BALTIMORE BUSINESS JOURNAL

May 22–28, 2015 Vol. 33, No. 3, $3.00

LEADERSHIPDiane Bell-McKoy has

devoted much of her career trying to improve the lives of

the poor. The city has never needed her and other top leaders more.

A C A L L F O R

FOCUS ON: CONSTRUCTION | 14 pages of coverageHEALTH INSURANCE

Behind proposed rate increasesWhat will your company pay for health care next year? Here’s a look at some scenarios. SARAH GANTZ, 4

MANUFACTURING

General Motors readies for SparkWhy the car giant’s new electric car and a boom in the construction industry will spur local hiring. RICK SELTZER, 6

BRING BOOKS TO THE MASSES 31

HOW I ...

BIGGEST CONSTRUCTION PERMITS IN THE REGION 18

WHO ARE THE TOP LOCAL CONTRACTORS? 22

Restaurant roundupCheck out the latest places to eat in Greater Baltimore.SARAH MEEHAN, 9

Southway Builders President Paul Littmann says his biggest challenge will be hiring good people as the construction industry continues its post-recession rebound. TIMOTHY SANDOVAL, 24-25

BUILDING A BIGGER BUSINESS

COVER STORY

PAGES 10–13

P A R T T W O O F A T W O - P A R T S E R I E S

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10 BALTIMORE BUSINESS JOURNAL

Diane Bell-McKoy skips parts of West Baltimore on her way to work.

“I would be crying by the time I got to work,” said Bell-McKoy, CEO of the Associated Black Charities.

“It would devastate me. It looked like a third-world country in my own city.”

The unrest that overtook Baltimore following Freddie Gray’s death didn’t take her completely by surprise, even if she didn’t expect such violence.

“I would tell you in so many ways it was predictable,” she said. “You can’t expect people to live in that condition and not have us continually undervalue them.”

Now Bell-McKoy and many public and business leaders are trying to figure out how to change a part of Baltimore that has been in decline for decades. We asked 11 people in power to answer the question, “How do you bridge the gap between two Baltimores?” in 200 words or fewer.

Here’s what they had to say.

DR. PETER BEILENSONCEO, EVERGREEN HEALTH; FORMER BALTIMORE CITY HEALTH COMMISSIONER

For a neighborhood, a community or a city to be truly successful, a “four-legged stool” must be in place. As with an actual stool, all four of the following legs must be present and sturdy:

1 Affordable, healthy housing in a safe neighborhood. A large percentage of Baltimore

homes still contain lead paint, the dust from which is a potent poison that causes lifelong learning and behavioral problems. And growing up in violent surroundings leads to tragically high rates of depression and PTSD among residents.

2 Access to health care and healthy foods. For far too long, those of lower socioeconomic status

have not had access to healthy food and primary health care, leading to higher rates of chronic diseases and death from potentially preventable or treatable conditions.

3 A decent public school system that prepares students for today’s economy. Amazingly, even

with recent improvements, one-third of Baltimore City students don’t graduate from high school, drastically limiting their earning power for the rest of their lives.

4 Livable wage jobs available for and accessible to adults in the community. Perhaps the

largest contributor to the disparities in quality of life between communities in Baltimore is the pervasive lack of availability of livable wage jobs in impoverished communities of color.

RACHEL MONROECEO, HARRY AND JEANETTE WEINBERG FOUNDATION

The Harry and Jeanette Weinberg Foundation has one overarching commitment to Baltimore City — the city we love and many of us call home — to fund nonprofits that directly support individuals and families in need and equip them for future success. Over the past three years, the Weinberg Foundation has awarded more than $110 million in grants to nonprofits in the State of Maryland, with an overwhelming amount of that funding directed to programs that serve low-income residents in the Baltimore region. Funding alone, of course, does not guarantee success. Only through partnerships with government, business, nonprofits and philanthropy are we able to grow and scale programs with demonstrated outcomes which are, or will become, models for change. In this way, we hope to build many bridges: from obstacles to opportunity, from isolation to inclusion and from poverty to prosperity.

HOW DO YOU BRIDGE THE GAP BETWEEN TWO BALTIMORES?

COVER STORY

EDITOR’S NOTE

In the final installment

of a two-part series,

the BBJ turns its

attention to the people

who can make a

difference in the city’s

fortunes.

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MAY 22–28, 2015 11

DAVID WARNOCKSENIOR PARTNER, CAMDEN PARTNERS; CHAIR, GREATER BALTIMORE COMMITTEE

I challenge the notion that there are two Baltimores. There’s one Baltimore — a Baltimore that’s being defined in the national and international press by the fate of the least fortunate among us. We ought to accept that as a challenge.

