MDOT Office of Real Estate

News Article

Baltimore Co. to buy Sparrows Point tract

(10/5/2009) Baltimore County will buy industrial land in Sparrows Point from the state at a bargain price and lease the property to a local union for a training school.

Recent reconfiguring of highways and access ramps along the Baltimore Beltway and Interstate 95 corridor left the State Highway Administration with nearly 12 acres of industrial land and no use for it. With the International Union of Operating Engineers, the county has found a tenant ready to take over the property and build on it.

"We are getting property in an industrial area," said Councilman Kevin Kamenetz. "We won't be responsible for any improvements or maintenance, and we will get a return on our investment. This is a win in all ways."

A state-hired property consultant appraised the land, at the southwest corner of Bethlehem and North Point boulevards, at $1.2 million. But because of the economic development potential, determined by an independent analysis, the state will settle for $500,000 with the stipulation that the county cannot resell the property at a profit, officials said.

"The county's obligation is to acquire this property from the state," said Nancy West, assistant county attorney. "The tenant will be responsible for everything else, including maintenance and taxes."

The union has sold its White Marsh location to a developer and must soon vacate. Its members have found the Sparrows Point site ideal for a new training center and have agreed to accept it "as is," officials said. They will lease the land with an option to purchase.

"We wanted to stay in Baltimore County and we really like the location," said Joseph Shanahan, the union's business manager. "From there, you can go into the city, north or south on 95 or across the Key Bridge to Anne Arundel."

The trade union, which represents heavy equipment operators, mechanics and surveyors in the construction industry, and stationary engineers, who operate and maintain buildings, plans to build offices and an apprenticeship school with grounds outdoors for training on heavy equipment, Shanahan said.

The initial plan calls for a three-story building with offices, classrooms equipped with simulators, as well as repair and welding shops. The complex will employ about 25 people and will house as many as 120 apprentices training in various programs for as long as three years. Most of its classroom time is scheduled in the evenings.

"This is a good idea from the economic development standpoint," said Councilman John Olszewski, who represents the district. "This union is staying in Baltimore County, bringing jobs here and supporting local businesses."

The County Council has authorized the purchase and approved a 10-year lease totaling $375,000.

The union, which has the option to purchase the property after two years "for no more than $500,000," will pay $35,000 annually for the first five years and $40,000 per year for the remainder of the lease, according to the lease document.

The county's economic analysis determined that the training the school provides will ensure the availability of a skilled work force for the area's construction needs, particularly those associated with the expansions at Aberdeen Proving Ground in Harford County and Fort George G. Meade in Anne Arundel County. Both bases are set to grow significantly with BRAC, the national military base expansion, officials said.

By Mary Gail Hare

Copyright © 2009, Baltimore Sun Inc.

Link to the article: Baltimore Co. to buy Sparrows Point tract

Source: The Baltimore Sun