task force for baltimore office vacancy

8/7/2019 Task Force for Baltimore Office Vacancy

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MAYOR STEPHANIE RAWLINGS-BLAKES

DOWNTOWN TASK FORCEDEVELOPING STRATEGIES TO STRENGTHEN THE DOWNTOWN OFFICE MARKET BYATTRACTING NEW BUSINESS, STIMULATING JOB GROWTH & SPURRING NEW INVESTMENT

April 6, 2011


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TASK FORCE MEMBERSHIPI. INTRODUCTIONII. SUMMARY OF OFFICE VACANCY TYPES

III. TASK FORCE RECOMMENDATIONSRecommendation #1Recommendation #2Recommendation #3

Recommendation #4Recommendation #5

IV. CONCLUSION

Figure 1: Enterprise Zone Map

Figure 2: PILOT Eligibility Criteria

Figure 3: Federal, State and City occupied ofce space in

both public and private buildings

Figure 4: Transit Oriented Development Designation Map

Figure 5: Under-utlized Downtown Ofce Properties Map

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TABLE OF CONTENTS


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TASK FORCE MEMBERSHIP

Co-ChairsKirby Fowler, Downtown Partnership of Baltimore, Inc.Colin Tarbert, Mayors Ofce

Members

David Benn, Cho Benn Holback AssociatesClaire Bonner, U.S. General Services AdministrationM.J. Jay Brodie, Baltimore Development CorporationKimberly Clark, Baltimore Development CorporationWilliam Cole, Baltimore City Council, 11th DistrictJane Delashmutt, Maryland Department of Transportation

Michael Gaines, Maryland Department of General ServicesDavid Gillece, Cassidy TurnerMark Herbkersman, Craig Brown Turner ArchitectsAlex Hoffman, Department of PlanningCourtenay Jenkins, Cushman Wakeeld

Jill Lemke, Department of PlanningBob Manekin, Manekin, LLCChris Mattingly, LEED AP, U.S. General Services AdministrationChris Moyer, Baltimore Development CorporationMolly Moyer, Greater Baltimore CommitteeChris Patusky, Maryland Department of TransportationBob Quilter, Department of PlanningNan Rohrer, Downtown Partnership of Baltimore, Inc.Tom Sadowski, Economic Alliance for Greater BaltimoreLatoya Staten, Downtown Partnership of Baltimore, Inc.Tom Stosur, Department of PlanningBryce Turner, Craig Brown Turner ArchitectsIrene Van Sant, Baltimore Development Corporation


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I. INTRODUCTION

In December 2010, Mayor Rawlings-Blake convened a Downtown Task Force. The DowntownTask Force was comprised of a diverse range of professionals and stakeholders includingofice brokers, architects, downtown leaders, and key policy-makers from federal, state andcity agencies, to study the existing Downtown ofice market, with the recognition that astrong Downtown core is critical to sustaining growth city-wide.

The Task Force was charged with the following:

Review past, present and anticipated ofice market trends.1.Determine short-term and long-term strategies to reduce vacancy rates, attract new2.business, and facilitate the growth of existing companies.Identify opportunities for new development and/or the repositioning of under-3.utilized ofice properties.

While focused primarily on ofice vacancy, the overarching goal of the Mayors Task Forcewas to develop recommendations that will also serve as part of a larger strategy aimed at

strengthening Downtown with a new vision for the future. That vision includes Downtownbecoming an ever-evolving mixed use neighborhood, which includes business, a diversepopulation of residents, hotels, thriving retail and restaurants, and expanding anchorinstitutions. The Task Force recognizes the success of Downtown, including its ofice market,is based on many factors, including, but not limited to, addressing public safety perceptions,attracting new residents, supporting retail initiatives, and providing open space and otherpublic amenities. The Task Forces analysis and recommendations acknowledge thesechallenges, but focus on the Downtown ofice market, most speciically in the traditionalDowntown core roughly the area bound by Lombard, Eutaw, Saratoga and Gay Streets.

The Mayors Task Force indings and recommendations have been incorporated into the

Downtown Partnerships soon-to-be released Downtown Strategic Plan, which was the resultof nearly two years of analysis and input from Downtown stakeholders in conjunction withseveral key City agencies.

The indings and recommendations outlined in this report support a two-prong strategy foraddressing the Downtown ofice market. The two-prong approach is required to addresstwo fundamental, yet dierent, ofice vacancy challenges: 1) cyclical ofice vacancy; and 2)structural ofice vacancy.


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II. SUMMARY OF OFFICE VACANCY TYPES

A. Overview of Baltimore Citys Ofce Market

Baltimore City has approximately 46 million square feet (SF) of total ofice space. Currently,the ofice vacancy rate is approximately 17% and average rental rates are approximately$20.00 per SF city-wide.

Downtown Baltimore (measured as a 1 mile radius from Pratt and Light Streets) containsnearly 25 million SF of ofice space approximately 10 million SF of Class A space, 10million SF of Class B space, and 5 million SF of Class C or other ofice-type space. Thisrepresents over 50% of the total ofice space inventory in the City.

At the end of the fourth quarter of 2010, the Downtown ofice vacancy rate wasapproximately 19%. Given this ofice vacancy rate, Downtown Baltimore ranks 28th (out of59 cities) for the highest vacancy rate, which is comparable to Seattle, Fort Lauderdale, andLos Angeles but ranked superior to cities like Chicago, San Diego, and Cincinnati. Recentrental rates for Downtown ofice space range from $23.00 to $25.00 per SF for Class A

space and from $16.00 to $18.00 per SF for Class B space. Within the Downtown core,ofice vacancy rates are slightly higher, estimated to be approximately 23%.

B. Ofce Vacancy Types

1. Cyclical Ofice Vacancy

Cyclical Ofice Vacancyrefers to the ebb and low of market trends both nationally andlocally. A healthy ofice market typically relects a 10% vacancy rate. Currently, BaltimoresDowntown ofice vacancy rate is estimated between 19-23%. This vacancy rate is arelection of the national economy, which has been challenged since late 2008. Over

the last several years, the national economic downturn has resulted in the consolidationof corporate functions, reduced employment levels, and less demand for ofice spaceas more employees are being concentrated into smaller, shared spaces. Despite thesenational trends, Baltimores Downtown has remained stable and a strong employmentcenter adding nearly 6,000 jobs from 2009 to 2010. Nonetheless, attracting new businessand leasing Downtowns existing vacant ofice space remains a challenge and demandsattention.

