A divisive Baltimore County bill that would have enabled some mixed-use development projects to bypass County Council approval will be withdrawn, County Executive Johnny Olszewski Jr.’s office said Tuesday.

Instead, Olszewski and County Council chair Izzy Patoka will put forward a new bill that would empower council members to recommend districts in specific areas that could benefit from being revitalized. This could include “aging” communities, areas near public transit or employment centers. The bill would also offer incentives to include more affordable units in projects that receive financial support from county government, according to a Tuesday news release from Olszewski’s office.

In a statement, Olszewski celebrated the compromise.

“Baltimore County needs to act now and with urgency to revitalize aging communities, support housing creation and cultivate thoughtful, more transit and pedestrian-friendly neighborhoods,” he said. “We will continue doing all we can to build on Baltimore County’s legacy of sustainable smart growth and to empower residents to shape the future of their communities to ensure prosperous, thriving neighborhoods for generations to come.”

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The compromise bill comes amid a growing debate in Baltimore County over the future of Lutherville Station, a mostly vacant shopping complex adjacent to a light rail stop that a developer aims to convert into a mixed-use property with housing, retail and public green space.

Community members have rallied against the proposal, with some pointing to its possible effects on public infrastructure, school crowding and traffic and vowing not to compromise on the housing component. Others have argued that the county desperately needs more housing and risks missing out on economic growth if it allows community and council members to have a say over what gets built.

The county executive’s mixed-use bill, which will be withdrawn once the compromise bill is introduced, would have enabled projects including Lutherville Station to be considered by the county zoning board without having a County Council member introduce a resolution about it first. But Patoka and other council members, including Democrat Mike Ertel, spoke out against the measure, saying it whittled down their authority and did not give enough consideration to the community’s concerns.

With the new bill, a council member could target new mixed-use districts by changing the zoning code to supersede existing rules. The county’s 2030 master plan — which is scheduled for a final vote Tuesday night — would guide where those districts could be formed, according to the news release.

The compromise bill suggests that County Council members would rather discuss development in a case-by-case manner rather than grant new authority to projects all at once, said Klaus Philipsen, an architect, blogger and member of We The People, a community group that supported the mixed-use bill.

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The county suffers from a lack of walkable, attractive communities with a mix of uses, Philipsen said, and has a “glut” of commercial corridors that are quickly becoming obsolete. And Maryland’s housing shortage has only worsened as new projects, such as Lutherville Station, stall.

“The county [council] may feel they achieved a victory, but it is actually shooting in its own foot unless there is a strong resolve to truly add mixed-use all across the county ... no matter whether an individual [council] member may object to it for parochial reasons,” Philipsen said. “We need to see the bigger picture.”

Patoka, in a statement, said the new bill can spur economic development — but in a slower way.

“Combining data driven analysis with community sentiment is the right approach,” Patoka said.

Later Tuesday, council members passed the county’s master plan, a required guide for growth and development, with amendments. Republican Councilman Todd Crandell, who cast the lone dissenting vote, successfully removed all of the suggested redevelopment areas from his district.