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Letter from the Chairman & PresidentAt BDC, we take our core mission of the retention and expansion of businesses – creating jobs2003 was a year of construction cranes and scaffolds – evident in many areas of the City –2,074 jobs, while creating an estimated 1,873 new jobs (totaling 3,947 jobs) leveraging an estimatedconstruction at the time exceeded 1.6 billion.and increasing Baltimore City’s tax base – Very Seriously! BDC activities in calendar 2010, retained 214,399,904 in capital investment. Our outreach efforts last year – key to successful businessdemonstrating increased investor confidence. The value of projects completed or underretention and expansion – involved more than 200 City businesses.In 2004, BDC refined its organizational structure to more efficiently and effectively address theThis is also a fitting moment to look back over the last decade. We see a City full of hope,out in the City’s Economic Development Growth Strategy.future potential and justifiable pride in many accomplishments.In 2000, the technology revolution was reshaping the world’s business landscape, with the creationof info and biotech jobs. Led by BDC, Baltimore City has been very successful in attracting techcompanies to Baltimore. And around the harbor, three projects moved forward: Inner Harbor East,HarborView and Tide Point – each representing new ideas for Baltimore’s future. Conversion of theformer Montgomery Ward warehouse into “green” office space began. The Westside Initiative movedneeds of Baltimore’s business community, and at the same time, further the strategic initiatives setBDC’s work in 2005 contributed significantly to Baltimore being seen as a growth market by nationaldevelopment investors. Duke Realty successfully acquired the former General Motors assembly plantsite in East Baltimore, citing the 180-acre industrial property as “the best port-oriented developmentopportunity in the United States.” Wells Real Estate purchased a prominent downtown office buildingat 100 E. Pratt Street, adding to confidence in Baltimore’s downtown office market.forward. Development continued in Holabird and Seton Business Parks. The State of Maryland’sOne of the 2006 highlights was the attention paid to the renovation and expansion of MondawminTax Increment Financing (TIF) law, as well as the creation of a Parking Authority for Baltimore City.owner, General Growth Properties, and the City (through a 15 million TIF bond for infrastructureGeneral Assembly approved key development incentives: a brownfields program and a more flexibleOur report for the year 2001 demonstrated returns on the City’s investment: new jobs, new orMall in Northwest Baltimore. This 70 million project represented a major investment by the mall’simprovements).expanded businesses, new places to live, new taxes generated, new programs launched – excitementIn 2007, BDC continued its work to enlarge the inventory of space for the vital warehouse/distributionthink about life and brought forward the importance of the bonds formed as neighbors andGeneral Motors property. And next to Oriole Park at Camden Yards, BDC oversaw the on-scheduleand optimism in a year of great challenge. The tragedy of September 11 affected the way all of usmembers of a shared community.In 2002, BDC expanded its mission when Mayor Martin O’Malley asked BDC to assumesector by facilitating the creation of a new business park – Chesapeake Commerce Center, the formerand on-budget construction of the Hilton Baltimore Convention Center Headquarters Hotel, a criticalelement for the competitiveness and growth of the City’s hospitality and tourism business.responsibility for the City’s Commercial Revitalization function, which had been located inthe Department of Housing and Community Development.ARNOLD WILLIAMS, CPA, BOARD CHAIRMAN M.J. “JAY” BRODIE, PRESIDENT8Baltimore Development CorporationLetter from the Chairman & President 8-11Annual Report 20109

