Biz Roundup

Ratings Agencies Weigh In on Constellation Deal
Fitch Ratings has affirmed the ratings of MidAmerican Energy Holdings Corp. (MEHC) following the announcement that the company reached a tentative agreement to purchase the equity of Constellation Energy Group (CEG) for approximately $4.7 billion in an all-cash transaction at $26.50 per share.
The ratings of MEHC are currently as follows: Issuer Default Rating (IDR) at 'BBB+'; senior unsecured debt at 'BBB+'; trust preferred stock at 'BBB'; and short-term IDR/commercial paper at 'F2.'
Standard & Poor's Ratings Services placed its 'A-' ratings on MEHC and most of its rated U.S. subsidiaries on CreditWatch with negative implications.
Moody's Investors Service affirmed the ratings of Constellation Energy Group (Baa1 senior unsecured and Prime-2 short-term debt rating for commercial paper) and those of its regulated electric and gas utility subsidiary, BGE (senior unsecured Baa2 and Prime-2 short-term debt rating for commercial paper).

Cardin Tells DOD to Stop Delays at Fort Meade
U.S. Sen. Ben Cardin, at a recent hearing of the Senate Environment and Public Works Committee (EPW), expressed his frustration with the Department of Defense (DOD) for its continued unwillingness to obey the law in cleaning up waste sites such as Fort Meade.
"The law is clear and the Department of Defense cannot continue to ignore it. A detailed plan for cleaning up Fort Meade was due nine years ago," said Cardin. "The department should drop its legal appeals, obey the EPA order, and quickly sign the required base-wide cleanup plan. The health and welfare of Marylanders are at risk, including the brave men and women who serve our nation inside and outside the gates of Fort Meade.
"For the first time in its history, the state of Maryland is moving forward with a suit to compel the Army to comply with the EPA's order," he continued. "The Army may try to ignore the EPA, but it will not be able to ignore the courts when they rule against the Army, which they surely will. I am hopeful that the Department of Defense left today's hearing with a clear sense that it cannot continue to delay. They must get on with the important cleanup work ahead of them."
During the hearing, Cardin pointed out that the Superfund Law requires a Federal Facilities Agreement between EPA and DOD governing the cleanup of the site. Much cleanup work has occurred on the site, especially in the early years, but the pace of the cleanup has slowed.

Tech Startups Receive $525,000 From TEDCO
The Maryland Technology Development Corp. (TEDCO) has announced that seven Maryland technology companies have received $525,000 total in funding, including Pique Inc., of Baltimore.
Each of the seven companies received $75,000 from TEDCO's Maryland Technology Transfer Fund (MTTF). This program is designed to foster greater collaboration between businesses and Maryland universities and federal laboratories in order to bring technology into the marketplace.
Pique Inc. is working with UMBC to further develop a design-driven technology firm focused on women's footwear. The company's first technology is a compressible element that conforms to the shape of the wearer's foot to distribute the load to more tolerant areas, including the mid-foot and heel.
To date, 114 companies have received funding from MTTF and completed their projects. With an investment of $6,812,113, these companies have gone on to receive downstream funding from angel and venture investors, federal awards and other resources exceeding $200.6 million.

Leopold Seeks Special BRAC Zone Designation for Odenton Town Center
Anne Arundel County Executive John Leopold has announced that he is seeking state approval of a special BRAC Revitalization and Incentive Zone designation for Odenton Town Center.
Such a move would make Anne Arundel County government eligible for additional funding and other state resources to offset the cost of public infrastructure necessary to support development in Odenton Town Center.
The BRAC zone benefits consist of state rebates related to incremental tax revenue from the increased value of qualified properties within.  Rebated funds must be used for infrastructure improvements in the zone.  The designation also would provide eligibility for the county to leverage other available state programs.
As part of the application process, Anne Arundel County conducted a public hearing on Oct. 1 to brief the general public on the process and describe what it will mean to Odenton Town Center. The county's application must be submitted to the Maryland Department of Business & Economic Development by Oct. 15.

Blob's Park to Reopen
Less than a year after closing an area landmark "forever," the former owners of Blob's Park have confirmed plans to revive the popular Bavarian beer hall in Jessup.
Max Eggerl, whose family operated the business after founder Max Blob died in 1969, affirmed that a deal had been struck to lease back the property from the development company that now owns the land it occupies.
Although he wouldn't elaborate on the length or terms of the lease, "It's long enough to make the investment worthwhile," Eggerl said, referring to the undisclosed cost of extensive refurbishment work currently underway.
Tentatively scheduled to reopen by January 2009, the new Blob's Park will feature a new, expanded bar area, a new kitchen, new seating and an updated interior and bathroom facilities. The outside of the building will also be getting a facelift.
"I plan on making it bigger and better than it ever was," Eggerl said. "It was very popular in the past. We're hoping that a lot of that interest is still there."
A new web site, www.blobspark.net, should be appearing online by the middle of October, he added, and will keep visitors updated as renovations progress.

