Green Building Mandates: A Prod or a Barrier?

The city of Baltimore is well known for many things, its high murder rate, its rampant crack problem, being the filming location for the HBO program The Wire and perhaps moving into the future as a leader in the green building movement. The Baltimore of today is not the same as the Baltimore I played hockey in just 7 years ago. Patterson Park, the location of the ice rink, a neighborhood where cars were broken into and pocket change was stolen from cup holders, is now a neighborhood full of young professionals and beautifully remodeled homes. In recent years the city has been aggressively promoting green building practices and has now made their support of green building public. In August of 2007 the city implemented Council Bill 07-0602 which was phased in over two years with full compliance required by July 1, 2009. For an excellent discussion of the Bill see Stephen Del Percio's discussion located here.
Unlike legislation in many cities the legislation passed in Baltimore requires both public and private buildings to be built to green standards. However, until years when the city will release its Baltimore specific standards (which will be more flexible than LEED) and aimed at limiting runoff into the Chesapeake, promoting a cooler city through green roofs, and encouraging sustainable transportation alternatives the exact requirements for comply with the legislation are still unclear although a minimum of LEED Silver is required to obtain a building permit (there appears to be no enforcement mechanism for buildings that fail to obtain certification).
While Baltimore may miss the boat on many important issues the following quote from the Baltimore Sun indicates that the city leaders understand the importance of going green:
"It is important to include private, not only public buildings, because we all share the same resources," such as energy and water, said Andrew B. Frank, first deputy mayor for neighborhood and economic development. And "including the private sector in the green building requirements can elevate the design standard of the entire Baltimore building stock. Residents, organizations, and businesses looking to call Baltimore home will have the assurance that new buildings are built to a standard of excellence in efficiency and health."
In reading the Baltimore Sun article I found it very interesting that the real estate attorney's quoted appear to disfavor green mandates.
Stuart D. Kaplow, also a real estate attorney, said he didn't think the city should be mandating the standards. Developers, he said, are building green because they see the economic benefits. Mandates can deter smaller, more marginal and complex projects and put off developers in general. "The market will drive green building, with a prodding from government," he said.
The city needs to ensure it doesn't chase away investment, said Jon M. Laria, a real estate attorney and a coordinator of the Baltimore Development Workgroup, which represents city real estate professionals. Laria is working with the city on standards and said his community largely supports Baltimore's greening efforts.
"Most developers recognize the societal and even economic benefits of more sustainable development, and it's exciting to work in a city that is paying attention to these issues," he said. "The reason we have concerns about the green building law is that it goes too far too fast, by mandating LEED Silver, or a locally generated equivalent, while providing no incentives."
What do you think? Are green building mandates without an incentive a prod for green building or a barrier? I look forward to your input.