Columbia Tower Developer Files for Bankruptcy Protection
WCI Communities of Florida, the developer of the 23-story Plaza Residences tower planned for Columbia Town Center, has filed for Chapter 11 bankruptcy protection, along with approximately 130 of its subsidiaries. WCI CEO Jerry Starkey stepped down on Aug. 4 and will be replaced on an interim basis by President and CEO David Fry, pending selection of a permanent CEO.

A U.S. Bankruptcy Court in Wilmington, Del., approved a relief package designed to facilitate and ensure the continued and uninterrupted operation of WCI’s business. The court also determined that deposits and other funds received and held in trust were not subject to the bankruptcy.

In the case of the Plaza Residences, however, WCI returned deposits to reservation holders in February and extended a promise to keep their reservations intact.

Carl Icahn, chair of WCI’s board of directors, said the company attempted “with all diligence” to avoid bankruptcy. “The filing became necessary because of the recent failed effort to obtain financing” of the company’s debt, which was followed by rejection of an exchange offer by certain holders of the company’s $125 million convertible notes who demanded payment in full (in cash) on Aug. 5.

“WCI still believes in the [Plaza Residences] project and will continue to pursue its rights so it can build the project when the market is more favorable,” said WCI Spokesperson Sandy Sternberg. She added that the company is also reserving its rights in light of a July decision by the Maryland Court of Special Appeals that grants Columbia resident Joel Broida legal standing to challenge the project.

Arundel’s Leopold Announces Ombudsman Plan
Anne Arundel County Executive John Leopold is drafting legislation to be submitted to the county council that would create an ombudsman for the departments of inspections and permits, and planning and zoning.

The ombudsman would respond to inquiries, complaints or comments from permit applicants, permit holders, interested parties and citizens about matters relating to land use inspections and permits, and the zoning process.

The position will also help ensure consistency of interpretation of zoning and permit laws, facilitate prompt processing of permit applications, promote communication between departments and members of the public and assist in educating citizens about the permit review and approval process.

The ombudsman will be required to make annual reports to the county executive, chief administrative officer and county council with recommendations on policy reviews and suggestions for changes that may be needed to improve efficiencies between the two departments.

TEDCO Ranks as Nation’s Most Active Early-Stage Investor Again
The Maryland Technology Development Corp. (TEDCO) has been recognized by Entrepreneur magazine as the most active early-stage investor in the nation in 2007. For the fifth consecutive year, TEDCO ranked first on the “VC 100” list for providing the highest number of seed/early-stage deals (19) in 2007.

TEDCO’s funding enables startup companies to conduct early-stage research and development in collaboration with federal labs or university researchers, allowing these companies to take key steps towards commercializing their technologies and strengthening their businesses.

To date, 108 companies have received funding from TEDCO’s Maryland Technology Transfer Fund (MTTF) and completed their projects. With a total TEDCO investment of $6,278,344, these companies have gone on to receive downstream funding from angel and venture investors, federal awards and other resources exceeding $199.5 million.

The Entrepreneur survey is part of the magazine’s report derived from the “MoneyTree Report” conducted by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.

O’Malley Plans for a More Sustainable Transportation Fuel System
The state is presenting a roadmap for a more sustainable transportation fuel system, which will begin with the construction of four new E-85 fuel pumps throughout Maryland.

To promote Maryland’s energy independence, Gov. Martin O’Malley outlined a plan that will combine consumer education, new technologies and the development of an infrastructure, such as the new facilities.

“As the state purchases new vehicles for its fleet, more and more of our cars, trucks and vans will run on alternative fuels,” said O’Malley. “With these new E-85 facilities, we’ll continue to make Maryland’s transportation fleet less dependant on fossil fuels, strengthening the energy future of our state for generations to come.”

E-85 is a blend of fuel that contains 85% ethanol and 15% gasoline. Ethanol is a renewable fuel primarily made by distilling grains such as corn, wheat and barley. E-85 also burns cleaner than petroleum gasoline and is thus better for the environment. The state currently owns 1,200 flex fuel vehicles and is adding about 200 per year. The range of a vehicle operating on E-85 is more than 350 miles on an 18-gallon tank of fuel.

MedStar Health Systems Leads $5M Series A in Consumer Health Services
Consumer Health Services Inc., a privately held company based in Washington, D.C., which operates retail-based physician clinics, has opened a $5 million Series A preferred equity financing round to be co-led by MedStar Health Systems of Columbia.

The financing announcement follows on the heels of the groundbreaking of four new MedStar PromptCARE retail clinic sites, to be hosted by Rite Aid, within select stores in the greater Baltimore and Washington, D.C., metropolitan areas. The clinics are to be staffed by physicians to provide immediate care services on a walk-in basis, and the doctors will be credentialed by MedStar Health affiliated hospitals in the region.

“Consumer Health Services is pleased to have initiated this financing round with leadership from such a highly regarded health system as MedStar,” said James D’Orta, M.D., chairman and CEO of Consumer Health Services. “We’ve seen the success and promise of our walk-in, retail based physician care model in New York.”

“The continued support from our investors — new and existing — will allow us to now build on our prototype sites in New York and move to the next phase of our business plan by scaling our business to enter new markets,” D’Orta said.

Grace Construction Products Raises Prices
Columbia-based Grace Construction Products, an operating segment of W. R. Grace & Co., is implementing product price increases of up to 10% across its concrete and masonry admixture product lines, effective Aug. 15.

