Monday, January 31, 2011 Volume 122 | Number 82 Online at TheDailyRecord.com TOO

BIGTO ADREAMDERAILEDFAIL? The recession, lagging biotech investment and disengaged elected officials BETTING have taken a toll on the $1.8 billion project to transform part of East Baltimore A BILLION ON EAST BALTIMORE part one

MAXIMILIAN FRANZ The progress proclaimed by this sign has been slow in coming to The New East Baltimore project. With plans for a massive biotech park stalled, project leaders are turning to new options to fill the vacant lots near Johns Hopkins Hospital, shown in the background. The sign and the site, shown here in a photograph taken last September, remain unchanged. Meanwhile, an African- Inc. The public share of that American community known amount is $212.6 million, BY MELODY SIMMONS and JOAN JACOBSON INSIDE TODAY as Middle East has been vir- more than a third of which is tually eliminated and its from loans that will take Community may lose name he nation’s largest urban redevelopment, more than 600 residents have three decades for the city to Residents call it Middle East, a projected $1.8 billion effort to trans- been relocated to make room pay off with diverted proper- but officials say the neighborhood needs to be form 88 acres of East Baltimore into a for the development known ty taxes. renamed and “rebranded.” world-class biotech park and idyllic as The New East Baltimore. But the dream of a 9A The Daily Record’s report urban community, lies derailed amid biotech park has been aban- Unchecked for years T on the findings of its investi- doned, putting the promise of Not since 2003 has an vacant lots, boarded houses and unfulfilled dreams gation, based on more than 50 thousands of new jobs in elected official raised a decade after it began. interviews and examination serious questions about limbo. Public and private sec- public financing of The The effort to give new life to a decaying communi- of dozens of city, state and tor leaders are scrambling New East Baltimore project. ty behind Johns Hopkins Hospital began with federal records, begins today. for a new focus for the proj- 12A unbridled optimism. Then-Mayor Martin O’Malley The five-day series is the first ect, saying it’s too big to fail. comprehensive public exami- “It has got to succeed,” and civic leaders promised that it would energize the nation of the project’s economy and create thousands of permanent jobs. said Shale D. Stiller, a Extra information online finances, leadership, account- Baltimore lawyer and civic Go to our website for a But a five-month investigation by The Daily Record ability and its record in narrated slideshow, video leader who is a member of interviews with East has found that the project, promoted as “America’s new achieving its original mission. several boards deeply invest- Baltimore residents, and model for urban development,” is lagging far behind its About $564 million has ed in the project. “If it does an interactive timeline and original timetable. The recession, disengaged elected already been committed to not succeed, it will be a big map of the area. Check back the project, which is spear- throughout the series for blot on Baltimore’s future.” additional online content. officials and unexpected difficulty attracting biotech headed by the nonprofit East firms have taken their toll. Baltimore Development See new east baltimore 9A Log on to our website TDR ONLINE TheDailyRecord.com AN EXCLUSIVE DAILY RECORD INVESTIGATION

Apublication of Auction sales 8C Public notice 1C $220 per year For subscriptions Calendar 13A Real estate 18A call 1-800-451-9998 or INDEX Classifieds 14A Lawyer to lawyer 14B $2 per copy e-mail [email protected] Monday, January 31, 2011 The Daily Record 9A AN EXCLUSIVE DAILY RECORD INVESTIGATION New East Baltimore >> EBDI, a nonprofit, was formed to spearhead the project Continued from 1A Baltimore Development Corp., the It also would be a major setback East Baltimore Development Inc. city’s official development arm that is for two of the city’s most prestigious also a nonprofit. Founded Although the mayor approves the and powerful institutions, the Johns Created in 2002 as a nonprofit. Hopkins University and the philan- hiring of EBDI’s chief executive officer thropic Annie E. Casey Foundation, Objective as a matter of protocol, according to Charged with the development of the 88-acre site in former Mayor Sheila A. Dixon, the which have committed $85.5 million to Middle East and overseeing $564 million in financial the project. organization’s nonprofit status shields commitments of public and private funds to date for the it from much public scrutiny. It was Christopher Shea, EBDI’s CEO, nation’s largest urban redevelopment project. formed without approval of either the said he is not worried by the lack of Staff, salaries and budget biotech development and housing and City Council or the Board of In seven years, the nonprofit has grown to a staff of 71 with $5.1 million in salaries and a Estimates, and it does not have to is confident the proj- $50 million annual budget. ect will take shape adhere to city rules in areas such as Address hiring, competitive bidding and TOO successfully. 1731 E. Chase St. As evidence, he salaries. Master developer The Daily Record’s investigation cited construction of Forest City-New East Baltimore Partnership BIG housing for Hopkins found that The New East Baltimore’s TO graduate students Major contributing organizations public funding is so complex and poor- Johns Hopkins University ly scrutinized that local elected offi- underway now and Annie E. Casey Foundation plans for a new state Goldseker Foundation cials, some of whom serve on EBDI’s FAIL? lab and a state-of-the- Harry and Jeanette Weinberg Foundation board, said they had little grasp of the art public school. Abell Foundation $108.5 million in city funds committed BETTING Part of the effort CEO to the project at a time of tax increas- ABILLIONON may be “way behind in Christopher Shea es, and furloughs and pay cuts for fire- EAST BALTIMORE some line in the sand Board of directors fighters, police and other city workers. part one [drawn] in 2002, but Diane Bell-McKoy,President and chief executive officer,Associated Black Charities Dixon told The Daily Record that not behind now in my Anthony Brown, Lieutenant governor she did not know the city sold $78 mil- priorities to successfully resettle the Ronald J. Daniels, Johns Hopkins University president lion in bonds to support the project Anthony W. Deering, Rouse Co. Foundation and Exeter Capital chairman community,” Shea said. Judge Ellen M. Heller, Trustee, Harry and Jeanette Weinberg Foundation when she was mayor. Earl Linehan, President, Woodbrook Capital Those bonds, known as TIFs, for Little public oversight Patrick McCarthy, Annie E. Casey Foundation president Tax Increment Financing, represent David Nichols, M.D., Johns Hopkins Medicine the project’s least obvious long-term Dubbed The New East Baltimore Kaliope Parthemos, Baltimore deputy mayor for economic and by EBDI, the project is the city’s most neighborhood development costs to taxpayers. ambitious redevelopment effort since Nia Redmond, community representative Sold to investors in 2008 and 2009, Charles Center-Inner Harbor in the James S. Riepe,Senior advisor and retired vice chairman,T.Rowe Price Group the bonds financed the purchase and 1960s and ’70s. It is larger than Harbor Maurice D. Walker, community representative and managing partner, Birch Advisors demolition of houses and relocation of Robert L. Young III, Brown Capital Management occupants. Repayment, which began East by 18 acres. Thurman Zollicoffer Jr., Whiteford Taylor & Preston LLP Overseeing this massive undertak- in 2008, is supposed to come largely ing is EBDI, a nonprofit created in Ex-officio members from diverted property taxes collected Paul T. Graziano, Baltimore housing commissioner 2002 by the city, Johns Hopkins and Carl Stokes, City Council on the developed land that would oth- community leaders. Warren Branch, City Council erwise go into the city’s general fund. EBDI was intended to assure the Chairman By 2039 the city will have trans- project’s progress and continuity Douglas W. Nelson, former CEO of Annie E. Casey Foundation ferred $199 million in property taxes through changing mayoral administra- to repay the bonds with interest, tions, according to Paul Brophy, for- according to debt service projections mer president and co-CEO of the vate corporation, according to Martin oversight. Its board of directors, which provided to The Daily Record by the Enterprise Foundation and an early L. Millspaugh, its CEO from 1965 to reads like a Who’s Who in Baltimore city’s finance department. consultant on the project. 1985. power circles, has presided over heavy Also, the city will have to repay a Similarly, Charles Center-Inner EBDI has operated much like a pri- spending on consultants and staff Harbor was developed through a pri- vate corporation with little public salaries that far exceed those of See new east baltimore 10A Renaming Middle East hits a sour note

BY JOAN JACOBSON C. “Jack” Young, who grew up in the and MELODY SIMMONS area and was Stokes’ predecessor in What’s in a name? the 12th District council seat. That’s a loaded question if you “I don’t like it. Why change it? It’s ask people from Middle East, a com- not anything we have had an ongo- munity north of Johns Hopkins ing conversation about,” said Hospital that is subject to an 88- Donald Gresham, one of the most acre overhaul. vocal opponents to the project. Now the community may be get- Gresham chose not to leave Middle ting a new name. East and is one of about 40 residents Middle East needs to be waiting to move to a newly renovat- “rebranded,” says Andrew Frank, a ed house there. former deputy mayor who now A new name, said city housing works as special advisor on eco- commissioner Paul T. Graziano, nomic development to the president should reflect the positive qualities of the Johns Hopkins University. of the new community. “The downturn in the market “What should people think of has given us a time to pause. We when they think of this communi- need to be smarter about who is ty?” asked Graziano, adding that res- likely to live in the neighborhood,” idents “don’t live in EBDI.” said Frank. John T. “Jack” Shannon Jr., the A name change does not sit well founding CEO of East Baltimore with some elected officials who rep- Development Inc. who resigned in resent the area, nor with former res- maximilian franz 2009, isn’t so sure a name change is idents. They remain unsettled by the “I don’t like it. Why change it?” asks Donald Gresham in regard to plans to change the a good idea. He called it “a hot but- city’s decision almost 10 years ago to name of the community known as Middle East. Gresham chose not to leave Middle East ton issue for certain community relocate residents, demolish build- and is one of about 40 residents waiting to move to a newly renovated house there. members.” ings and build a new community. marketing study?” ting the city. Increasing violence “It also begs the question: You “What are they going to name it The long-troubled community, there later brought comparisons to can call that neighborhood anything, — Upper Canton?” asked Carl once home to both working-class its international namesake. but unless you establish a physical Stokes, a city councilman who rep- elderly citizens and drug dealers, “Paying a consultant to rename environment and sense of communi- resents part of the area. “It’s Middle was named Middle East by its resi- East Baltimore is a waste of money,” ty it’s not going to change,” said East … why do they have to do a dents in 1978 for its geographic set- said City Council President Bernard Shannon. 10A The Daily Record Monday, January 31, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION

It has got to Oh my God, succeed. If it it is a living hell does not succeed, for me. I’m the it will be a big blot only person on on Baltimore’s this block. future.“ A“t night, I pray. shale d. stiller lisa francis Baltimore lawyer Middle East resident and civic leader

New East Baltimore >> Plans for as many as five biotech buildings are not feasible Continued from 9A to produce thousands of jobs. A vacant $21.2 million loan over 15 years from lot reserved for one of those buildings EBDI Timeline federal Community Development has been turned over to the state for a Block Grant funds used to revitalize new Department of Health and 2001 communities throughout Baltimore. Mental Hygiene lab that will proba- January: East Baltimore redevelopment project announced by then-Mayor By 2024 the city will have paid $28 bly not create many new jobs. Martin O’Malley. million in principal and interest, “It’s not going to be a biotech park,” according to the loans’ amortization said Stiller, who served on EBDI’s schedule. board and is a trustee emeritus of the 2002 boards of Johns Hopkins Medicine, September: EBDI incorporated as a 501(c)(3) nonprofit organization. As a nonprofit, EBDI is not audited o’malley by the city or state government. Johns Hopkins Health Systems and Officials at EBDI declined to Johns Hopkins Hospital. “It was because of our 2003 show The Daily Record its May: John T.“Jack” Shannon Jr. named CEO. internal audits, saying that it is TOO inability to attract it. I don’t not required by law to make know why it didn’t happen. July: Baltimore is awarded a them public. The University of Maryland federal loan guarantee of $21.2 Some of the financial infor- did a very good job across million to acquire properties, mation made public by EBDI BIGTO town,” Stiller added. relocate households and has been incomplete or inac- The university’s downtown businesses and demolish structures. curate. biotech park has 500 employ- Over the last five years, ees in 455,000 square feet rent- FAIL? ed in three buildings, with two 2004 some EBDI reports have omit- more buildings planned with March: Baltimore begins acquisition of 916 properties and begins relocation of ted any mention of private 396 households in Phase I. BETTING shannon investment in the project another 295,000 square feet. A BILLION ON while others have overstated In late December, the December: Forest City-New East Baltimore Partners selected as master EAST BALTIMORE the current amount of private University of Maryland development team. investment by more than half part one BioPark received $65 million a billion dollars. in tax-exempt federal The nonprofit’s 2005-2006 annual Recovery Zone bonds, stimulus funds 2005-2007 More than $20 million of infrastructure report displayed a pie chart showing that will allow developers to obtain improvements are made to upgrade electricity, $848 million in investment from pri- tax-free financing to expand the park. Meanwhile, as the biotech dream technology and water needs for first phase of vate developers, or 86 percent of the development. total first phase of the project. fades in East Baltimore, Johns But The Daily Record found that by Hopkins is moving ahead on a 4.6 mil- 2010 only $214 million had been lion-square-foot biotech park in 2006 invested by private developers, Montgomery County near its Rockville April: Groundbreaking for the first life sciences according to figures obtained from campus. building. EBDI, private developers and private ASSOCIATED PRESS foundations. Still searching for jobs November: Construction begins on a 74-unit senior citizens apartment building. Science scholars at Paul Lawrence Dunbar The inflated numbers, says John T. Thousands of permanent jobs High School help break ground for the life “Jack” Shannon Jr., then EBDI’s CEO, promised for The New East Baltimore sciences building. were actually estimates for future pri- have been slow to materialize. 2007 vate investment. In the early years EBDI received January: Construction begins on a 78-unit Shannon said he federal money on apartment complex that will provide housing for does not know why the premise that work force families. that was not stated the biotech park in the reports. would create 1,750 May: Planning process begins for new school jobs. As recently as school and family resource center. Biotech dream 2009, EBDI report- fades If in time we can’t ed to the federal government that 2008 make that community January Plans for a life the entire project : TIF approved for acquisition and relocation for school campus area. sciences park of resemble the vision would eventually 1.1 million square we had for families generate 6,500 per- April: Life sciences building dedicated. feet and as many and kids and workers manent jobs. as five buildings Today, more May: Senior and work force housing dedicated. — once the linch- there,“ the city is in than two years MAXIMILIAN FRANZ pin of The New trouble. after the lone John G. Rangos Sr. life sciences building. East Baltimore biotech building 2009 project — are no douglas w. nelson opened, 422 February: Shannon resigns as CEO; replaced by Christopher Shea. longer considered Chairman of the EBDI board employees are feasible. there. An EBDI One biotech employment offi- 2010 building of 278,145 January: State commits to build $175M lab for the Department of Health and cial says she does Mental Hygiene. square feet opened not know how in 2008. That structure, the $100 mil- many jobs were created or simply September: Groundbreaking for graduate student housing. lion John G. Rangos Sr. building, is transferred when business tenants scheduled to be 80 percent occupied moved there. in May when the Lieber Institute of None of the permanent jobs, Brain Development moves in. though, were created for East Plans have been scrapped for four sources: EBDI,HUD shea more life sciences buildings that were See new east baltimore 11A Monday, January 31, 2011 The Daily Record 11A AN EXCLUSIVE DAILY RECORD INVESTIGATION New East Baltimore >> The future depends on retooling the project’s master plan Continued from 10A Baltimore residents, as had been Oliver St. promised. Original EBDI N . Most of the 2,378 jobs created else- B r o a where in The New East Baltimore d site footprint w a were temporary construction jobs that Amtrak railway y . lasted an average of two months. St ay Of the total jobs created, 695 have . G N been created on the EBDI staff, at the I Original plans for Phase 1 new East Baltimore Community E. Preston St. E. Preston St. School and at local businesses in Size: 31 acres health care, customer service, hospi- Highlights: tality and tourism, according to a Daily • 1.1 million-square-foot E. Biddle St. Record analysis of EBDI statistics and life sciences park interviews with current and former • 900 homes EBDI officials. • Parks, green space E. Chase St. E. Chase St. Housing comes slowly R u

t Prentiss Pl. l

The project began in 2001 with a n d plans to relocate 732 households and I Original plans for Phase 2 A v e clear wide swaths of East Baltimore. . E. Eager St. So far, 669 houses and other buildings Size: 57 acres N . C h have been demolished and another 700 Highlights: e s t e are ready to come down, many of them Barnes St. r • 7-acre school S t long-vacant. • Family resource center . The project has been stymied first Ashland Ave. by the rise in home prices and later by • 1,300 homes the recession. In its early years, when EBDI was relocating families, the cost of comparable housing and a E. Madison St. N .

