The head of Baltimore's multimillion-dollar federal program to revitalize some of the city's most decayed neighborhoods will be paid $120,000 a year.
The salary of Claude Edward Hitchcock, president and chief executive officer of Baltimore's $100 million federal empowerment zone effort, is slightly more than the $117,600 paid to Police Commissioner Thomas C. Frazier but less than the $140,000 paid to Schools Superintendent Walter G. Amprey.
Among other top city officials, City Solicitor Neal M. Janey and Public Works Director George G. Balog make $108,600 each.
Mr. Hitchcock's salary was set yesterday by the board of Empower Baltimore!, the nonprofit group overseeing the city's empowerment zone effort.
Last month, Mayor Kurt L. Schmoke said pay for the 50-year-old corporate lawyer "will be in line with some of the major department heads of the city."
"It's going to be a . . . lot less than I've been making," Mr. Hitchcock said. "But this is a once-in-a-lifetime opportunity." Mr. Hitchcock has given up his partnership at Tydings & Rosenberg but said the firm has agreed to let him continue his affiliation "of counsel," which means he will continue to receive some income from the practice.
Board members said after the meeting that they thought Mr. Hitchcock's salary was fair, given his responsibilities in administering the federal program to revive areas of East, West and South Baltimore. "We want top-quality people," said Karen Carter, a board member and community activist from West Baltimore.
Also yesterday, Mr. Hitchcock said the city's housing department would seek approval from the Board of Estimates tomorrow to advance the board several thousand dollars for computers, office furniture and phones.
The board had asked U.S. officials to approve the immediate transfer of the first $50 million installment of the grants. The request was declined.
Although federal regulations forbid groups from drawing interest on federal funds, the board had hoped to be able to invest the money until it was ready to spend it, using the interest to pay for staff and office expenses. The money is in a U.S. Treasury account, to be drawn on once a schedule is set up.
Mathias J. DeVito, chairman of the empowerment zone board, said the board would try to raise money for some of the administrative expenses from local foundations but said it was likely to use some of the $100 million grant for that purpose.
In another matter, William E. Carlson, counsel to the empowerment zone, said federal officials have agreed that tax credits for businesses in the zone would apply to existing employees, along with new ones.
Those credits -- up to $3,000 per employee -- will be available to all wages paid after Dec. 21 to zone residents employed by businesses in the zone, Mr. Carlson said. "The federal government wanted a shot in the arm for all zone employees," he said.
Mr. Carlson said federal officials had included those calculations in their estimates that zone business could receive up to $225 million in tax credits.