Maryland Business

St. Joseph Medical Center in Towson might have a buyer soon, and Locust Point finally got its Harris Teeter grocery store four years since they began planning it out. Those stories and more in this week’s business top 5.

1. 4 local suitors contend for St. Joseph Medical Center – by Melody Simmons

Four area medical institutions are contenders to merge with or purchase the beleaguered St. Joseph Medical Center in Towson and are combing through the hospital’s financial records in a due diligence phase, sources close to the hospital said.

Two finalists for the sale or merger will be selected by the hospital’s board of directors in the first week of January, said Dr. Paul McAfee, chief of spine surgery at St. Joseph.

2. Brody, Manning and Daniels highest-paid private college leaders – by Mark Miller

William R. Brody of the Johns Hopkins University in Baltimore was the second highest-paid president of a private college in the United States in 2009, according to a list published Monday by the Chronicle of Higher Education.

Brody was the most highly compensated private college president in Maryland in 2009. Kevin J. Manning, president of Stevenson University, and Ronald J. Daniels, who succeeded Brody partway through the year, were ranked second and third in the state, respectively.

3. East Baltimore group demands hires come from community – by Melody Simmons

Saying it has organized 900 residents, Baltimore Churches & Community United vowed Thursday to protest at East Baltimore Development Inc. if half of the workforce for upcoming construction projects does not live in the community.

During an angry two-hour meeting inside Triumph Christian Church at 2200 E. Oliver St., more than 300 city residents shouted approval of a plan to demand jobs on the $1.8 billion redevelopment of 88 acres of Middle East, a project to which $564 million has been committed so far, $212.6 million of it in public money.

4. Harris Teeter’s opening is a happy ending – by Melody Simmons

Four years ago, the McHenry Row development in Locust Point began a roller-coaster ride toward completion as the recession forced fits and starts on the project.

Wednesday morning, those woes were a distant memory.

Developer Mark Sapperstein beamed as he led tours of the new 61,000-square-foot Harris Teeter grocery store following a dedication at the front door with 30 people wielding scissors against a green ribbon.

5. State Center compromise fails – Melody Simmons

On the eve of her inauguration this week, Mayor Stephanie Rawlings-Blake called representatives of both sides of the contentious State Center lawsuit to her City Hall office for a private meeting.

The mayor’s spokesman, Ryan O’Doherty, said Rawlings-Blake sought to gather the key players in the bitter dispute and attempt to strike a compromise.

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Since we have an abbreviated week, we’ve also got an abbreviated top 5 (we’re calling it a “top 3″). Units at the Ritz-Carlton Residences are selling, and the Maryland Transit Administration isn’t saying who’s getting the bid for two MARC lines.

1. Prices lower, Ritz units are selling – by Melody Simmons

Ownership of the $220 million Ritz-Carlton Residences is back in the hands of its Long Island-based developers nearly two years after the luxury development underwent a massive refinancing amid problems stemming from construction lawsuits and the recession.

The stately luxury development, perched at the water’s edge on Key Highway, remains one of the city’s most luxurious addresses — and units are beginning to sell faster thanks to new lower pricing, RXR Realty Senior Vice President Joseph Graziose said.

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A new Wegmans was announced for Owings Mills and a federal agency might hold up the Constellation/Exelon merger. Meanwhile, a legendary Baltimore Sun photographer’s prints are going to auction — much to his daughter’s chagrin — and plans for a downtown Baltimore casino are finally revealed. Here are the Top 5 business stories of the week:

1. FERC could delay Constellaton-Exelon decision until April — by Ben Mook

Constellation Energy Group Inc. and Exelon Corp. are calling on the Federal Energy Regulatory Commission to make a decision about the companies’ proposed merger by Jan. 5 after learning the regulatory agency could delay the deal until April.

On Oct. 13, the companies submitted to FERC an agreement they had come to with the independent market monitor for PJM, the regional power grid. The agreement resolved some possible issues the market monitor had. However, FERC said that the agreement effectively reset the clock on its approval process and it could have up to 180 days more to make a decision.

2. Caesars proposes ‘dramatic’ gateway for Baltimore casino — by Nicholas Sohr

The development group led by Caesars Entertainment Corp. touted its proposed 260,000-square foot casino on Russell Street as a “dramatic new gateway to downtown” Baltimore.

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More troubles for the organizer of the Baltimore Grand Prix, another round of terminal shuffling at BWI and a drop in casino revenue were among the most-read business stories of the week. Baltimore’s newest hotel and a contentious hearing over a controversial East Baltimore redevelopment round out the Top 5:

1. Baltimore threatens to cut ties with Grand Prix organizer — by Nicholas Sohr

City officials to sever ties with the organizer of the Baltimore Grand Prix unless the company pays its bills and climbs out of the red and into profitability.

Baltimore Racing Development owes the city more than $1.5 million, according to city figures, and has been beset by lawsuits from unpaid vendors since the inaugural race over Labor Day weekend.

The threat from Mayor Stephanie Rawlings-Blake to end the five-year contract four years early throws the future of the race into doubt even after Baltimore leaders continue to hail the event as a success.