grassroots protest by residents and W o l f their supporters forced the nonprofit e S t to pay millions more than expected . E. Monument St.

on relocation. N . C

The $21.2 million federal loan was h e s t not enough to cover acquisition, relo- e r S t cation and demolition. Instead, EBDI . used it almost exclusively for reloca- tion, along with millions of dollars Detail N from Casey and Hopkins and $6 mil- Johns Hopkins Hospital lion in federal rent subsidies. W E Another $11 million from the state S Jefferson St. Scale paid for demolition, according to fed- 200 ft eral documents. By the time the ground was cleared in early 2009, the full brunt of the recession had hit. Financing dried up Nelson, the Casey Foundation’s and housing demand waned. recently retired CEO who is chairman About the series Today, only 37 percent of rental of the EBDI board. and for-sale homes planned for The Most principals associated with the Reporters Melody Simmons covers development and real New East Baltimore’s first phase of 31 project say its future now depends on the developer’s ability to retool the estate for The Daily Record. She has been a reporter acres have been built. in Baltimore for more than three decades, focusing on master plan as the grip of the reces- EBDI projected, as recently as May urban and regional issues including development, 2008 in a bond offering to investors, sion remains tight. housing, education and poverty. that there would be 599 houses com- Scott Levitan, senior vice president A staff writer for The Evening Sun and The Sun for pleted or under construction by now. for developer Forest City-East 20 years, she was part of a team that investigated a But there are only 220, mostly rental Baltimore Partnership, which is $60 million no-bid city public housing repair program in apartments for senior citizens and overseeing the project, said a 1995 that led to federal audits of the Housing Authority other tenants. Baltimore advertising agency, Carton of Baltimore City and the city Department of Housing Five of the completed units are Donofrio Partners, was hired last and Community Development and fraud charges for upscale condominiums, listed summer to “rebrand” and certain contractors hired by those agencies. She has covered urban affairs for other local melody simmons for sale for as much as rename the community and create a plan to market it to media outlets. At WYPR-FM, she was part of a news $320,000. Two have been sold. TOO team that covered Baltimore neighborhoods and In addition, another 40 old middle-class families and issues, including a 2006 award-winning series on the relocation of residents in row houses are being reno- commercial developers. Middle East by East Baltimore Development Inc. vated for people from the That plan — which Levitan She has written as a freelance journalist for People, The New York Times, The original neighborhood. BIGTO described as “psychograph- Washington Post, Urbanite, Baltimore Magazine and BaltimoreBrew.com. ics and additional market Retooling the plan research” — will be ready Joan Jacobson, a freelance writer, has covered urban early this year, he said. He affairs in Baltimore for most of her 36-year journalism Despite the delays in rede- FAIL? career. She has written extensively about Baltimore’s declined to reveal how much velopment, The New East neighborhoods,including Middle East. Carton Donofrio is being Baltimore has been a destina- BETTING As a reporter for The Evening Sun and The Sun she tion for planners from Miami, A BILLION ON paid and who is paying for it. wrote about the misuse of federal housing and poverty Buffalo, Cleveland, Atlanta, EAST BALTIMORE “I am not going to discuss funds by city officials and local nonprofit groups. During the Baltimore Renaissance of the 1980s, she Philadelphia, Birmingham part one it,” Levitan said. “It’s not pub- and New Orleans, according lic information.” chronicled how gentrification negatively impacted the to EBDI’s 2005-2006 annual Shea said EBDI has con- poor and enriched housing speculators. In 1992 she produced an investigative story detailing report. tributed $130,000 toward the Carton the loss of tens of millions in unpaid loans given to politi- “It is being watched around the Donofrio contract. Forest City is pay- cally connected developers by City Hall. joan jacobson country” by both philanthropic and ing the rest of the cost, but Shea said Since leaving The Sun in 2002, Jacobson has written academic institutions, urban develop- he did not know how much. for Baltimore Magazine, Urbanite, and ment expert Paul Brophy said of the Two previous master plans for the BaltimoreBrew.com. project, which he said stands alone project, now in limbo, have cost $1.8 She has also authored several research studies for the Abell Foundation, including nationally in size and scope. million, according to The Daily one about the dismantling of Baltimore’s public housing program. Jacobson is co-author of “Wised Up,”a memoir of a former Baltimore crime boss Leaders of the project’s inner circle Record’s analysis. turned FBI informant. also see its outcome as a reflection on Levitan said the hope for the new Baltimore. plan is to provide “a full bundle of “If in time we can’t make that com- Other members of The Daily Record’s project team: amenities in the community with more munity resemble the vision we had for Design/Graphics: Todd Zimmerman retail and civic space.” Multimedia: Jon Sham families and kids and workers there, Photography: Rich Dennison, Maximilian Franz the city is in trouble,” said Douglas W. See new east baltimore 12A Editing: Wayne Countryman, Tom Linthicum 12A The Daily Record Monday, January 31, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION Elected officials short on financial details

BY JOAN JACOBSON Raia, in an e-mail. and MELODY SIMMONS Brown declined repeated Until recently, the last time an requests for an interview. Raia e- elected official raised any serious mailed a statement on his behalf last questions about the public funding of week. The New East Baltimore project was “Our administration supports in 2003, when it was just getting start- EBDI and we believe that the public- ed. private partnership has the potential Hattie Harrison, a longtime state to benefit and revitalize the East delegate from East Baltimore, wrote Baltimore community,” the statement a letter to city housing commissioner said. Paul T. Graziano, raising questions Gov. Martin O’Malley also about the city’s plan to divert money declined repeated requests for an from the popular Community interview over the past three months. Development Block Grant fund to repay a $21.2 million federal loan. ‘I can’t give you an opinion’ Diverting about $2 million a year City Council member Warren for 15 years to repay the loan with Branch represents the bulk of the 88 interest could hurt other community acres known as Middle East that projects, Harrison pointed out. encompasses the project. He calls “We believe the further decreases himself a “freshman” who is “still try- of such funds available to other areas maximilian franz ‘If you ask me anything that happened before my tenure I wouldn’t be able to tell you,’ ing to filter” information about the equally in need of redevelopment says City Council member Warren Branch, a nonvoting member of EBDI’s board. project since his election in 2007. would be unacceptable,” she wrote. Like Stokes, Branch is a nonvot- Harrison’s request that other board of directors. money they get off the sale of proper- ing member of EBDI’s board of direc- funds be used to repay the loan fell Since his interview with The Daily ties and rents.” tors. He said last fall that he had been on deaf ears. Now, seven years later, Record in October, Stokes has Sheila A. Dixon, the former mayor to only one or two meetings, due to that $2 million annual payment formed a task force to review the and City Council president, said she scheduling conflicts. Branch said he seems like small change compared to city’s use of Tax Increment Financing knew the $78 million in TIF bonds sent a representative in his place. the $212.6 million in government Though Branch said he has raised bonds, which are helping to finance was approved for the project, but she funds committed to the project. concerns about local businesses not The New East Baltimore. did not know they were sold in 2008 getting work from the project, he City Council President Bernard C. and 2009 while she was mayor. Lack of understanding said he had very little understanding “Jack” Young, who represented the “I didn’t know they took out the of the federal loan or Community When The Daily Record started area for 14 years before taking his TIF. When did the TIF get taken out? its investigation last fall, elected offi- current post in February 2010, was Development Block Grants and was Are you sure?” she asked a reporter. cials who represent The New East unaware of the federal block grant unaware of the TIF bonds. State Sen. Nathaniel McFadden, Baltimore area could not explain the loan and its repayments. “I can’t give you [an] opinion on who also represents the area, did not project’s financing, let alone express “I have no thoughts because I whatever was done and sold before I an opinion about it. wasn’t aware of it,” said Young. respond to repeated requests for an came into office. As a freshman, I’m City Council member Carl When interviewed last fall, Young interview. still getting aware of it,” said Branch. Stokes, who represents a part of the said he was unaware that the $78 mil- Lt. Gov. Anthony Brown, a mem- “If you ask me anything that hap- project’s western edge, said then lion in TIF bonds had been sold to ber of the EBDI board, “has visited pened before my tenure I wouldn’t be that he had yet to educate himself on support the project. He also did not the EBDI project no less than eight able to tell you. I’m not responsible the financing since rejoining the appear to understand that the bonds times for board meetings, tours and for anything that happened before council in March 2010. He is also a will be repaid with property taxes. other public events. He has had my watch,” he said. “Whatever they nonvoting member of the East Instead, Young said he believed numerous meetings about the project got that loan for, I don’t believe I Baltimore Development Inc. the bonds will be repaid with “the as well,” said his spokesman, Mike should be held accountable for.”

New East Baltimore >> Luring middle-class residents with amenities may be the key

Continued from 11A EBDI has spent $95,000 on lawyers President Bernard C. “Jack” Young, owner’s insurance for less than $1,262 and other consultants to research, pre- remain angry that their former neigh- a year because of the blight that sur- “We have learned there will need to pare legislation and make budget pro- borhood was demolished. rounds her. “I’m the only person on be, at least for the pioneers, significant jections for an East Baltimore “They would never have done that this block. At night, I pray.” incentives to buy,” he said. “We have to Community Benefits District that in Little Italy, they never would have get over the perception that it’s a dan- would charge new homeowners an done it in Greektown. Why did they do gerous area. Perception is 99 percent extra tax to pay for private security it there?” Young asked. “They tore of the battle.” To comment on this series, log on to our and maintenance. down a whole generation of East website, TheDailyRecord.com. Now, instead of a massive Some of the few remaining resi- Baltimore.” biotech development, planners are dents oppose the district, which has Lisa Francis, who lives in a reno- Contact our reporters at: focusing on what kind of affordable yet to be created, even though they vated row house in the 1100 block of [email protected] homes they can build to lure middle- would be exempt from paying the McDonogh Street, chose to remain in [email protected] class residents and how they can tax. the community. attract commercial development, As new redevelopment plans “Oh my God, it is a living hell for which they hope will include a hotel, Log on to our website unfold, many current and former resi- me,” she said of her new life, compli- TDR ONLINE TheDailyRecord.com a grocery store and restaurants. dents, including City Council cated because she cannot buy home-

AN EXCLUSIVE DAILY RECORD INVESTIGATION (A day-by-day guide to the series)

The New East Baltimore TOO Finances Development The school The future Today Tuesday Wednesday Thursday Friday BIGTO Aworld-class biotech park,once the Plans for a state-of-the-art public What lies ahead for The New East The nation’s largest urban redevelopment The financial underpinning of the linchpin of the project, is no longer school that could bring Johns Baltimore and East Baltimore project,stalled without a major biotech compo- projected $1.8 billion New East nent,is struggling to regain momentum and considered feasible. What went Hopkins University Nobel laureates Development Inc., the nonprofit FAIL? Baltimore development is complex, wrong with biotech and what hap- into the classrooms are now at the that is spearheading the project? develop a new focus. and many local elected officials don’t pened to the promise of thousands center of the emerging vision for Meanwhile,efforts are underway to rename understand it. of permanent jobs? The New East Baltimore project. the former African American community leveled BETTING ABILLIONON to make way for the development. EAST BALTIMORE Poe house in danger ‘Miranda’ warnings Museum needs to replace $80,000 per year Suspect’s rights violated when detective says it had received from the city. 5A conversation is ‘between you and me, bud.’ 14A

Tuesday, February 1, 2011 Volume 122 | Number 83 Online at TheDailyRecord.com THE MUDDLED MONEY TRAIL No public accounting for $564 million spent by EBDI since 2002

BY JOAN JACOBSON AND MELODY SIMMONS

ast Baltimore Development Inc. has spent $6.4 million per acre since 2002 to revitalize a E largely vacant chunk of inner city bounded on three sides by slum and blight. The money has gone to buy homes, demolish buildings, relocate residents and build underground infrastructure for water, sewer, state-of-the-art fiber- optic and electrical systems. Of the $564.7 million tab so far, $212.6 million has come from the cash-strapped city, state and federal governments, $214.2 million from pri- vate developers, $92.5 million from the Johns Hopkins University, the Annie E. Casey TOO

MAXIMILIAN FRANZ Foundation and These empty houses in the 2100 block of East Chase Street, some boarded up and some burned out, await demolition in Phase II of the other nonprofits, $1.8 billion New East Baltimore project. and $45.4 million from investors of BIG AN EXCLUSIVE DAILY RECORD INVESTIGATION federal tax credits. TO And nowhere is there a comprehen- INSIDE TODAY sive, independent FAIL? Staff grew in size, cost as recession hit Extra information online public accounting of The demands of the project forced EBDI to add employees Go to our website for a narrated slideshow, video interviews the funds and how BETTING they have been and pay its leaders well, officials say. with East Baltimore residents, and an interactive timeline ABILLIONON and map of the area. Check back throughout the series for spent. 9A EAST BALTIMORE additional online content. A five-month City relies on little-understood bonds investigation by The part two City economic development officials like Tax Increment Log on to our website Daily Record found Financing bonds because they function like a blank check. TDRTDR ONLINE TheDailyRecord.com that large sums have been spent to pay 12A consultants for plans that may never be used, and generous salaries have been paid to the EBDI staff. The newspaper found an intricate trail of 15 sources of public money for the project. In one case, there was a $3.5 million disagreement between Police settlements continue to mount EBDI and the city Department of attorney, A. Dwight Pettit. He was Housing and Community $200K deal ends trial; another pending for $90K “very disappointed” because he Development about how much money EBDI had spent on infrastruc- BY BRENDAN KEARNEY stop in October 2008. In the other case believed the case was worth millions [email protected] — a $90,000 line item on this week’s of dollars. ture. The city said $1.8 million; EBDI Board of Estimates agenda — a “You start outlining that appellate said $5.3 million. Continuing a trend that has cost Severna Park man claimed a city offi- process … and people really start The amount of private investment Baltimore several million dollars in cer broke his arm while making a drug thinking about a bird in the hand ver- in the project was overstated — some- recent years, the city is expected to arrest near the westside McCulloh sus two or three in the bush,” he said. times significantly — in EBDI public pay out another $290,000 this month to Homes in April 2009. “If there was ever a case I wanted a reports. An undated EBDI document settle another pair of lawsuits alleging Jacqueline Allen, the 47-year-old jury to respond to, it was this one,” Pettit written to lure investors inflated the police misconduct. woman who was shot in the torso on said. “It was the perfect storm legally.” amount of private investment by more The first case, which settled during her way to drug treatment, decided to Michael Marshall, an attorney with than half a billion dollars. The same trial last week for $200,000, involved take the city’s offer on the second day Schlachman, Belsky & Weiner P.A incorrect figure was included in allegations that an officer shot an of trial in Baltimore City Circuit who handled the defense in both cases EBDI’s 2005-2006 annual report. unarmed woman at a Cherry Hill bus Court last Tuesday, according to her See settlements 7A See finances 9A

