Waterfront Management District Frequently Asked Questions

What is the Waterfront Partnership of Baltimore, Inc.?
The Waterfront Partnership of Baltimore is a nonprofit corporation dedicated to protecting and enhancing the City’s greatest natural and man-made asset – its waterfront and promenade park lining the water’s edge. The Partnership brings together the public and private sectors to establish and achieve the highest possible quality and performance standards for the benefit and enjoyment of those who visit, work, and live in the waterfront district. Created in October 2005, the Partnership has been responsible for overall management of operations along an area of the waterfront from the Rusty Scupper to Bond Street Wharf, with services including: landscaping the promenade through the addition of seasonal flowers, manicuring grass and flower beds; providing a complement of Waterfront Guides to create a friendly and welcoming environment for visitors; supplementing city cleaning and maintenance services and marketing and promoting the waterfront as a world-class destination.

What has been the Waterfront Partnership’s record of accomplishment to date?
During the last 18 months, a diverse Board of Directors has been formed comprised of waterfront property owners, representatives of area attractions, residents and office tenants, as well as senior city officials. A management and operating agreement between the Partnership and City of Baltimore has been approved by the Board of Estimates; close to $2 million has been raised to fund initial operations intended to enhance the waterfront environment – allowing the waterfront to compete more favorably for visitors with other world-class destinations. In just the first service cycle, from spring 2006 to fall 2006, highlights of services provided include:

Improved Landscaping

• More than 2,500 flowers planted
• 80 light poles decorated with cascading flowers in hanging baskets
• Waterfront grass mowed to a consistent level and kept green throughout the summer drought
• New brick walkway installed to replace the mud pedestrian pathway

Upgraded Maintenance

• Promenade swept free of litter five days a week
• Over 300 light poles painted
• More than 800 graffiti tags removed within 24 hours of appearing

New Visitor Services

• New waterfront restaurant Guide created and distributed to visitors
• First ever Halloween Around the Harbor event held
• Directions and responses provided to more than 75,000 visitor questions

How has the Waterfront Partnership been governed and funded?
The Waterfront Partnership is currently led by a 25-member Board of Directors. Members of the Board include the organization’s founding members from H & S Properties, General Growth Properties, The Cordish Company; Brown Advisory; National Aquarium in Baltimore, Living Classrooms, Maryland Science Center and Greater Baltimore Committee. In addition, the Board includes representatives from residential, retail, hotel, office and service sectors; the Mayor’s Inner Harbor Coordinator, Directors of the Departments of Recreation and Parks, Transportation and Public Works, Police Department, and the Deputy Mayor for Economic and Neighborhood Development, as well as several ex officio members: the City Comptroller; President of City Council and a Council member. Michael Hankin, President and CEO of Brown Advisory and a driving force behind the creation of the Partnership, is Chair of the Board.

The Partnership operates on a July 1 fiscal year basis with the initial operations launched in spring 2006 and the first full year of operations having started July 1, 2006. In addition to receiving significant contributions from the founding partners, several area foundations have provided support during the Partnership’s initial phase. M&T Bank Foundation and the Abell Foundation provided financial support during the Advisory Committee phase. Several start-up grants have also been received from the Alex Brown Foundation, Lockhart Vaughan Foundation, Clayton Baker Trust, Legg Mason and the France Merrick Foundation.

Including property owner and public support as well as foundation and private contributions, in FY 2007 the Waterfront Partnership is operating on a budget of approximately $ 1 million annually, with 60 % of the funds coming from private sources and 40% from City government.

The City funding comes from a fee-for-service contract of $300,000 and the dedication of revenues above a baseline (set in 2004) from docking fees for transient boaters, wharfage agreements and leases. Private funding is raised according to a formula based on property assessments (currently $.15 per one hundred dollars of assessed value).

In order to assure the long term sustainability and financial stability required for the provision of an ongoing set of services, a primary goal from the beginning of the Waterfront Partnership has been to create a Business Improvement District or Special Benefits District.

Why is a Business Improvement or Special Benefits District needed?
Baltimoreans are rightly proud of the Inner Harbor. Since its development in the mid 70’s, the Harbor has helped create a new industry sector for the City – the seventh largest in the region, generating over 11 million visits to Baltimore each year and generating close to $60 million in annual tax revenue for the City.

However, to keep the Harbor as an attractive and appealing destination, we must treat it and maintain it as a world-class destination. The public has so many choices for places to go during their limited free time and places to spend their limited discretionary dollars. Competition for the public’s valuable time and their precious dollars is all around us - from vacation destinations like the Outer Banks and Mountain Resorts to entertainment complexes like theme parks, Williamsburg and even regional shopping centers. Other destinations and cities are competing fiercely for family day trips by providing new and upgraded attractions, visitor amenities and programming special events and festivals. To maintain and enhance its competitive position, Baltimore must offer visitors and locals alike a unique and authentic destination that is consistently clean, fresh, attractive and friendly.

One important way to ensure that Baltimore’s Inner Harbor and its waterfront promenade competes effectively with other world-class destinations is by convening all the key stakeholders located along the waterfront, pooling and dedicating their resources, along with the City and foundation interests, to fund a reliable and consistent set of superior services along the Waterfront. Following the recommendation of the Mayor’s Inner Harbor Task Force in August 2005 that a new organization be created to assume a leadership role in better managing the waterfront, in October 2005 the Waterfront Partnership of Baltimore, Inc. was created.