2008 saw the Baltimore City Council and Mayor approve major TIF legislation for the infrastructureAnd in 2010, Morgan Stanley expanded into new waterfront office space at the first buildingwest shore of the Middle Branch of the Patapsco River. The Baltimore Main Streets program wasSeton Business Park; Transamerica/Aegon announced it would be consolidating its Baltimoreneeded to create an entirely new mixed-use, “green” community in Westport, to be developed on theexpanded by adding two communities – Brooklyn and Hamilton-Lauraville. Construction started onthe residential/retail development – The Fitzgerald at UB (University of Baltimore) – for which BDCnegotiated a PILOT (Payment In Lieu of Taxes) to enable the project to be economically feasible.2009 was a year in which BDC’s outreach efforts resulted in more business growth and expansionsuccesses – including Bravo Health in Brewers Hill; Legg Mason’s relocation and expansion toHarbor East; MTC Logistics’(formerly Merchants Terminal Corporation) new “green” refrigerateddistribution center near the Port of Baltimore; Pompeian Inc.’s new warehouse addition on PulaskiHighway; and Under Armour’s expansion in the former Overflo Public Warehouse in Locust Point.Baltimore City was also the beneficiary of federal stimulus funds, ultimately awarded to theUniversity of Maryland BioPark, enabling its continued growth and development.At the ETC (Emerging Technology Centers), the City’s incubator program, operated by BDC,where the focus is on growing early-stage technology and biotechnology firms in Baltimore City, 23new companies joined the program in 2009 and 21 graduated. By year’s end, 84% of ETC’s graduateswere still in business. While ETC companies enjoy flexible leases and shared services, it also providesto be constructed in Harbor Point; the NAACP decided to retain its national headquarters inoperations at 100 Light Street as well as relocating AEGON’s CEO from Iowa to Baltimore,solidifying the City as the company’s North American base of operations; and Bambeco, aneco-retailer found Baltimore an attractive location, bringing its corporate headquarters to theCity from West Virginia. Projects such as 25th Street Station in Remington, redevelopment of theformer Chesapeake Restaurant building in Charles North, the Howard Park Grocery Store projectin Northwest Baltimore, McHenry Row in Locust Point and the Westside Initiative continued tomove forward. The Fitzgerald residential/retail development in Mt. Vernon was completed andthe U.S. Social Security Administration announced plans for its new complex in NorthwestBaltimore, adjacent to the Reisterstown Plaza Metro stop, retaining 1600 jobs in the City,through a tax-paying, privately-built development.Small business development continues to expand through BDC’s Main Streets program,the Emerging Technology Centers and the Small Business Resource Center, while the ForeignTrade Zone and Enterprise Zone functions have proven their value in promoting businessgrowth both around the Port and in the City’s commercial areas.an environment in which like-minded companies can accelerate their potential through partnerships,As we move ahead carrying out Mayor Stephanie Rawlings-Blake’s economic developmentcompanies employed 360 people in 2009 at an average annual salary of 75,000, and had averageand continued prosperity in Baltimore City. Let us know how we can help!joint ventures, and other collaborations. The ETC has maintained high client quality; its clientannual revenues in excess of 900,000.Over the past years, the Small Business Resource Center (SBRC) has focused on developing capacitystrategy, we look forward to working with your business – helping to ensure your growthSincerely,in the small business community through counseling, coaching and seminars. In 2009, the SBRC,located on the 3rd floor of Johns Hopkins Eastern at 1100 East 33rd Street, provided technicalassistance in the form of more than 72 counseling sessions and seminars. In addition, over 4,000people visited the SBRC, with the center handling more than 9,600 telephone calls for help.Arnold Williams, CPABoard ChairmanM.J. “Jay” BrodiePresidentLetter from the Chairman & President 8-1110Baltimore Development CorporationAnnual Report 201011

01MISSIONRetention and Expansionof Existing BusinessesBusiness Retention and OutreachDuring 2010, BDC’s staff conducted more than 200 outreach visits with business ownersthroughout the city. An outreach visit can be pivotal in influencing a company’s decision to makeadditional investments in their business. As a part of the outreach visit, BDC staff providesspecialized information about city processes, financing programs and workforce programs. Staffalso offers to serve as a liaison to other city agencies in order to act as an advocate for the companyas it navigates what often are unfamiliar processes.Outreach visits provide the opportunity to build a relationship with the business owner andlearn about company plans. This firsthand information enables delivery of customized businessassistance. For business owners, the interaction with BDC staff is significant as having a familiareconomic development person to call upon can be invaluable“ We have always enjoyed strong support from the City and BDC,but our relocation to our current headquarters in Harbor East bestillustrates BDC’s dogged efforts to assist us.While Legg Mason has always been committed to Baltimore, the decision for a new Global Headquarters Buildingwas an important one for our company. BDC had been instrumental in furthering the development of Harbor Eastinto an amenities attraction truly befitting global companies. From the outset, BDC worked to retain Legg Masonin the City and helped to identify and facilitate a suitable opportunity for the creation of our Global Headquarters.Throughout the design and construction of our building, BDC staff and leadership provided invaluable assistance innavigating the myriad of details necessary to meet the aggressive time table that we had for this project. Your effortsincluded assistance with the fast-tracked permitting process, expedition of road closures and land swap arrangements,and attention to the logistics of traffic and transportation issues. In addition, the City also provided an infrastructuregrant for public utilities and promenade improvements.We are excited to renew our commitment to Baltimore with our move to our new Headquarters in Harbor East.This continued Baltimore renaissance takes true leadership and we thank you (Jay Brodie) and your colleagues”at BDC for all of your efforts.Mark R. FettingChairman and Chief Executive OfficerLegg Mason, Inc.PORT OF BALTIMORE12Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201013

