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Looking to jump-start a redevelopment process that has been mired in lawsuits and inactivity for years, Gov. Larry Hogan announced on Tuesday that the state will immediately begin seeking bidders on a new State Center project.
The five-building, 28-acre site in midtown Baltimore is currently home to a dozen state government agencies, making it the largest concentration of state offices in Maryland.
Hogan said the state will immediately begin reaching out to companies interested in redeveloping the aging State Center complex. The Maryland Stadium Authority will lead the process, in coordination with the state鈥檚 Department of General Services.
The governor, a Republican, called the actions an 鈥渋mportant step in the revitalization of Baltimore City,鈥� and he said the new 鈥渂old鈥� project will have a 鈥渢ransformative鈥� impact on the surrounding communities.
He offered few details about the state鈥檚 vision for the site under a new developer. He said it is 鈥減ossible鈥� that 鈥渙ne or two鈥� government agencies might return to the site in the future.
The 3,300 government employees who work at State Center now will be moved to privately owned office space in stages, to clear the way for demolition and construction. The state will need to lease a million square feet to accommodate those workers, which the governor鈥檚 office said will 鈥渄ramatically boost and stabilize downtown Baltimore.鈥�
The buildings that make up State Center were constructed in the 1950s and 1960s. They are unremarkable and outdated structures.
Litigation
Maryland is currently mired in litigation with Ekistics, a Baltimore firm that won the right to redevelop State Center a decade ago.
Michael Edney, the company鈥檚 attorney, said moving those workers represents 鈥渢he hollowing out of State Center 鈥� a violation of [Hogan鈥檚] long-term commitment to the surrounding communities.鈥�
The decision to move forward with a new developer is 鈥渁 violation of the contract and illegal,鈥� Edney said.聽鈥淗e had lots of details about how he was going to move all 3,500 employees out of State Center, but he had absolutely no details about what the future of State Center would be.鈥�
Hogan told reporters that the attorney general鈥檚 office 鈥渉as recently advised us that we are now free to take the next steps,鈥� adding that the state鈥檚 preliminary outreach to the development community last June resulted in 鈥渘umerous strong expressions of interest.鈥�
Del. Nick J. Mosby (D-Baltimore City), whose district includes State Center, said he鈥檚 鈥渄isappointed鈥� by the governor鈥檚 announcement. It鈥檚 clear, the lawmaker said, that state workers 鈥渁re not coming back鈥� once the redevelopment is complete.
Area residents and political leaders have long envisioned a more mixed-use approach to the site, with retail, restaurants, services and job opportunities beyond the 9-to-5 workday.
鈥淭his was a huge opportunity to bring real development and have an epicenter to map out and build around,鈥� Mosby said of Ekistics鈥� plan, which he said was developed after years of consultation with the community.
鈥淭hat鈥檚 what makes me disappointed and disheartened.鈥�
Baltimore Mayor Bernard C. 鈥淛ack鈥� Young, a Democrat, was not present at Hogan鈥檚 announcement Tuesday; it could not immediately be determined whether he had been invited.
鈥淢ayor Young looks forward to reviewing the plan that the governor put forward today,鈥� a spokesman, James Bentley, said in an email to Maryland Matters. 鈥淭he mayor is very optimistic to hear that the governor has committed to keeping the 3,300 jobs in Baltimore City, where they belong.鈥�
A moribund project
The redevelopment of State Center was conceived during the administration of Gov. Robert L. Ehrlich Jr., a Republican, and continued by his Democratic successor, Martin J. O鈥橫alley. It has been moribund for years due to the lengthy legal battle.
Nearly a year after Hogan took office, the state sued the company, alleging a failure to fulfill its contract, a move that sparked a countersuit by the firm. The lawsuits remain alive in Baltimore City Circuit Court.
Hogan heaped scorn Tuesday on the O鈥橫alley administration, which he said pursed an 鈥渁bsurd鈥� and 鈥渋maginary potential deal鈥� with Ekistics.
鈥淯nfortunately, the previous administration had gotten the state mixed up in a disastrous failed deal which never made any progress at all, which was economically unfeasible and legally improper,鈥� said Hogan, a real estate developer before becoming governor.
Hogan accused the current State Center developers and their lawyers of being聽鈥渕otivated by greed鈥� and of trying to 鈥渆xtort state taxpayers to pay an outrageous sum of monies over a deal which never materialized and never made any economic sense.鈥�
He had rare and robust praise for Democratic Attorney General Brian E. Frosh and his team, 鈥渨ho have been working tirelessly to free the state from this obstruction.鈥�
The state鈥檚 imminent search for new office space downtown for agency employees will be welcome news to property owners there. The current vacancy rate in the central business district is 20 percent, according to an industry group.
鈥淲e are optimistic for the future potential to positively impact the surrounding community and help create a better working environment for our state workforce,鈥� said DGS Secretary Ellington E. Churchill Jr.