We start by acknowledging the culture of low expectations that has held us back. We start by believing in our ability to solve these issues. We start by believing that family stability and economic success are possible — for everyone in our city.

We focus on real social barriers to advancement: education, training, expungement, our oppressive debt collection practices. We set goals, and we measure, publicly.

We also aim high on big, visible projects: high-speed rail to Washington, D.C., Light City, the Red Line, projects that both inspire and employ.

Most importantly, we embrace that we’re in this together, side by side, and work to raise the tide of all boats. It’s not about two Baltimores — it’s about one Baltimore where every citizen, every family, every business owner and every young person has the right to a better life, access to the resources to achieve it and public officials who constantly talk about the art of the possible.

DIANE BELL-MCKOYCEO, ASSOCIATED BLACK CHARITIES

Closing gaps between the two Baltimores must be about economics. A focused economic growth strategy that seeks to grow access and opportunity for people of color will also benefit all of Baltimore’s citizens, including Baltimore’s business community. Associated Black Charities for the past 10 years has promoted and documented the need for greater economic growth among African Americans, ranging from tackling the structural barriers to economic opportunity for the unemployed and underemployed to challenging the conditions that produce only 857 African American businesses with multiple employees. A successful and sustained strategy must go beyond the surface. It must include policy changes. It must be intentional and informed by facts. We cannot bridge the racial/economic gaps if we remain fearful about having the conversation on how structural and institutional barriers increase a racialized divide. This will require willpower, respect and investments to go the distance for change.

“Perhaps the largest contributor to the disparities in quality of life between communities in Baltimore is the pervasive lack of availability of livable wage jobs in impoverished communities of color.”DR. PETER BEILENSON, CEO, Evergreen Health; former Baltimore City health commissioner

BY JACLYN BOROWSKI

BY JACLYN BOROWSKI

BY JACLYN BOROWSKI

David Warnock, a co-founder of the Green Street Academy in West Baltimore, stands inside the school’s future home on North Hilton Street.

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12 BALTIMORE BUSINESS JOURNAL

DAVID TUFAROFOUNDER, TERRA NOVA VENTURES

Predictably, the Greater Baltimore Committee, composed of mostly large companies and major institutions, came out to advocate once again for another huge project — the Red Line — a $3 billion project.

These are the same guys that pushed for the football stadium, an expanded convention center, the convention center hotel, the casino, and are pushing for a new arena.

These may be wonderful projects that stroke the ego of people, but they do very little to improve the lot of our poorer population. The notion that the Red Line is the antidote to this city of haves and have-nots is beyond silly. It is more of the head-in-the-sand mindset of our city’s corporate leaders.

It is the establishment approach. It shows a lack of recognition of the root problems of our city, a lack of creativity and a lack of guts for pushing for what are far greater priorities.

I personally think the issues with the most potential for a positive impact on the city are: 1. Real public school reform. 2. Dramatically lower real estate taxes. 3. Sharply reduced regulatory burdens.

MARC B. TERRILLPRESIDENT, THE ASSOCIATED: JEWISH COMMUNITY FEDERATION OF BALTIMORE

To finally understand, act and resolve that we are one Baltimore. To truly “get” that our fates are intertwined and a divide has corresponding consequences. To understand what it means to walk in the other’s shoes. To have regard for hopes, dreams, fears and concerns. To develop meaningful relationships and to work together.

WAYNE FRAZIERPRESIDENT, MARYLAND-WASHINGTON MINORITY COS. ASSOCIATION INC.

Instead of placing so much emphasis on preparing students for college, which is not for everyone and obviously out of reach for many city residents, create more vocational and technical job skill training opportunities. This could be the ultimate savior for inner city Baltimore. Preparing our residents for careers in construction and/or maintenance trades can produce immediate tangible results and simultaneously alleviate having to import skilled labor from other countries. Poverty and single-parent households are key contributors to Baltimore City residents experiencing ultimate failure and the inability to succeed. However, a change in educational direction and placing greater emphasis on becoming electricians, plumbers, carpenters, masons, lineman, steel erectors, drillers, drywallers, painters, floorers, welders, HVAC mechanics, etc., will translate to earning a living and lead to greater pride within our respective communities. This route would provide a quicker path to success, because many of these fields only require a high school education for entry.

