plan that contains: (A) the goals and objectives of the District; (B) the annual proposed business improvement district tax for the proposed district’s common operations and the formula used to determine each member’s district tax; and (C) the maximum amount and the nature of start-up costs incurred before the District’s establishment; (4) a tax assessor’s map of the geographic area of the District; (5) a list of the proposed initial board of the proposed district corporation; (6) the proposed articles of incorporation and the bylaws of the district corporation; and (7) for all nonexempt property within the District: (A) the name and mailing address of each owner; and (B) the most recent assessed value. (b) Condominiums or cooperative housing corporation may petition. (1) Notwithstanding any other provision of this Chapter, subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is located in the District may petition to join the district corporation. (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the District only if: (A) the condominium or cooperative housing corporation is governed by a board; (B) the board votes to join the district corporation; and (C) the board has a representative member of the board sign the appropriate documents required under subsection (b)(2) of this section. (3) For the purposes of the votes cast under subsection (b)(2) of this section: (A) a condominium or cooperative housing corporation shall be considered a single parcel; and (B) the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

(a) In general. A board of directors must govern the district corporation. (b) Membership. (1) Subject to paragraph (2) of this subsection, the board of a district corporation consists of nine members, appointed by the members of the District. (2) Appointment procedures. (A) Until the first meeting of the board of directors, the entire board must consist of the 8 directors constituting the initial board of directors, as set forth in the district corporation’s articles of incorporation. Thereafter, the entire board must be comprised of 9 directors. After the initial members, the directors must be elected by the members. At the time of election, the Board must be comprised of: (i) 3 representatives of an owner of property in the District assessed at more than $20 million; (ii) 2 representatives of an owner of property in the District assessed at $20 million or less; (iii) 1 representative of a business employing more than 50 full-time equivalent employees in the District; and (iv) 3 representatives of a business employing 50 or less full-time equivalent employees in the District. The Board must not include both an owner and a tenant of the same property in the District at the same time. (B) The first election of directors by the members must be held within 120 days after the date this law takes effect. Subsequent elections must be held annually as provided in subparagraph C. (C) The board must appoint a nominating committee, which must nominate a slate of candidates for each annual election. Members may nominate additional candidates at the meeting called for the purpose of electing directors. Members and persons other than members are eligible to become directors. Only directors may serve on a committee. (i) Prior to the first election of directors, the nominating committee must nominate three slates of candidates: one slate to serve as the first class of directors for the term of 3 years; one slate to serve as the second class of directors for the term of 2 years and one slate to serve as the third class of directors for the term of 1 year. At the first election of directors, the members must hold a separate election to elect each class of directors. (ii) At each annual election of directors thereafter, the successors to the class of directors whose term expires that year must be elected for the term of 3 years, so that the term of office of one class of directors expires in each year. (iii) For each election of directors, each member may cast no more than their total number of votes for any one candidate. Directors must not be elected through cumulative voting. (iv) Each director elected by the members must serve until his or her successor is elected, or until his or her earlier death, resignation or removal in accordance with the district’s bylaws. (c) Chair; officers. From among its members, the board must elect a chair and other officers. (d) Quorum. (1) A majority of the voting members of the board is a quorum. (2) The board may act on a resolution only by the affirmative vote of a majority of the voting members. (e) Compensation; reimbursement for expenses. A member of the board: (1) must not receive compensation as a member of the board; but (2) may be reimbursed for expenses incurred in performing the member’s duties. (f) Powers. The board must exercise its powers by resolution. (g) Annual report. The board must file an annual report with the Executive and the Council that includes: (1) a financial statement for the preceding year; (2) a proposed operating budget for the current fiscal year; (3) any proposed revisions to the business plan; and (4) a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.

(a) Earnings. The net earnings of the district corporation must benefit only the district corporation. (b) Powers. (1) Except as limited by its articles of incorporation, the district corporation has all the powers set forth in §§12-601 to 12-612 of the Economic Development Article of the Annotated Code of Maryland and this Chapter. (2) A district corporation may: (A) receive money from the County, the State, other governmental units, or nonprofit organizations; (B) charge fees for its services; (C) have employees and consultants as it considers necessary; and (D) use the services of other governmental units. (c) Use of powers. A district corporation must operate and exercise its powers solely to accomplish one or more of the legislative purposes of §§12-601 to 12-612 of the Economic Development Article of the Annotated Code of Maryland and this Chapter.

(a) Preliminary business improvement district tax roll. Within 10 days after the effective date of this law, the district corporation must provide the Executive and Council with a preliminary business improvement district tax roll. (b) Imposition of business improvement district tax. (1) The Council must impose a business improvement district tax to provide funds for the operation of the District. (2) The Council must impose on members of the District the district tax at a rate specified by the board and approved by the Council. (3) The tax imposed under this subsection must not count against the limits on the ad valorem weighted tax rate on real property in Section 305 of the County Charter. (c) Collection. The district tax must be collected in the same manner as real property taxes are collected and distributed each quarter to the District. (d) Reimbursement for collection costs. The district corporation must reimburse the County for the costs incurred in collecting the district tax. (e) Miscellaneous Revenue. All other revenues collected by a business improvement district corporation, including charges for services and private contributions, must be used to benefit the district corporation.

(a) In general. The district corporation must provide public services and facilities in the District that are: (1) primarily of benefit to the property and persons within the District rather than to the County as a whole; and (2) in addition to services and facilities that the County provides generally. (b) Services. The district corporation must provide services that include promoting and programming public interest activities that benefit both residential and commercial interests of the District (and which may incidentally benefit neighboring communities). (c) Insurance. The district corporation must secure reasonable and appropriate insurance for its activities

(a) Expansion by the District. The District may expand the geographic area of the District if: (1) a petition for inclusion is submitted from: (A) owners of at least 51% interest in the assessed value of the nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district; and (B) owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district; (2) the petition under paragraph (1) of this subsection is accepted by a majority vote of the board of the district corporation; and (3) the appropriate documents, as applicable, are submitted under §12-608 of the Economic Development Article of the Annotated Code of Maryland and a hearing is held under §12-609 of the Economic Development Article. (b) Expansion by condominium or cooperative housing corporation. (1) Notwithstanding any other provision of this title and subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is in the proposed expanded geographic area of the District may petition to join the expansion. (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the expansion only if: (A) the condominium or cooperative housing corporation is governed by a board; (B) the board votes to join the district corporation; and (C) the board has a representative member of the board sign the appropriate documents required under §12-608 of the Economic Development Article. (3) For the purposes of the votes cast under subsection (a)(1): (A) a condominium or cooperative housing corporation must be considered a single parcel; and (B) the decision reached by the board must constitute the vote of the condominium or cooperative housing corporation.

(a) Review; development of procedures for evaluation. The Executive must: (1) review the effectiveness and desirability of continuing the district every 3 years beginning from the time this Act takes effect; (2) develop by method 2 regulation policies and procedures for evaluating the desirability of continuing the District; and (3) recommend to the Council whether the District should continue. (b) Effect of disapproval. If the Council adopts a resolution disapproving of the continuing existence of the District: (1) the District must cease to exist as directed by the Council; and (2) the district corporation must continue its existence only as long as necessary to terminate operation in a reasonable manner.