2. Structural Ofice Vacancy

Structural Ofice Vacancy describes vacancies caused by factors not directly related tomarket trends, but rather the physical characteristics of building types, distressedproperties, and/or property owners unwilling to invest in or reposition their properties.For such buildings, ofice use may not be the highest and best use given physical constraintsand the growing demand for other types of uses, such as residential and mixed use.Todays ofice users demand the latest telecommunication infrastructure, large open loorplates, abundant natural light, and highly-eficient building systems. Several Downtownbuildings do not meet todays standards and are considered functionally obsolete forofice use, even with substantial investment. Many of these buildings are experiencinghigh vacancy rates driving up the overall ofice vacancy rate for Downtown. The TaskForce identiied six (6) buildings that meet these criteria. Buildings experiencing high


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vacancy due to delayed development plans were not included.

To address both cyclical and structural ofice vacancy, the Mayors Downtown Task Force has developeda series of recommendations to create a multi-faceted and integrated approach to reduce the oficevacancy rate in both an immediate and long-term manner.


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III. TASK FORCE RECOMMENDATIONS

RECOMMENDATION #1

Initiate a collaborative marketing eort, organized by the Downtown Partnership ofBaltimore Inc. and the Economic Alliance of Greater Baltimore, with strong participationand cooperation from the private sector and the City to promote Downtowns ofice marketand attract new businesses from outside the City. Establish clear roles and responsibilitiesamong partners for business marketing, retention and attraction eorts.RECOMMENDATION #2

Review and evaluate the eectiveness of existing federal, state and city incentive programsand develop new incentive programs, based on national best practices, to attract and retainbusinesses in Downtown.

RECOMMENDATION #3

Partner with major Downtown corporations and institutions to identify service providers tothose entities that may have a desire for a Downtown presence to better serve their clients.

RECOMMENDATION #4Establish and convene a committee of federal, state and city government representatives tostrategically plan existing and future government ofice space in order to be a catalyst foreconomic development and private investment in Downtown.

RECOMMENDATION #5

Create a plan, including potential new incentives programs, aimed at repositioning under-utilized and obsolete Downtown ofice buildings for reuse as residential or mixed usedevelopments.

A detailed analysis of each recommendation and the assumptions on which they are based

follows in this report.


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RECOMMENDATION #1Initiate a collaborative marketing effort, organized by the Downtown Partnershipof Baltimore Inc. and the Economic Alliance of Greater Baltimore, with strongparticipation and cooperation from the private sector and the City to promoteDowntowns ofce market and attract new businesses from outside the City.Establish clear roles and responsibilities among partners for business marketing,

retention and attraction efforts.

A. Ofce Marketing Initiative

It is an opportune time to initiate a marketing campaign to attract new companies toDowntown Baltimore. Building owners are spending signiicant amounts of moneyto attract companies to their properties in this tenant-driven market. The Task Forcerecommends combining piecemeal eorts and funding to create a wide-reaching andwell-deined marketing strategy by working with multiple property owners, real estatebrokerage irms, the Downtown Partnership of Baltimore Inc. (DPOB), the EconomicAlliance of Greater Baltimore (EAGB) and the City to leverage collective resources. Whilesuburban ofice parks oer abundant free parking and often times lower rent, many

companies prefer to be in an urban location to attract young professionals and new talent.Marketing Downtown to prospective companies to highlight the many positive changesand trends happening could invigorate Downtowns ofice market.

Given the increase in both new employment and residents in Downtown, marketing eortsto date have focused on informing individuals already working and living in Downtownabout the many events, programs and initiatives taking place. In order to be successful,the marketing campaign must be embraced and fully-supported by the private sector.The campaign should focus on attracting new businesses from outside of the City, fromplaces such as Washington, D.C., to Downtown. Such campaigns have been launched inthe past with apparent success. It has been several years since marketing eorts have

targeted companies outside of the City.

The marketing plan should consist of the following components:A concrete understanding of the target market that Downtown is seeking to attract.Promotion of the dynamic urban lifestyle that distinguishes Downtown from itscompetition.A list of distinct competitive advantages that Downtown oers.Testimonials from existing businesses and employees located in Downtown.Targeted information for CEOs.Social media tools and integration.

It is recommended that DPOB and EAGB take the lead in organizing the eort, but keyprivate sector partners must be involved and committed to developing the marketingcampaign to ensure buy-in and success. Key government agencies and partners, includingthe City of Baltimore Development Corporation (BDC), Mayors Ofice, Baltimore CityDepartment of Planning, Maryland Department of Economic and Business Development(DBED), and the Greater Baltimore Committee (GBC) should participate.


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B. Coordinating Business Marketing, Attraction and Retention Efforts

The retention and attraction of businesses is at the heart of the Citys economicdevelopment strategy. A collaborative approach among the responsible economicdevelopment partners is necessary for success. The City depends on BDC, DPOB, DBEDand EAGB to serve this function.

Business retention and expansion eorts are coordinated on a regular basis. The BDC

Business Retention and Expansion Committee meets monthly and includes externalpartners such as DPOB, DBED, EAGB, GBC and the Mayors Ofice of EmploymentDevelopment (MOED). These meetings include the discussion of active retention projectsthroughout the City, including Downtown.

The City relies on both DBED and EAGB to assist BDC and other City agencies with theattraction of new businesses to Baltimore and its Downtown. As the state agency oneconomic development, DBED attends international conferences and works with siteselection consultants to highlight Maryland and Baltimores strengths. EAGB focuses onmarketing the region to new business and complies relevant data on the Baltimore region

(including industry proiles, development activity, and economic growth statistics) thatcompanies consider when selecting a location.

The City is fortunate to have multiple strong partners working in dierent capacitiesto retain and attract new business, however, eective communication, coordinationand collaboration are sometimes dificult due to the fact that various organizations areinvolved.

Next Steps:

It is recommended that clear roles and responsibilities be established by having ashared dialogue among the partners to answer the following questions:

What is the core role that each organization plays in retaining and attracting1.businesses?What strengths and weaknesses exist for each organization?2.Where do areas of overlap exist and how can better collaboration and eective3.communication be established in these areas?Is it clear who the lead organization is during the stages of the retention and4.attraction process?Should a Memorandum of Understanding (MOU) be established among5.organizations to clarify roles and responsibilities?

By answering these questions, the City and its partners can streamline and strengthenits business development eorts.


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RECOMMENDATION #2Review and evaluate the effectiveness of existing federal, state and city incentive

programs and develop new incentive programs, based on national best practices,to attract and retain businesses in Downtown.

