ANNAPOLIS, MD - Governor Wes Moore and the Board of Public Works today approved a $58.5 million settlement to resolve litigation related to the development of State Center in Baltimore City. The settlement creates a new path forward for a fully revisioned State Center complex following years of dispute over development rights and cancellation of the project. 

“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,” said Gov. Moore. “I’m excited about what this means for Baltimore City, its residents, and the future of State Center. A settlement will avoid more prolonged, costly litigation and risk on behalf of taxpayers, which would have continued for years. We now have the opportunity to begin to define a new vision for State Center in partnership with the community.”  

The settlement is a critical advancement in a nearly 20 year process for reimagining use for the State Center complex. In 2006 the Ehrlich Administration proposed redeveloping State Center through a public-private partnership. Under the proposal, the state would have granted a mix of long-term leases or dispositions of property to a private developer, which would redevelop the complex in phases.

After selecting a developer, a lawsuit stalled the project for years. The Hogan Administration then canceled the project in 2016, producing additional litigation, before announcing plans to transfer ownership of the property to the City of Baltimore in 2022. Transfer of ownership never took place as litigation continued.

“I am happy that the Board has voted to end the drawn-out legal process surrounding the transfer of the State Center complex to Baltimore City. Delays have created unnecessary costs for taxpayers,” said Comptroller Brooke E. Lierman. “This resolution will allow the State of Maryland and the City of Baltimore to shift our time and resources toward identifying a new and better path forward for the State Center complex and for Baltimore.”

“The prolonged delays surrounding the future of State Center have not only wasted taxpayer dollars but also hindered opportunities for progress,” said Treasurer Dereck Davis. “Today’s decisive actions offer hope for a long-overdue transformation, paving the way for a visionary redevelopment that will bring positive and meaningful change to the citizens of Baltimore City.”

Under the terms of the settlement, payment to the team of developers will be made in two installments. The state will pay $40 million before Dec. 9 and the remaining $18.5 million following the 2025 session of the Maryland General Assembly, no later than July 1, 2025. In the meantime, the governor’s office will convene a work group of state and city leaders to review existing plans and concepts, conduct community outreach, and make a joint recommendation to the governor and mayor about a new vision for State Center in the months ahead.

“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,” said Baltimore City Mayor Brandon M. Scott. “This settlement is a critical first step in putting this history of litigation behind us and moving the project forward once again. I appreciate Governor Moore’s commitment on this issue, and look forward to seeing this significant development finally move forward in a way that benefits both the surrounding neighborhoods and the city as a whole.”