Maryland taxpayers to pick up tab for Baltimore developer giveaway

Developers are about to score a mother lode of a real estate portfolio in Baltimore, realizing billions in massive profits, and Maryland taxpayers will pick up the tab for the next twenty years. The property giveaway is being characterized by Maryland elected officials who have tanked the state's finances as "taxpayer savings," counting on a compliant press not to run the numbers, and a complacent electorate not to care. Governor Wes Moore announced the plan in a press release four days ago, in which he promised $326 million in savings over the next two decades, savings he claimed would be realized by moving state government workers into leased space in privately-owned buildings. In turn, the nine state-owned buildings will be sold to developers.

This means a double payday for developers. The state - a.k.a. you, the taxpayer - will have to pay rent to house thousands of government employees in privately-owned office buildings around Charm City. And, developers will acquire valuable downtown property at - based on what we've seen in previous government dispositions of real estate in Montgomery County and Maryland - discount rates, compared to the value they will realize with redevelopment as luxury apartment buildings.

Some have theorized that there are an infinite number of realities. In none of those realities is leasing market-rate office space, over 20 years, cheaper than renovating and continuing to operate buildings you own. But it is a good program for elected officials to help fill the vacant office space owned by developers who have contributed fat checks to their campaigns. It's good to have friends in high places.

The payout bonanza won't end with Maryland handing your money over to developer sugar daddies for market-rate office leases all over Baltimore. That's because a valuable cache of state-owned buildings and prime downtown land is about to be added to their portfolios at value prices.

State Center Complex:  (201 W. Preston St., 300 W. Preston St., 301 W. Preston St., 100 N. Eutaw St.)​

State Center has been one of the biggest ongoing development scams in Baltimore for a couple of decades. What started as one developer giveaway turned into developer lawsuits against the state when they couldn't have things their way. Then, last November, the developers got $58.5 million from you - the taxpayer - for...nothing. The Moore administration paid off the developers with nearly $60 million just to end the legal battle - a battle the state would likely have won if the case had gone to trial.

So, as a taxpayer, you're already out $58.5 million for nothing at State Center. That was just the appetizer. Here comes the main course, courtesy of Gov. Moore: the complex will still be sold off to developers, who will redevelop the site with thousands of luxury apartments.

2100 Guilford Avenue

A solid low-rise government building with parking lot. Sure to be a teardown and redevelopment for luxury apartments.

​William Donald Schaefer Tower (6 St. Paul Street)

One of the tallest buildings in Baltimore, 6 St. Paul Street was only built in 1986. I was inside this building about twenty years ago, and it looked very modern and new even at that point. Now the state is claiming the building is facing "catastrophic failure?" This is a potential Trump Tower-style conversion to luxury condos, that will pay off handsomely for the developer fortunate to acquire it under a political fake "fire sale." The Maryland cartel again disrespects former Gov. Schaefer, who was treated very badly in his final years by the political machine.

310-311 W. Saratoga Street

Another prime property, right on top of the Lexington Market subway station. This guarantees maximum density will be allowed to the prospective developer, which means maximum profit.

200 W. Baltimore Street

They don't build 'em like this anymore. A prime conversion candidate for apartments, or a wasteful teardown - the option will be up to the buyer. Located right across from CFG Bank Arena (a.k.a. the Baltimore Arena). Unlike Camden Yards, you can still see the Bromo Seltzer Tower from inside 200 W. Baltimore Street. Maximum profits await!

201 St. Paul St.

Another "they don't make 'em like they used to" architectural gem. 

The worst part of this latest corruption scheme isn't the fake, inflated claims of savings. It's that the $326 million is over twenty years, while the state is facing a potential $6 billion shortfall in 2030. Aging buildings, even assuming the state has criminally failed to properly maintain them, aren't the source of Maryland's budget woes. It is astronomical overspending that has brought us here, and the Maryland legislature made clear this spring it has no intention of stopping that anytime soon.

Our local media appears too starstruck and weak-in-the-knees around Gov. Moore to challenge him on this real estate portfolio giveaway, and massive new expenditures in leases at empty office buildings owned by developer sugar daddies. They have simply accepted the poorly-documented claims of "savings" at face value, and have chosen to parrot the governor's message of "nearly four-hundred million in savings!!!!"

Unlike the local media, let's follow the money in the coming months and years. What will the sale prices of the government buildings be, compared to their true market value? Who will acquire them, and how much have they donated to Gov. Moore, Comptroller Brooke Lierman, and members of the legislature? 

Montgomery County elected officials have been giving away County-owned properties at discount rates - and sometimes even for free (!!) - for many years this century. Conversely, they are glad to overpay for rents in private office space owned by their developer sugar daddies (witness the Board of Education's move from a building owned by Montgomery County Public Schools into a glossy new office building, despite MCPS owning numerous vacant school buildings and other properties across the county. And just this week, the County government revealed it purchased a bank property in Olney that mysteriously gained over $1 million in value just since 2021, an additional cost the County was delighted to pay with taxpayer funds.