2. AirTran moving terminals at BWI — by Nicholas Sohr

Baltimore-Washington International Thurgood Marshall Airport will shuffle the locations of some of its air carriers next week and again in December to prepare for a $100 million expansion project slated to begin in the spring, officials announced Wednesday.

The changes at BWI will allow for the continued growth of Southwest Airlines Co. The low-fare carrier is already the dominant airline at Maryland’s airport and will take a 70 percent share of the market when it completes its acquisition of AirTran Airways next year.

3. EBDI leaders hit on job creation at hearing — by Melody Simmons

Former residents and job seekers from East Baltimore hammered at officials of East Baltimore Development Inc. on Wednesday about missed employment opportunities and delayed housing during a packed hearing in the City Council chamber on the controversial $1.8 billion redevelopment project, now in its second decade.

The two-hour investigative hearing, a continuation from a March 30 hearing called by Councilman Carl Stokes, drew a crowd of about 120 and was at times informative and contentious.

4. Four Seasons to add luster to Baltimore — by Melody Simmons

Inside the city’s newest luxury development, the Four Seasons Hotel Baltimore, many of the walls and chandeliers shine with an elegant gold luster. The floors are Turkish marble, hickory and black walnut. Modern art makes a bold statement and a stately grand staircase greets visitors near the front doors.

The $200 million Harbor East property is set to officially open Nov. 14, and teams of workers are busy preparing the site and putting up finishing touches on project where rooms and suites cost between $279 and $1,500 per night.

5. Casino revenue drops in October — by Nicholas Sohr

Maryland’s casinos brought in $12.9 million in October, a decrease of $1 million from the month before, according to figures released Monday by the Maryland State Lottery Agency.

Hollywood Casino Perryville accounted for $9.1 million, a 20 percent decline from October 2010. Casino officials have attributed that strong showing one year ago to the buzz surrounding the slots parlor in its first full month of operation.

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Mt. Washington’s beloved tavern burned down early Monday morning, but its owner plans to rebuild soon, and several historic buildings in Baltimore are being considered for designation as landmarks. Those stories and more in this week’s business top 5.

1. Owner vows to rebuild Mt. Washington Tavern – by Melody Simmons

As firefighters rolled up water hoses nine hours after a fire ripped through the Mt. Washington Tavern Monday, the owner of the popular bar and restaurant said he had already met with contractors to begin planning a reconstruction.

It was too early to determine when the tavern would reopen or the total cost of the damage the two-alarm fire that tore through the landmark had caused, said Rob Frisch, who has owned the bar for four years but worked there since 1986 when he started as a bartender and cook.

2. O’Malley pitches road needs to city leaders – by Nicholas Sohr

Gov. Martin O’Malley made his case to local officials Tuesday night for raising more money to spend on roads, bridges, trains and other transportation projects

“I would really like to stand here tonight and tell you that somehow we can somehow eat cake and lose weight,” O’Malley said, addressing the Maryland Municipal League’s fall conference. “I’d also like to tell you that bridges are like trees and if we leave them alone long enough, they’ll grow taller and stronger, but that’s not true.”

3. Medifast’s executive chairman of the board resigns – by Daily Record Staff

Diet food maker Medifast Inc. said Thursday that Executive Chairman of the Board Bradley T. MacDonald had resigned due to health issues.

MacDonald had served as CEO of the Owings Mills-based company from 1996 to 2007, when current CEO Michael S. McDevitt was appointed.

4. State planning chief defends PlanMaryland – by Nicholas Sohr

Maryland’s planning secretary stood by the state’s comprehensive growth plan Tuesday and said his department will move forward with it despite objections and calls for delay from opponents.

“We need to grow smarter than most other states in the country,” said Secretary Richard E. Hall after referencing Maryland’s population density, the fifth-highest in the nation. “That’s why the state does more than other states.”

5. Historic Baltimore buildings face vote by City Council – by Mark Miller

Advocates of preservation for seven historic Baltimore buildings, including the former town hall of the 19th century village of Waverly, expect a City Council committee to approve their designation as landmarks at a hearing next week.

If any or all of the buildings receive the approval of the Urban Affairs and Aging Committee on Nov. 9, their addition to the registry will be determined by vote of the full Baltimore City Council.

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Baltimore has begun installing charging stations for electric cars in city garages, and The Daily Record investigates two mansions in Potomac that are owned by African dictators with documented human rights violations. Those stories and more in this week’s business top 5.

1. EBDI head walks out of City Hall during meeting – by Melody Simmons

A meeting to address construction and communication problems between residents of Middle East and East Baltimore Development Inc. was abruptly halted Tuesday after two top executives from EBDI walked out when a reporter showed up.

EBDI’s CEO, Christopher Shea, and its senior vice president of real estate development, Dennis Miller, stopped the scheduled two-hour meeting minutes after it began.

