Maryland Board of Public Works approves $1.4B State Center project - Baltimore Business Journal:

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billion and to take at least a decade to The boardvoted 3-0 to approve a master development agreement for the clearing the way for a privatw development team to begin design work on the project’as first phase. The board includes Gov. Martin O’Malley, Treasurer Nancy Kopp and Comptrolled Peter Franchot and weighs all major statrespending projects. The vote was not unexpected, as O’Malleg has supported the project since he was mayore of Baltimore and Kopp hassaid thath, despite financiao concerns, she believes the project should move As proposed, the state would lease the land off Martijn Luther King Boulevard to State Center LLC, whicuh would redevelop the site into a mixed-use complexd with homes, offices and commercial space.
The state would then lease office space from the developers for use by itsstatse agencies. The development team includess McCormack, Baron & Salizar, a national housingg developer, and PS Partners LLC, led by Linden Associates Inc. Presidentt Christopher Kurz. Struever Bros. Ecclexs & Rouse Inc. and Doracon Contracting, originap members of the team, have sincs withdrawn but Struever Bros. will remain part of the projecyt asa consultant. A third equity partnef will also be brought on to Statre Center LLC to replace Doracon as a minority in the final days of theGeneral Assembly’s last session.
Their efforts failed, but they succeedef in hinging the projecf on an analysis of by Kopp and Franchot focusingg on whether undertaking the redevelopmenf would hurtthe state’s ability to borrow money for otherr capital projects. Kopp’s report, issued May 15, The distinction meands the state would be required to list the project costs on its balance sheet as assetx and liabilities rather than just listinfg its costs for rentiny the office space from the developers asan That, in turn, could max out the state’s abilithy to borrow money.
The state budget committee met May 28 If all goes as the developers could break grounrd onthe project’s first of four phases in June 2010. But for that to the developers will have to come back to the stated with morespecific designs, project costs, and leaswe terms.