MORGAN STANLEYMorgan Stanley & Co., Inc., a global financial services firm, took occupancy of itsnew waterfront office building at Harbor Point in 2010. By leasing 140,000 squarefeet in the 277,000 square-foot, eight-story Thames Street Wharf Office building,the company is expanding its business operations with financial assistance fromthe City of Baltimore and State of Maryland, creating an estimated 900 new jobsover several years.MORGAN STANLEY14Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201015

Morgan Stanley, which already had a significant presence in Baltimore,consolidated employees from two offices in the city to its new locationat 1300 Thames Street. In 2002, BDC partnered with the State ofMaryland’s Department of Business and Economic Development(DBED) to attract Morgan Stanley to Baltimore.Located between Fells Point and Harbor East, Thames Street Wharf isthe first property completed at Harbor Point. Harbor Point, the formersite of the Allied Signal chromium plant, is being redeveloped by H&SProperties as a mixed-use project, adding a vibrant bridge between theadjacent Harbor East area and Fells Point.Morgan Stanley16Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201017

NAACPCity officials in 2010 celebrated the NAACP’s (National Association for theAdvancement of Colored People) announcement that it would be retaining its nationalheadquarters in Northwest Baltimore at 4805 Mount Hope Drive in Seton Business Park.Founded in 1909, the NAACP is the nation’s oldest and largest civil rights organization.BDC worked with the NAACP over a number of years to maintain the presence ofthis prestigious organization in the city. The NAACP moved to Baltimore in 1986from New York.Mission 01 Retention and Expansion of Existing Businesses 12-29NAACP18Baltimore Development CorporationAnnual Report 201019

Transamerica/AEGONTransamerica Life Insurance Company, an AEGON company, announced in2010 that it would be relocating its Baltimore operations and leasing 140,526square feet at 100 Light Street. As part of its lease, the 35-story skyscraper willbe renamed the “Transamerica Tower.” AEGON’s decision will bring more than700 employees to the building. In addition, AEGON’s North American CEOwill be relocating from Iowa to Baltimore.The building is owned by a subsidiary of Lexington Realty Trust, a New Yorkbased real estate investment trust. Their lease with Transamerica commencesno later than November 1, 2011 and continues for a term of ten years and threemonths, with two five-year tenant renewal options.Since acquiring the building on December 31, 2006, Lexington Realty Trusthas invested in a number of enhancements, including a new parking garage justacross Lombard Street, a conference center, cafeteria and fitness center, and animproved lobby and plaza.BDC provided general business assistance to AEGON and is working toidentify potential uses for the properties that the company will be vacating.TRANSAMERICA/AEGON20Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201021

olunteers of AmericaVChesapeakeVolunteers of America Chesapeake (VOAC), Inc.’s mission is to inspireself-reliance, dignity and hope through human services. For more than30 years VOAC’s Residential Re-Entry Center (RRC) has been assistingmen and women in making a successful transition back into the Baltimorecommunity through pre-release and work-release programs. The current RRCis a 106-bed program, which moved to its current location, a refurbished motel,at 4601 East Monument Street in February 1988. The facility is leased fromthe City of Baltimore; VOAC also leases 2,500 square feet of office space inthe adjacent building.While the current facility has served the needs of RRC residents for manyyears, it is now outdated, leading the Volunteers of America Chesapeake toseek a new state-of–the-art location.BDC, which continues to provide general business assistance to theorganization, helped VOAC to identify a new location near its currenthome, which it is in the process of acquiring.VOLUNTEERS OF AMERICA CHESAPEAKE22Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201023

Enterprise ZoneThe Baltimore City Enterprise Zone is a City and State funded taxcredit program in designated areas of Baltimore City. The program targetseconomically depressed areas and allows businesses located in those areas toapply for real property tax credits on improvements to commercial propertiesand business income tax credits to companies that create new jobs.In 2010, BDC certified 53 small businesses and development projectsin the Baltimore City Enterprise Zone. Each was certified to have madeimprovements and/or added new jobs. Those certified businesses anticipatedcreating an estimated 1,600 new jobs, completing over 131 million in newconstruction, conducting 25 million in rehabilitation of existing structures,and making more than 9 million in new equipment purchases. In total,those businesses certified in 2010 made, or plan to make, over 165million in capital investments in Baltimore City.Enterprise ZoneEnterprise Zone Focus AreaENTERPRISE ZONE24Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201025

“ Being able to open a Foreign Trade Zone activatedwarehouse in Baltimore has been the next logicalstep in growing our warehouse business.”Joanna McGowanPresidentWhite Marsh Transport, Inc.Port of Baltimore - FOREIGN TRADE ZONE26Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201027

