State Center redevelopment wins approval 

Posted: 7:57 pm Tue, July 27, 2010
By Anna Isaacs
Daily Record Business Writer

As the first phase of the $1.5 billion State Center redevelopment won Board of Public Works approval this week, Gov. Martin O’Malley unveiled preliminary plans Tuesday for a 15-year project that promises new retail, office space and residences.

O’Malley emphasized the importance of the development as a hub to bring the nine surrounding neighborhoods together, and owed the project’s fruition to an “unprecedented level of community involvement.”

“What is a concrete wasteland does very little to connect the neighborhoods,” O’Malley said of the 28 acres that will be redeveloped.

The first phase will cost $215 million for the construction of two new office buildings and a parking garage. Chris Patusky, director of the Maryland Department of Transportation’s Office of Real Estate, said the state will be contributing $28 million for the garage, but private funding will cover the rest of the cost.

The Board of Public Works on Wednesday approved the $215 million first phase, will include 390,000 square feet of office space, mostly for the state health department. Construction is expected to begin this fall and take three years to complete.

The overall 15-year plan, costing $1.6 billion, would be built over five phases through a public-private partnership. It’s expected to include about 2 million square feet of office space and 250,000 square feet of retail, along with mixed-income housing and parking.

Patusky said they plan to break ground on the garage and one office building in November for occupation in June 2014, while the other building’s construction will begin by the second quarter of next year to be occupied by the fall of 2013.

Patusky said as construction begins, planners will be figuring out the details of Phase Two, which should include new apartments and condos and another office building. O’Malley also said the site will include a new grocery store — an announcement that was met with raucous applause.

“Because we all need to eat,” O’Malley said.

The entire project looks to transform the 28-acre stretch of surface parking lots and government office buildings into a “green” neighborhood, with 5.5 million square feet of retail, residential areas, state and private office space, and parking.  The project will be paid for largely by private organizations in partnership with the state — a relationship O’Malley lauded.

Officials also hailed the project as a manifestation of “transit-oriented development,” at a location within walking distance from Metro, light rail, bus and MARC train stations.

O’Malley said the first phase will create 2,000 construction jobs and 1,500 permanent jobs, while the overall project will support 9,500 construction jobs and 5,400 permanent jobs when complete. He also said Phase 1 will generate more than $200 million in state and local taxes over the next 20 years.

Also in attendance were City Councilman Bill Cole, who represents the district where State Center is located; Sen. Catherine Pugh, D-Baltimore City; and Sen. Ed DeGrange, D-Anne Arundel.