Howard County Housing Purchases Columbia Landing
Howard County's Housing Commission has completed a $36 million acquisition of Columbia Landing, a 300-unit apartment community on Tamar Drive in Columbia. "We have said from the beginning that offering moderate income housing was important to this administration," said County Executive Ken Ulman. "With this acquisition, the Housing Commission has increased its portfolio size by 75%, from 400 units to 700 units, with a property that will pay for its own maintenance and operation, as well as help preserve affordability for families."
The Housing Commission has retained the existing property management company, Equity Management, and will work closely with it to ensure a seamless transition and maintain a high level of service to the residents. The commission plans to make about $1.2 million in renovations to the property during the next two years.
The Housing Commission will continue to rent the same units at the same rates to the same tenants who are living there now; rent will stay the same. Additionally, the Housing Commission will begin to phase in some new renters who qualify at moderate-income levels - 60% of the Baltimore area median household income (which is approximately $47,000 for a family of four).
It is anticipated that eventually 40% of the units will be made available at rents that are affordable to those who otherwise could not afford to live in Howard County, such as teachers, government employees and military workers. The remaining 60% of the units will continue to be rented at market rates.

Symphony Woods Office Center Sold
Colliers Pinkard has announced the sale of the Symphony Woods Office Center to Washington Capitol Partners. Symphony Woods Office Center is located at 5950 Symphony Woods Road in the Columbia Town Center.
The 93,850-square-foot, 94% leased, Class A building was sold by Liberty Property Trust for $15.6 million (or $166 per square foot).
Symphony Woods Office Center is a six-story, multi-tenanted office building which came to the market with a six-year average occupancy exceeding 92%, demonstrating its stability and marketplace position.
"With the continued uncertainty in the credit markets, the very strong interest level generated for Symphony Woods was a testament to the quality of the asset and the deliberate and detailed process in which it was presented to the marketplace" said Vice President Jon Carpenter.

Mikulski, Cardin Announce NSF Grants
Sens. Barbara Mikulski and Ben Cardin have announced that the National Science Foundation (NSF) has awarded grants totaling $16.5 million to the University of Maryland Baltimore County (UMBC); University of Maryland, College Park; and the University System of Maryland.
UMBC received two awards. One is a $2.2 million research and development grant for the INSPIRES Curriculum for Engineering and Technology Education to advance knowledge about effective instruction and curriculum design to increase public literacy and better prepare the next generation of engineering and technology professionals.
The university also will receive $500,000 for Maryland's Alliance for Graduate Education and the Professoriate (or AGEP) professional training for mathematicians, information technologists, scientists and engineers (or PROMISE).
NSF grants work to promote the progress of science and to advance national health, prosperity and welfare by supporting research and education in all fields of science and engineering. Mikulski is chair of the Commerce, Justice, Science (CJS) Appropriations Subcommittee, which funds the program. Cardin is a member of the Budget Committee, which each year sets priorities for funding to federal agencies.

Howard County Releases Green Neighborhood Guidance Document for Sites
Howard County's Department of Planning and Zoning has released its Green Neighborhood Guidance Document for Sites, in support of Howard County's Green Neighborhood Program.
The Green Neighborhood Program is a pilot program under County Executive Ken Ulman's "Live Green Howard County" initiative that strives to make Howard County a model green community. "We are excited to offer this incentive-based program and look forward to seeing Green Neighborhoods as exemplary models of sustainable building and development," said Ulman.
The program is divided into two components, both of which must be fulfilled for a community to be recognized as a Green Neighborhood. The "Sites" portion of the program is overseen by the Department of Planning and Zoning, and the "Homes" portion of the Green Neighborhood Program is managed by the Department of Inspections, Licenses and Permits.
A draft guidance document for homes is expected to be available for public comment this fall. The documents contain detailed descriptions of each available credit, including the intent, the criteria to be met, any required submittals and frequently asked questions. For more information, visit www.howardcountymd.gov and look under "What's New."

Ulman, Cardin, Sarbanes and O'Malley Urge Support of Renewable Energy Legislation
Howard County Executive Ken Ulman, U.S. Sen. Ben Cardin, U.S. Congressman John Sarbanes and Maryland Gov. Martin O'Malley have urged Congress to get back in session and take immediate action in support of vital renewable energy legislation. S. 3335 will extend investment tax credits for installing solar energy and building wind turbines and other energy-efficient systems beyond the current deadline of Dec. 31.
Howard County has plans to install solar panels at a former landfill site to offset electrical use at nearby Worthington Elementary School, making it Maryland's first solar-powered school. In order to take advantage of the tax credits, Howard County would need to complete the installation and have the system produce energy prior to Dec. 31 - a deadline that will be difficult to meet.
"Extension of federal tax credits is critical to making renewable energy projects like this a reality," said Ulman. "I see renewable energy in John McCain's commercials, but his complete failure to vote in support of incentives means we lose the opportunity to actually see renewable energy in our communities."
"Passage of this tax credit bill is critical because it levels the playing field for alternative energy sources such as solar power," said Cardin. "Oil companies benefit from significant tax breaks; it's past time to give investors in renewable energy the same incentives that can lead us to energy independence."
On July 30, the renewable energy bill was defeated for the eighth time.

