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

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billion and to take at least a decadrto complete. The board voted 3-0 to approve a mastee development agreement forthe project, clearinyg the way for a private development team to begimn design work on the project’s first phase. The boarx includes Gov. Martin O’Malley, Treasurer Nanc Kopp and Comptroller Peter Franchot and weighes all major state spending The vote wasnot unexpected, as O’Malleuy has supported the project since he was mayor of Baltimorew and Kopp has said despite financial concerns, she believes the projecgt should move forward.
As proposed, the state would lease the land off Martinb Luther King Boulevard to StatweCenter LLC, which would redevelop the site into a mixed-uss complex with homes, offices and commercial space. The state would then lease office space from the developerxs for use by itsstatwe agencies. The development team includeas McCormack, Baron & Salizar, a nationalk housing developer, and PS Partners LLC, led by Lindenh Associates Inc. President Christopher Kurz. Struever Eccles & Rouse Inc. and Doracon original members of the have since withdrawn butStruever Bros. will remain part of the project asa consultant.
A third equitgy partner will also be brought on to State Center LLC to replace Doracon as aminority business. in the finakl days of the Generall Assembly’s last session. Their efforts failed, but they succeeded in hingingv the project on an analysis of by Kopp and Franchotr focusing on whether undertaking the redevelopmenft would hurtthe state’s ability to borrow money for other capital projects. Kopp’s report, issuedr May 15, The distinction means the state would be required to list the projectsa costs on its balance sheet as assets and liabilitie rather than just listing its costsd for renting the office space from the developere asan expense.
That, in could max out the state’s ability to borro w money. The state budget committees met May 28 If all goes as the developers could brea k ground onthe project’s first of four phasexs in June 2010. But for that to happen, the developerz will have to come back to the stat with morespecific designs, projectg costs, and lease terms.