Evening star., 1948-10-17
Baltimore Skyscraper
Acquired by Maryland
In S5,0O0,000 Deal
~ fhA Asxoeintad Press

BALTIMORE, Oct. l6.-The "a
story O'Sullivan Building. tallest in
Maryland, will become a home for
bureaus of the State OF Maryland
in a 5000, 900 deal disclosed today.
The board of public works took
an immediate lease on the down.
town Baltimore building and for 81
took an option to purchase before
April l., 1s4s.
The General Assembly will have
to approve q 5000, 900 bond issue
before the purchase can be COM
pleted.
After the signing of the papers,
Gov. Lane said:
I'VE are faced with q situation
in which we have to buy or have
TO build. We must make up our
minds in which direction to 60"
Agencies Being Forced Out.
The deal with O'Sullivan, Inc, is
to find quarters for State depart
ments and agencies which are be-
ing forced out of space In various
Baltimore buildings" the Governor
said. ...,
The lease signed today by the
board calls for space on the llth
floor TO which Baltimore executive
Offices will move by November
from the Union Trust Co. building
The lease previously had been
signed by Raymond j. Funkhouser
Of Ransom, w. Va, as head of the
O'Sullivan Corp.
Gov. Lane made 1t clear that the
$1,000, 900 deal is not to be inter-
preted as a revival of sentiment for
moving all governmental agencies to
Baltimore. The constitution stipu-
lates that the Governor, comptroller,
treasurer and other officers must
have headquarters in Annapolis.
Building Cost S6,61e,S9S.
Numerous State offices are housed
all over Baltimore and eviction no
tices from owners of buildings ARE
piling up," Gov. Lane said.
The OSullivan Building was put
up in 1929 at cost of S6,6l0, ,S98. 81.
The Governor estimated the con-
struction cost today would be $17,-
676, ,50757.
There will be no rush to move
State agencies into the building and
all existing leases will be honored,
Gov. Lanes statement said. Even
when leases expire, he added, there
will be mo arbitrary disposition on
the part of the State to shove peo-
pie around" -.
The State now rents 2s6, 6,e45
square feet of space in Baltimore.
and about l93,500 feet are occupied
by bureaus which could move into
the O'Sullivan Building. The struc-
ture~contains 282,820 square feet.
State to Pay OF Mortgage.
In discussing the financial aspect
of the agreement, Gov. Lane said:
"A proposed plan Of financing the
purchase Of the building over . 15-
year period-which is the term limit
of State bonds-discloses that under
certain conditions the State could
acquire the O'Sullivan Building at
less than s1,300,000 If the rentals
now paid for space In other build
ings is Offset against the principal
and carrying charges of the IS, 5,0O0,-
900 bond issue"
He added that the ultimate cost
could be reduced to $242,710 II Of
fees are compressed in the O'Sulli-
van Building.
The agreement calls for. the State
to pay of the first mortgage of
$3,275,000 and $1,725, ,006 additional
on the first of next April.
The mortgages are held by the
Metropolitan Life Insurance Co.
Attorney General Hall Hammond
said the property Is worth about
$102,0 900 q year in taxes, of which
100000 goes to the city Of Bal
timore. Gov. Lane said the State
would be, willing to adjust" taxes
with the citv for 1910