Auction sales 24B Public notice 1B A publication of $220 per year For subscriptions Calendar 7A Real estate 25A call 1-800-451-9998 or INDEX Classifieds 17A Sealed proposals 3B $2 per copy e-mail [email protected] Tuesday, February 1, 2011 The Daily Record 9A AN EXCLUSIVE DAILY RECORD INVESTIGATION Finances >> Key elected officials pay scant attention to the massive project Continued from 1A EBDI reports. The annual reports for project since the construction of need for such an audit. The reports incorrectly stated that 2008 and 2009 contain no monetary Charles Center-Inner Harbor in the “I don’t think a public audit is any- private developer outlay for the first figures but rather colorful pie charts 1960s and ’70s. thing to run from, but I am sure in 31 acres of the project, known as showing only percentages of invest- In interviews that began last fall, accordance with regulations for them Phase I, was $848 million, or 86 per- ment by governments and foun- The Daily Record found that as a 501(c)(3) that their financial cent of the project’s investment. dations. There is no mention of TOO key elected officials have paid books have been audited as regularly The magnitude of private invest- private investment. scant attention to the project’s as they should be,” the mayor said. ment “is unique for enterprises of this Cynthia Swisher, EBDI’s finances, despite its magnitude. “I am also confident in the commu- nature,” said the undated document chief financial officer, said pri- Although two members of nity leaders that have been a part of written for investors. vate investment figures were BIGTO the Baltimore City Council the EBDI process there. The former John T. “Jack” Shannon Jr., EBDI’s omitted because EBDI’s former sit on EBDI’s board as nonvot- head [of the board, Joseph Haskins CEO until 2009, said the $848 million communications director ing members, the nonprofit is Jr.], as well as the chair now [Douglas figure was actually an estimate by the decided to mention only invest- not audited or overseen by W. Nelson], have very good reputa- ment generated directly by the FAIL? tions for their financial acumen as well project’s master developer, Forest City Hall in any formal way. City-New East Baltimore nonprofit and not “investments City Comptroller Joan Pratt as integrity.” BETTING Partnership, of how much private made in privately owned real has no fiscal oversight over The city’s mayor approves the ABILLIONON estate.” EBDI because of its nonprofit hiring of EBDI’s CEO as a matter of investment would go into the project’s EAST BALTIMORE first 31 acres when fully built. status. protocol, according to former Mayor The $848 million should have been Audit disagreement part two City Councilman Carl Stokes Sheila A. Dixon, who approved the hiring of Christopher Shea, the cur- labeled “projected private develop- Since its creation in late recently told The Daily Record rent CEO. Dixon said then-Mayor ment,” Shannon said. 2002, EBDI has operated largely that he would call for a public audit of Martin O’Malley approved the hiring In recent years, figures stating the independently by virtue of its status the project. amount of private investment in the as a nonprofit in spearheading the But Mayor Stephanie Rawlings- See finances 10A project have disappeared from public city’s biggest urban redevelopment Blake said on Monday she sees no EBDI’s top earners surpass those at BDC

BY JOAN JACOBSON AND MELODY SIMMONS A tale of two organizations As the nation headed into its worst recession since the Great How do salaries differ between EBDI and BDC? Depression, staffing and salaries at (A listing of the highest-compensated employees from 2008-2009) East Baltimore Development Inc. skyrocketed between 2005 and 2009, Internal Revenue Service documents show. The pay and benefits at the non- profit increased by 46 percent, from $2.6 million in 2005-2006 to $5.6 million in 2008-2009, when eight employees made more than $100,000 a year. During that time the staff expanded from 43 to 72, East Baltimore Development Inc. (EBDI) Baltimore Development Corp. (BDC) according to Cynthia Swisher, Employee Salary Employee Salary EBDI’s chief financial officer. One of EBDI’s highest-paid John T.“Jack” Shannon Jr. (past president and CEO) $263,065 M.J. “Jay” Brodie (president) $205,740 employees is Arlene Conn, head of Cynthia P. Swisher (CFO) $195,836 Kimberly Clark (executive VP) $117,561 relocation services and girlfriend Christopher Shea (president and CEO) $184,565 Jeffrey Pillas (CFO) $110,101 of Baltimore’s housing commis- Jolly Burks (controller) $124,262 Irene E. Van Sant (project analysis director) $109,618 sioner, Paul T. Graziano. His agency pumps millions of dollars Dennis W. Miller (VP of Real Estate Development) $118,388 M. Celeste Amato (director of business development) $108,641 into EBDI and he is a nonvoting Arlene Conn (senior director of acquisitions & relocation) $109,279 Nancy Jordan-Howard (COO) $83,015 member of the organization’s Paul Weiner (director of engineering) $108,848 David P.Adamski (controller/treasurer) $78,990 board of directors. Graziano and Robert C. Penn (past executive vice president) $103,634 Paul J. Coleianne (controller/treasurer) $47,635 EBDI officials say there is no con- flict of interest. Total $1,207,877 Total $861,301 EBDI officials say they have trimmed staff as acquisition, relo- cation and demolition work at the Source: IRS tax forms for EBDI and BDC 88-acre site of The New East Baltimore winds down. Swisher said wages and benefits city’s development arm, which is also they do than anybody else in the are not available. for 2010 fell to $5.1 million, about 10 a nonprofit. country.” Graziano and Shea said there is percent of the nonprofit’s $50 million In 2008-2009, the most recent year Shannon said staff members were no conflict of interest between annual budget. EBDI eliminated five for which tax statements are avail- hired when the real estate and finan- Graziano’s position as the city official vacant positions and terminated able, BDC’s top eight earners made cial industries “were at a high who oversees millions of dollars that another five employees last year. The only 72 percent of the salaries of employment level” and EBDI needed go into The New East Baltimore proj- EBDI board has not approved a EBDI’s top eight earners. to compete for talent. Salaries ect and Conn’s job administering salary increase in two years, she Total salaries for EBDI’s 79 increased, he said, to retain employ- some of those funds. added. employees who worked at least part ees in such a “high-stress environ- “As CEO of this organization I am EBDI was formed by the city, the of that year came to $5.6 million, ment.” absolutely comfortable that there is Johns Hopkins University and while BDC’s salary total for its 70 Graziano also defended EBDI’s no inappropriate interaction,” said community leaders in 2002 to serve employees was $4.7 million. salaries. Shea. as the developer charged with rejuve- That year, EBDI’s CEO, John T. “They have very complicated Referring to Conn, he said, “I have nating East Baltimore. The group “Jack” Shannon Jr., earned $263,065, technical issues they’re dealing with the single most qualified person in was formed as a 501(c)(3), a nonprof- while BDC’s president, M.J. “Jay” and they’re paying for competency,” this position. I don’t see a conflict.” it organization, so it does not have to Brodie, earned $205,740. he said. “It’s a nonprofit but also Before Conn was hired, EBDI adhere to city hiring, procurement or Asked about his organization’s engaged in a major redevelopment consulted a lawyer about her person- salary rules. salary structure, current EBDI CEO project but far above a scale of typi- al relationship with the housing com- Staff members at the nonprofit, Christopher Shea said, “I think it’s cal nonprofit.” missioner. The attorney, Michael A. for example, are not affected by high.” But “the board approved it,” he Conn owns a house with Brown, said he wrote an opinion in recent pay cuts and furloughs that added. Graziano, according to property tax which he found no conflict of inter- have rankled city workers, including Shea’s salary is $219,399. records, and lives with him there in est. firefighters and police. “It was a salary structure that I Bolton Hill. She heads a relocation “I am not a voting member of the EBDI’s top salaries are consider- inherited when I came here,” said staff of 11 employees and received a [EBDI] board,” said Graziano. “I have ably higher than those at the Shea, who became CEO in 2009. salary of $109,000 in 2008-2009, tax kept out of any matters [that could Baltimore Development Corp., the “Some people here are better at what records show. More recent figures involve Conn].” 10A The Daily Record Tuesday, February 1, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION Finances >> ‘Accurate reporting is to the program’s advantage’ – Paul Brophy Continued from 9A of Shannon, the first CEO. Paul T. Graziano, the city’s housing Investment in The New East Baltimore as of Jan. 31, 2011 commissioner and a nonvoting mem- ber of the EBDI board, receives Public investment: A total of $212.6 million from 15 different sources of city, state and federal funds. monthly reports from EBDI on the project’s progress but discards them Private investment: after reading them, said Cheron Atotal of $214.2 million from 8 sources. Porter, his spokeswoman. But she Foundation investment: said Graziano and other city officials Atotal of $92.5 million from Hopkins,Casey,Weinberg,Atlantic Philanthropies and other organizations. are in “regular commu- Federal tax credits: nication” with EBDI. Atotal of $45.4 million from federal sources. TOO City Council President Bernard C. “Jack” Young held BIGTO hearings in April 2009 about EBDI’s minority hiring and relocation FAIL? practices. But he and the two council mem- million bers who now repre- BETTING sent the area said they ABILLIONON $564.7 EAST BALTIMORE knew next to nothing part two about the project’s public funding when Public investment Private investment Foundation investment Federal tax credits interviewed last fall. There is also little fiscal oversight at the state level. Although Lt. Gov. Anthony Brown is a member of the $212.6 $214.2 $92.5 $45.4 EBDI board of directors, state Comptroller Peter W. Franchot and legislative auditors have no fiscal over- million million million million sight responsibility over EBDI. EBDI declined to give The Daily Total of investment Total of investment Total of investment Total of investment Record copies of its internal audits. It funds from 15 funds from private funds from foundation funds from is not legally required to make them public sources sources sources tax credits public because of its nonprofit status. $42.6 million New market tax credits $100 million (Rangos biotech building) $22 million Hopkins University When asked about the inconsis- $78 million (city TIF bonds) purchased by private $21.2 million (HUD 108 loan) investors tent and inaccurate public reporting $30.5 million (city sources: water/ $18 million (Forest City- New East $36.5 million Casey Foundation of the project’s finances, urban devel- Baltimore Partnership, (Does not include $27 million wastewater bonds for $2.8 million Low-income housing master developer) used to invest in TIF) opment consultant Paul Brophy said, infrastructure, general funds tax credits for the two “I think accurate reporting is to the for infrastructure and Shelter projects and $21 million (Ashland Commons and demolition, motor vehicle Chapel Green program’s advantage — reporting Parkview at Ashland) $15 million Weinberg Foundation, revenue funds,city general Parkview at Ashland where the money’s coming from and to fund the new school obligation bonds for Ashland Commons where it’s going. I would urge trans- infrastructure) $8 million (Chapel Green) parency.” $5.5 million (HUD HOME funds) $12 million Atlantic Philanthropies, $6.4 million (HUD housing vouchers $60 million (Grad student tower) to fund health, learning Brophy, former president and co- for low-income tenants) and family services CEO of the Enterprise Foundation, $350,000 (city BDC loan) $1.3 million (Maryland Institute College was an early consultant to the project $700,000 (federal empowerment of Art building) $7 million grants from a variety before EBDI was formed. zone funds) of other sources. $9 million (federal transportation $4.5 million (Johns Hopkins Berman “Nobody ever believed that figure funds) Institute of Bioethics, for of $848 million anyway,” said $53 million (state capital funds) restoration of historic Raymond A. Winbush, director of the $4 million (state Sunny Day funds) police station) Institute for Urban Research at $1 million (mortgage loan for Parkview at Ashland $1.4 million (Townes at Eager – Morgan State University. He was an $3 million (State rental housing 5 condos) early critic of the project because of funds for Chapel Green) the decision to eliminate the commu- nity that occupied the redevelopment $212.6 million Total public funds $214.2 million Total private funds $92.5 million Total foundation funds Total tax credit funds $45.4 million area. “Once we asked to see a [break- down] of that money and they didn’t want to show us,” he said. “They never gave it to us because they said it was private money and they didn’t have to.” 38% 38% 16% 8% ‘A legal and moral obligation’ Public money paid $169 million, or Percentage of funds from Percentage of funds from Percentage of funds from Percentage of funds from 77 percent, of the $219 million it cost public sources private developers foundations federal tax credits to purchase and demolish properties, relocate residents and build new infra- structure for The New East Baltimore, according to figures provided by EBDI and the city and compiled by The Daily sources: EBDI, Baltimore Department of Housing and Community Development, Housing Authority of Baltimore City, State of Maryland, U.S. Department of Housing and Urban Development,The Shelter Group developers, Record. Annie E. Casey Foundation,Johns Hopkins University Relocating 732 households and buying 1,838 properties cost taxpayers $101 million. The high cost of relocation was The Daily Record. Explaining the high relocation pay- right. If it required more funding and due to unprecedented amounts paid Officials at the Annie E. Casey ments, former EBDI CEO Shannon time to do it, then so be it.” to each household. The city and Foundation and EBDI say they paid said, “We needed to look not where EBDI originally sought to pay less the higher sums because federal law people were today, but on fair-housing High expenses than $50,000 per household, accord- required it and because it was the laws, where they needed to be. We had EBDI has also spent heavily on con- ing to former residents and city offi- socially responsible thing to do. families in substandard housing and cials. sultants, sometimes for plans that were Shea, EBDI’s CEO, said EBDI staff houses not big enough for their fami- abandoned or shelved, according to But bitter protests by the residents counseled several families after they lies. So we needed to adjust. secured payouts of between $150,000 The Daily Record’s examination of pub- moved so they would not lose their “Keep in mind these individuals did lic documents and inquiries to EBDI. and $265,000 per household, accord- new homes to foreclosure as the sub- not ask to move. We had a legal and a ing to federal documents examined by prime mortgage crisis hit. moral obligation to get this exactly See finances 11A Tuesday, February 1, 2011 The Daily Record 11A AN EXCLUSIVE DAILY RECORD INVESTIGATION

Finances >> Inaccurate and incomplete reports

Complex dealings The Daily Record found public reporting of investments in The New East Baltimore has sometimes been inaccurate and incomplete.The pie charts below come from three different EBDI annual reports.The first, from 2005-2006, depicts the East Baltimore project as heavily dependent on private development funds of are no surprise, $848 million for Phase I, or the project’s first 31 acres.A similar EBDI “investment report”with the same pie chart touted the project as being noteworthy for “the magnitude of private investment, which is unique for enterprises of this nature.” experts say But this number was only an estimate of the amount of private investment East Baltimore’s master developer hoped to lure to the project, said EBDI’s former CEO,John T.“Jack” Shannon Jr. The Daily Record’s investigation found that today private development investment amounts to $214.2 million. The other two pie charts, from EBDI reports of 2007-2008 and 2009, omit private development investment — and replace dollar amounts with percentages.The Continued from 10A reason for omitting private investment, said Cynthia Swisher, EBDI’s Chief Financial Officer, is that a former employee decided only to include money generated • In 2007 EBDI paid the local architec- directly by EBDI and not by private companies. ture firm of Ziger/Snead $614,000 for plans to renovate and expand the vacant Elmer A. Henderson Elementary School at 1101 N. Wolfe St. The plans were scrapped after van- dals stripped and burned the building, making it unusable, said Shea and EBDI 2005-06 Annual Report Shannon. • Two master plans have been written since the project began, costing a total of $1.8 million. The first, a 2001 plan depicting the pro- TOO ject’s first phase, was commissioned before EBDI was formed. BIG Prepared by Urban TO Design Associates of Pittsburgh at a cost of $930,000, the plan pro- FAIL? motes 1.5 million to 2 million square feet of BETTING biotech space and ABILLIONON contains designs and EAST BALTIMORE floor plans for several part two types of homes that have not been built. From 2005-2006 annual report: page 14 The plan was financed by the Goldseker Foundation, which paid $790,000, the Abell Foundation, which paid $65,000, and the city, EBDI 2007-08 Progress Report which paid $75,000. A second master plan, from 2006, cost EBDI $825,000 and was created by Sasaki Associates, an architectural and planning firm with offices in Boston and San Francisco. That plan, outlining development for Phase II, is still in draft form but has been shelved because the market for building new housing dried up, said Shea. Last summer, EBDI and Forest City-New East Baltimore Partnership hired the local advertising firm of Carton Donofrio at an undisclosed sum to “rebrand” the community and relaunch the project. ‘A Third World country’ The complex level of public invest- ment is no surprise to outside experts on public financing or those who have been in charge at The New East Baltimore. From the 2007-2008 Progress Report: page 6 The magnitude of the project, they said, has dictated the many layers of EBDI 2009 Annual Report financial wizardry needed to acquire, demolish and begin to rebuild during the recent recession as lenders remain frozen and wary. “This by no means was seen as an inexpensive project,” said Haskins, the former EBDI board chairman. “But we saw it as a project with a lot of future implications for the city and state and potential to become a national model of how to revitalize an area that looked like a Third World country.” Haskins, who is chairman, presi- dent and CEO of Harbor Bank, was one of the first Baltimore leaders selected by then-Mayor Martin O’Malley to plan the transformation of the Middle East neighborhood. He worked with Shannon, EBDI’s first CEO. “The level of public investment that’s required at the outset of these projects will always be substantial at From the 2009 annual report: page 20 See finances 12A 12A The Daily Record Tuesday, February 1, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION

Nobody ever We can’t believed that figure settle for of $848 million the status anyway. quo.

raymond a. winbush william h. cole iv Director“ Baltimore“ City Councilman Institute for Urban Research at Morgan State University

Finances >> Private funds will pay for most of the new development, Shannon says

Continued from 11A Shannon’s comments shed light on Private money, Shannon says, Two of the largest public invest- why the investments to date are so largely pays for new development. For ments in the project are loans that the beginning, compared to the level top- heavy with public funds — tax example, the project’s lone biotech must be repaid with interest from tax of private investment,” explained dollars were largely spent to eliminate building cost was paid for with $100 dollars, saddling the city with $227 Shannon. the old Middle East community and million in private funds. million in payments. That’s in addi- “What EBDI has put together is rebuild infrastructure. tion to the $212.6 million already infrastructure and provided the And Brophy notes that the project It’s ‘ridiculous’ committed. platform to attract private invest- has heavy upfront support from foun- Meanwhile, city taxpayers and The largest public investment ment in the neighborhood. The level dations because of the “social purpos- their elected officials are staring at a comes from the sale of $78 million in of public investment will not es that are in play here” with unprece- multimillion-dollar commitment in Tax Increment Financing (TIF) bonds increase and private investment dented support services for relocated public funds that will last for the next will,” he said. residents. 29 years. See finances 13A TIFs increasingly fuel city projects

BY MELODY SIMMONS Greater Baltimore Board of AND JOAN JACOBSON Realtors and a former city council- What is a TIF? man, cautioned that TIFs divert tax The acronym stands for Tax revenues from the city’s general fund Increment Financing, a little-under- because the TIF bonds are repaid, stood form of public investment in often for decades, before full tax rev- urban redevelopment now favored enues are realized from a develop- by the city of Baltimore. ment. When City Hall approves a TIF “Clearly you’re committing tax to help finance a new development, revenue to a specific project – it is bonds are sold to investors. The money that doesn’t go into the gener- bonds are to be repaid not with city al fund,” Landers said, agreeing that general funds but with future prop- the impact on the city’s borrowing erty taxes from the new develop- capacity is also affected by TIF ment. because rating agencies look at com- This financing mechanism bined debt. decreases the upfront development costs, but it also decreases the Largely vacant land amount of property taxes that The largest TIF issued by the city flows into city coffers from the so far is for The New East Baltimore. new development until the bonds The bonds sold in 2008 and 2009 are paid off. total $78 million, or more than one- Historically, Baltimore has third of the project’s public funding enticed developers with a variety of to date. tax breaks such as PILOTs A debt service schedule obtained (Payments In Lieu Of Taxes) or mul- maximilian franz by The Daily Record from the city’s timillion-dollar loans as second mort- Joseph T. ‘Jody’ Landers III, a member of the City Council’s task force, cautions that Bureau of Treasury Management gages that often did not need to be TIFs divert tax revenues from the city’s general fund. shows that $199 million in property repaid. taxes will be diverted to repay hold- But in the current economy, city Treasury Management. developer Patrick Turner envisions ers of the TIF bonds over the next 29 economic development officials like Since May 2003, Baltimore has a 4.8 million-square-foot mixed-use years. TIFs because they function like a sold bonds for seven TIFs, Kraus development on 50 acres along the That schedule assumes there will blank check and can keep develop- said, totaling $116.1 million. Those Patapsco River. It would include be enough development on the prop- ment moving even in the depths of TIFs were used for HarborView, office, retail, housing and hotel erty to generate the taxes to repay recession. Clipper Mill, Mondawmin Mall and space and cost $1.5 billion. Turner the investors. But today The New A TIF is often seen as “a kind of Locust Point, among others. is expected to seek $160 million in East Baltimore TIF tax district is free money,” says Joan Youngman, a “These projects would not have TIF bonds, according to members largely vacant land. senior fellow and TIF expert at the moved forward without the TIF and of the TIF task force. According to city documents Lincoln Institute of Land Policy in they needed more money than a After the City Council voted to outlining the TIF, the property Cambridge, Mass. PILOT,” Kraus said. establish the Harbor East TIF district owner — East Baltimore “This is why they’re often seen as No bonds have been issued yet in November, Councilman Carl Development Inc. — would be the only game in town and the only for three additional TIF districts cre- Stokes formed a task force to review liable for the debt if there is not feasible and palatable [option] when ated by the City Council. TIF and PILOT financing in light of sufficient property tax revenue to a tax increase is not popular,” she One of those districts is in Harbor the city’s budget woes. repay it. If the property owner explained. Point, on the slice of land between At a task force meeting last defaulted, the land would revert to Harbor East and Fells Point where Tuesday, Kraus said bond rating the city like any tax delinquent A serious commitment developer and bakery magnate John agencies consider TIF bonds the property. But in that case, the bond From the standpoint of the pri- S. Paterakis hopes to get $150 million same as general obligation bonds in holders would not get paid. vate investor, a TIF is viewed as a sig- in TIF bonds for new construction, calculating a city’s debt load. Youngman, the TIF expert at the nal that the city has made a serious according to members of the TIF Joseph T. “Jody” Landers III, a Lincoln Institute of Land Policy, said commitment to a project, said Steve task force. member of the task force who is Kraus, chief of the city’s Bureau of Another is at Westport, where executive vice president of the See TIF 13A Tuesday, February 1, 2011 The Daily Record 13A AN EXCLUSIVE DAILY RECORD INVESTIGATION Finances >> ‘The citizens will foot the bill’ — City Councilman Carl Stokes Continued from 12A Those grants, used to renovate state sunny day funds, federal empow- to investors that must be repaid with houses and upgrade parks, are a erment zone funds, federal rent vouch- future property taxes diverted from dwindling federal resource that is ers, and federal tax credits. To comment on this series, log on to our the project’s first 31 acres. By the year the lifeline to communities through- Councilman Stokes, who has creat- website, TheDailyRecord.com. 2039, Baltimore will have paid $199 out the city. By 2024 the city will ed a task force to study TIFs and other Contact our reporters at: million in principal and interest to have repaid $28 million in principal development incentives, said it’s [email protected] bond investors. and interest. “ridiculous” for the city to divert prop- [email protected] A $21.2 million loan, called a Other government funds come erty taxes to repay loans. Section 108 Loan, from the U.S. from a myriad of sources, including “It’s a lot of money [even] if it Department of Housing and Urban city general funds, motor vehicle rev- returns investments to the citizens,” Development, is being repaid from enue funds, city waste water bonds, he said last week. “But it won’t return Log on to our website Community Development Block city general obligation bonds, city pub- investment to citizens. The citizens TDR ONLINE TheDailyRecord.com Grants. lic works revenue, state capital funds, will foot the bill.”

AN EXCLUSIVE DAILY RECORD INVESTIGATION (A day-by-day guide to the series)

Finances TOO New East Baltimore Development The school The future Monday Today Wednesday Thursday Friday BIGTO Aworld-class biotech park,once the Plans for a state-of-the-art public What lies ahead for The New East The nation’s largest urban redevel- The financial underpinning of the project- linchpin of the project, is no longer school that could bring Johns Baltimore and East Baltimore opment project, stalled without a ed $1.8 billion New East Baltimore develop- ment is complex, and many local elected offi- considered feasible. What went Hopkins University Nobel laureates Development Inc., the nonprofit major biotech component, is strug- FAIL? wrong with biotech and what hap- into the classrooms are now at the that is spearheading the project? gling to regain momentum and cials don’t understand it. pened to the promise of thousands center of the emerging vision for develop a new focus. BETTING of permanent jobs? The New East Baltimore project. ABILLIONON EAST BALTIMORE

TIF >> Baltimore officials are confident the city can meet payments on TIF bonds Continued from 12A Reader skeptically called Chicago’s she is unaware of a municipality any- TIF program the “shadow budget” where in the country that hasn’t col- because the city attempted to keep lected enough property taxes to confidential the financial plans for repay TIF investors. The institute is half a billion dollars gleaned from currently sponsoring research to see TIF districts. if declining property values in The newspaper also reported last Wisconsin are adversely affecting year that Chicago’s TIF districts will repayment of TIF bonds. run deficits in the next few years One of the investors of the from declining property taxes. Baltimore TIF bonds was the local- Local governments tend to like ly-based national philanthropy, the TIFs because they typically don’t Annie E. Casey Foundation, need voter approval like other bond which pumped in $27 million in issues, says Youngman, the Lincoln 2009 when the economy slumped Institute TIF expert. and it became difficult to find tradi- When asked if he thinks the aver- tional investors. age citizen understands the TIF Douglas W. Nelson, Casey’s financing mechanism and its implica- recently retired CEO who is now chairman of EBDI’s board, said he tions for the government issuing the realized the risks inherent in getting bonds, Baltimore City Councilman Carl Stokes said no. loan repayments in difficult econom- maximilian franz “We don’t even understand this,” ic times. “ ... I recognize that this is a debt that requires a patient lender because of the time it will “Of course, if there is no tax incre- take to create the resources to repay the city, ” says Douglas W. Nelson, EBDI board chair. Stokes said, referring to his council ment, the city can’t pay us back, and colleagues. so if we don’t have homes … and The city is not liable to repay the building to the project,” he said, TIF Youngman said cited a lawsuit other enterprises, we’ll be in trou- bond holders, said Kraus, and if the repayments still must be made. filed in Florida by a man trying to ble,” said Nelson. bonds don’t get repaid, it will not Hopkins will be responsible for a stop a road project. In 2007 the “I don’t expect the city to default affect the city’s bond rating. He also $400,000 annual payment in lieu of Florida Supreme Court ruled that on these bonds,” he added, “but I rec- noted that no TIF debt in Baltimore taxes, said Cynthia Swisher, EBDI’s voters must approve TIFs, then ognize that this is a debt that requires has ever gone unpaid. chief financial officer. The annual reversed itself a year later after com- a patient lender because of the time amount of the state lab’s payment in plaints from local governments, it will take to create the resources to Extra precautions lieu of taxes has yet to be deter- Youngman said. repay the city.” With that in mind, EBDI and the mined. In its reversal, according to the In the meantime, city officials say city are taking extra precautions they publication State Tax Today, the court they are confident there will be hope will keep Baltimore’s TIF debt An essential tool? wrote that demanding voter approval enough of a cushion in a reserve fund repayment record intact. TIF financing dates to 1952 in would “cause serious disruption to set aside to aid such repayments to At the behest of city financial California. It became a popular way the governmental authorities.” cover expenses in the early years of advisors, two recent additions to The to finance development projects in Baltimore City Councilman the bond repayments. New East Baltimore development the 1980s and 1990s as federal and William H. Cole IV says TIFs are an Repayments of the New East plan — a $60 million graduate stu- state funding grew scarce, according essential development tool for the Baltimore TIF began in 2008 with dent housing tower owned by the to research conducted for the city. interest-only amounts of about $2 Johns Hopkins University and a Lincoln Institute of Land Policy, an Cole says he monitors Baltimore’s million a year. This year payments $175 million state Department of independent nonprofit organization TIF projects as chair of the council’s will be $3.8 million. By the year Health and Mental Hygiene lab — that studies urban development and Community Development 2038 annual payments will be $9 will be required to make unusual pay- land taxation. Today, Wisconsin has Subcommittee and as a member of million. ments in lieu of taxes to make sure more than 1,300 TIF districts, accord- the Taxation, Finance and Economic “We’re going to get what’s owed each tax-exempt building contributes ing to the Lincoln Institute Development Committee. us and the bond holders will get to the TIF repayments. Recent articles in the Chicago Without TIF bonds, says Cole, a paid,” said Kraus, who praised the “We need to hold fast” to the Reader showed that Chicago has 159 project like The New East Baltimore Casey Foundation for purchasing the responsibility to bond investors, said areas where property taxes are redi- might never get off the ground. bonds when conventional investors Christopher Shea, EBDI’s CEO. “In rected to repay TIF investors and “We can’t settle for the status would not. order to welcome a tax-exempt finance new development. The quo,” he said. IBM looking Fair comment CEO Samuel Palmisano says company City Paper defeats club owner’s claim of defamation is always in the market for talent. 3A in double-murder coverage. 15A

Wednesday, February 2, 2011 Volume 122 | Number 84 Online at TheDailyRecord.com SEEKING A NEW VISION Biotech lacking, EBDI looks toward mix of housing and development

BY JOAN JACOBSON and MELODY SIMMONS

t was a glass-half-full day. It was a time to celebrate cranes in the air — four of I them — towering behind Johns Hopkins Hospital,where the stalled $1.8 billion East Baltimore redevelopment project was getting a jump start. None of the pro- ject’s uncertainty TOO was evident at the Sept. 10 ground- breaking for a 20- story graduate stu- BIG dent tower with 321 TO apartments. None of the pub- lic speakers men- FAIL? tioned the vacant MAXIMILIAN FRANZ fields surrounding BETTING This $60 million tower for Johns Hopkins University graduate student housing is under construction at 929 N. Wolfe St. Scheduled for the cranes where ABILLIONON completion in January 2012, the facility has been added to the original plan for The New East Baltimore. construction of an EAST BALTIMORE expansive biotech AN EXCLUSIVE DAILY RECORD INVESTIGATION park has come to a part three halt. Or the dozens INSIDE TODAY of acres of grassland that should be Extra information online filled with hundreds of new homes by Obliterating a community Go to our website for a narrated slideshow, video interviews now. Or the unsightly streets beyond Politicians and experts question whether it was necessary to with East Baltimore residents, and an interactive timeline with 700 boarded-up row houses yet move so many people and demolish so many homes. and interactive map of the area with photos. Check back to be razed. 12A throughout the series for additional online content. Instead, a pile of hard hats and Neighborhood still awaits jobs shiny new shovels awaited the obliga- tory photo op as East Baltimore Funding requests for the project promised thousands of new Log on to our website Development Inc.’s CEO, Christopher jobs, but only a fraction of them have been created. ONLINE 13A TTDRDR ONLINE TheDailyRecord.com Shea, addressed a large crowd: “Look at us here today in the midst of what is probably the worst reces- sion any of us will ever see … celebrat- ing a $60 million investment. I don’t think there is a project like this in the state that is privately funded,” he said. Wine bill advocates feeling bubbly Yet the Great Recession and other factors have taken a heavy toll on the Opponents still say shipping would hurt Md. stores “Something is going to pass this nation’s largest urban redevelopment session,” said House Economic project. Plans for a world-class BY NICHOLAS SOHR tributors and wholesalers, and the Matters Committee Chairman biotech park — envisioned seven [email protected] powerful liquor lobby is lined up once Del. Dereck E. Davis. “I don’t know years ago and used to persuade again to fight the legislation on that what. There’s two chambers, a lot of ANNAPOLIS — Legislation that investors to purchase bonds and to get point. opinions.” would allow Marylanders to receive a federal loan in the early years of the Supporters, however, say The effort, backed by shipments of wine is headed for anoth- project — have been largely shelved. prospects have improved in majorities in both houses last er tug-of-war between the alcohol Now planners are seeking a new 2011 for the perennial year as well, fizzled in Davis’ industry and consumers who want vision with a different mix of housing Annapolis issue. The twin bills, SB 248 committee, failing by one vote. Davis, more choices when choosing their vino. and more commercial development, and HB 234, are backed by 84 dele- a Prince George’s County Democrat, Some key lawmakers say the bill gates and 32 senators, majorities in including a hotel and restaurants as would hurt in-state liquor stores, dis- both chambers. See wine 4A See development 11A

Apublication of Auction sales 21B Public notice 1B $220 per year For subscriptions Calendar 23A Real estate 21A call 1-800-451-9998 or INDEX Classifieds 17A Sealed proposals 5B $2 per copy e-mail [email protected] Wednesday, February 2, 2011 The Daily Record 11A AN EXCLUSIVE DAILY RECORD INVESTIGATION Development >> Grad student tower, state lab spur next phase of project Continued from 1A ate student housing tower, for instance, Forest City-New East Baltimore major high-tech lab this year? The well as a state-of-the-art school, to began last fall. Also, the state will use a Partnership, “will be something that answer is no. I never believed that the attract middle-class residents. lot once reserved for one of five does not have all the bells and whis- project intended biotech [to be] a At the same time, in hopes of keep- planned biotech buildings as the site of tles. The whole world has changed.” home run,” he said. ing the project moving and protecting a $175 million lab for the Department “To be honest, the biotech building Some who have observed the proj- the public investment of more than of Health and Mental Hygiene, is more filled up than I expected,” said ect since its inception say the shift $212 million so far, governments and replacing a facility in the state office Douglas W. Nelson, EBDI’s board from biotech is stunning. institutions are stepping forward to complex on West Preston Street. chairman, who noted that he always “This is a bomb,” said Raymond A. steer building projects never envi- Whatever replaces the biotech questioned the potential of a life sci- Winbush, director of the Institute for sioned in the original plan to the site. vision, said Scott Levitan, senior vice ences park. Urban Research at Morgan State Construction of the Hopkins gradu- president of the project’s developer, “Are we ready to build a second See development 12A

East Baltimore development completed or under construction:

Although most of the 88 acres of The New East Baltimore is vacant land or buildings waiting to be razed, this map shows some of the new development, from 74 senior apartments and five condos on the project’s west side, to mixed-income townhouses and apartments on the east side, as well as the Johns Hopkins Berman Institute of Bioethics and the Maryland Institute College of Art on the south side.