Expansion of UM's CAN Addresses Funding Gap for Region's Startups
The Dingman Center at the University of Maryland's (UM) Robert H. Smith School of Business has expanded its Capital Access Network (CAN), a pipeline for connecting startups with investors, to include inventors and entrepreneurs working with Johns Hopkins Technology Transfer.
The new partnership adds to the center's CAN alliances with tech councils, incubators and state-funded institutions - including the Baltimore Emerging Technology Centers, the Montgomery County Department of Economic Development's Incubator Network, and the Maryland Technology Enterprise Institute - which enable the center to connect entrepreneurs of mid-Atlantic startup companies with a network of more than 75 active, accredited angel investors and venture capitalists for early-stage capital.
"We're excited to offer CAN as a direct path to funding for more companies in the region," said Melissa Carrier, director of investments and social venturing at the Dingman Center. "With the current state of the economy, bank loans are more difficult to secure, making angel investments so crucial for many startups."
Each month, three companies are selected to present to CAN investors at the Smith School. Entrepreneurs seeking seed and early-stage funding apply to participate in the Dingman Center's CAN and are screened by the center's team of staff, entrepreneurs-in-residence and MBA students.
The Dingman Center's expansion of CAN follows Gov. Martin O'Malley's recent launch of an initiative to invest $1.1 billion in Maryland's bioscience industry over the next 10 years and the state's No. 2 nationwide ranking by the Milken Institute for technology economy preparedness.

Duratek Merger Inside Traders Barred From Securities Industry by FINRA
The Financial Industry Regulatory Authority (FINRA) has announced that two former registered representatives, Daniel K. Ivandjiiski and Peter D. Kelly, have been barred from the securities industry for insider trading.
FINRA barred Kelly, the former head of sales and trading in the loan syndication department of Calyon Securities, for tipping three friends about a pending merger between Duratek Inc., formerly of Columbia, and EnergySolutions LLC.
Specifically, on Feb. 1, 2006 - the same day that Kelly learned of a pending merger between Duratek and EnergySolutions LLC, and six days before the merger's public announcement - Kelly placed telephone calls to three friends. Following the calls from Kelly, two of these friends bought shares of Duratek before the merger's public announcement on Feb. 7, 2006. The third friend did not purchase shares directly, but eight brokerage accounts held in the names of relatives and acquaintances of the third friend purchased Duratek shares before the merger's announcement. Combined illegal profits earned on the sale of Duratek shares in these accounts after the merger's announcement amounted to $66,000.
FINRA found that Kelly breached his duty to his employer by failing to maintain the confidentiality of information about the merger. Kelly did not purchase Duratek shares personally and did not receive profits from the sale of Duratek shares by others. He was discharged by Calyon in October 2006.
In settling these matters, neither Kelly nor Ivandjiiski admitted nor denied the charges, but consented to the entry of FINRA's findings.

Grace, Co-Proponents File Joint Plan of Reorganization and Disclosure Statement
Columbia-based W. R. Grace & Co. has filed a Plan of Reorganization and an accompanying Disclosure Statement with the U.S. Bankruptcy Court in Delaware.
The Official Committee of Asbestos Personal Injury Claimants, the Representative for Future Asbestos Personal Injury Claimants, and the Official Committee of Equity Security Holders are co-proponents of the plan. The documents are consistent with the terms of the previously announced asbestos personal injury settlement.
"Today's filing brings Grace an important step closer to resolving its asbestos-related liabilities and exiting Chapter 11," said Fred Festa, Grace's chairman, president and CEO. "It's an equitable plan that enjoys widespread support. People who have been injured by asbestos exposure will be fairly compensated while employees and shareholders retain control of a financially strong company that is poised to succeed in today's challenging global marketplace."
A hearing on the Disclosure Statement is scheduled to begin on Oct. 27. The Plan of Reorganization and the Disclosure Statement, with certain exhibits, will be available at www.grace.com.