A. Existing Business Incentives

There are currently a variety of incentives oered to businesses seeking to locate in the

Downtown. However, these incentives are not exclusive to Downtown and may exist city-wide depending on the type of incentive. In some cases, certain incentives may not be oeredin certain areas of Downtown (e.g., Enterprise Zone tax credits), but elsewhere in the City.In addition, some incentives are based on criteria created by the State of Maryland, whichmay only be applicable to companies relocating from outside of Maryland. A summary andevaluation of each incentive type follows:

1. One Maryland Tax Credit Program

The One Maryland Tax Credit Program (One Maryland) provides businesses that invest

in a speciic economic development project for Project Tax Credits of up to $5 millionand start-up tax credits of up to $500,000. Baltimore City is the only jurisdiction in theCentral Maryland corridor that qualiies for this incentive. One Maryland is an importanttool in attracting companies to Baltimore City and Downtown. One Maryland can providelarge companies the level of incentive required to move to Baltimore City. Companiesparticipating in One Maryland must meet the employment criteria of creating 25 net newjobs within a 24 month period.

Project Tax CreditThe Project Tax Credit provides up to $5 million based on qualifying costs and expensesincurred with the acquisition, construction, rehabilitation, installation, and equipping

of an eligible project. Eligible costs include land acquisition, performance and contractbonds, insurance, architectural and engineering services, environmental mitigation, andutility installation. Eligible costs must be at least $500,000. Project costs exceeding $5million are not eligible.

Start-up Tax CreditThe Start-up Tax Credit covers the expenses of moving a business from outside Marylandand the costs of furnishing and equipping a new location. Eligible costs include the costof ixed telecommunications, ofice equipment, and ofice furnishings. The credit cannotexceed the lesser of $500,000 of eligible costs or $10,000 times the number of new,positions created.

Next Steps:

Explore allowing companies in certain industries such as information technology andbiotechnology to claim a refund signiicantly earlier than six years after the projectcommences.Explore allowing companies to add fewer jobs and/or extend the current two-yearqualifying period for adding jobs in growth sectors as designated by the State, such ascybersecurity, biotechnology, and green technology.Explore creating a headquarters provision which would allow signiicant economicdevelopment projects, (e.g., those adding 50 or more new jobs) to receive additional


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beneits from One Maryland.

2. Enterprise Zone Tax Credit Program

A business is eligible for the Enterprise Zone (EZ) tax credit program if it makes a capitalinvestment in its property (i.e., constructs or renovates a building, or expands an existingfacility) or hires at least one new employee in the Enterprise Zone. Commercial, retailand industrial projects are eligible. Residential properties are not eligible for any of the

EZ tax credits. There are thirty three (33) projects in Downtown that currently receiveEZ beneits.

Beneits of Enterprise Zone Designation

EZ Property Tax Credit

A ten-year credit against local real property taxes is oered for business improvementsor new construction, including tenant improvements. The credit is based on newproperty taxes generated as a result of the expansion or new construction. In years1-5, Baltimore City will waive 80% of the new property taxes generated. In years 6-10

the credit decreases 10% annually (70%, 60%, 50%, 40%, 30%).

EZ Employment Tax Credit

The Employment Tax Credit is a 1-3 year tax credit for wages paid to new hires inthe Enterprise Zone. The standard credit is a one-time $1,000 credit per new hire.Each new hire must work at least 35 hours a week and be paid at least 150% abovethe minimum wage. The Federal Minimum Wage is $7.25; therefore, businesses haveto pay at least $10.88. For economically disadvantaged employees, as determined bythe State, the credit increases to a total of $6,000 per eligible new hire amortizedover three years. Businesses located in a Focus Area may be eligible for enhancedemployment tax credits.

Eligibility Criteria for an Enterprise ZoneThe entire area for which the county and/ or municipality is applying for EZ designationmust have been designated as a priority funding area or meet an exception underState Finance and Procurement Article, Subtitle 7B, Annotated Code of Maryland.The area for which the county and/or municipality is applying for EZ designationmust satisfy at least one of the following four (4) requirements:

The average rate of unemployment is at least 150% of the average rate ofunemployment in either the State of Maryland or the United States, whicheveraverage rate is greater during that same period;The population is a low-income poverty area in which the proportion of families withless than poverty level incomes is at least 1.25 times the national proportion;At least 70% of the families have incomes that are less than an amount equal to80% of the median family income within the political subdivision in which thearea is located; orThe population in the area decreased by 10% between the date of the most recentcensus and the date of the immediately preceding census and either chronicabandonment or demolition of the property is occurring in that area or substantialproperty tax arrearages exist within the area.


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Next Steps:

Explore expansion of Enterprise Zone to include Pratt Street corridor in 2012.Explore designation of the Downtown Enterprise Zone as a Focus Area in 2012.Explore a change from the real property tax credit to a personal property tax credit tocreate more incentive for tenants of multi-tenant buildings in Downtown.Allow for the employment tax credit to be reimbursable rather than being a carry-over tax credit.

3. Payment in Lieu of Taxes (PILOT)

A Payment in Lieu of Taxes is an agreement between the City of Baltimore and a developer,business, or landowner (applicant) that substitutes the annual real estate taxes due ona property for an established time period with a negotiated payment. The purpose of aPILOT is to provide for a certain exemption from Baltimore City property tax for certainreal estate located in Baltimore City to foster economic development.

Section 7-501 (PILOT Law)Under Section 7.501(b) of the Maryland Annotated Code, the City may negotiate a PILOTof any amount for land owned by the City (or State) and leased to an entity in connection

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with a for-proit business. There are no geographic or project requirements underthe Section 7-501 statue. A PILOT requires approval through a Baltimore City CouncilOrdinance and the Baltimore City Board of Estimates must also approve the PILOTagreement. Construction must commence within eighteen (18) months of the PILOTagreement under the Law.

Section 7-504.3: Economic Development Projects in Baltimore City (1999 PILOT Law)The 1999 PILOT law permits Baltimore City to provide an exemption from Baltimore

City real property taxes for economic development projects located in Downtown urbanrenewal areas for a PILOT term not to exceed 25 years if the property owner pays, at aminimum, the sum of the taxes on the property before the construction or rehabilitationof the project and 5% of the Baltimore City real property taxes that would have otherwisebeen due absent the agreement. The amount rebated cannot exceed 95% of theincremental real property taxes. Baltimore City real property taxes prior to developmentcannot be rebated.