In addition, certain specialty products will have price increases exceeding 10%. Further, effective Sept. 15, the price of Grace liquid pigments will be increased by 10 cents a pound.

The company believes that further price increase actions may be necessary, depending on ongoing raw material and marketplace conditions. Raw materials supporting the Grace Construction Products portfolio include olefins, organic chemicals, gypsum and specialty materials.

The move is in response to unprecedented raw material and energy inflationary pressures; since the end of 2007, the Industrial Chemicals Producer Price Index has increased at an annual rate of more than 25%, the steepest in more than 10 years.

Fortress Acquires Rubicon to Facilitate Revenue, Contribute to Profit Growth
Columbia-based Fortress International Group, the holding company for Total Site Solutions (TSS), has announced that it has acquired Rubicon Integration LLC.

Rubicon, of McLean, Va., provides consulting, owners representation and equipment integration services for mission-critical facilities to large corporate customers across the United States. The initial consideration to be paid in the acquisition consists of $4.5 million in cash, 200,000 shares of common stock and $3.5 million in the form of contingent promissory notes payable to Rubicon upon the realization of short term revenue and profit objectives.

DARPA Awards NGC Contract
Northrop Grumman Corp. (NGC) has been selected by the Defense Advanced Research Projects Agency (DARPA) to develop and demonstrate an ultra high capacity hybrid thermal ground plane needed to overcome heat-related challenges in semiconductors employed in electronic systems.

High thermal temperatures are a key barrier in the development of next-generation military electronics, such as high-power radars, electromagnetic weapons and all-electric aircraft. Under the initial 18-month contract, NGC will use improved materials and techniques to transfer excess heat away from semiconductors where the heat is generated.

Merkle Report Examines Impact of Presidential Campaigns on Nonprofit Fundraising
Columbia-based Merkle has released a new research report examining the effect political donations have on the direct mail fundraising efforts of nonprofit organizations.

The report, entitled “Measuring the Impact of Political Fundraising on Nonprofit Direct Mail Performance,” was released in an effort to quantify the impact of presidential fundraising on nonprofit, charitable fundraising via direct mail. Within, Merkle examined the similarities and differences between donors who give to presidential campaigns and nonprofit organizations.

Record 1.9 Million Passengers Fly BWI Marshall in May
A total of 1,913,777 commercial passengers flew through BWI Thurgood Marshall Airport in May. That figure, an all-time May record for passenger traffic at BWI Marshall, was up 1.8% from the May 2007 figure.

Southwest Airlines led the way in May with 1,008,912 passengers for the month, an increase of 1.5% over May 2007. AirTran Airways reported the largest percentage increase in passengers, growing 27.5% over May 2007 to a total of 270,948 for the month. During the last 12 months, BWI Marshall passengers have increased 3.8% to 21.4 million, the busiest 12-month period in the airport’s history.

Boscov’s Files Chapter 11, Marley Station Among Stores to Close
Reading, Pa.-based Boscov’s Department Store LLC, America’s largest family-owned independent department store, has filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and announced the closing of several stores, including its Marley Station location in Glen Burnie.

The decision to file for Chapter 11 protection was driven largely by the impact of the current economic downturn and decline in consumer spending on the company’s operating performance. Filing for Chapter 11 provides Boscov’s with the tools and time to strengthen its balance sheet, close underperforming stores (including two other Maryland locations in Westminster and White Marsh), revisit certain agreements and position the company for long-term success.

Under Armour Appoints Deering to Board
Under Armour Inc. has announced that Anthony Deering, former chairman of the board and CEO of The Rouse Company, has joined the company’s board of directors. Deering is currently chairman of Exeter Capital LLC, a private investment firm, and serves on the boards of Vornado Realty Trust and T. Rowe Price Mutual Funds, and is a member of the Deutsche Bank Americas Regional Client Advisory Board.

Deering has served as chairman of Exeter since 2004. From 1997 to 2004, he served as chairman of the board and CEO of The Rouse Company, a large, publicly traded real estate company, until it merged with General Growth Properties. He joined Rouse in 1972.

HCCA Calling Artists for Art MD 2008
The Howard County Center for the Arts (HCCA) in Ellicott City is seeking proposals from artists for Art MD 2008, a biennial multi-media juried exhibit that will be on view from Oct. 31 to Dec. 12.

Entry is open to all artists 18 years or older residing in Maryland or within a 100-mile radius of Ellicott City. Artists may submit slides or digital images of up to three works completed in the last two years and not exhibited previously in the HCCA galleries.

Art MD 2008 is the 18th multi-media statewide juried exhibit sponsored by the HCCA. For entry details or more information, call 410-313-2787, e-mail info@hocoarts.org or visit the web site www.hocoarts.org. The entry deadline is Sept. 2 at 5 p.m.

HCPSS TV Moves to Comcast Cable Channel 95
Effective Saturday, Aug. 23, channel designations on Comcast Cable will be reset. As a result, the Howard County Public School System’s educational access channel will move from Channel 72 to Channel 95.

The channel will continue to be part of Comcast’s limited basic service and available with subscription to the Family Tier Service. For additional information about the channel changes, contact Comcast at 1-888-COMCAST or visit www.comcast.net. Verizon FIOS customers can view the school system’s TV programming on Verizon Channel 42.


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