Amtrak railway E. Hoffman St. Go to our full-coverage page on our website to see an interactive map with Ashland Commons, at the western edge of the project, has photos of all of the development in The Ellsworth St. 78 rental units. New East Baltimore.

The Townes at Eager is a five-unit condo Log on to our website building on the 1700 block of East Eager TDRTDRONLINEONLINE TheDailyRecord.com Street, built by A&R Development. Two have been sold. Pre-recession plans called for A&R to have 300 “market rate” houses built or under construction by now.

E. Biddle St.

Henneman Ave.

E. Chase St.

Chapel Green, on the eastern area of the project, has 63 mixed- income apartments and townhouses on Chase, Wolfe and Eager streets. It was developed by The Penrose Group. M c D o n o g h S t E. Eager St. . R R u u t t l l a a N N n n . . d d M Barnes St. B A A r o v v a n e e d . . t f f o o r r d d S A t v . e

Ashland Ave. . N N N N . . . . P P N N C C a a . . h h t t M M Parkview at Ashland, adjacent to Ashland t t a a e e p p a a r r s s e e d Commons, has 74 senior apartments. Both d o o l l e e n n S S i i r are on the 1700 block of East Eager Street, r P P t t a a . . a a S S developed by The Shelter Group. r r k k t t . . A A v v e e

E. Madison St. . . N N . . W The Johns Hopkins Berman Institute of Bioethics C The Maryland Institute College of Art has o o l l l

f renovated the former St. Wenceslaus will be moving into a small, historic police building i e n g S School on the 800 block of North t

t being restored for $4.5 million in the 1800 block o . of Ashland Avenue. n Collington Avenue for a community arts A v

e and social design program with 14 stu- E. Monument St. . dent apartments. The newly renovated building opened last fall. With a handful of occupied houses across the street, the new school sits otherwise surrounded by a ghost town of EBDI row houses awaiting demolition.

N W E Johns Hopkins Hospital N N N . . C . Jefferson St. D C h S u a e n s s c t t a l e e n r S S Scale S t t t . . 200 ft . 12A The Daily Record Wednesday, February 2, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION Development >> Biotech was to be project’s economic development engine Continued from 11A one of “the world’s premier biomed- University. “Are you trying to tell me ical districts.” they’re not putting biotech there?” The GBC was so enthusiastic that Mayor Stephanie Rawlings-Blake it raised $1 million in startup money said Monday she was unaware from sources like the T. that EBDI’s plans to build a Rowe Price Foundation and five-building biotech park at TOO Constellation Energy as a the site had been scrapped. “show of commitment,” said The whole world “I still have a commitment GBC President and CEO has changed. to expand the biotech in that Donald C. Fry. BIG The 2008 Tax Increment area,” the mayor said. “I think scott levitan TO Financing bond offering from we’ve seen on the west side Senior vice president the city to investors predicted that biotech development can Forest City-New East be successful, and I’m still rapid-fire development: a sec- Baltimore Partnership FAIL? ond life sciences building of “ hopeful we will be able to have 277,000 square feet by 2011, a a strong biotech presence in BETTING the EBDI area.” third in 2013, an office build- ABILLIONON ing in 2014 and one more life EAST BALTIMORE Biotech dream fades sciences lab building in 2015, part three for a grand total of 1.1 million In 2003, EBDI showed a square feet. PowerPoint presentation to The project was to be an econom- business leaders at the Greater ic development engine creating thou- Baltimore Committee, predicting that East Baltimore would become See development 13A Wrecking buildings or lives in Middle East? BY MELODY SIMMONS have nothing to show them,” Young and JOAN JACOBSON told The Daily Record. Did they have to destroy the com- Another New Orleans munity to save it? Most of The New East Baltimore’s But those overseeing the project 88 acres remain undeveloped, with — including current CEO only 37 percent of the rental and for- Christopher Shea, his predecessor, sale homes planned for the first John T. “Jack” Shannon, and phase actually built. Baltimore housing commissioner East Baltimore Development Paul T. Graziano — say that clearing Inc. projected, as recently as May out the neighborhood was the only 2008 in a bond offering to investors, way to rebuild wisely. that there would be 599 houses com- “We were trying to run a high- pleted or under construction by now. speed rail at the same time we were But there are only 220 residences in laying the rails right in front of us,” four developments, ranging from five Shannon said. condos to 78 apartments, scattered Graziano compares Middle East to among the vacant lots. New Orleans after Hurricane Katrina. With so much cleared land await- “There are parallels to New ing development, some question Orleans. Obviously New Orleans was whether it was such a good idea to maximilian franz a natural disaster, but the abandon- obliterate the entire Middle East ‘Obviously New Orleans was a natural disaster, but the abandonment here was equal to ment here was equal to it,” said neighborhood rather than demolish- it,’ says Paul T. Graziano, Baltimore housing commissioner. Graziano, who also serves on EBDI’s ing and rebuilding it piecemeal. board. Seven hundred thirty-two house- class North Baltimore neighborhood they mean they have to get rid of the Ronald J. Daniels, president of the holds have been relocated and 669 adjacent to the Johns Hopkins people there. Some of what people Johns Hopkins University, said the buildings demolished so far. Another University’s Homewood campus. “It lose when they move is priceless — challenges of such a massive redevel- 700 vacant row houses are ready to ain’t gonna happen.” connections, friendships, history — opment project are daunting and come down. and money can’t buy those things. demand extraordinary resources and “They don’t have a vision,” City ‘Ethnic cleansing’ Money can’t buy you the house your commitment to change. Councilman Carl Stokes said of EBDI. Mindy Fullilove, a research psy- grandmother left you when she came “I think if you look at the magni- “Housing is not their primary focus chiatrist at Columbia University who up from the South. tude of the problems that that com- there. Dislocation, not relocation. has studied urban renewal and its “Once they tear down the house, munity was and is experiencing — They were trying to remove people.” impact on local communities, agreed. you can never go back.” crime, poverty, underemployment, “They wanted to remove the peo- She said The New East Baltimore City Council President Bernard low health outcomes — I actually ple and those buildings and there project, which she has visited, is an C. “Jack” Young is an example of that. think it behooves the leadership of could be a good case to be made for example of “ethnic cleansing, He grew up in Middle East and is still the city to respond with an ambitious removing the buildings, but I don’t American style.” smarting over the demolition of his initiative. I don’t think we should say think there’s any case to be made to “It’s been done so many times that home turf. it was too much, too fast. There’s a remove citizens,” added Stokes, who there’s millions of ways to do it,” “What if I become mayor? What if real moral imperative here to help represents part of the area. Fullilove said. “When they say ‘We I become governor and they want me this community become strong and “They should have talked to the have to clear the neighborhood out,’ to show them where I lived? I will healthy,” he said. citizens to remake the community, but [instead] are using taxpayer money to rebuild.” Middle East neighborhood demographics Raymond A. Winbush, director of the Institute for Urban (Household income by occupancy and relocation status, as of Dec. 15, 2010) Research at Morgan State University, said EBDI could have Residents Low Working poor Fragile middle Middle Unknown Total learned lessons from the redevelop- (Less than $10,000) ($10,000 to $24,999) ($25,000 to $49,000) ($50,000 and above) (Income data unknown) ment of Hyde Park in Chicago. There, the community was redevel- Owners relocating 17 36 23 9 142 227 oped gradually, leaving stable busi- Renters relocating 85 74 20 7 204 390 ness and homes standing, he said. Owners remaining 4 13 9 0 15 41 Baltimore’s philosophy, the pro- Renters remaining 11 4 0 0 11 26 fessor said, was to “disrupt the No occupancy status info 0 1 0 0 4 5 whole thing to save it. “They want it to look like Total 117 128 52 16 376 689 Charles Village,” Winbush said of the predominantly white, middle- Source: EBDI Wednesday, February 2, 2011 The Daily Record 13A AN EXCLUSIVE DAILY RECORD INVESTIGATION

Development >> UM BioTech Park grew while East Baltimore languished Continued from 12A high. In reality, it is an expensive build- sands of biotech jobs. ing. The negative perception is that all Today only one life sciences struc- of that is not necessary, that they A tale of two biotech parks ture exists — the handsome John C. should have built a lower-functioning Rangos Sr. Building on the 800 block building to have lower rent.” of North Wolfe Street, which opened One biotech startup, Fyodor in 2008. The 278,145-square-foot struc- Biotechnologies, chose the UM park ture, now 69 percent occupied, is over East Baltimore’s for economic scheduled to reach 80 percent occu- reasons. pancy in May when the Lieber Institute Anne M. Derrick, vice president of for Brain Development moves in. Fyodor, said her company decided Levitan, of Forest City-New East against the Rangos Building because Baltimore Partnership, blamed “a slug- “of the monthly amount” of rent. gish biotech market” for the develop- Derrick said both biotech parks “stood out for location and proximity ment’s lag. EBDI Biotech (John G. Rangos Sr. Building) University of Maryland BioPark Across town, however, the to resources,” but the University of University of Maryland Maryland lab was cheaper and already outfitted with cabinets BioTech Park has experienced Year opened considerably more success. TOO and counters, while the The park opened in 2005 Rangos Building was not. 2008 2005 Fyodor, which is developing and has surpassed the East Number of buildings Baltimore biotech park with a urine test for the diagnosis BIG a 465,000 square feet leased in TO of malaria, is run by Eddy G. 1 3 three buildings, including Agbo, chairman and CEO, a Square feet of structure 110,000 square feet for the former research fellow at the Maryland Forensic Medical FAIL? Johns Hopkins School of 278,145 465,000 Center. Medicine. Percent of space occupied Ninety-three percent of BETTING Despite the “sluggish b c those buildings is rented, and ABILLIONON biotech market” cited by 69% 91% two more buildings are EAST BALTIMORE Levitan, at least one expert questions why the project Cost of construction planned. Five hundred-fifty part three d employees work there, com- leaders are giving up on $100M $135M pared with 422 in the Rangos Building. biotech. Number of current employees Levitan and University of Maryland Walt Plosila, a former president of 422 550 officials declined to reveal their leas- the Technology Council of Maryland, is now an independent ing prices. a consultant in Ohio with expertise in 2 privately developed buildings and 1 state building for the Maryland Forensic Medical Center But Matthew Seward, senior vice b Scheduled to reach 80% in May when the Lieber Institute for Brain Development moves in president for Cassidy Turley and the biotech projects. He noted the difficul- c 91% for the private buildings alone, 93% with the Maryland Forensic Medical Center leasing agent for the Rangos Building, ty inherent in building biotech projects d $135 million ($180 million with the Maryland Forensic Medical Center) said that building’s pricing has been in an urban environment. Sources: EBDI, Forest City-New East Baltimore Partnership, University of Maryland BioPark the subject of much debate. Seward “Medical research parks emerge said the base rent at Rangos is $30 per from older neighborhoods, so there is square foot, a cost that escalates with a challenge for redevelopment and “Eighty percent leased is pretty ‘Bullish’ on the future extras and property taxes. renewal,” said Plosila, who neverthe- good. Why are they acting like they Now, with only 25 percent of the “The building has a bad perception less wonders why more biotech build- can’t do any more of this?” he asked. biotech project built, EBDI and its and reputation,” Seward said. “There ings aren’t being planned in East “Urban research parks that succeed is a perception that the rent is too Baltimore. have patience and perseverance.” See development 14A Jobs come slowly in New East Baltimore

BY JOAN JACOBSON many of those jobs were new and how and MELODY SIMMONS many were already part of the busi- nesses that moved into the building. In a desperate neighborhood like In addition, says Cheryl Y. Middle East, where unemployment a Washington, EBDI’s senior director decade ago was as high as 30 percent of community and human services, and drug dealers worked the corners, biotech jobs that were promised for the lure of new jobs was a huge selling local residents are not yet available. point in rebuilding the community. “We are working to meet with all When Baltimore began asking for the tenants to get a grasp on upcom- federal funds in 2003 to tear down ing and future jobs,” she said. homes and relocate residents, city Raymond A. Winbush, director of housing officials assured the U.S. the Institute for Urban Research at Department of Housing and Urban Morgan State University, has fol- Development that part of a $21.2 mil- lowed the project since the beginning. lion loan would lead to the creation of He said the lack of biotech jobs is thousands of jobs in a biotech park just “another broken promise” to former north of Johns Hopkins Hospital. Middle East residents, whom he helped It was a crucial statement to organize into SMEAC, the Save because job creation was required to Middle East Action Committee, a grass- secure the loan. roots campaign that has since folded. “A goal for the overall project is maximilian franz “Where are these people who creation of 4,000 jobs. Phase I of the ‘There should have been more people from East Baltimore in some of those jobs,’ says were trained to do that” work?” he Biotech Park (875,000 SF) is project- City Council President Bernard C. ‘Jack’ Young. asked. “Are they going to be in super- ed to create 1,750 jobs,” states the market or temp jobs now?” application to HUD, signed by between 6,000 and 8,000 jobs. No one expected 6,500 permanent Baltimore housing commissioner But the number of jobs created so jobs to be created by now, and the ‘Surpassed our goals’ Paul T. Graziano. far falls far below any projections leaders of The New East Baltimore Since then, East Baltimore over the years. project have never provided a time- Elsewhere in the project, EBDI Development Inc., the nonprofit cre- line for job creation. has created jobs for 2,378 people. But ated in 2002 by the city and the Johns ‘Another broken promise’ But nearly three years after the 1,683 of them — 71 percent — were Hopkins University to spearhead temporary construction jobs that As recently as July 2009, in an first biotech building opened with the demolition and development, has averaged two months. Only 256 of unsuccessful bid for more federal 278,000 square feet, there are just 422 repeatedly predicted that the entire those — 15 percent — went to peo- funds, EBDI told HUD that the project employees working there. An EBDI project, totaling 88 acres, will create would create “6,500 permanent jobs.” official says she does not know how See jobs 14A 14A The Daily Record Wednesday, February 2, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION Development >> Letter of intent signed with hotel for North Wolfe Street Continued from 13A had hoped that more new homes developers are considering buildings would be in place and occupied by with more office space and less lab now. But we remain optimistic that space, Levitan said. this will happen in the next few years A letter of intent has been signed as the economy recovers,” they added. with a hotel company for a new struc- Baltimore developer David S. ture on North Wolfe Street. Other com- Cordish, who is not involved in the mercial development not in the master East Baltimore project, believes the ... if biotech isn’t location has excellent potential for plan is being considered. the right thing, The developers have hired a development. Baltimore advertising agency, Carton “It is a tough economy, but I think you’ll find the Donofrio, to “rebrand,” rename and it [the project] can work. You have right thing. I’d promote the project. 40,000 workers there at the hospital; be bullish on it. EBDI’s leaders remain optimistic that’s your engine — and you have about the development’s potential. cleared land,” said Cordish. “ “As a developer, you look for an david s. cordish In an opinion article in The Baltimore developer Baltimore Sun on Nov. 11, Shea and anchor that isn’t going anywhere. And Nelson, EBDI’s board chairman, wrote Hopkins Hospital is the anchor. … that the development “is making You’ve got to surround it with the extraordinary progress and remains right mix and if biotech isn’t the right on track to achieve its goals.” thing, you’ll find the right thing. I’d be “The collapse of [the] commercial bullish on it.” and residential real estate market, combined with the credit crisis, pres- To comment on this series, log on to our ents a new challenge. This financial website, TheDailyRecord.com. tsunami has temporarily slowed the pace of building new and rehabbed Contact our reporters at: homes to attract families of all eco- [email protected] [email protected] nomic backgrounds into the area,” they wrote. Log on to our website “To be sure, leaders of the project TDR ONLINE TheDailyRecord.com