Eligibility CriteriaProjects must be newly constructed or rehabilitated commercial ofice, hotel, retail,

parking facilities, or multi-family residential projects that receive a Certiicate ofOccupancy after January 1, 1999.The projects must be located in one of the following Downtown Urban Renewal Areas::Camden Station Area; Central Business District; Inner Harbor East; Inner HarborProject 1; Inner Harbor West; Market Center; Market Center West; or Key Highway.The project must satisfy the speciic use criteria as shown in the table below.

Figure 2: PILOT ELIGIBILITY CRITERIA

CommercialOfce

Hotel RetailFacilities

ParkingFacilities

Multi-familyHousing

Minimum JobOpportunities(FTE)

150 Jobs 100 Jobs 100 JobsNo minimumjobrequirement;must containminimum250 parkingspaces

Nominimumjobrequirement

MinimumPrivate

CapitalInvestment(Equityand Debt)Required

$20 Million $20 Million $10 Million $2.5 Million $5 Million

MinimumDeveloperEquityRequired

10%of the totalDevelopmentCost



$250,000 $250,000


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Section 7-504.2, PILOT provisions for vacant and under-utilized commercial buildings in

Baltimore City, is discussed under Recommendation #5.

4. Parking Subsidies

Since 2000, a signiicant number of structured parking facilities have been constructedin Downtown in response to market demands for additional parking. Today, the existingparking inventory meets market demands, however, companies considering relocating

to the City from a suburban location still have a negative perception of parking costs andconvenience.

With mass transit services, including Light Rail, Metro Subway, local and regional buslines, MARC, the recently established Charm City Circulator, and the proposed Red Line,Downtown is the areas most accessible employment center. Furthermore, employeesare choosing alternatives to driving to work, including mass transit, biking or livingin Downtown. These factors are changing the perceptions companies have regardingDowntown parking.

Next Steps:While the City has not made a consistent practice of providing parking subsidies, thepotential for incentives, including subsidized parking in City-owned garages, may beconsidered for signiicant job creation and/or retention eorts.Any consideration of a parking subsidy should be balanced with the Citys transitinitiatives.

5. Tenant Improvement Loans

Baltimore Citys primary discretionary inancial incentive is its Tenant Improvement(TI) Loan Program. These TI loans are provided at interest rates typically lower than a

commercial market-rate business loan.

The TI Loan Program can only be used for capital expenses tenant improvementsincluding furniture, ixtures, and equipment (FF&E). Over the years, the City has madeloans to businesses of all sizes and industries, from restaurants to biotech irms tomultinational inancial services irms. In certain cases, the City may waive a full or partialloan repayment. TI loans provided by the City may serve as an eective tool in attractingstart-up companies Downtown as private capital has become less available to smaller,less established companies.

All TI loans provided by the City contain provisions that a business must meet City MBE/WBE requirements and adhere to the Baltimore City Residents First (BCRF) program.

Next Steps:

BDC should explore the use of TI loans when appropriate and when funding isavailable. Special consideration should be given to companies that may be unable toobtain a commercial TI loan in todays market.

6. Tax Increment Financing

Tax Increment Financing (TIF) provides the opportunity to leverage limited public


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inancing of public infrastructure and site preparation in order to maintain and attractprivate investment.

TIF provides funds for activities such as public land acquisition and improvement,construction of streets, utilities, and other infrastructure, pre-development costs, andother permitted costs. A TIF functions by pledging real property tax increments gained(over the pre-development year) as a result of the new development within the TaxIncrement District. TIF Bonds are issued based upon the expectation of increased real

property taxes and typically upon the guarantee of one or more developers. Proceedsfrom the sale of the TIF Bonds inance speciic publicly-owned capital improvements.

Baltimore City, by City Council Ordinance, designates the TIF District and subsequentlythe assessable baseline of all real property within that District. A special fund is createdinto which all incremental real property taxes are placed. Withdrawals are made fromthis special fund to cover debt payments on the TIF Bonds. The City is not otherwise liablefor the bonds as the Citys full faith and credit is not pledged. In addition, the developerwill guarantee TIF Bond debt payments through a Special Tax District to cover any shortfall between the real property taxes collected and the TIF Bond debt service. Any taxes

collected above the amount required for the TIF Bond debt service is dedicated to theCitys General Fund.

In addition to issuing TIF Bonds based on projected future real property tax increment, apay-go approach may also be used whereby funds are spent as they are collected. Thisapproach avoids any risk involved with repayment of TIF Bonds and also saves considerablecosts by eliminating bond issuance costs and interest payments. Furthermore, a Special

Under the Downtown Partnerships TIF proposal, public spaces in Downtown, such asMcKeldin Plaza, would be signicantly enhanced using TIF funds.


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Tax District is not required under a pay-go model, since funds are not borrowed againstfuture real property tax projections.

Next Steps:

DBOP is currently exploring the potential for a Downtown TIF district that would besmaller than the one-mile radius of Downtown and cover the area in most need ofnew public space investment. Speciically, the proposed district would be borderedby Pratt Street on the south, Paca Street on the west, Centre Street on the north, and

Guilford Avenue/South Street on the east. With the TIF funds, work could begin onmany of the public spaces identiied in the recently released Downtown Open SpacePlan. In addition to the pay-go TIF model, TIF Bonds could be issued for the purposeof making more immediate improvements to signiicant, transformational parks,plazas, or public buildings.DPOB is considering the following spaces as the top three candidates for potentialTIF funds: (1) McKeldin Plaza/Pratt Street; (2) Hopkins Plaza/possible park on thecurrent arena site; and (3) Lexington Market renovations and park space connectionto University of Maryland, Baltimore.A Downtown TIF District would be subject to City review and approval by the Baltimore

City Board of Finance and City Council Ordinance.

7. Additional Existing Incentive Programs

While One Maryland and the Enterprise Zone programs are the primary and most

signiicant incentives for attracting and retaining business in Downtown, additional

existing state incentives may include:

Manufacturing and Research and Development Exemption (Personal Property Tax

Exemption)

Job Creation Tax Credit

Commuter Choice

State of Maryland Research and Development Tax Credit (Basic & Growth Tax Credits)

While the incentives noted above may persuade large companies to relocate to Baltimore

City, in many cases these incentives have an even greater impact in keeping businesses in

the City. Retaining existing businesses is perhaps the most important factor in creating job

growth. While attracting new businesses is certainly a much needed eort, ensuring existing

and new start-up companies remain and expand in the City is a fundamental component in

successful on-going economic development.

Next Steps:

It is recommended that BDC review all existing incentive programs for eectiveness and

compare them with national best practices to ensure that Baltimore is competitive and

innovative in retaining and attracting businesses. Special consideration should be given

to attracting entrepreneurs and start-up companies to Downtown.


