There seems to be a pattern here. When the Electric de France & Constellation merger was ongoing the state went and hired an independent consultant to examine the deal. Their investigation found and stated that the merger would be good for consumers and would lower electric rates. This ran counter to O'Malley's arguments and he moved to have the the independent experts testimony before committee and report struck from the record claiming the report didn't take certain issues into consideration. O'Malley claimed the expert purgered herself and therefore everything should be removed from the state record. Anything which runs counter to O'Malley is either removed, withdrawn or fired.

Yes, and people said the same thing about the Inner Harbor 30 years ago. How about the benefits of investing in mixed use space in a part of the city that actually has a number of residential areas around it, meaning more potential workers, increased city homeownership, and shorter commute times? That is on an existing transport hub connecting light rail, subway, Penn Station, and 95? That is next to the cultural center? That is right on the Eutaw Street/Place corridor which has several other development projects in planning or underway and is poised to be the next Charles St? This is not a boondoggle--this is a transformative project, and it speaks volumes that those opposed have a. not really examined the facts, b. an investment in downtown office space, or c. are in Montgomery County.

'Projections' are a wonderful thing.
I 'project' that I'm gonna earn a million dollars over the next couple of years.
I'm going right out this afternoon and buy myself a $500k house.
Yeah, right.

Sounds like Rocky Gap all over to me. When will the state get out of the speculative building business and go back to things they only do moderately poorly? Generate thousands of jobs? Maryland hasn't generated thousands of jobs in months. Get real; this is another tax increase waiting to happen/

the truth hursts don't it? And when you can't stand the truth, attack the messenger. How it can it be a good deal for the state if they go from owning to renting the property??

@bluedawg,

Well, in certain situations, renting the property can make more sense -- for example, if you only need it for a short period, if you need the ability to scale up (or down) rapidly, if you need to be able to terminate because the space is funded by finite program definitions.

But none of those applications fit here at all, so there is no benefit.

And it is a worse deal for the state given the fact that the state MUST continue to constrict its workforce in order to bring budgets under control. The trend is the exact opposite of the direction this project is heading in.

Dear Jay,

As the State Center project director for MDOT, I want to thank you for supplementing your earlier blog post by beginning to show a fuller picture of the project. In other fora, the State has convincingly demonstrated that the public private partnership arrangement is the most cost effective way to redevelop the site, and that is why phase one has received several approvals from the legislative budget committees, the Board of Public Works and the Governor, all under the watchful eye of the Maryland Attorney General.

Because of the age and condition of the buildings, it is not an option to do nothing. The question then becomes whether it would be better for the State to vacate the site and attempt to seek lower rents elsewhere or redevelop the site as a pbulic private partnership. The "vacate and relocate" option was rejected by both the previous administration and the current. Here is why:

1. Abandonment of the 28 acre site would damage nine neighborhoods, Maryland General Hospital, the Symphony, MICA, University of Baltimore, the Cultural Arts District and others. This damage is difficult to quantify, but it would be substantial in terms of lost economic activity, loss in real estate values, and crime, all of which would cause the City and State to lose money and increase expenditures.
2. Relocation to existing vacant space in Baltimore generates no new investment, no new taxes, no new jobs, and no new development to offset the harm caused by the required vacating of State Center . This is why the project is supported by all the adjacent neighborhood associations and groups, but also by the DowntownPartnership and Greater Baltimore Committee.
3. The State's office rents, although higher than for older existing buildings, are actually at the low end for new construction as confirmed by two independent national real estate consultants and a recent GSA comparison. Therefore, the state is not overpaying for the space it is receiving.
4. The project nets the City an estimated $30 million in new taxes over the first twenty years after payment of the $15 million tax increment financing bond. In other words, without the project and TIF the City receives $0 taxes from the site, but with the project and TIF it receives an estimated $30 million. We recognize that this is a complex financing device that is not well-understood and easily misrepresented, but it is clearly good for the City in this case.
5. The developer was selected by a competitive process in 2005 with multiple developers competing and a 20+person panel selecting the winning team based on a scoring system. The use of this Request for Qualifications process is well accepted across the nation for this type of mixed-use public private redevelopment whereas the Request for Proposal process that you are suggesting is not feasible for this type of development.

You ask the right question. Is the project worth the cost? The opinion of those who have heard the full analysis and case for the project have answered with a resounding "yes". We would welcome the opportunity to present to you the full picture as well.

Chris

With the glut of office space we need to subsidize more buildings? Comparing the location of this project to Harborplace is misplaced at best. And what happens when the project $$ don't materialize? All Maryland taxpayers will be picking up the tab.

