ANNAPOLIS, Md. (AP) - A Maryland board voted Wednesday to reject a $1.5 billion agreement that has languished for years to redevelop a large state office complex in Baltimore.
The Board of Public Works voted 3-0 to end the lease agreements on the stalled State Center development, effectively scrapping the proposal. Gov. Larry Hogan, one of the board members, said the plan approved during the administration of his predecessor, then-Gov. Martin O’Malley, threatened to explode the state’s debt limit.
“It is obvious to absolutely everyone that the previous proposal makes absolutely no economic or development sense, which is why it has never moved forward and never materialized after all these years,” Hogan, a Republican, said.
The governor said the state remains committed to developing a new plan for the State Center office complex.
“Taking this action today will finally enable us to break the logjam and move forward as expeditiously as possible,” Hogan said.
Michael Edney, an attorney representing developer State Center LLC, said the state is contractually bound to the leases the board canceled, and the developer will explain that in court.
“We’ll be filing suit against the state in the first two weeks of January,” Edney said.
Comptroller Peter Franchot and Treasurer Nancy Kopp, Democrats who are the board’s other two members, also voted to reject the proposal.
“This project raises deep concerns about the state of Maryland’s debt load and in turn our hard-earned reputation in the financial community for sound fiscal leadership,” Franchot said.
Franchot suggested exploring plans for a sports arena in a new development plan for future basketball and hockey teams, and Hogan agreed with looking into the idea.
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