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B. Attracting Start-up Businesses to Downtown

Research shows that most ofice leases are for less than 10,000 SF. More and more companies

are looking for smaller spaces as telecommuting, rising costs, and the demand for greater

proits are forcing businesses to downsize and maximize eficiencies. Many of the Citys

greatest success stories have begun as small entrepreneurial ventures in just a few thousand

square feet. Baltimore-based companies like Under Armour, Sylvan Learning Systems, and

Cyberpoint are examples of major employers that started as small business ventures.In order for Downtown to continue as the leading ofice market, it is imperative to attract,

retain and foster entrepreneurial and growth companies. Targeted incentives aimed at

attracting entrepreneurs and start-up companies to Downtown should be explored. Fostering

entrepreneurial ventures can create buzz and a sense of momentum. It also creates a pipeline

for job growth.

The Citys incubator program at the Emerging Technology Center (ETC), with locations in

Canton and Better Waverly, has proven to be successful for creating new businesses and

strong job growth. The ETC, a venture of the BDC, is a non-proit business incubator focused

on growing early-stage technology and biotechnology companies. The ETC promotes

economic development, providing business, technical, and networking connections to help

these companies grow and prosper adding to both the job and tax base of Baltimore City.

To date, ETC client companies have received over $1 billion in funding and have been issued

nearly 200 patents. Since 1999, ETC has provided assistance to 218 companies of which 74

are current companies. 83% of its graduate clients are still in business. It is estimated that

ETC companies have created in excess of $273.5 million in economic activity for the City.

Not only are the ETC statistics impressive, but entrepreneurial companies attract talented

young professionals that can fuel neighborhood change by creating excitement and attractingothers like them. Private building owners looking to reposition their ofice property may be

interested in attracting such companies as a long-term strategy to ill ofice space. While

providing incubator services can be costly, it may be a concession building owners are willing

to consider. Even if typical ofice amenities are modiied to cater toward start-up businesses,

building owners may be able to attract growing businesses.

Next Steps:

TI Loan Programs

For such new businesses, some incentives may be more attractive than others. One such

incentive program is the TI Loan Program. Given the current market, large corporations

with strong credit will likely not have dificulty obtaining a TI loan. Furthermore, interest

rates are currently at historic lows. Therefore, low interest loans from the City to a

credit-worthy tenant may not be as a signiicant incentive as it would be to small start-up

company unable to access such capital. Strategically providing low-interest TI loans to

start-up businesses that wish to locate in the Downtown should be considered.

Social Networking and Collaboration

In addition to TI loans, social networking and collaboration have become integral parts


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of a businesss success, especially for technology-focused business ventures. Even one-

person companies desire to be connected with others in similar professional ields.

Helping to promote such collaboration in Downtown by encouraging ofice properties

to lease space to start-up businesses as well as creating programs aimed at promoting

entrepreneurship will help attract newly-formed businesses to Downtown.

Explore Westside Initiative Opportunities

As the City continues to make progress with the Westside Initiative, a 100-blockrevitalization area encompassing the western portion of Downtown, entrepreneurial

start-up incubation should be explored. Small ofice buildings in unique spaces, both

historic and newly constructed, appeal to such businesses. These ofice spaces, when

combined with retail amenities and housing options, can work together to create a vibrant

neighborhood.


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RECOMMENDATION #3Partner with major Downtown corporations and institutions to identify serviceproviders to those entities that may have a desire for a Downtown presence tobetter serve their clients.

Downtown is home to a multitude of large corporations and both public and privateinstitutions. These entities spend millions of dollars in service contracts with a variety ofbusinesses. It is unknown how much of this economic activity directly beneits Downtowns

ofice market by creating demand for ofice space speciically to service these Downtownclients.

One example is the medical institutions in Downtown. The Downtown hospitals includingthe University of Maryland Medical Center, Maryland General Hospital and Mercy MedicalCenter generate signiicant economic activity through contracts to service providers rangingfrom marketing to food services. Continued economic vitality in Downtown is important tothese thriving institutions. Partnering with these institutions to identify service providerswho may have a desire for a Downtown presence will provide a proactive business outreachapproach.

Next Steps:

BDC should conduct interviews with major companies and institutions to determinewhich service providers may be likely candidates to locate in Downtown. Attracting newcompanies is not an easy feat. However, targeted and proactive business outreach makesattracting new companies more eficient and potentially more successful.Financial Services and Non-proit sectors should be a priority.


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RECOMMENDATION #4Establish and convene a committee of federal, state and city governmentrepresentatives to strategically plan existing and future government ofce spacein order to be a catalyst for economic development and private investment inDowntown.

A. Overview of Government Ofce Space in Downtown

Federal, state and city governments occupy a signiicant portion of Downtowns ofice spaceand are integral to maintaining employment in the Downtown core. Combined, governmentuse accounts for approximately 8.5 million SF of ofice space in Downtown. Of that space,approximately 5.8 million SF is in government-owned buildings, while approximately 2.7million SF is leased from private owners. Figure 3, below, provides a chart of the federal,state and city ofice space square footage in both public and private buildings.

Figure 3: FEDERAL, STATE AND CITY OCCUPIED OFFICE SQUARE FOOTAGE IN BOTH PUBLIC

AND PRIVATE BUILDINGS

Government Type Publicly-Owned

Space (SF)

Privately-Leased

Space (SF)

Total (SF)

Federal* 2,100,000 500,000 2,600,000

State of Maryland 2,300,000 2,000,000 4,300,000

City of Baltimore** 1,400,000 200,000 1,600,000

Total (SF) 5,800,000 2,700,000 8,500,000

*GSA owned or leased.

**These igures do not include vacant City-owned buildings.

The U.S Federal Courthouse located on West Lombard Street is one of several majorfederal buildings in Downtown that provide signicant employment and generate

ancillary economic activity.


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While government agencies at all levels are facing budget cuts and shrinking sta levels,those agencies located in Downtown Baltimore, as a whole, do not appear to be dramaticallyaected. In fact, the U.S. General Services Administration (GSA) is looking for additionalofice space for their federal agency customers.. As a policy, GSA looks to give considerationto the Downtown area when looking for space in the greater Baltimore area, in concert withour customer agencys mission-related needs.

In addition, the Maryland Department of General Services (DGS) and the Maryland Department

of Transportation (MDOT) have committed that, while plans are moving forward for theState Center project (which will improve state ofice space north of Downtown), the existingState of Maryland ofice presence in Downtown will not decrease. Both DGS and MDOT arealso considering additional future opportunities to locate state government functions in bothprivate and public buildings, existing or newly constructed.