2. Downtown Partnership looks to continue growth in ‘The 401′ – by Nicholas Sohr

Encouraged by robust population growth in the city’s center, Downtown Partnership of Baltimore Inc. will soon launch a marketing effort with billboards, bumper stickers and even a signature cocktail to attract more residents to “The 401.”

“We have this growing downtown that is incredibly diverse, that is flying under the radar, and we need to draw some attention to it,” partnership President J. Kirby Fowler said before the organization’s annual meeting Wednesday night.

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A proposed bowling alley in Hunt Valley, in which Baltimore Ravens linebacker Ray Lewis is a partner, is still looking for financing, and a Baltimore hospital is being sued for Medicare fraud. Those stories and more in this week’s business top 5.

1. State readies $9.5M offer to keep Bechtel workers in Frederick – by Nicholas Sohr

Maryland is poised to offer Bechtel Corp. $9.5 million to keep the majority of its Frederick County workforce in place until 2018.

The engineering and construction management firm, one of the largest employers in the county, has been considering a move to Northern Virginia.

“It’s sad that the state has to consider something like this,” said Sen. David R. Brinkley, R-Carroll and Frederick. “You have someone who has been there, and it’s been their worldwide headquarters.”

2. Ray Lewis’ MVP Lanes still looking for financing – by Ben Mook

MVP Lanes LLC hired RI Hispanic BancGroup LLC in June because its owner said it could help secure the financing that would help MVP move forward with a planned sports bar and bowling alley in Hunt Valley.

MVP Lanes, which counts Baltimore Ravens linebacker Ray Lewis as a partner, has had to head back to the drawing board to line up financing after RI Hispanic’s promise did not materialize. In the course of the lawsuit against the Providence, R.I.-based company, MVP learned that RI Hispanic has no assets, no relationship with a bank and no trace of the $90,000 it had collected from the developers as a fee.

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A third-quarter survey by the University of Baltimore’s Jacob France Institute has found t Maryland’s economy has been “staggered” by the gridlock in federal spending and the European debt crisis.

The Maryland Business Climate Survey found that stands in marked contrast to its findings in the second quarter, when business owners in Maryland said they were optimistic about the state’s economy.

One bright spot is that overall sales growth continues to hold steady, according to the report, produced every quarter by the institute at UB’s Merrick School of Business.

“It appears that the general improvement in expectations for an economic recovery that we were seeing during the first half of the year have evaporated,” said Richard Clinch, director of economic research at the Jacob France Institute, in a statement.

“Across the board, all over the state, we’re finding that Maryland firms have ratcheted back their expectations for market expansion, with just over half expecting their market to expand in the coming year—that’s down from 63 percent in the first and second quarters,” Clinch said. “About 20 percent of the businesses in our survey are expecting declines, and that’s more than double the level of the previous two quarters.”

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Solar energy company SunEdison announced it will be moving its headquarters to California, and speaking fees for pharmaceutical companies are going down. Those stories and more in this week’s business Top 5.

1. Maryland’s top lobbyists got $15.5M during 2011 session – by Nicholas Sohr

Maryland’s biggest businesses, interest groups and labor unions increased spending on lobbyists to $15.5 million during the 2011 General Assembly session, according to the State Ethics Commission.

That was a 14.4 percent bump over the 2010 session, when the top spenders had $13.5 million in lobbying expenses.

2. Speaking fees declining for pharmaceutical firms – by Ben Mook

The amount of money paid by pharmaceutical firms to physicians and other health professionals to speak about their products seems to be slowing, but a look at 12 companies that disclose those figures shows it still amounts to millions of dollars in Maryland.

A review of the payments reported by eight major pharmaceutical firms including Eli Lilly, AstraZeneca, GlaxoSmithKline, Merck, Pfizer and Novartis show that in 2010 in Maryland, doctors were paid more than $4 million in speaking fees. This compares to the first half of 2011, when reporting companies paid only $836,330 in speaking fees.

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Under Armour is looking to expand its Tide Point complex, and its looking to the city for TIF bonds to help. The talks continue on a merger between University of Maryland’s College Park and Baltimore campuses. Those stories and more in this week’s business top 5.

1. St. Joseph Medical Center seeks ’strategic relationship’ – by Daily Record Staff

St. Joseph Medical Center in Towson has issued a request for proposals to “a select group of Maryland health care systems,” asking for written responses within 30 days on establishing a “strategic relationship” with the 263-bed hospital.

Such an arrangement, St. Joseph officials said in a release, would “enhance the quality of care and breadth of services to the people and communities that” both parties serve. The release did not identify the health care systems invited to participate.

2. Under Armour wants TIF for HQ expansion – by Melody Simmons

The Baltimore City Council is expected to consider a request by Under Armour Inc. for tax increment financing bonds to fund a portion of the company’s massive expansion at Locust Point’s Tide Point complex.

The sportswear giant would use the TIF bonds to install a public greenway path near the waterfront connecting Locust Point with Fort McHenry as well as to upgrade the pier, bulkhead and promenade at Tide Point to dock large clipper ships for the bicentennial celebration of the War of 1812 next summer, said Shawn King, director of campus development at Under Armour.

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