AN EXCLUSIVE DAILY RECORD INVESTIGATION (A day-by-day guide to the series)

Development TOO New East Baltimore Finances The school The future Monday Tuesday Today Thursday Friday BIGTO Plans for a state-of-the-art public What lies ahead for The New East The nation’s largest urban redevel- The financial underpinning of the Aworld-class biotech park,once the school that could bring Johns Baltimore and East Baltimore opment project, stalled without a projected $1.8 billion New East linchpin of the project,is no longer considered feasible. What went wrong with biotech and Hopkins University Nobel laureates Development Inc., the nonprofit major biotech component,is strug- Baltimore development is complex, FAIL? into the classrooms are now at the that is spearheading the project? gling to regain momentum and and many local elected officials don’t what happened to the promise of thousands of center of the emerging vision for develop a new focus. understand it. permanent jobs? BETTING The New East Baltimore project. A BILLION ON EAST BALTIMORE

Jobs >> EBDI has created 695 jobs in fields including security, education, customer service Continued from 13A 214 employees hired since 2003. ple from East Baltimore, according Arnold Jolivet, managing director to EBDI’s own statistics. of the Maryland Minority The other 695 jobs created by Contractors Association, said the EBDI include 70 in security work for project’s employment approach for Broadway Services in new build- the construction and demolition proj- ings, and a variety of permanent posi- ect “is not well-thought [out]; it may tions on EBDI’s staff, teachers and be somewhat marginal.” staff at the East Baltimore “They are short-term jobs,” he Community School and positions in said. “They ought to put emphasis on health care, education, customer motivating contractors into provid- service, hospitality and tourism, according to Washington. ing long-term jobs for those resi- Many of these 695 jobs resulted dents. It’s a result of them not giving from a joint effort of EBDI and the long-term thought.” Mayor’s Office of Employment Another piece of the “economic Development. Sixty-seven percent, inclusion” mission of the project is or 468 jobs, went to people from East maximilian franz the hiring of minority and women Baltimore, according to data provid- Arnold Jolivet, managing director of the Maryland Minority Contractors Association, contractors, as well as workers who ed to The Daily Record by EBDI. says the project’s approach to construction and demolition job creation ‘is not well- are female and minority. thought [out]; it may be somewhat marginal.’ Although most of the jobs created U.S. Rep. Elijah Cummings, D- so far have been temporary, EBDI with reaching out to residents.” community, said he has never Baltimore, will hold a forum at staff members say they are pleased Although Cipollone noted that the received answers to questions about Morgan State University next with the progress they are making. biotech project hasn’t created jobs the number of people from East Tuesday to discuss the minority The Annie E. Casey for neighborhood residents, “over Baltimore who work on EBDI’s staff. inclusion goals of the project and Foundation, which has committed 1,000 people have gotten jobs” else- “Half the people working there their achievement to date. $63.5 million to the overall project, where in the community, he said. have no connections [to East EBDI’s Economic Inclusion report also praises the project’s job creation “I think the economic inclusion Baltimore]. I wanted a balance,” said in 2010 shows that of $129 million in and training efforts. piece has been a huge success story. Young. “There should have been construction-related projects, $54 The foundation’s vice president for It has surpassed our goals,” he added. more people from East Baltimore in million (or 42 percent) went to minor- civic sites and initiatives, Anthony some of those jobs.” ity- and women-owned businesses. Cipollone, said the Casey staff has ‘Somewhat marginal’ EBDI’s records, said Washington, Of the workers hired on those offered technical assistance to help cre- Others are not so impressed. show that the nonprofit has hired 68 jobs, 57 percent of “employment ate jobs for East Baltimore residents. City Council President Bernard people from East Baltimore for its hours” involved minorities or He praised EBDI for doing “a good job C. “Jack” Young, who grew up in the own staff — almost 32 percent out of women, the report said. Fried hard drive Sweetened bid Baltimore parking garage bills are late Penn National wins Rosecroft after because of a computer malfunction. 5A upping its cash offer to $11 million. 3A

Thursday, February 3, 2011 Volume 122 | Number 85 Online at TheDailyRecord.com THE EDUCATION SOLUTION EBDI hopes a good school does build a good community

BY MELODY SIMMONS and JOAN JACOBSON

fter half a billion dollars of investment, the latest hopes of success for The New East A Baltimore project are housed in three humble trailers on what used to be the playground of a now vacant and vandalized city school. There, 207 students in kinder- garten, elementary and middle school grades at the public TOO East Baltimore Community School are being touted as symbols of the com- BIG munity’s rebirth and TO held up as examples of the potential for its future economic FAIL? success. Leaders of The MAXIMILIAN FRANZ BETTING New East Baltimore The vacant and vandalized Elmer A. Henderson Elementary School, left, overlooks the three trailers temporarily housing the East ABILLIONON Baltimore Community School. project hope this temporary school in EAST BALTIMORE AN EXCLUSIVE DAILY RECORD INVESTIGATION portable classrooms part four now serving mostly low-income stu- INSIDE TODAY dents will eventually become a state- Major plans for a new school Extra information online of-the art, seven-acre campus for chil- EBDI and Johns Hopkins are working to raise $40 million to replace Go to our website for a narrated slideshow, video interviews dren of all incomes. They would learn the neighborhood’s now-closed public elementary school. with East Baltimore residents, and an interactive timeline and through an unprecedented partner- 11A interactive map of the area with photos. Check back throughout ship between the Johns Hopkins Teaching respect and academics the series for additional online content. University and the Baltimore City East Baltimore Community School’s principal expresses Public Schools that could bring Hopkins’ Nobel laureates into the optimism about working with Hopkins to strengthen the Log on to our website school and its children. TDRTDR ONLINE TheDailyRecord.com classrooms. 12A “The existence of the school will enhance our ability to build and sell residential,” said Christopher Shea, CEO of the East Baltimore Development Inc., the nonprofit formed to oversee the redevelopment Angelos company owes $1.4M for repairs of 88 acres just north of Johns Hopkins Hospital. lion bond will be posted, and the judg- Shale D. Stiller, an attorney at DLA Challenge to mechanic’s lien ruling already filed ment will be appealed, said Thomas C. In her Jan. 28 final order in Piper, trustee of Johns Hopkins BY BRENDAN KEARNEY Beach III. Health System, Johns Hopkins [email protected] Baltimore City Circuit Court, “Don’t stand out on Charles Street Judge Althea M. Handy established a Medicine and Johns Hopkins waiting for the auctioneer because you’ll Hospital, and a former EBDI board A judge in Baltimore has ordered mechanic’s lien and ordered that the get cold,” Beach, of Whiteford Taylor companies related to Baltimore six-level garage in the 200 block of member, put it more bluntly. & Preston LLP, said Wednesday. “Unless people are given pretty Orioles’ owner Peter G. Angelos to pay North Charles Street be sold unless Graciano’s lead attorney, on the the defendant companies pay or post a damn good assurances that a first-rate more than $1.4 million to Graciano other hand, said the summary judg- bond by Feb. 25. school is there, they won’t move Corp., a Pittsburgh-based construction ment orders in the case were “totally company that renovated an under- But the lawyer representing the there,” he said. appropriate” and that the construction ground parking garage just north of Angelos defendants said the property Angelos’ law office. won’t be sold. The required $1.6 mil- See angelos 15A See development 11A

Apublication of Auction sales 38B Public notice 1B $220 per year For subscriptions Calendar 23A Real estate 21A call 1-800-451-9998 or INDEX Classifieds 17A Sealed proposals 5B $2 per copy e-mail [email protected] Thursday, February 3, 2011 The Daily Record 11A AN EXCLUSIVE DAILY RECORD INVESTIGATION School >> Weinberg Foundation has committed $15 million for construction Continued from 1A Jeanette Weinberg Foundation, With plans to build a world-class approved when Stiller was chairman biotech park at the site now largely of the foundation’s board. Stiller said shelved, the new strategy is to high- he was lobbied by Douglas W. Nelson, light the school — with its $65 million then head of the Annie E. Casey price tag — and a new focus on com- Foundation and now chair of the EBDI mercial and retail develop- board, for the grant. ment with the goal of trans- Nelson said about $20 mil- forming a once-blighted, drug- TOO lion still needs to be raised. infested community into a Andrew Frank, special assis- mostly middle-class enclave. tant to Daniels at Hopkins and “There is lots of research BIG a former Baltimore deputy and data that shows good TO mayor, said Hopkins has not schools build good communi- committed any funds to the ties,” said school Principal school’s construction but Cathleene J. Miles. FAIL? would help pay for programs The Baltimore city govern- once the school opens. ment and a phalanx of power- BETTING Andres Alonso, CEO of the ful institutions bankrolling ABILLIONON city school system, said no pub- The New East Baltimore proj- EAST BALTIMORE lic funds have been committed ect, including Johns Hopkins part four to the 110,000-square-foot University and the Annie E. school’s construction. Existing Casey Foundation, are betting big schools have more urgent money that she’s right. needs, he said, citing a 2010 American Civil Liberties Union report that showed Mostly private funds $2.8 billion is needed to upgrade and repair existing city schools. Today, the site of the new school, Nevertheless, Nelson said he plans to near Collington Avenue and East seek public funds for school construc- Eager Street, lies in the heart of an tion from Alonso and the school board. urban ghost town lined with block “Lots of people lobby me for con- after block of vacant row houses struction money,” Alonso told The scheduled for demolition this year. Daily Record with a chuckle. Projected to open in 2014, the East Baltimore Community School will be The school comes first the first school built in the city since 1998. Construction should cost about Why the switch to a school-first $40 million in private funds, EBDI and strategy? Johns Hopkins officials told The With the pace of new housing con- rich dennison Daily Record. EBDI also has commit- struction running at least 700 units ‘Lots of people lobby me for construction money,’ says city schools CEO Andres Alonso. ted $25 million in public bond funds to behind schedule, EBDI’s Shea said recently that the idea of moving the But, he adds, no public funds have been committed to building the school planned for The clear the site and relocate residents. New East Baltimore. Other costs include: school ahead of most of the new hous- • A $614,000 design plan by local ing made sense for a new development asked. “Do you build residential and Hopkins graduate student housing, architects Ziger/Snead to convert the where a neighborhood called people say, ‘I won’t come here because now under construction in the 900 former Elmer A. Henderson “Badlands” once stood. there’s no school’?” Elementary School into a temporary “Is it cart before the horse?” Shea He cited the 20-story tower for See school 13A school. That plan was scrapped after vandals wrecked the building in 2008, Shea said. The old school was to be used for EBDI’s offices, as well. Money East Baltimore prepares to build community through new school for the plan came mostly from private funds, but included $50,000 in federal I dollars. Proposed new school site N . 7 acres B East Baltimore Community School (temporary location) • Three portable classrooms were Size: r o a

About: EBDI and Johns d purchased for about $1.6 million, using w a

Hopkins are working to raise y $1 million in city bond funds and Amtrak railway $40 million to build a new pub- $656,751 from a private foundation lic school on 7 acres on the that EBDI would not disclose, before EBDI site. The school will the community school opened in replace Elmer A. Henderson September 2009. Elementary School, once a hub of the community and named • Philadelphia-based consulting for a revered educator born in Mura St. firm Foundations Inc. was paid 1887, that is now closed and $554,000 to study curriculum options, vandalized. A version of the assist in hiring a principal, write the new school, the East Baltimore Community School, is open in school’s application for charter status portable trailers with an enroll- and shepherd it through the school ment of 207.Nearby, the former E. Chase St. E. Chase St. system bureaucracy. school at St. Wenceslaus Church has been converted to Prentiss Pl. Future • Stipends totaling $75,000 for 7-acre school site an art center by the Maryland Vacant Elmer A. Henderson Elementary School, 1101 N.Wolfe St. three architectural firms to compete in Institute College of Art. a national design contest for the new E. Eager St. school. Rogers Marvel Architects of Go to our full-coverage page on our N N . .

New York was recently selected to C

website to see an interactive map with M h a e d photos of all of the development in s

design the school. Shea said EBDI is e t e i r r The NewEast Baltimore. a S S

negotiating a contract with the firm. t t . Last fall, David W. Hornbeck, for- . mer Maryland state school superinten- St. Wenceslaus Church 2111 Ashland Ave. dent, was brought in to help coordi- TDRTDRONLINEONLINE nate academic and social programs Log on to our website and raise the profile of the new school TheDailyRecord.com as the community develops. Hornbeck, the senior advisor for chil- E. Monument St. N dren, family and community, would N N . . . C C D a h u s e not disclose his salary at EBDI. n t s c l t a e e n S Funds to build the school are r S t S . t t . expected to come largely from private . sources, Shea said. He, members of Detail the EBDI board and Johns Hopkins N Johns Hopkins Hospital University President Ronald J. Daniels W E have been aggressively seeking to S Jefferson St. raise $40 million. Scale The largest commitment so far has 200 ft been $15 million from the Harry and 12A The Daily Record AN EXCLUSIVE DAILY RECORD INVESTIGATION Thursday, February 3, 2011 Principal sees hope in a work in progress

