The state's Board of Public Works yesterday approved an expansion and consolidation of Maryland's economic development agency, part of Gov. Parris N. Glendening's move to revamp the organization.
Under terms of its extended lease, the state's Department of Business and Economic Development will spend $7.95 million through 2003 for 65,913 square feet in the 23-story Redwood Tower downtown. Compared with its previous agreement there, the state will save more than $368,000 in rental payments.
The agency, which will occupy nearly 35 percent of the 217 E. Redwood St. skyscraper, plans to move nearly 80 employees from other downtown offices, including the state-controlled World Trade Center.
Redwood Tower has been owned by Capital Acquisitions Inc. since June 1992, when the Orlando, Fla.-based investment firm purchased the tower for $10.5 million from BankAmerica Corp.
The San Francisco banking company had obtained the 202,400-square-foot building through foreclosure auction in January of that year, after lending $34.4 million for its development.