The City is undergoing a full evaluation of its ofice space and building inventory to maximizeeficiencies, consolidate where possible, and make strategic investments in City-ownedproperties. In addition to approximately 1.4 million SF of ofice space in City-owned buildings,the City also leases its buildings for special-use purposes such as the Bromo Seltzer Tower

and Babe Ruth Museum. A number of City-owned buildings are also planned for economicdevelopment projects such as Westside Initiative and mixed use development near theintersection of Calvert and Lombard Streets.

In a few cases, City-owned properties are vacant without immediate plans. Those propertiesinclude 210 Guilford Avenue formerly the Health Department building and 15-25 NorthGay Street. GSA is also in the process of disposing of the Appraisers Store, located at 103South Gay Street, which is no longer needed for federal ofice use. Careful considerationshould be given to the reuse of these buildings by either public or private users.

B. Coordination at All Government Levels

Government investment can serve as a major catalyst to stimulate private investmentand economic activity. Coordinating government investment can lead to highly-leverageddevelopment eorts. Like large institutions, government functions, such as courthouses,generate a signiicant amount of demand for parking, retail and restaurant amenities, andancillary ofice space. By communicating and strategically working with GSA, federal, andState partners, the City will be in a more optimal position to eectively direct redevelopmenteorts and capital investment.

With increased security measures at public facilities, building designs have become morecomplex and highly-scrutinized from a public safety perspective. While government activitycan have a positive eect on Downtown, special attention must be paid to new facilitydesigns. Active street facades, such as main entrances on public streets and the incorporationof retail storefronts, are key elements to properly integrating government buildings intoDowntown. Architectural and urban design standards must be of the highest standards.Clearly articulating appropriate design criteria to all levels of government will ensure thatthe vision for Downtown as an active mixed use district is achieved.

Next Steps:In order to facilitate government coordination, it is recommended that a committeecomprised of federal, state and city representatives meet quarterly to discuss plans


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and new initiatives that may aect Downtown. The committee should be led by BDCand comprised of representatives from the GSA, Maryland DGS, Baltimore City DGS,MDOT, DPOB, Baltimore City Department of Planning, Baltimore City Department ofTransportation and Mayors Ofice.

C. Transit-Oriented Development (TOD) Designation

MDOT has also launched a TOD initiative, which provides MDOT assistance and incentives.

TOD is a development approach that encourages intensifying and inter-mixing land uses(residential, ofice, retail, and entertainment) around transit stations, integrating publicamenities (open spaces and landscaping) and improving the quality of walking and bicyclingas alternatives to automobile travel.

Successful TOD projects also address ways to ensure personal security and safety, encourageeconomic and community development, respect the areas cultural history, and strengthenthe connections between transit and surrounding neighborhoods.

In 2008, a newly created State of Maryland law was passed, designed to facilitate the creation of

TOD in Maryland. The legislation, recorded at Section 7-101(m) of the Transportation Article,deines TOD to be a transportation purpose, thus authorizing MDOT to use departmentalresources, including land, funds, and personnel, to support designated TOD projects (the

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Figure 4: PROPOSED TRANSIT ORIENTED DEVELOPMENT DESIGNATIONS


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2008 TOD Law). The designation provides several potential tools that are described belowto help projects advance. In 2010, the State named 14 Maryland transit stations as designatedsites for TOD including State Center, which is adjacent to Downtowns northwest boundary.

The speciic beneits of the TOD designation include:Financing opportunities through the Maryland Economic Development Corporation(MEDCO).Prioritization of State assistance by MDOT and other agencies on the Governors Smart

Growth Subcabinet, including housing and economic development.Predevelopment planning and feasibility analysis funded by MDOT.Priority consideration for the location of State ofices and laboratories.The potential creation of a TIF District that would include State sales tax revenueas part of the pledged tax increment revenue in addition to local real property taxrevenue.

Next Steps:

The Task Force recommends that two (2) TOD designations be considered in Downtown:

Lexington Market/Howard Street Corridor Lexington Market serves as important anchor on the Downtowns Westside. In existenceover 224 years, Lexington Market is an historic and cultural destination for locals andtourists. Approximately $4 million in renovations were completed in 2004 and eortsare underway to continue to improve the Markets viability and attractiveness to a broadcustomer-base. In addition, surface parking lots and underutilized buildings surroundthe Market. With a Metro Subway (Green Line) station on location and Light Rail oneblock away, the Lexington Market area is ripe for TOD designation.

Lexington Market is served by multiple modes of public transit including Metro Subway,

Light Rail and local bus routes, making it an ideal candidate for TOD designation.


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Howard Street is critical north-south link from mid-town to Downtown and beyond.Although the Light Rail runs along the corridor, development has not been successful asseen in other cities with Light Rail infrastructure. Many factors have aected this outcome.Potential incentives through TOD designation may assist in improving the streetscape,public safety, and economic development initiatives and serve as a catalyst for attractingnew development along the corridor.

Charles Center

Charles Center is at the heart of the Downtown. The irst major project of the Citysrevitalization eorts in the 1960s, Charles Center has remained an important center forDowntown. Recent public investments in the Charles Center area include Center Plazaand Hopkins Plaza renovations. Key development opportunities also exist includingthe redevelopment of the former Morris A. Mechanic Theatre planned as a mixed usedevelopment consisting of 30-story building with 140,000 SF of retail and 250 residentialunits.

The former Morris A. Mechanic Theatre is located along the Metro Subway and futureRed Line and planned as a mixed use development. Ofce buildings along the BaltimoreStreet corridor could benet from the TOD designation and new private investment.


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RECOMMENDATION #5Create a plan, including potential incentives programs, aimed at repositioningunder-utilized and obsolete Downtown ofce buildings for reuse as residential ormixed use developments.

Baltimores Downtown has evolved signiicantly over the last decade from primarily an oficebuilding district into a 24/7 mixed use neighborhood. Downtowns future depends on thiscontinuing trend in order to create a more sustainable urban environment consisting of a

growing residential population and activities beyond the 9 to 5 work day. The recent 2010Census data illustrates this positive shift in Downtowns character, showing an increase of 7%in the number of people living in the Downtown core. Since 2006, the area within a one-mileradius of Light and Pratt Street has seen 11.6% growth in residents. In two census tracks primarily comprising City Center and the Westside - the increase is even more dramatic at a57% increase from 2000 to 2010. This change is the result of a variety of factors including theexpansion of higher education, increased employment, and peoples desire to live in urbanareas in close proximity to their workplace, cultural amenities, and public transportation.

