3,300 State Employees Moving To Downtown Baltimore: Hogan

BALTIMORE, MD —Gov. Larry Hogan announced a plan on Monday to relocate 3,300 state employees from 12 agencies to Baltimore’s Central Business District (CBD) in order to help revitalize an area that has seen office vacancies increase significantly during the coronavirus pandemic.

Speaking alongside other state and local leaders at a press conference at McKeldin Plaza, the governor said the plan would begin with more than 700 employees of the Maryland Department of Human Services relocating to the CBD, with another 1,200 from the Maryland Department of Health soon to follow. Additional agencies are expected to move to the area, as well.

The relocation, which had been discussed prior to the pandemic, will help overcome the loss of companies like T. Rowe Price and Bank of America, which have announced plans to relocate to other parts of the city. Hogan said office vacancies were up nearly 34 percent in the CBD due to the pandemic.

Officials are hoping the government agencies moving to the CBD will make the area more appealing to new companies and more private investment in the area.

"Over the last four months, we've been focused on putting shots into arms," Hogan said referring to COVID-19 vaccines. “But today, we are here to give a shot in the arm for the recovery and revitalization of downtown Baltimore. A strong Maryland depends on a strong Baltimore City."

The governor said $50 million had been budgeted for the relocation of the agencies and revitalization of the area, and officials hinted Federal stimulus money would be used for the project.

Lt. Gov. Boyd K. Rutherford said the pandemic had changed the nature of in-person work, and that the more modern office space would cater to the needs of today’s workers, allowing state agencies to compete with the private sector in attracting talent.

Rutherford said many current government facilities were too big and in need of significant amounts of work.

"The size and the scale of the offices may not be necessary going forward,” Rutherford said. “We recognize many of the state facilities are in such poor condition that it’s costing more to maintain them than to rent well-kept property downtown."

Senate President Bill Ferguson said the government agency relocation plans are the latest step in the long revitalization of Baltimore’s Harbor and Central Business District, which were seen as no longer viable many decades ago.

"Seventy-five years ago, they said the Harbor was done, they said downtown would never be as vibrant as it once was," Ferguson said. "But some visionaries had different ideas, and they saw how some public investments can renew the future."

Shelonda Stokes, president of the Downtown Partnership for Baltimore, said the relocation of the government agencies also would bring hundreds of ancillary service jobs to the area. Stokes spoke about how the new agencies would combine with existing businesses in the area to create an even more vibrant CBD.

"We need these agencies here. We value them and will not take this for granted," Stokes said. "This is an opportunity for the state, city and business community to work together toward creating a safe, walkable, campus-like environment filled with nearby art, culture, health care, tourism, restaurants and entertainment amenities for all our state employees right here in the heart of the city."