BY MELODY SIMMONS and JOAN JACOBSON The day was “like Christmas” — optimistic, energetic and full of hope, recalls Cathleene J. Miles. It was Aug. 31, 2009 and the tem- porary East Baltimore Community School was open for business. No one was more optimistic, energetic and full of hope that day than Miles. The 53-year-old principal left the prestigious, private Gilman School to bring a new style and quality of education to the school now seen as the catalyst for the next phase of the nation’s largest urban redevelopment project. Seventeen months later, Miles believes that the school’s budding partnership with the Johns Hopkins University is well on the way to creating what they call a “world-class” community school for students of all socioeconomic backgrounds. “I saw promise,” she said, explaining why she took on such a daunting challenge. “But I also saw it would take someone to fight for the promise. In my third round of inter-

views for the job, I asked, ‘Are you maximilian franz for real? Are you really going to do ‘What the school has to do is create success and build success — to continue to push toward accountability for behaviors in school,’ this?’ I didn’t want to be a part of a says Principal Cathleene J. Miles. political ploy.” The school, which opens at 7 a.m. A work in progress for activities and breakfast and The school’s current demo- remains open until 6 p.m. to help graphics reflect the Middle East accommodate working parents, now community that was razed to make serves 27 children or grandchildren room for The New East Baltimore of Hopkins hospital employees, project. Miles said. Enrollment is 100 percent Foundations Inc. signed a African-American, and most of the $554,000 contract with EBDI in late students come from poverty. 2007 to help establish the school’s Just over 89 percent of the 207 curriculum and hire a principal. students enrolled this year are on “Most charter schools don’t free or reduced meals, the measure- spend as much time as we did in ment of poverty used by federal engaging the community in the con- school reimbursement data, said city cept of the school,” said Julie schools spokeswoman Edie House- Stapleton-Carroll, a former consult- Foster. ant for Foundations who now works And 74 percent of the students full time with the firm as director of enrolled this year qualify for federal school services. subsidies paid to the school for serv- “You can throw up a charter ices such as free tutoring. school in a year, or you can create a The 2009-10 school statistics really good school that satisfies the

show fifth-graders struggled academ- maximilian franz needs of a community,” she said. ically at East Baltimore Community The school was given “tremen- ‘I think we have a remarkable opportunity because of the nature of the partners to put School. The class failed to meet all the pieces together for the children of this neighborhood,’ says David W. Hornbeck. dous autonomy” in choosing a cur- Adequate Yearly Progress levels, riculum, Alonso said, noting that offi- measured annually through standard- cials settled on a hands-on, project- ized tests. responding said, given the option seeing charter and contract schools based program used in several other Only the fifth grade was tested of transferring, their children at city school headquarters. Baltimore alternative schools. last year, Miles said. In March, fifth- would continue to attend the Weeldreyer said charter schools In addition, students in middle and sixth-graders will take Maryland school. are not allowed to have geographic school grades at the community School Assessment tests to gauge lit- One day last fall a fight between boundaries. But East Baltimore school benefit from part of a $12 mil- eracy, math and science skills. two students over a torn homework Development Inc. officials said lion foundation grant to EBDI for an Miles said she was not fazed by paper forced Miles to interrupt her they wanted to limit enrollment to array of social programs, including the failure of the fifth-graders to schedule for a 45-minute emergency the area near The New East after-school activities, and on-site meet AYP levels. meeting with a parent. Baltimore and to offspring of former health and mental health services “As a startup small school, it’s not “What the school has to do is residents, she added. and mentoring. uncommon,” she said. create success and build success Andres Alonso, CEO of the As the new venture begins to take Miles said she has worked hard to — to continue to push toward Baltimore school system, converted shape, David W. Hornbeck is nothing establish a sense of respect amid aca- accountability for behaviors in the application to a “contract” that but optimistic. demic lessons inside the orderly trail- school,” she said. allows them to do so. The former Maryland state school er classrooms decorated with stu- “In good faith,” Alonso told The superintendent was hired last sum- dent art. ‘Education is at the center’ Daily Record, “we continued the mer by EBDI to bring academic and That is a work in progress, the The school receives $9,400 per conversation about how could they social programs together at the new school’s climate survey indicates. pupil in public funds — the stan- create a school that would serve school while the community devel- The climate survey is an annual dard allocation for a charter school their purposes of serving all kinds in ops around it. assessment given to parents, stu- in Baltimore. Seventeen percent of a community that was really coming “In my view, education is at the dents and staff in Baltimore’s the enrollment received extra allo- into existence. They were planning center of any community that is schools. The survey from 2009 at cations for special education in for the long run in terms of the com- thriving and vibrant,” Hornbeck East Baltimore Community School 2009. munity.” said. “I think we have a remarkable shows concerns over fighting and The school was originally planned Alonso said the school will also opportunity because of the nature of “students picking on other students” as a charter school, said Laura be open to children of Johns the partners to put all the pieces as well as the presence of gangs. Weeldreyer, who recently left her Hopkins Hospital employees who together for the children of this But 68 percent of the parents position as deputy chief of staff over- live outside the neighborhood. neighborhood.” Thursday, February 3, 2011 The Daily Record 13A AN EXCLUSIVE DAILY RECORD INVESTIGATION School >> Daniels wants showcase for hands-on, mentoring style of learning Continued from 11A block of North Wolfe Street, as solid evidence of a changing neighborhood. The tower, slated for completion in January 2012, will house mostly young people, some of them with children, Shea said. EBDI’s annual reports reflect the change in philosophy. Earlier reports show an emphasis on biotech development, TOO while more current reports detail how the school and its poten- BIG tial impact for the pro- TO ject’s success are the new centerpiece. “With a deep FAIL? Hopkins involvement in the school, you’ll BETTING get a good mixed ABILLIONON group of people to EAST BALTIMORE move in,” said Stiller, the trustee emeritus. part four “It has to be a first- rate public school. If the school doesn’t have a deeply imbedded imprint, it won’t come through. The timing is incredibly com- rich dennison plex.” ‘To build trust and confidence in the community is the role of Hopkins and represents a real opportunity to unleash the intellectual and moral “I believe the full commitment of energy that courses through the veins of Hopkins and the people in the area,’ says Johns Hopkins University President Ronald J. Daniels. Hopkins behind us means it will hold us successful,” Miles said. “It’s a financial and moral invest- deep institutional commitment and ment,” Daniels said. “These are things aspiration that we would contribute to that anchor institutions like universi- this. It is one of my biggest priorities.” ties can do.” Daniels said his main focus now is to generate trust among some Middle East ‘Trust and confidence’ residents and former residents who have viewed Hopkins as an interloper. Daniels wants the school to be a “To build trust and confidence in showcase for a hands-on, mentoring the community is the role of Hopkins style of learning. He plans to enlist and represents a real opportunity to Hopkins employees from nursing, educa- unleash the intellectual and moral tion, athletics, the Center for Talented energy that courses through the veins Youth, the Peabody Institute and even of Hopkins and the people in the area,” Nobel laureates to mentor and teach he said. “Not to remake the communi- there alongside city teachers. ty in Hopkins’ image, but to help the Daniels said the EBDI project was a community achieve itself.” major focus of his interviews for the Daniels said the proximity of the Hopkins presidency, which he assumed institution to the new school will help March 2, 2009. The Hopkins board was solidify the new community that is to focused on his experience as provost at be built around it. the University of Pennsylvania, Daniels “It’s our neighborhood,” he said of said, in forging the public-private part- the university’s commitment. “This is nership that created a public school in our backyard, and one of the things I west Philadelphia. have talked about in the past is our The Sadie Tanner Mossell land is contiguous to the [EBDI] cam- Alexander University of Pennsylvania pus — and there still is a sense of Partnership School opened in 2001 boundaries. For me, I would like to see and now has 500 students on a modern a fusion of the two and we can help five-acre campus. It is the centerpiece the residents and community there.” of a large urban redevelopment proj- All of that, he said, begins with the ect called University City that sur- school. rounds the university. “I take some lessons I had experi- enced firsthand at Penn, where the To comment on this series, log on to our university became a galvanizing website, TheDailyRecord.com. agent,” Daniels said. “When I was recruited to lead Hopkins it was the Contact our reporters at: [email protected] board of trustees who said to me that [email protected] they wanted me and the leadership

team to contribute to this project. So maximilian franz this was not a flight of fancy by the Log on to our website TDR ONLINE TheDailyRecord.com ‘The existence of the school will enhance our ability to build and sell residential,’ says new president, but one that reflected a Christopher Shea, CEO of East Baltimore Development Inc.

AN EXCLUSIVE DAILY RECORD INVESTIGATION (A day-by-day guide to the series)

The school TOO NewEast Baltimore Finances Development The future Monday Tuesday Wednesday Today Friday BIGTO A world-class biotech park, once What lies ahead for The New East The nation’s largest urban redevel- The financial underpinning of the Plans for a state-of-the-art public school the linchpin of the project, is no Baltimore and East Baltimore opment project, stalled without a projected $1.8 billion New East that could bring Johns Hopkins University longer considered feasible. What Development Inc., the nonprofit major biotech component, is strug- Baltimore development is complex, Nobel laureates into the classrooms are now went wrong with biotech and what FAIL? that is spearheading the project? gling to regain momentum and and many local elected officials don’t at the center of the emerging vision for The happened to the promise of thou- develop a new focus. understand it. New East Baltimore project. sands of permanent jobs? BETTING ABILLIONON EAST BALTIMORE Channeling Obama In State of the State, Gov. O’Malley hits the same themes ‘Taint team’ sought as the president did last week in the State of the Union. Prosecutors, Sen. Currie’s defense team 3A fight over access to computer files. 4A

Friday, February 4, 2011 Volume 122 | Number 86 Online at TheDailyRecord.com AN UNCERTAIN FUTURE Showdown looms over EBDI spending, development work

BY MELODY SIMMONS and JOAN JACOBSON

he New East Baltimore proj- ect stands at a crossroads as it enters its second decade. T After $564 million of invest- ment, plans for a world-class biotech park have been shelved. Creation of new housing and new jobs lags far behind schedule. Planners working on a new vision for TOO the nation’s largest urban redevelop- ment project now hope that a state-of- BIG the-art public school TO and more middle- class housing, a hotel, restaurants FAIL? and stores will be the answer for the 88 acres north of Johns BETTING MAXIMILIAN FRANZ Hopkins Hospital. ABILLIONON Christopher Shea, CEO of East Baltimore Development Inc., looks over part of the 88 acres north of Johns Hopkins Hospital that his The stakes are EAST BALTIMORE nonprofit is trying to redevelop in a $1.8 billion project. enormous. “It’s going to part five AN EXCLUSIVE DAILY RECORD INVESTIGATION require all the key leaders in the city to marshal their energies around this project,” said INSIDE TODAY Ronald J. Daniels, president of the Reader Forum Extra information online Johns Hopkins University. The public, professors and an EBDI official mentioned in the Go to our website for a narrated slideshow, video interviews “Just given its size and scale and series have their say about the project and the reporting. with East Baltimore residents, and an interactive timeline and ambitions, it’s going to require a whole 14A interactive map of the area with photos. Check back throughout lot of work to get done,” he continued. Editorial the series for additional online content. “It is doable. The commitment is East Baltimore Development Inc. has committed more than there. There’s more to be done, but the $200 million in public investment with little oversight — Log on to our website bedrock is solid.” a fundamental flaw. TDRTDR ONLINE TheDailyRecord.com Meanwhile, The Daily Record’s 18A disclosure that a number of elected officials are unaware of the $1.8 bil- lion project’s status, and its finances has prompted calls for action. City Council member Carl Stokes, who represents part of the Jury awards $170K in police beating case affected area, said he was angered by the lack of transparency in the which amounted to $60,000 in damages expenditure of $212 million in public City solicitor weighs challenge to verdict for each policeman. They also found funds on the project so far. He said Gross liable for battery, resulting in an The verdict came Wednesday he will call for a public audit and BY BRENDAN KEARNEY additional $50,000 in damages. According evening after about an hour of delibera- hearings at City Hall on the project’s [email protected] to one of his attorneys, Abdulaziz, who tion at the end of a two-day trial in progress and finances. sometimes works as a mechanic, did not A Baltimore jury has awarded Baltimore City Circuit Court and rep- “We’re moving toward a fight and seek economic damages. $170,000 to a city man who claimed resents the latest high-dollar result in a showdown with EBDI because we still The jury did not award punitive two police officers arrested him in case alleging misconduct by city police. feel the sting of the relocation,” he damages, however, which plaintiff September 2009 without cause and The jurors decided Officers Marvin said, referring to East Baltimore attorney Bryan A. Levitt called “sur- then punched him several times in the Gross and Robert Stokes falsely arrested Development Inc.’s removal of 732 prising.” face while he was lying on his back in and imprisoned Salahudeen Abdulaziz households from the Middle East com- handcuffs. and violated his constitutional rights, See verdict 8A See future 13A

Apublication of Auction sales 13B Public notice 1B $220 per year For subscriptions Classifieds 20A Real estate 24A call 1-800-451-9998 or INDEX Employment 25A Sealed proposals 5B $2 per copy e-mail [email protected] Friday, February 4, 2011 The Daily Record 13A AN EXCLUSIVE DAILY RECORD INVESTIGATION

We’re moving Johns Hopkins’ toward a fight and home base is showdown with Baltimore, and I’d EBDI because we hope we would still feel the sting continue to see a of“ the relocation. strong“ attention to the city. If not, it’s carl stokes City Council very disappointing.

donald c. fry Greater Baltimore Committee

Future >> Hopkins also plans large biotech park in Montgomery County Continued from 1A Foundation, say a new reality set in not know the entire history, except That is where there is room for munity during the last 10 years. following the Great Recession and when the picture was conceived, it had growth, she said. EBDI is the nonprofit established changes in the biotech industry. certain specifications that in the light Hopkins is moving ahead with in 2002 by the city, Johns Hopkins and “People tell me that the optimism of today’s environment need to be plans to build a 4.6 million-square- community leaders to oversee the and exuberance for biotech expansion adjusted. foot biotech park in Montgomery project. Stokes is a nonvoting member and growth [in the last] three years has “This happened while a few miles County. The Montgomery County of the EBDI board of directors. been tempered significantly by the away another biotech park [University Council approved a master plan last Stokes, who grew up in public recession and the presence of the real- of Maryland BioPark] with slightly fall that includes the Hopkins biotech housing at Latrobe Homes near ism and potential for immediate competitive pricing was thriving. We park on the historic 108-acre Belward Hopkins, said the perception that expansion of that sector,” Nelson said. also went into one of the greatest reces- Farm site. Johns Hopkins sought to push resi- “I thought the biotech thing was a sions, and that prevented [the East Britz said Hopkins is planning to dents out of Middle East “so they can fine idea and I had no quarrel with the Baltimore biotech park] from getting build a “more classic” life sciences expand their campus” is still strong enthusiasm folks brought to the back on track as fast as it might.” park in Montgomery County as among current and former residents of biotech dimension,” he added, “but I “These are works in progress,” opposed to East Baltimore, where the the community. have never thought the biotech poten- Britz concluded. “I think everyone biotech park was to be part of a new Daniels, the university’s president, tial was as great as the pre- would acknowledge that the urban community and the medical said, “We make no apologies for Johns existing Johns Hopkins poten- [current] plan was not in the campus. Hopkins’ commitment to working tial already there.” TOO original picture. But we have Andrew Frank, special assistant to closely with former, existing and Judy Britz, executive direc- the seeds of something new.” the president of Johns Hopkins for future residents to revitalize the com- tor of the Maryland Donald C. Fry, president economic development, said he was munity, while honoring the history of Biotechnology Center, a part BIG and CEO of the Greater unaware of the Montgomery County East Baltimore. of the state Department of TO Baltimore Committee, says project. “EBDI is a partnership with one Business and Economic the commitment to a large- “I don’t know anything about plans and only one goal: to create a healthy Development, said the “vision scale biotech park in East for Belward,” Frank said. “I can’t mixed-use, mixed-income community has changed” for biotech in FAIL? Baltimore should continue. speak to that.” with access to jobs, a state-of-the-art East Baltimore. “I still think that EBDI and Fry, however, was aware of the Part of the reason, she those involved in the project Hopkins plans for the huge biotech public school, affordable and market- BETTING rate housing, and opportunities for all said, is that leasing costs were A BILLION ON should continue the idea of a park in Montgomery County and said its residents. Johns Hopkins doesn’t too high at the lone life sci- EAST BALTIMORE biotech park the way it had he hopes the university’s East own or control any land within the ences structure, the John G. part five been planned originally,” Fry Baltimore plan will not suffer as a EBDI district. We are only one of the Rangos Sr. Building. That was said. result of the second one. partners. But we subscribe completely a lesson learned “the hard Fry said he believes the “I certainly hope [for] an equal if to that goal, and always have. We are way,” she said. recession has forced changes to the not greater focus on East Baltimore,” confident that it’s a goal that this com- “Hopkins had one vision as to how EBDI project, but he called for Fry said. “Johns Hopkins’ home base is they wanted to outfit the facilities, munity can and will achieve.” Hopkins to remain steadfast in its Baltimore, and I’d hope we would con- while companies are focused on being commitment. tinue to see a strong attention to the Biotech’s role lean and mean,” Britz said. “That’s the “With all the research at Hopkins, city. If not, it’s very disappointing.” reality — they [biotech companies] are there is potential for spin-off compa- If Hopkins shifts its major biotech The role of biotech in The New East responding to a natural market nies,” he said. “There has got to be a focus to Montgomery County, “We’re Baltimore’s future is uncertain at best. demand. continued focus in that area.” missing another opportunity for Mayor Stephanie Rawlings-Blake “My understanding is that Rangos Hopkins to contribute to the business said this week she believes the original is relatively expensive. … I am an base in Baltimore,” Fry said. plans for a massive biotech park are entrepreneur myself, I have had two Room for growth still viable, a view shared by city hous- startup companies, and I think every- Most of the 500 life sciences com- Future gazing ing commissioner Paul T. Graziano, a one acknowledges that cost-con- panies operating in Maryland are small What will the future look like in nonvoting EBDI board member who sciousness is something everybody startups, but Britz said they attract The New East Baltimore? sat next to her during an interview has to be aware of, including Hopkins, more than $12 billion annually in fed- Phase II demolition is expected to with The Daily Record. and I think that is part of their under- eral research dollars. She added that But others associated with the standing at this point.” the state has the capacity to attract begin this spring as 700 more houses project, including Douglas W. Nelson, Asked why plans for massive larger biotech ventures that bring cap- are razed, vacating another 57 acres, chair of the EBDI board and retired biotech development in East ital for higher-level research such as more than doubling the amount of CEO of the Annie E. Casey Baltimore have fizzled, Britz said, “I do clinical trials. See future 15A