The residential demand in Downtown is evident not only in the recent census data, but in

the fact that most apartment occupancy rates are above 96%. The conversion of eight (8)Class B ofice buildings into apartment buildings over the past two decades, creating morethan 850 residential units, is a proven success model. As the demand for more residentialchoices continues to increase, the success of these conversion projects should be indicativefor under-utilized ofice buildings in todays market.

A. Analysis of High Vacancy Ofce Properties

Based on this data, the Baltimore City Department of Planning, Baltimore City DGS, and DPOBconducted a rigorous analysis of all Downtown ofice buildings including vacancy rates, existingtenants, systemic deiciencies, development plans and potential for conversion candidacy.

Based on the analysis, the Task Force identiied six (6) high vacancy ofice properties thatmay be considered for conversion as depicted in Figure 6 Map of Under-utilized DowntownOfice Properties.


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1

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G A Y

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RUSSELL

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REDWOOD

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EABOUNDARY

10 Light Street

The Bank of America Building

2 Hopkins PlazaPNC Bank Building

114 East Lexington StreetProvident Bank Building

225 North Calvert StreetBank of America Building

10-12 North Calvert StreetThe Equitable Building

10 North Charles StreetJohns Hopkins Downtown Center

1

2

3

4

5

6

Figure 5: UNDER-UTILIZED DOWNTOWN OFFICE PROPERTIES


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1. 10 Light Street The Bank of America Building

10 Light Street, located at the intersection of Light and Baltimore Streets, is one of the Citysmost iconic buildings, being a prominent feature of the Citys skyline since its constructionin 1929. The property is listed as Class A ofice building and consists of 360,000 RentableSquare Feet (RSF) with typical loor plates averaging 10,000 RSF. The building is 35% vacantwith the law irm Miles & Stockbridge occupying the majority of the buildings space with120,000 RSF. Much of the vacant space is held by Bank of America under a long term lease.

Task Force Recommendations:Consider for residential or combination of uses.Expand ground loor retail.Retain architect or development consultant to evaluate conversion.Ask the Mayors Ofice to meet with property owner and lead tenant todiscuss future investment or plans.Urge property owner and lead tenant to allow submarket lease of retailspaces or to participate in the DPOB Operation Storefront initiative.If the conversion option is feasible, evaluate potential incentives.

If the property is to remain ofice, highlight on new ofice website and other marketing mediums.


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2. 2 Hopkins Plaza - PNC Bank Building

Located at the intersection of Hopkins Place and Baltimore Street, this 22-story tower consistsof approximately 379,000 RSF with a loor plate of 17,245 RSF. The building is listed as ClassA ofice space and is 42% vacant. The potential relocation of the signature tenant PNC willsigniicantly increase the vacancy of this building. With the potential for a large open spaceacross the street and the greening of Hopkins Plaza, this building could become a jewel.

Task Force Recommendations:Retain architect or development consultant to evaluate a conversion.Ask the Mayors Ofice to meet with property owner to discuss future investmentor plans.Evaluate the possibility of an active retail use or the demolition of the KaiserPermanente building.If the conversion option is feasible, promote the opportunity and evaluate potentialincentives.If the property is to remain ofice, highlight on new ofice website and othermarketing mediums.


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3. 114 East Lexington Street Provident Bank Building

This historic property, located at the intersection of East Lexington and Calvert Streets,consists of approximately 110,000 RSF with a typical loor plate of 10,000 RSF. It is currently65% vacant with an M&T Bank ofice and branch on the irst loor. It is currently listed asClass B ofice. The building lends itself to a residential or mixed use conversion. Given itsclose proximity to the municipal center and Mercy Medical Center, it could serve as oficespace for functions related to the judiciary or health care.

Task Force Recommendations:Consider residential or mixed use.Consider for government-related or healthcare ofice use.Maintain ground loor retail.Retain architect or development consultant to evaluate a conversion.If the conversion option is feasible, promote the opportunity and evaluate potentialincentives.If the property is to remain ofice, highlight on new ofice website and othermarketing mediums.


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4. 225 North Calvert Street Bank of America Building

225 North Calvert Street, located at the intersection of North Calvert and Saratoga Streets,consists of approximately 395,000 RSF with a loor plate of 30,500 RSF. The building is listedas Class C ofice space and is 87% vacant due to the relocation of Bank of Americas backofice operations, which previously occupied the building. The building is currently occupiedby several ofice users leasing minimal square footage. Given its long and narrow loor plate,the building may lend itself to residential conversion.

Task Force Recommendations:Re-skin the buildings exterior.Retain architect or development consultant to evaluate a conversion.Meet with City oficials to evaluate demolition and creation of large developmentparcel, to include the City parking garage and former City Health Departmentbuilding.If the conversion option is feasible, promote the opportunity and evaluate potentialincentives.If the property is to remain ofice, highlight on new ofice website and other

marketing mediums.Explore interest by Mercy Medical Center or judicial agencies, law irms, or backofice users.


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5. 10-12 North Calvert Street The Equitable Building

10-12 North Calvert Street, the Equitable Building, located at the intersection of North Calvertand Fayette Streets, was constructed in 1891 and most recently renovated in 1985. It is aClass B ofice building and consists of approximately 178,000 RSF with typical loor plates of20,000 RSF. The building is approximately 35% vacant with most of the 79 building tenantsconsisting of spaces between 2,000 and 6,000 RSF.

Task Force Recommendations:Consider for residential or mixed use.Maintain ground loor retail.Retain architect or development consultant to evaluate a conversion.If the conversion option is feasible, promote the opportunity and evaluate potentialincentives.If the property is to remain ofice, highlight on new ofice website and othermarketing mediums.Encourage the property owner to invest in Wilkes Lane alley and the plaza nearthe Metro Subway entrance.


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6. 10 North Charles Street Johns Hopkins Downtown Center

10 North Charles Street, lcoated at the intersection of Charles and Fayette Streets, formerlythe Johns Hopkins Downtown Center, served as the main location for the Carey BusinessSchool. It is approximately 35,000 RSF with 10,000 RSF loor plates.

Task Force Recommendations:Meet with property owner to discuss new uses for the space.

Promote availability of space; potentially consolidate urban design organizationsin this location.Evaluate potential inancial incentives for its reuse.Encourage submarket lease of space or to participate in the DPOB OperationStorefront initiative.