Ulman Signs Memorandum of Understanding for BRAC
County Executive Ken Ulman has signed a Memorandum of Understanding with nine local jurisdictions in order to prepare for growth resulting from the Base Realignment and Closure (BRAC) process.
Member jurisdictions mutually agree that coordinated regional efforts, as well as individual local efforts, will serve as the key ingredient to address the impacts and, more significantly, the economic opportunities presented to Howard County by this unprecedented expansion.
"The growth of Fort Meade over the next decade will provide our county and the region with additional high paying and stable jobs," said Ulman. "Working as a regional team will increase the effectiveness of the BRAC effort and that will help all of our residents and businesses."
Other parties to this Memorandum of Understanding are: Anne Arundel, Baltimore, Carroll, Montgomery, Prince George's, Queen Anne's and Talbot counties, plus Baltimore City and the City of Laurel.

Maryland First in Nation to Offer Comparison Report on PPO Health Plans
Maryland has become the first state in the nation to offer a comparison report on the quality of preferred provider organizations (PPOs). The report, released by the Maryland Health Care Commission (MHCC), offers an audited analysis of clinical and member satisfaction measures for PPOs.
Bruce Kozlowski, director of the MHCC Center for Health Care Financing and Health Policy, said that the report is a valuable tool for employers who are considering their options in offering health care.
"This is a very important piece of information, particularly for small businesses that often offer more than one health care option," he said, while commending the providers - Aetna, CareFirst BlueCross BlueShield, CIGNA and United Healthcare - that voluntarily collected and reported PPO comparative data in 2008 for the report.
To download a free copy of the report, "Measuring the Quality of Maryland Commercial Managed Care Plans: 2008/2009 Health Plan Performance Report," visit http://mhcc.maryland.gov.

MES, Constellation to Build Solar Power System in Millersville
Gov. Martin O'Malley and Maryland Environmental Service (MES) have signed an agreement with Constellation Energy's Projects & Services Group to construct a solar power system that will generate approximately 300 kilowatts of power at the agency's headquarters in Millersville.
When the installation is complete, anticipated for late 2008, it is expected to be the first of its kind among Maryland state agencies.
"Maryland is quickly emerging as a national leader in renewable energy, and with projects like this one at Maryland Environmental Service, we will move forward toward making our state a model for the rest of the country," said O'Malley.  "The unique partnership with Constellation's Projects & Services Group provides the added benefit of advancing renewable energy without the prohibitive burden of upfront, taxpayer-funded capital expenditures.
"Maryland will continue to invest in renewable energy resources, including the use of Maryland's share of the $38 million generated in the nation's first mandatory cap-and-trade auction to reduce greenhouse gas emissions," he said.
During the 15-year term of the agreement, the electricity generated by the solar power system is estimated to displace the release of more than 10 million pounds of carbon dioxide emissions, as compared to a coal-fired electric generating unit.  That is the equivalent of removing more than 800 vehicles from the road or powering 600 homes.

O'Malley Issues Statement on Board of Revenue Estimates
In a recent statement, Gov. Martin O'Malley announced, "The Board of Revenue Estimates announced a budget shortfall for the current fiscal year and 2010. Given the national economic downturn, national foreclosure crisis and the increased price of energy, gasoline and food, these revenue estimates are not unexpected; and we are preparing to bring hundreds of millions in cuts before the Board of Public Works in the coming weeks to address this challenge."
The governor pointed out that at least 28 other states are experiencing the same problems.
"In Maryland, because of the tough decisions we made to protect public education, public heath and public safety, and expand opportunity for our middle class families, we are ahead of the game," said O'Malley. "Working with the General Assembly, we have already reduced spending by $1.8 billion and taken actions to address the structural deficit that we inherited.
"Without these actions and tough decisions, our state would be facing an estimated $2.5 billion shortfall in FY 2010. Instead, Maryland is a facing a shortfall that is significantly less that is the result of a downturn in the national economy, not structural in nature."

State Utilities Issue RFPs for the Supply of Wholesale Electric Power
BGE and other utilities in Maryland have issued Requests for Proposals (RFPs) for full-requirements, wholesale electric power supply to meet their Standard Offer Service (SOS) obligations in their Maryland service territories.
BGE, along with the Potomac Edison Co. (Allegheny Power), Delmarva Power & Light Co. (Delmarva), and Potomac Electric Power Company (Pepco), will provide market-based supply service to some or all of its electric customers who do not take service from competitive retail suppliers.
The RFPs will consist of supply contracts ranging in term from quarterly to 29 months. For BGE, Delmarva and Pepco, the bidding for residential contracts will occur in two procurements: October 2008 and April 2009, and the contract term will be 24 months.
The bidding for small commercial Type I contracts will occur in two procurements: October 2008 and April 2009, and the contract term will be 24 months. For BGE, Delmarva and Pepco, the October 2008 procurement will be for supply services to begin June 1, 2009, and the April 2009 procurement will be for supply services to begin Oct. 1, 2009.
The bidding for larger commercial Type II contracts will be for three-month term contracts and will occur quarterly. The first quarterly procurement in October 2008 will be for Type II supply services to begin Dec. 1, 2008.