BizRoundup

Somera Capital, Bozzuto Move Forward With Laurel Mall Redevelopment
Somera Capital Management, the developers and owners of Laurel Commons, have finalized a partnership with The Bozzuto Group for the residential phase of Laurel Mall's redevelopment plan.
The residential community of Laurel Commons will hold approximately 440 residential units, 3% of which will be workforce/moderate income rental units to be made available to city employees who qualify.
In addition, these residential units will not be higher than four stories above a single floor of commercial use (for a total of five stories). Residents will enjoy exclusive amenities including a pool and health club, a business center/cyber cafŽ and a billiards room.
"We are delighted to be working with Somera, AEW, General Growth Properties and the City of Laurel, under the leadership of Mayor [Craig] Moe, on this project. The residential component of the planned revitalization of the Laurel Mall will provide the type of pedestrian lifestyle demanded by many of today's renters," said Toby Bozzuto, executive vice president of Bozzuto.
Laurel Commons was identified by the City of Laurel as the centerpiece for the redevelopment and revitalization of the Route 1 Corridor in the city and will serve as a catalyst for further redevelopment in the area. Bozzuto plans to break ground for the project in early 2009, with an estimated completion date of late 2010.

NGC to Add 500 Jobs in Linthicum
Northrop Grumman Corp. (NGC) has established two new divisions to better position the company for growth opportunities in the land forces and space sensors and related markets.
The new Space and ISR (Intelligence, Surveillance and Reconnaissance) Systems Division, which combines several existing businesses, will be based at sector headquarters in Linthicum; and the new Forces Division will be based in Rolling Meadows, Ill.
"Last year, Electronic Systems hired a total of 1,400 new employees across the sector, including about 500 new employees at our various Maryland campuses," said NGC spokesman Jack Martin. "This year, we expect to hire about 1,600 new employees sector-wide, with about 500 of these positions here at our Maryland campuses."
Martin also said that "the majority of these new positions are intended to accommodate anticipated new business requirements this year, with a small percentage of the job openings expected to accommodate normal attrition. Our primary recruitment need, here in Maryland and across the sector, is for engineers; in particular, those individuals whose educational background and experience is in the areas of software, systems, electrical and mechanical design."

Court Order Requires Two Companies to Pay CoStar $100,000
CoStar Group has announced that a Maryland federal court recently entered an order requiring Laser Marketing, a marketing firm doing business under the name Atkinson Hunt, and Resource Realty, both of southern New Jersey, to pay CoStar $100,000 to settle charges that the two firms shared a CoStar passcode in order to gain unauthorized access to CoStar's real estate information database.
The court also entered a permanent injunction restraining Atkinson Hunt and Resource Realty from engaging or assisting in any future unauthorized use of CoStar services.
The court found that Resource Realty provided Atkinson Hunt with a CoStar passcode that had been assigned to an approved subscriber at Resource Realty. Using fraud detection technology, CoStar determined that the passcode assigned to Resource Realty was used illegally and repeatedly from the offices of Atkinson Hunt to access CoStar's information services.
"The thousands of honest subscribers who invest in CoStar's service for the competitive advantage it offers expect CoStar to provide the most complete and highest quality information service we can at the lowest cost possible. When some users illegally resell or share CoStar passcodes with unauthorized users, they are really stealing from CoStar's legitimate subscribers," said Jonathan Coleman, CoStar Group's general counsel.
Recently, the company also announced a $1 million judgment to settle a lawsuit against Centers & Malls, a Lake Forest, Ill., limited liability company, for infringing on CoStar's copyrighted commercial real estate information.

New Research Finds Consumers Save More Than $7B by Shopping on eBay
New research from the University of Maryland's Robert H. Smith School of Business finds that consumers save billions of dollars annually by buying goods through the online auction site eBay - more than $7 billion in 2003, according to researchers. The study marks the first time this benefit to the overall economy has been quantified. The flip side of these benefits, however, is that sellers are leaving billions on the table that they could have charged buyers by setting higher prices.
Smith School researchers examined consumer purchase data from more than 4,500 eBay auctions in 2003. They were able to measure the difference between what people were willing to pay and what they actually paid.
The group used data gathered from Cniper.com, which automatically bids on auctions in the final moments to help users win desired items at the lowest possible price. The researchers used the difference in the winning price of a sniper-bid eBay auction and the absolute maximum amount the Cniper.com user was prepared to pay to calculate the consumer surplus generated - on average, at least $4 per auction.

Audit of Howard County Housing Commission Released
An independent audit of the Howard County Housing Commission for the year ending June 30, 2007, found numerous deficiencies in accounting practices, but declared the agency financially sound.
"We're in good shape financially," said Stacy Spann, who was chosen by County Executive Ken Ulman to replace Leonard Vaughan in December 2006. According to the audit, conducted by Clifton Gunderson LLP, a consulting firm with particular expertise in audits for public housing authorities, the housing commission's assets total more than $22 million.
The audit determined that the commission was understaffed and under-trained during the review period, failed to keep adequate records and was lax in the administration of more than 20 cash accounts tied to county-owned public housing and the county's subsidized housing programs.
"This audit is a guide for steps we've been taking and will be taking to make sure the commission is functioning in a way to allow it to do its mission," Ulman said, adding that the county is still working to reorganize and regulate the commission and provide adequate training. Seven new staff members have been hired to date, and an additional 10 positions have been requested by Spann.