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B. Existing Incentive Programs for Conversion Projects

These incentive programs primarily focus on the conversion of properties from an ofice useto a residential use, either owner-occupied or rental.

1. Vacant and Under-Utilized Commercial Buildings

In 1989, the Baltimore City Department of Housing and Community Development and

DPOB proposed a PILOT law that would permit the City to provide exemption from Cityreal property taxes to vacant and under-utilized buildings that are converted to rentalresidential housing.

Eligibility CriteriaProject must be located in the Downtown Management District and meet two of thefollowing criteria:

Improvements on the property must be older than 25 years.The property was last used as commercial space.The property has been 75% vacant for more than three years.

75% of the total leasable square footage must be used for rental residential housing. Developer must contribute $500,000 in private capital.

A PILOT under Section 7-505.2 requires approval by the Board of Estimates only.

Since its inception the program has yielded eight (8) conversion projects producingover 850 residential units in Downtown. Despite this success, the program is not widelypromoted to building owners or developers.

Next Steps:

DPOB to identify buildings meeting the

criteria and work with property owners,developers, BDC and the City to promote thisPILOT program.

2. Other Incentives

A. Historic Tax Credits

Baltimore City oers a property tax incentiveprogram for owners of landmark designatedproperties and properties located in the Cityshistoric districts. Properties individually includedin the Baltimore City Landmark list and theNational Register of Historic Places and propertieslocated within local districts and national districtsmay beneit (approximately 54,000 properties intotal). The program, called the Property Tax Creditfor Historic Restorations and Rehabilitations, is a10-year, comprehensive tax credit program thathelps the City in its mission to preserve Baltimoreshistoric neighborhoods by encouraging property

39 West Lexington is one example of asuccessful historic property convertedfrom ofce-use to upscale residential-

use in the Downtown core.


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owners in these districts to complete substantive rehabilitation projects. The credit isgranted on the increased assessment directly resulting from qualifying improvements.The assessment subject to the tax credit is computed once and used for the entire life ofthe credit. The credit for projects with construction costs less than $3.5 million is 100%,and for projects with construction costs more than $3.5 million is 80% in the irst ivetaxable years and declines by 10% thereafter. Main highlights include:

This is Baltimore Citys irst tax credit designed to beneit owners of historicallydesignated property.

Ten-year tax credit for all renovations, interior and exterior.Credit will beneit both homeowners and businesses.Goal of the program is to help preserve Baltimores neighborhoods by encouragingrestoration and rehabilitation.Credit is fully transferable to a new owner for the remaining life of the credit.This program is administered by the Baltimore City Department of Planning Historicaland Architectural Preservation Division.

B. Faade Improvement Program

BDC and DPOB currently oer funds to property owners or tenants to improve theirfacades. Under the program, the applicant can receive up to 50% reimbursement oftheir expenses, but not exceeding $20,000. This program has proven very successfulin leveraging private investment and making Downtown more attractive for retailers,employers and residents.

C. Live Near Your Work Program

To attract new ofice tenants, it is important to have diverse and appealing residentialoptions for employees. Increasingly, people want to live near their workplace. This trendindicates that if Downtown is going to grow as an employment center, viable housing

options must also continue to grow in close proximity.

The Baltimore City Live Near Your Work Program is a partnership betweenemployers and the City of Baltimore. The purpose of the program is to providedirect inancial assistance for eligible employees irst home purchase inBaltimore City and to encourage homeownership near the place of employment.

A minimum $2,000 grant or conditional grant is available to employees forsettlement and closing costs to purchase homes in targeted neighborhoodsnear their employers. Baltimore City will contribute up to $1,000per employee, which will be matched by the participating employer.

This program is administered by the Live Baltimore, an independent non-proitorganization focused on marketing city neighborhoods for new residential investment.

Next Steps:

In addition to incentives A-C listed above, it is recommended that DPOB and BDC, workingwith the Baltimore City Finance Department, review other cities programs to determineif existing programs can be enhanced or if new programs should be created. In particular,the City of Philadelphia was noted for further study on its revitalization eorts to createresidential investment in its downtown through a 10-year tax credit program.


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C. Encourage Private Investment

A key role that the City and advocate groups, such as DPOB, can play is encouragingproperty owners of under-utilized properties to invest in their properties to maximizea propertys beneit to themselves, Downtown and the City. The six (6) propertiesidentiied in this report are in need of particular attention. In most cases, these buildingsmay need to be converted to another use to maximize their potential. However, not allofice properties experiencing high vacancy rates must be converted to another use.

The successful renovation and re-branding of 100 Light Street, formerlythe headquarters for Legg Mason andnow the Transamerica Tower, illustratesDowntowns continued reputation as alocation for major corporations. LexingtonRealty Trust, the owner of 100 Light Street,invested approximately $43.1 million inthe property, including the construction

of an adjacent parking garage and a plazarenovation. Their investment resulted inover 230,000 square feet of new leases withthe Transamerica Life Insurance Companyand Ober Kaler law irm as two of the mostnotable leases in 2010.

Another example is the transformation ofOne East Pratt Street by Boston-based GrifithProperties. Grifith Properties acquired

and redeveloped One East Pratt Street,converting the ground loor from blankwalls fronting two main City thoroughfaresinto a vibrant ground loor with restaurantspaces, outdoor dining and new landscaping.Their investment resulted in the attractionof two new national restaurants, Kona Grilland Sullivans Steakhouse, and several newofice tenants.

100 Light Street and One East PrattStreet have re-reenergized the corner of Light and Pratt Street one of the Citys keyintersections. Encouraging and promoting investment by property owners is imperativeto continuing the success of Downtown as the Citys major employment center.

Recent plaza and building renovations at100 Light Street have attracted new tenants

including, Transamerican Life InsuranceCompany and Ober Kaler.

The Kona Grill recently opened at One EastPratt Street with expanded retail and new

landscaping.


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IV. CONCLUSION

For more than 280 years, Downtown Baltimore City has continued to adapt and reinvent itself.The recommendations set forth by the Mayors Downtown Task Force serve to reinforce themany positive eorts being made today and ensure that Downtown continues to thrive inthe future. Attracting new business and helping existing companies expand in Downtown isimperative. However, recognizing that Downtown is not only a major employment center,but a growing neighborhood is essential for sustained success. Encouraging new residentialdevelopment, attracting start-up companies, retaining major employers, working withinstitutional and government partners to leverage major public and private investments andencouraging private investment by commercial property owners are key essentials to makingDowntowns future vibrant.

task force for baltimore office vacancy

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