I must admit that the ongoing dialogue around the State Center Project should cause the electorate to ask the right questions before being swayed by biased reports, lawsuits, and slanted journalism. The community has been a partner in this project from the beginning. The nine neighborhoods have developed a bond through the struggle for this project that has strengthened the internal fabric of this great community. Leaders within this community have become adroit at understanding public policy and complex financing mechanism. Personally, I have been in the process for over six years and have developed relationship within government and the community that are precious. Union Baptist Church in partnership with neighboring churches has partnered with LiUNA to begin training and orienting residents for construction opportunities this project will create. To witness the professionalism and commitment of the Development team to "do the right thing" is as American as "apple pie." To have special interests attempt to derail this project for no other reason than they want to exercise control over the self-determination of this community is sickening. Our City and State should rally behind positive efforts such as this to build upon the momentum that development generates over time. Forces that benefited from the redevelopment of the Inner Harbor were once critics. The long term benefits of this project will positively affect generations to come. When the notice to proceed is given, let move with all deliberate speed to erect and construct the first phase of the project. After that, critics will become cheerleaders, and we will understand that our community and city are one.

AJW says "...those opposed ... are in Montgomery County." We in Montgomery County have a knee-jerk opposition to spending any state money in Baltimore simply because Baltimore sees us as an endless source of funding for projects for which Baltimore itself is unwilling to pay.

We contribute 25% of the state's total tax revenue and what do we get for that? For decades Montgomery County taxpayers have gotten an average of 16 cents for every dollar we send to Annapolis while Baltimore city has always received about one dollar. For 2008, Montgomery received $0.17 while Baltimore City received $1.07.

And what is the result? Maryland's highest incidence of crime, corrupt public officials and terrible schools.
As far as we are concerned, putting money into Baltimore is a total waste. Put those state facilities in a area which really needs it like Allegany or Somerset County.

The state also funds Baltimore City Community College while the 23 counties finance their community colleges.

Baltimore City schools receive a greater percentage of their funding (74%) from the state than do the counties. The 78 thousand Baltimore City students receive state funding per pupil of $12,083, more than pupils in any county.

Until we see that the huge funding we provide to Baltimore is producing positive results, we will always be opposed to such schemes as this one.

MrBethesda: I sympathize and respect the concerns you and other taxpayers have about wasted tax dollars. As a taxpayer in this city, I pay a higher tax rate penalty for the problems you rightly highlight. My point is that this project—and other projects underway in the area—will be transformative for West Baltimore, and stabilize an entire section of the city. The entire community is united on these projects for the first time in 40 years: we see a once-in-several-generation chance to increase local employment, build on the strengths of and knit together the neighboring communities, and increase home ownership (leading to less dependence on the rest of the state for funds). The cost of failure is the blight of 28 acres and the resultant decimation of nine surrounding neighborhoods—almost a fifth of the city—which will increase demand for services that the rest of the state will then have to pay for. This cost would be substantial to taxpayers across the state. As I said, this is a serious transformative project, not a wasteful boondoggle. It is worth the stretch for all of us. As for Montgomery County, my comment was directed to the Public Policy Institute, who don’t appear to have a clear view of the facts on the ground. From the outside looking in, and without an understanding of what is going on here, skepticism is understandable. But take the chance on this one, just like folks did with the Inner Harbor two generations ago. That was a good investment that has paid for itself many times over, and has benefitted the entire state, just as State Center will do. Thanks for your comment.

As a professional colleague of Chris Patusky's at a peer agency that does this kind of development work as well, his response is exactly the right one.

As a Dem, a Montgomery County-er, and as someone who was involved in the early stages of the project -- that had its origins under the Ehrlich Administration, by the way, MPPI (!) -- I can also say that the early history of this project as Chris described it is accurate. The hallmarks of this project from the start were collaboration with the community, cooperation between State and City, and a competitive selection.

Mr Bethesda,

http://baltimore.cbslocal.com/2011/07/11/local-college-put-on-probation/

Your State Tax dollars at work in the Inner Harbor and all over town. Guess that demonstrates financial responsibility...

Mr. Bethesda,

I'm sure your figures are correct, and I'm sympathetc to your sentiments. Growing up in Montgomery County, I felt the same way. But after living in Baltimore City for 10 years, I've come to understand the tremendously difficult situation the City is in - and much of it (but certainly not all of it) is beyond the control of current residents and City leaders. Simply put, it's highly unfair to draw lines around a small jurisdiction with the oldest housing and infrastructure in the State, shove a hugely disproportionate share of poor people in to that small area, and tell the City to fend for itself.
The other point that is often overlooked is that those of us in the City pay higher taxes than you can imagine. My property tax rate is three times higher than yours, and that doesn't buy me anywhere close to the level of public services that you enjoy. I also pay higher transfer taxes and a myriad of other higher taxes on everything from bottles of soda to my cell phone. So, for all of the complaints about Baltimore bleeding tax money from other jurisdictions, I assure you it's nothing compared to the burdens many of us in the City shoulder.