KEVIN LINDAMOODCEO, HEALTH CARE FOR THE HOMELESS

In recent weeks these mobility conversations have deepened — and assumed a more personal element. An Health Care for the Homeless social worker who was 4 during the 1968 riots remembers her father packing the family car for reunions down South, calculating their departure to avoid arriving after dark. A colleague half her age maps a daily route through town to minimize his odds of being pulled over and asked why a guy like him drives such a nice car.

To plot a course from here to someplace better, we must reject rhetoric that posits more than one city. There’s only one Baltimore, and we all must take a hard look at it. A quarter of its residents and a third of its children live in poverty. Tens of thousands languish in shelters or on the streets. Decades of public policy decisions create and maintain these realities in communities across the country. Some of us may even benefit from them, driving from place to place without even the slightest thought of the hour — or our car.

A “bridge” is the wrong metaphor for repairing divisions and disparities all at once personal, historic and institutional. As another HCH staffer reflected, “Let’s start with a mirror.”

DR. JAY PERMANPRESIDENT, UNIVERSITY OF MARYLAND, BALTIMORE

The two Baltimores are divided along the same lines that divide many American cities — wealth and investment on one side, poverty and neglect on the other. The gap underlying this entrenched inequality is opportunity — opportunity to achieve in school, get a good job, own one’s home and advance community revitalization.

Anchor institutions like the University of Maryland, Baltimore have a critical role in reconciling the two Baltimores. UMB employs thousands of people and spends millions of dollars on goods and services. But keeping jobs and dollars in the neighborhoods surrounding our campus means we have to help educate a population that can take advantage of the opportunities we offer.

We must have high-quality schools in every neighborhood, led by effective principals who partner with anchor institutions, nonprofits and businesses, and leverage these relationships to enrich the academic experience. UMB is starting a program to prepare West Baltimore students for careers in Maryland’s thriving biosciences and health sciences sectors. We have a program in Upton/Druid Heights, partnering with the community to support children from birth to young adulthood. Education is what underpins sustainable equality in employment, income and opportunity — and this is where we must invest our time and resources.

COVER STORY

“Keeping jobs and dollars in the neighborhoods surrounding our campus means we have to help educate a population that can take advantage of the opportunities we offer.”DR. JAY PERMAN, president, University of Maryland, Baltimore

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MAY 22–28, 2015 13

DONALD C. FRYCEO, GREATER BALTIMORE COMMITTEE

Today, it’s not about two Baltimores. At this moment in time, Baltimore is a city united in

a shared resolve to address long-simmering issues of poverty, race, jobs and economic opportunity that led to the unrest following the death of Freddie Gray.

This will require a change of attitude as well as policy.Together we must tackle head-on the need for

systemic change in our framework for education, workforce development, business climate and social fairness. Key related issues include transportation, law, health and quality of life in our city, region and state.

An unprecedented level of collaboration is needed among business, civic and community advocates and government leaders in the city and region. The state must also be fully engaged.

We must discuss uncomfortable perceptions, embrace new partners and take frank stock of ourselves as a community. A fundamental element of discourse must be that we talk with each other, not to or past each other. Above all, we must listen.

A long-term commitment is essential. We must convert a cauldron of tactical agendas into shared values and a shared vision for Baltimore’s future and then act on that vision together with a goal of sustainable results.

FREEMAN H. HRABOWSKIPRESIDENT, UNIVERSITY OF MARYLAND, BALTIMORE COUNTY

Isolated “Baltimores” are not good for anyone. And I am talking about the entire Central Maryland region rather than simply Baltimore City. Business development and community development are inextricably linked, and universities must be responsive to both. Businesses hold the key to jobs our students need, and communities play

a critical role in preparing students for higher education.

It will take all of us to address the issues leading to the lack of opportunity in our communities. The Baltimore Regional Workforce Development Plan issued by the Opportunity Collaborative in March offers a sound set of regional strategies that business, government and educational institutions can pursue, from strengthening adult education and training to correcting structural racism in the workplace and helping people released from prison bridge barriers to employment. The Mayor’s One Baltimore initiative will be another significant force for collective impact.

We know what to do. The urgent opportunity before our region is for each of us to squarely face the inequalities woven into our organizations and communities, and to assume personal responsibility for changing them. As one of my students said to me recently, this is not about “those people.” It is about all of us and what we can achieve together.

“There’s only one Baltimore, and we all must take a hard look at it.”KEVIN LINDAMOOD, CEO, Health Care for the Homeless

BY JACLYN BOROWSKI

BY JACLYN BOROWSKI

BY JACLYN BOROWSKI

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