why does state center need to be redeveloped?

1. State Center is a major State employment center with the largest concentration of State agencies in Maryland employing over 3,000 people. 

2. It is the bridge between Midtown and West Baltimore in the heart of the Cultural Arts District and sits adjacent to University of Baltimore and the Maryland Institute College of Art.

3. It is one of the most transit-rich sites in the State with the metro, light rail, buses, and Amtrak a short walk away.

4. It is an isolated fortress of asphalt and obsolete buildings that divides and weakens the surrounding nine neighborhoods. The redevelopment project would enrich and unite these communities providing state of the art facilities, amenities and economic opportunity.

5. It is also a run-down, rat-infested space that was in dire need for an update ten years ago and provides deplorable working conditions for the state workers who are currently stationed there. It is a constant drain of taxpayer money, its condition is a total liability, and it is an inhuman work facility for our State workers.

What does the current redevelopment project entail? 

The plan would bring new, efficient state and private offices, residential condominiums and apartments, a grocery store, a school, parking and retail to the area. The multi-phase project would ultimate create: 

• A total of 5 million square feet of mixed use space
• 515,000 square feet of State leased space
• Up to 1.5mil of additional office space
• 250,000 square feet of retail
• Up to 2,000 residential units
• A 60,000 sf destination grocery store, located in the iconic armory
• Potential for a 50,000 sf charter school 

Is moving forward with the State Center project with this developer still possible?

• The short answer is, yes. We are following the advice of our legal team and doing what will give us the best chance to proceed with our community development plan. Our goal is to help the West Baltimore community move forward with a development that will enhance life for the neighborhood: this means new jobs, new shops, a grocery store, a school, and new opportunity.

Since Hogan took office, Baltimore has been denied meaningful State investment over and over again, specifically $4.4 billion:

Why shouldn’t we move on with a different developer?

• The RFQ from the State was published in 2004. We won the bid through a competitive proposal process in March 2005. It has been over ten years, 145 community meetings, 50 City Government meetings, 29 General Assembly meetings, 25 Board of Public Works meetings, 28 DGS/MDOT meetings, and 14 Executive Committee meetings to get to a fully approved development plan and a shovel ready phase one project. Beginning again with a new developer likely means entering a new decade long process. 

What is Mayor Pugh’s position on State Center? 

• We know Mayor Pugh wants to see this community move forward, to create more jobs, and to bring life back to these long neglected communities. She’s also said that she wants the workers at State Center to be working in Baltimore in a specific area, not spread out across different buildings. 
• When asked about State Center and the potential arena, Mayor Pugh said that she wanted to hear from the community regarding what they want to be developed in the area. We believe that the community needs to be seen and heard on this issue, and we’d like to lend our resources to helping make this happen. 

What about the rent rate being too high?

• The rent is exactly what it takes to cover the debt service on the space the State asked us to build for them. It is exactly to their build to suit specifications. 
• The State will invest $1.5m/year more in the form of rental payments for new offices in a mixed-use private development than what they currently spend wastefully in a dilapidated liability. 

In reality, it’s actually a great deal for the State because:

1. The State is paid a ground rent for every parcel that is developed.
2. They receive 7% of the profits on everything that is developed on the 28 acres.
3. They convert 28 acres of a non-performing State liability that does not pay $1 in taxes to a 100% private development that pays 100% new taxes to the State and City AND
4. At the end of the ground lease agreement, they get the property back.

• It is the classic paint by numbers Public Private Partnership that leverages private investments for the public good.
• If you include the benefit of all the additional taxes paid—the State’s own analysis showed it was a pure economic boon to both the State and the City.

How can the community help?

• Be seen and heard in support of the State Center redevelopment. Reach out to your elected officials and empower them to represent our position on this issue, namely Mayor Pugh. Baltimore City’s elected officials should be the community’s champions in Annapolis, and we think they will take that duty seriously.