Baltimore to move forward with State Center development after $58M settlement approved

BALTIMORE -- Maryland's Board of Public Works approved a $58.5 million settlement Wednesday to resolve litigation over Baltimore's State Center development project, clearing the way for new plans after nearly two decades of delays.

The settlement will advance the nearly 20-year process of reimagining the uses of the State Center complex which has office buildings for thousands of government workers.

The settlement will be paid in two installments: $40 million before Dec. 9, and the remaining $18.5 million following the 2025 legislative session, no later than July 1, 2025.

"The delays caused by the ongoing litigation have created questions about the future of State Center, delayed critical planning, and blocked much-needed investment and redevelopment in the City of Baltimore," Gov. Wes Moore said.

The dispute dates back to 2006 when former Maryland Governor Bob Elrich's administration first proposed redeveloping the State Center through a public-private partnership. 

Under that partnership, the state would have granted long-term leases or dispositions of property to a private developer which would have redeveloped the area in phases.

A developer was selected, but the project stalled due to lawsuits, and former Maryland Governor Larry Hogan's administration canceled it in 2016, leading to additional litigation. 

A 2022 attempt to transfer ownership of the State Center complex to Baltimore City never materialized due to ongoing legal issues.

Comptroller Brooke E. Lierman praised the resolution, noting that delays had created unnecessary costs for taxpayers. Treasurer Dereck Davis called the settlement a path toward "visionary redevelopment."

Baltimore Mayor Brandon M. Scott welcomed the agreement, calling the settlement "a critical first step" in moving the project forward.

"For 20 years, the promise and frustration that has accompanied the State Center project has left Baltimoreans eager to see this development move forward in the lurch," Mayor Scott said.

The governor's office will establish a workgroup of state and city leaders to review existing plans, conduct community outreach, and develop recommendations for the site's future use.