Evening star., 1948-10-17
Baltimore Skyscraper
Acquired by Maryland
In S5,000,000 Deal
1y fhs kssoeiotsd 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 $5,000,00 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 /. 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
10 build. We must make up our
minds in which direction to CO."
Agencies Being Forced Out.
The deal with O'Sullivan, Inc, is
to find quarters for State depart
n1ents 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 l1th
floor 10 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
5000, 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 $6,61e,S9S.
Numerous State Offices are housed
all over Baltimore and eviction no.
.ices from owners of buildings "are
piling up," Gov. Lane said.
The O'Sullivan Building was put
up in 1929 at 4 cost of $3.50, ,Sos. 81.
The Governor estimated the con-
struction cost today would be $12,-
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 or
the part of the State to shove peo-
pie around" =,
The State now rents 2s6, ,e4s
square feet of space in Baltimore
and about 193.500 feet are occupied
by. bureaus which could move into
the O'Sullivan Building. The struc-
ture-contains 2s2,S20 square feet.
State to Pay or Mortgage.
In discussing the financial aspect
of the agreement, Gov. Lane said:
"A proposed plan Of financing the
purchase Of the building over q 15-
year period-which is the term limit
Of State bonds-discloses that under
certain conditions the State coult
acquire the O'Sullivan Building at
less than $1,300,000 If the rentals
now paid for space in other build.
ings Is Offset against the principa
and carrying charges of the $5,000, :
900 bond issue"
He added that the ultimate cost
could be reduced to $242,710 II Of.
fices are compressed in the O'Sulli.
van Building.
= The agreement calls for the State
to pay off the first mortgage oi
So PTS, 900 and $1,725 ,006 additiona
on the first of next April.
The mortgages are held by thu
Metropolitan Life Insurance Co.
Attorney General Hall Hammons
said the property is worth abou
100000 q year in taxes, of which
$l00, 900 goes to the city Of Bal
timore. Gov. Lane said the Stat,
would be willing to adjust" taxel
with the city for 1949.