GOVERNOR O’MALLEY UNVEILS PLANS FOR FIRST PHASE OF STATE CENTER REDEVELOPMENT

Phase One of Redevelopment to create New Office and Retail near Transit Hub and Support 1,200 Construction Jobs and Attract Another 800 Permanent Jobs in the Heart of Baltimore City

BALTIMORE, MD – Joined by local officials, construction workers, community leaders and others, Governor Martin O’Malley announced plans for the first phase of the landmark State Center redevelopment project in the heart of Baltimore City. Pending Board of Public Works approval tomorrow, the State will lease 500,000 square feet of newly developed office space in the first of two new buildings to be built on the 28-acre site by a state-selected private development team. The five-phase, 15-year redevelopment is the culmination of six years of planning, and is expected to bring nearly 10,000 jobs during the construction phase and more than 5,400 permanent, private-sector jobs to the heart of Baltimore City when the project is complete, in addition to more than 4,800 indirect and induced jobs upon the project’s completion.

“This is the beginning of an ambitious public-private partnership that will transform a stagnant, government office complex into a vibrant, walkable, ‘green space’ that will link nine surrounding communities, revitalize a key part of Baltimore City, and bring thousands of private-sector jobs to the heart of Baltimore,” said Governor O’Malley. “The state commitment to lease office space opens the door for the development team to seek the private funding necessary to build the project, a project that will assist Maryland’s economic recovery by supporting jobs and attracting new business to the area with work beginning this fall.”

The entire State Center redevelopment, a five-phase, 15-year plan, will create 9,403 jobs during construction and 5,439 permanent, private-sector jobs when the project is complete. An additional 4,862 indirect and induced jobs will be added upon the project’s completion.

“The O’Malley-Brown administration has been focused like a laser on job creation in Baltimore and throughout Maryland,” Mayor Rawlings-Blake said. “The State Center redevelopment is a tremendous opportunity for Baltimore, providing more job opportunities and new investment. The City of Baltimore will continue to work in strong partnership with the State to move this exciting project forward.”

The State Center redevelopment transforms an out-dated, 28-acre concrete complex valued at $1.8 million into multi-million dollar retail, commercial and residential transportation oriented development where the State is projected to be $144 million in the black by year 20. This is made possible by the use of the public private partnership which includes a projected $28 million in parking revenue, $30 million in ground rents and shared profits, and $160 million in new state taxes over the first 20 years of the project.

Phase One of State Center Redevelopment

The $215 million Phase One development at State Center will include two new office buildings and a parking garage. In addition to the 500,000 square feet of office space, the two buildings combined will include 70,000 square feet of street-level retail space, including a grocery store that the has been a priority for the surrounding communities for years. In addition to the 1,200 jobs supported by construction of Phase One, the project, when complete, will attract another 800 permanent jobs to the State Center site.
Over the next 20 years the first phase of the State Center redevelopment will generate more than $200 million in state and city taxes and another $30 million in lease payments to the State of Maryland. Phase One will Support 1,200 construction jobs and attract 800 permanent, private-sector direct jobs.
Phase One will construction two office buildings and a parking garage where a parking lot currently sits, creating 500,000 square feet of office space and 70,000 square feet of retail space, including a grocery store.

“This milestone follows three years of intensive planning, research and community involvement,” said Caroline Moore, Chief Executive Officer of Ekistics, LLC and the managing member of the private development team. “We have worked hand-in-hand with citizens and both state and city government to develop a concept that meets the various needs of the community and we have done it in award-winning fashion.”

Currently, State Center is home to four state government office buildings and 3,500 state employees, the largest concentration of state employees in Maryland. However, the layout of the existing complex hinders the ability of residents to move between the nine surrounding communities. The redevelopment of State Center will create a more pedestrian friendly environment, consolidating 14 state agencies and more than 3,500 state employees, in addition to employees and customers of added retail and commercial space, in a complex sits at the intersection of six different public transportation systems.

In May 2010, the overall $1.5 billion State Center redevelopment project received a Charter Award from the Congress on New Urbanism as one of the seven best urban smart growth projects in the world. The 28-acre State Center site will be redeveloped in five phases over fifteen years converting the property from an underutilized government owned and operated office campus into a mix of privately owned and operated office, retail and mixed income residential units, forming a green, walkable community adjacent to Metro, Light Rail and MARC transit stations.

The State Center redevelopment project is a transit oriented development that reflects the goals of Governor O’Malley’s Smart, Green and Growing initiative. Introduced in October 2008, the Smart, Green & Growing initiative was created to strengthen the state’s leadership role in fostering smarter, more sustainable growth and inspire action among all Marylanders to achieve a more sustainable future. The initiative brings together state agencies, local governments, businesses and citizens to create more livable communities, improve transportation options, reduce the state’s carbon footprint, support resource based industry, invest in green technologies, preserve valuable resource lands and restore the health of the Chesapeake Bay.

State Center is the second major public-private partnership to move forward under Governor O’Malley in the past year. In November 2009, the State agreed to lease operation of Seagirt Marine terminal at the Port of Baltimore to Ports America Chesapeake. The State maintains ownership of Seagirt while day to day operations and capital investments are now the responsibility of Ports America Chesapeake. As part of the agreement, Ports America Chesapeake is now constructing a new 50-foot berth at Seagirt using private funds. The new berth is critical to the future success of the Port of Baltimore as an expansion of the Panama Canal will bring larger ships to the US East Coast when completed in 2014. In total, the Seagirt agreement will support 5,700 jobs.