Constellation Energy Signs Agreement With Clinton Climate Initiative
Constellation Energy has signed an agreement with the Clinton Climate Initiative (CCI) to jointly pursue opportunities to lower harmful emissions and improve energy efficiency.
Under one element of the CCI initiative, the C40 Large Building Retrofit Program, participating cities pre-qualify a pool of energy service companies that can respond to requests for proposal for energy efficiency projects at large municipal buildings.
Companies selected for projects will conduct energy audits, design and implement an energy retrofit plan, oversee site work and provide performance guarantees on energy usage and savings.
In addition to the C40 Large Building Retrofit Program, Constellation Energy supports the American College and University Presidents Climate Commitment, or ACUPCC, which has partnered with the Clinton Climate Initiative on a comprehensive program to introduce more green energy solutions to college campuses.
The ACUPCC has received commitments from 400 colleges and universities to develop a comprehensive plan to reduce emissions that cause global warming.

Mid-Atlantic VC Firms
Close Out 2007 on a High Note
The Mid-Atlantic Venture Association (MAVA) recently released its venture capital (VC) survey results for the fourth quarter of 2007, illustrating a positive close to the end of 2007 with high levels of investments, the timeframe for closing a new deal decreasing and growing numbers of exits (liquidity events) forecasted in its portfolio companies.
Additional signs of a positive investment environment, from an entrepreneur's perspective, include an increased desire to return to more early stage deals, growth in valuations, and increased interest in burgeoning investment sectors such as energy/alternative energy and health services.
However, VCs felt that entrepreneurs were receiving fewer competitive offers for investments in their companies with term sheet competition decreasing slightly. Survey results also indicate mixed feelings about the strength of the merger and acquisition market with no clear consensus on its current state although this exit path is seen as the primary viable path to liquidity.
"The investment climate in the mid-Atlantic region - from both the investor and entrepreneur's perspectives - is as strong as ever with positive market indicators such as new investments, forecasted exits and healthy valuations having increased," said Julia Spicer, executive director of MAVA.
"Despite current uncertainty in the public markets, venture capitalists in the region are actively closing new investments, increasing time spent evaluating new deals, and seeking more early stage deals in a market where valuations are increasing," Spicer said.

Credit Manager's Index Opens 2008 in a Slump
The seasonally adjusted Credit Manager's Index (CMI) fell for the fifth consecutive month in January, slipping 1.0 to a record low of 51.4. The previous record had been set last month at 52.4.
"Five of the index's 10 components fell, and both the manufacturing and service indexes declined, indicating that the weakness was widespread although not terribly deep," said Daniel North, chief economist with credit insurer Euler Hermes ACI. "The CMI's steady decline has mirrored other macroeconomic data which suggests a sharp slowdown. For instance, fourth quarter Gross Domestic Product (GDP) grew at an annualized rate of only 0.6%, well under expectations of 1.1% and the long-term average of 3.5%. The GDP report showed the economy as perilously close to the beginning of a recession.
"Signs of the downturn are everywhere: terrible holiday sales, massive job losses in housing and in financial services, downtrends in volatile global financial markets, downgrades of bond insurers and many debt instruments, the Fed overreacting with cuts of 1.25% in eight days and an emergency stimulus plan in the works," North said. "Clearly, these unpleasant trends in the macroeconomy are now well reflected in credit managers' experience."
On a seasonally adjusted basis, the combined CMI has fallen 5 points to 51.4. The manufacturing sector index has fallen 4.9 points and the service sector index has fallen 5.1 points. A complete index including results from the manufacturing and service sectors, along with the methodology, can be viewed online at www.nacm.org/resource/press_release/CMI_current.shtml.

CareFirst to Commit Up to $4 Million to Fund Senior Drug Coverage
CareFirst BlueCross BlueShield (CareFirst) has agreed to contribute up to $4 million annually to fund prescription drug coverage of individuals enrolled in the Maryland Senior Prescription Drug Assistance Program (SPDAP).
Through the program, CareFirst will contribute funding to cover drug costs for enrollees who enter what is commonly called the Medicare Prescription Program's "donut hole." Medicare prescription drug members enter the donut hole when their prescription drug spending (member out-of-pocket and insurer contributions combined) reaches $2,510, at which point the member pays 100% of drug costs until his total out-of-pocket costs reach $4,050. Once members cross this threshold, the member pays only about 5% of subsequent drug costs.
CareFirst's contribution to the program will help dramatically reduce the total out-of-pocket for individuals who reach the donut hole.
"Last year, we came together to expand health care coverage in our state and make health care more affordable for 100,000 more Marylanders, including our small and family-owned businesses. But too many of our neighbors, especially our seniors, are still forced to choose between taking their prescription medications and putting food on their table," said Gov. Martin O'Malley.
CareFirst currently contributes $14 million annually to fund the existing SPDAP. That money is part of a total of $23 million directed to fund health-related programs in Maryland - an amount equal to the value of CareFirst's 2% premium tax exemption.

School Chief Cousin Calls State Science Test Results 'Quite Remarkable'
Superintendent of Schools Sydney Cousin has announced that 78% of Howard County's fifth grade students and 82.8% of eighth grade students scored at proficient or above on the first administration of the Maryland School Assessment (MSA) science test administered in April 2007.
The performance of Howard County students well surpassed the state scores of 59.8% for fifth graders and 61.4% for eighth graders. Six of the county's elementary schools and six middle schools had more than 90% of their students score at proficient or above.
"We are extremely pleased with the performance of our students on this first administration of the science MSA," said Cousin, "and while these percentages are similar to those we see in reading and mathematics, there are several reasons why the results are quite remarkable."
Cousin pointed out that, unlike other MSAs, the science assessment covers three years' worth of content. The fifth grade assessment covers material from Grade 3 through Grade 5 and the eighth grade assessment covers the entire middle school science curriculum. On the other hand, the reading and mathematics assessments cover content from only one grade level.
Cousin also noted that it has taken years to reach this level of performance on the reading and mathematics MSAs. He attributed this first-round success in part to progress being made in reading and math.