I can’t look at it I have never from the standpoint thought the of a five-year plan. biotech potential I look at it from the was as great as standpoint of how the pre-existing it’s“ going to look Johns“ Hopkins when I’m dead. potential already there. elijah cummings U.S. Representative douglas w. nelson EBDI Board 14A The Daily Record Friday, February 4, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION READER FORUM I would be very interested in seeing an in-depth Letters to the editor Posted on our website analysis of the money invested on creating jobs for the displaced residents in proportion to the money I can’t thank you enough for your investigative The empty space is better than what was there. spent to acquire property and displace them. What reporting on EBDI. This is some of the best work on a This city could stand for more open space and is the strategy here? How has the strategy changed crucial issue that I have seen in recent years in any greenery. We don’t need more empty buildings ANY- over the life of the project and the changing eco- paper, anywhere. You are exposing a very inefficient — WHERE. nomic environment? When questioned on the issue and occasionally corrupt — redevelopment process, What this article fails to mention is the bottom of jobs, the staff person quoted seemed clueless as and doing it in a way that is accessible to a broad audi- dropping out of the market. Money has dried up for to the direct impact of the project on job creation. ence. Kudos! I can’t wait for the next installments. everyone, especially development. Guess what, Is everyone over there this clueless? Were any of the folks? The city is out of money, too. As much as we residents past benefactors of these jobs or were Steve Walters might want to think otherwise, the big tree out front Professor of Economics they just pawns in whole scheme of things? What of City Hall does not have Benjamins for leaves! Loyola University Maryland became of these families? So we’re left with this quandary — what things What is not being said? It seems as if many of the can wait? Trash collection? No! Police and fire pro- influential people in making the project happen are The articles this week on EBDI are fantastic. This tection? No! Roadway maintenance? No! So devel- opment gets put on the back burner. now running for the hills. It would be great if the is the first investigative reporting that The Daily taxpayers of this city and state could gain a better Record has published to my knowledge. Just remember this — it could always be worse. understanding of what was driving this shift in Congratulations on a big hit. You deserve a Pulitzer. You could live in Detroit. focus and priorities, beyond what is being told to us Deborah Ford Tallichair through filtered communication. With the level of Chair, Department of Economics & Finance public funding dropped into this project, I think cit- Merrick School of Business, University of Baltimore From both sides of the tracks — I was raised up izens have the right of get answers and EBDI has in East Baltimore. That area around the hospital the responsibility of full disclosure. I am writing in response to the article that was and still is my home. The way Hopkins and the Now is time to open the books, beyond self- appeared in the Feb. 1, 2011 edition of The Daily city of Baltimore went about handling the vast num- reporting. Are the board meetings open to the pub- Record regarding my position at EBDI and my rela- ber of vacant homes around the hospital leaves me lic, just as [the Baltimore Development Corp.’s] are? tionship with Housing Commissioner Paul T. in fear of losing my apartment. If not, it may be time to shine a light in East Graziano. I question the ethics of the reporter, To get to the point, all areas in East Baltimore Baltimore and move in that direction. That is, of Melody Simmons, who interviewed me over two that are high in crime ... are not on solid ground. course, unless there’s something to hide. years ago and discovered this relationship at that This is from a personal and also business perspec- Goin hard in the paint time. Based on all of the facts I disclosed at that time tive. I am aware that the area around the hospital to Ms. Simmons and another colleague of hers at was indeed becoming an issue, but destroying an WYPR, none of which are included in The Daily historical area, displacing its residents, does not Record article, she chose not to write about the rela- solve the problem, it just makes it someone else’s Social media responses tionship. She also assessed our relocation effort to problem. me in the most glowing terms, expressing her amaze- Do you think by moving drug dealers from East ment at the amount of work we were doing on behalf Reaction on Facebook and Twitter Baltimore it will stop them from selling? No it won’t. of the residents. Interestingly, I was not contacted by Please read so you can understand why we need If cameras in the projects of Baltimore aren’t stop- her to comment on this most recent article. a change in Baltimore RT @mddailyrecord: Part 2: ping these same dealers, how can moving them be I have worked very hard over the last 25 years to The muddled money trail. http://ht.ly/3NXFk develop a career in the affordable housing field. I effective? This plan could not and was not put into @OtisRolley grew up in a working-class neighborhood of Boston, action to better East Baltimore and or Baltimore put myself through college and worked my way City. It was passed to allow Hopkins to grow and through a series of positions at housing authorities expand. Nice job by @mddailyrecord on Baltimore pols and community development agencies in Boston I am going to end my post with this: If this plan use of TIFs to lavish taxpayer largesse on politically and New York City before coming to EBDI. In my is unable to create new jobs, especially as predict- favored developers http://bit.ly/hjK46V @MarkNewgent last position in New York City, I worked as a senior ed, we are repeating history once again. A prime policy advisor and one of only four executive staff to example would be the infamous highway to the New York City Housing Commissioner in the nowhere, which separated and displaced a commu- largest community development agency in the coun- nity based on the assumption that there was going @mddailyrecord Lots of issues in East Baltimore. try, with a staff of 2500 and a budget of $1 billion. to be a huge interstate placed either on Federal Hill Just wait till u start investigating @Bmore_Bill! @PistolPeteWelch I made a decision to relocate to Baltimore for per- or through Fells Point. That highway is now being sonal reasons in 2004. I came to the attention of Jack taken apart. Shannon, CEO of EBDI, a small, recently established I feel as though the only time the actions of Where’s the money and who is spending it nonprofit, through a series of referrals, beginning Johns Hopkins should be justified are when every because East Baltimore still looks the same to me. with an interview at the Enterprise Foundation. I other alternative had been discussed and this was Sean Augustus chose not to divulge my relationship with the the final option; in this case it seems like the city of Baltimore Housing Commissioner Paul T. Graziano Baltimore failed this one community and took the Journalistic excellence. The citizens of Baltimore prior to the interview at EBDI because I wanted to easy way out. are fortunate that you have undertaken this massive gain an offer based on merit. When an offer came, I reporting effort. immediately divulged the relationship to EBDI and I, Paul Jones III Rachel Rabinowitz not EBDI, suggested that an ethics ruling be obtained. The ruling came as no conflict and I accept- As someone with an intimate knowledge of cer- ed the position as director of acquisition and reloca- tain aspects of this project, I am amazed at the fail- tion at a salary of $85,000 per year, a figure that is ure of this article to drill down into some of the root very much in line with salaries paid to comparable causes of the issues adversely impacting this pro- staff at Baltimore Development Corporation and ject’s marginal, at best, progress. If not for the Baltimore Housing and Community Development. power and influence yielded by the Annie E. Casey Funding by HCD in the form of a $23 million Section Foundation and Johns Hopkins in Baltimore, and 108 loan from HUD for acquisition and relocation beyond, there would be a tribunal on the ineptitude had already been approved for the EBDI project of many of the executives past and present, as well before I even interviewed for the position. as the negligence of EBDI’s board and elected offi- After Phase I was completed in 2006, two other cials (Jack Young included). employment offers came my way. In the end, I chose There is enough blood to go around for all of let us hear from you to remain at EBDI to complete the second phase of the hands that have touched this project. by e-mail: the project because I was committed to the residents, Justifying the ridiculously high salaries paid to The Daily Record welcomes your letters. Write to us by e-mail at senior staff, the CEO states that compensation is the project and my colleagues. My salary increased [email protected] commensurate with the offers I had been made. in proportion to the unique skill sets of staff that I am proud of the work of my team and my col- can’t be found elsewhere. Are you kidding me? If by post office: leagues at EBDI and I am most proud of the out- that is the case, then where are the uniquely suc- The Daily Record welcomes your letters.Write to Tom Linthicum, Executive comes for hundreds of households who have told us cessful results? Why has there been so much Editor,11 E.Saratoga St.,Baltimore,MD 21202. we have transformed their lives. An independent turnover in the leadership of the organization? Please make your comments concise and include your name, address and a survey of relocated residents showed that over 80 There are rumors all about Baltimore of lawsuits telephone number for verification purposes.All letters become the property of percent were satisfied with their relocation experi- and shenanigans at EBDI. Is this one of the main The Daily Record,and we reserve the right to edit them. ence, with nearly 50 percent rating it excellent. That reasons for the shift in focus and priorities of this by responding online: is factual and that is also what matters most to me. project? What were the causes for some the You also may respond online to any of our articles at our website, changes? How did these changes impact the Arlene Conn TheDailyRecord.com,by using the “respond”function at the end of each article. Senior Director for Acquisition and Relocation, EBDI organization/project, good or bad? Friday, February 4, 2011 AN EXCLUSIVE DAILY RECORD INVESTIGATION The Daily Record 15A

We make no apologies It hurts to know that for Johns Hopkins’ we had to move out commitment to working because of what an closely with former, existing institution wanted and and future residents to our best interests were revitalize“ the community, not“ at heart. while honoring the history lisa williams of East Baltimore. Former resident

ronald j. daniels Johns Hopkins University COURTESY ELIZABETH BARBUSH FROM “MIDDLE EAST BALTIMORE STORIES: IMAGES AND WORDS FROM A DISPLACED COMMUNITY”

Future >> Mayor explains decision to raze Middle East community

Continued from 13A the city and Johns Hopkins when the trust from residents in the surrounding needs “to build trust and confidence in vacant land. Plans to build a school decision was made to eliminate the streets. the community” and says he is com- and hundreds of new houses are majority of the Middle East communi- Lisa Williams, a former resident mitted to do exactly that. years away. ty to make way for a biotech park that who lived at 903 N. Wolfe St. and was Hopkins, he said, “has made a sig- U.S. Rep. Elijah Cummings, D- has been radically downsized. relocated to Belair-Edison, where she nificant financial commitment [total- Baltimore, said he is not troubled by “Sometimes I wonder, was it all is a homeowner, wept when she talked ing $22 million] in cash investment in the slow progress in rebuilding that political, taking people out of East about her old community. the area, but the project goes beyond part of East Baltimore. Baltimore,” said Young, born and “I wished it had turned out differ- cash and reflects … a moral commit- Instead of dozens of acres of raised at 1644 E. Eager St. in the EBDI ently. It hurts to know that we had to ment the university has brought to vacant lots and hundreds of scruffy footprint. “They’re voting people. move out because of what an institu- East Baltimore.” row houses about to come down, he That’s a whole group of people gutted tion wanted and our best interests The son of a Toronto developer, sees hope in the crane now towering out of the district. It almost were not at heart,” she said. Daniels said he has a keen, personal over Wolfe Street, moving steel beams makes me cry because I know TOO “I wanted to come back. perspective of the East Baltimore to build a 20-story graduate student a lot of stuff that was torn The intent was, they were development. tower. And he sees promise in the 220 down didn’t really need to be going to build housing, When asked in an interview last fall homes already built. torn down.” affordable housing, but how he envisions the project develop- “I see it as fields of opportunity,” Asked why the old commu- BIGTO there’s nothing to come back ing over the next five to 10 years, Cummings said. “In other cities you’re nity was eliminated, Mayor to purchase. What is the plan Daniels said he sees a success story. Stephanie Rawlings-Blake to get the residents to come “I looked at the entire site some not going to see too many cranes going said, “For many years, there back?” she asked. “It’s going days ago,” he said. “The sun was up. I can’t look at it from the stand- have been efforts to redevelop FAIL? to be Hopkins City. Who are shining and it was a beautiful glori- point of a five-year plan. I look at it the massive blight in East they building it for?” ous day, and in my mind’s eye, I can from the standpoint of how it’s going Baltimore. … Almost $13 mil- BETTING Raymond A. Winbush, see the pedestrian traffic going north to look when I’m dead.” lion was spent investing in his- ABILLIONON and south along the major arteries of Developer David S. Cordish, who director of the Institute for toric East Baltimore to do a EAST BALTIMORE Wolfe Street, I can see a grocery is not involved in the project, said it Urban Research at Morgan house-by-house rehab of the store, a community where Hopkins has great potential to fit into the part five State University, was an community. And the pace of workers, patients, doctors, and stu- city’s future skyline. But it will take early skeptic of the project that development was insufficient to dents are going back and forth and I time. and worked with the now-disbanded create transformation. can see the kids going to a great K- “The neighborhood is still strug- Save Middle East Action Committee “It was clear that in order to trans- through-8 school and a sparkling gling,” Cordish said. “But I think on behalf of residents. He blames form this community, you needed to new building. people will still live there. It’s a Hopkins for an undercurrent of suspi- take the project to scale. It couldn’t be “It’s not hard to imagine for me.” question of giving them amenities, cion in the black community, which he done bit by bit. Once that decision was giving them something exciting and said began long before the first family made, we had to figure out how to get was moved out of Middle East. different. there. Part of that investment included To comment on this series, log on to our “This reminds me of that classic website, TheDailyRecord.com. “People said that Harbor East public funds. That happened all over couldn’t work, but you had a big plate, scene in ‘The Wizard of Oz’ when Toto Contact our reporters at: the country where you have public pulls back the curtain and you hear, and John Paterakis deserves remark- investments.” [email protected] able credit. He had a vision and he ‘Don’t pay attention to the man behind [email protected] the curtain.’ They are the man behind mixed and matched.” ‘Trust and confidence’ Looking back, City Council the curtain.” Log on to our website President Bernard C. “Jack” Young Hopkins may be the community’s Daniels, Hopkins’ president, TTDRDR ONLINE TheDailyRecord.com said he wonders about the motive of anchor, but it has a long history of dis- acknowledges that the university

AN EXCLUSIVE DAILY RECORD INVESTIGATION (A day-by-day guide to the series)

The future New East Baltimore Finances Development The school Monday Tuesday Wednesday Thursday Today Aworld-class biotech park,once Plans for a state-of-the-art public The nation’s largest urban redevel- The financial underpinning of the What lies ahead for The New the linchpin of the project, is no school that could bring Johns opment project, stalled without a projected $1.8 billion New East East Baltimore and East Baltimore TOO longer considered feasible. What Hopkins University Nobel laureates major biotech component, is strug- Baltimore development is complex, Development Inc., the nonprofit went wrong with biotech and what into the classrooms are now at the gling to regain momentum and and manylocal elected officials don’t that is spearheading the project? happened to the promise of thou- center of the emerging vision for develop a new focus. understand it. sands of permanent jobs? The New East Baltimore project. BIGTO FAIL?

BETTING ABILLIONON EAST BALTIMORE