Foreign Trade Zone (FTZ)To assist the Port of Baltimore and further encourage the health and competitiveness of Baltimore industry,BDC administers Foreign Trade Zone (FTZ) #74, a federally designated area located within the United States yetconsidered “outside” of U.S. Customs’ territory for the purposes of assessing and collecting import duties and taxes.The FTZ expedites and encourages foreign commerce, promotes domestic employment and assists U.S. firms incompeting within the global marketplace.With twelve operators (two of them new in 2010), and more than 3 million activated square feet ofnon-contiguous industrial and warehouse space, the zone served 131 businesses during fiscal year 2010.Of those businesses, 84 used the FTZ on a continuous basis, employing up to 1,100 people, 786 of whomwere full-time employees. FTZ #74 handled 23,728 different items from 68 countries of origin, compared with18,835 items from 51 countries during the preceding fiscal year. Over 2.3 billion worth of goods were transferredto U.S. Customs’ territory and 48 million worth of goods were exported from Baltimore’s FTZ to internationalmarkets in fiscal year 2010. Additionally, five new boundary modifications and two new subzones were approved.In 2010, Baltimore’s Foreign Trade Zone was ranked the fourth best port-related FTZ in the world byfDiMagazine, a publication of the Financial Times. Their analysis reviewed 700 economic zones and Baltimorecame in fourth under the “Best Port Zone” category for 2010/2011, following only the zones of Shanghai,China, Tangier, Morocco and Jacksonville, Florida. Only one other U.S. port zone made the top 10 list:Los Angeles, which ranked eighth.“MTC Logistics has operated cold storage distribution centers in Maryland since 1928. In 2008 we decided to relocateour Baltimore Distribution Center from Highlandtown to the Seagirt Industrial Area to be closer to the expanding MPAand private terminal operations and to modernize our facilities. BDC helped us throughout the process by aiding usand our contractors as we navigated the permitting and construction process. Due to their help we were able to openon time which enabled us to meet commitments to our customers. Their interest and help continues to this day as weare presently completing a 800,000 KW solar generation facility on the facility and planning to double the size of thisdistribution center. Aside from the expansion of our company, I regularly interact with BDC representatives at industryassociation meetings and Baltimore City master plan meetings and have come to rely on their knowledgeand expertise.”Harry HalpertPresidentMTC LogisticsPort of Baltimore - FOREIGN TRADE ZONE28Baltimore Development CorporationMission 01 Retention and Expansion of Existing Businesses 12-29Annual Report 201029

02MISSIONAttract NewBusinesses“Moving into the Emerging Technology Center (ETC) was the singlebest move our rapidly growing company has made to date. From theabove-and-beyond help that’s always available from the amazing ETCstaff to the collegial atmosphere in the building, we continue to bethrilled with our ETC experience.”John ShermanManaging PartnerStoryfarm New MediaEMERGING TECHNOLOGY CENTER30Baltimore Development CorporationMission 02 Attract New Businesses 30-41Annual Report 201031

BambecoInnovative eco-retailer Bambeco relocated its corporate headquarters toBaltimore from West Virginia. After extensive consultation with BDCon selecting a location, Bambeco elected to lease 5,900 square feet of spacein Lucky’s Warehouse at 3430 Second Street in the Brooklyn/Curtis Baycommunity. The former warehouse building was refurbished into a cuttingedge, environmentally responsible office building that provides an idealmatch for the company’s needs and corporate philosophy.BAMBECO32Baltimore Development CorporationMission 02 Attract New Businesses 30-41Annual Report 201033

rossroads and CarrollCCamden Industrial ParksTo maintain an environment attractive to both existing and newbusinesses in Crossroads and Carroll Camden Industrial Parks,the Baltimore Development Corporation (BDC), which managesthe parks on behalf of the City of Baltimore, commissioned thedesign and installation of new entrance signage.Crossroads Industrial Park, located in Southwest Baltimore,is bounded by Bernard Drive, South Dukeland Street andInterstate 95. Carroll Camden includes 500 acres betweenthe Camden Yards stadium complex and Interstate 95 inWest Baltimore.CROSSROADS INDUSTRIAL PARK34Baltimore Development CorporationMission 02 Attract New Businesses 30-41Annual Report 201035

Emerging Technology Centers (ETC)“ The ETC (Emerging Technology Centers) team is extraordinary they know intricately what it takes to grow, develop and managea business. They have a pinpoint accuracy to zone in on what is needed and the resources to find thesupport needed. In the two past years, we grew on average 125% which would not be possible without the”ETC team.Anne DunneCEOStrategic Results“ It is a reality in entrepreneurship that few are willing to be the first toback a start-up and the ETC (Emerging Technology Centers) filled thatrole for me and my

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