Why Isn’t the City providing these services – isn’t it really their responsibility?
While the City does provide base level services related to maintenance and operations, expectations and standards for the Waterfront Area have risen. To set and maintain the high standards that are expected by visitors today, the private sector must join in with the City to ensure the highest level of services are provided.

Over the last 20 years, maintenance standards along the Waterfront Area have declined, for numerous reasons. For one, budget cuts during the 1990’s due to shrinking state and federal resources stretched the agencies with decentralized Harbor management and operational responsibilities such as the Departments of Recreation and Parks, Transportation and Public Works, thinner and thinner. With an aging infrastructure, rising costs to deliver basic city services, and greater competition for the city’s limited financial resources, standards of Inner Harbor maintenance gradually declined.

The decentralized management focus also meant that the Harbor area as a whole also got less focus. The Charles Center – Inner Harbor Management [CCIH] quasi-public corporation which was created more than 40 years ago to implement the Inner Harbor master plan was merged in 1991 with two similar single – purpose organizations to create the Baltimore Development Corporation [BDC]. While BDC retains responsibility for Inner Harbor development projects, it is a broadly – focused citywide economic development entity, and it does not manage operational activities.

The Harbor is a special attraction, but if it is going to retain the luster that makes it a unique draw for the entire region, it needs an organization that is focused on every aspect of the waterfront visible to visitors and residents alike – an organization that will raise the level of attention and service to the new competitive standard that has been set by world class destinations. That is the special role that the Waterfront Partnership of Baltimore has taken as its mission.

Where did the idea to create a Benefits District along the Waterfront originate?
In an October 2003 report to Mayor Martin O’Malley, the Greater Baltimore Committee (GBC), a dominant force behind the Inner Harbor’s original planning and development, found that “the Inner Harbor has suffered from a complete lack of focus and attention to the quality of its facilities, supervision of activities and maintenance of the integrity of the harbor and its activities.” The GBC further cautioned that the Inner Harbor was inherently fragile and has deteriorated in a surprisingly short time: “The huge economic and cultural benefits to the city can quickly disappear from the failure to manage them on a day-to-day basis.” GBC urged the Mayor to appoint and empower a single agency or individual with the authority to oversee and direct harbor operations.

In May 2004, Mayor O’Malley appointed Andrew Frank to the new position of Inner Harbor Coordinator. In August 2004, the Mayor appointed a Mayor’s Inner Harbor Advisory Committee and charged it with recommending the best way to manage the Inner Harbor’s parks and public spaces. In a July 2005 report to Mayor O’Malley, the Advisory Committee recommended the creation of a Business Improvement District or Benefits District to assume overall management responsibilities for the Inner Harbor, set high performance standards and partner with the public sector to achieve those standards. The Advisory Committee recommended that the district begin by focusing on the parks and public spaces adjacent to and including the waterfront promenade from the Rusty Scupper to Bond Street Wharf, where there was strong property owner support.

By October 2005 the Waterfront Partnership had been created to begin supplementing services along the waterfront and to build support for the creation of a Benefits District.

What exactly is a Benefits or Management District and how is it being created?
Business Improvement or Special Benefits Districts are set up differently across the country; however, the common element is that the majority of property owners within the district agree to impose on themselves a compulsory tax or fee (“surcharge”) to fund supplemental services within the district. Downtown Partnership of Baltimore, for example, is a BID enabled under state law and created by an ordinance of the Mayor and City Council. The Midtown Benefits District is a Community Benefits District also enabled under state law and created by an ordinance of the Mayor and City Council.

On February 12, 2007, Mayor Dixon had the “Waterfront Management District” Bill introduced to City Council. Following two public hearings with strong support expressed and without any opposition apparent, City Council passed the Bill and it was signed into law as Ordinance # 07-417 .

This Ordinance creates the District and empowers the Partnership to perform certain functions, including the functions the Waterfront Partnership is currently serving. The District will remain in place for four years, at which time the Mayor and City Council will review the effectiveness of the organization and the desirability of continuing the organization for another four years. During the four years that the District is in place, all commercial property owners within the District will be subject to an additional surcharge on their property tax bills. Resident homeowners, including residential co-op and condominium owners living along the waterfront area will not be subject to the surcharge.

Before being certified for operations, the District must undergo a ‘Special Election’. During this period which was started on April 25, 2007, all commercial, taxable property owners within the District receive a ballot as well as background materials on the District. Property owners or their designated representatives have the opportunity to indicate whether they support or do not support the creation of the District; ballots must be returned to the Board of Estimates no later than May 25, 2007 at 4:30 PM. If 58% of the votes cast are in support of creating the District, the Waterfront Management District will be certified for operation.

The budget for the District’s first year of operation must be approved by the Board of Estimates and will be presented to the Board following a public hearing on the budget conducted by the Waterfront Partnership. Following the public hearing, the budget for Fiscal Year 2008 will be approved by the Board of Estimates, the surcharge rate will be set and bills issued by the City to District property owners.

The Waterfront Partnership of Baltimore, Inc. is cited in the Ordinance as the initial administrator of the District. An important component of the District is the requirement that the City maintain a baseline level of services. Such an agreement actually already exists between the Waterfront Partnership and the City. The Waterfront Services Agreement, approved by the Board of Estimates on April 12, 2006, contractually binds the City to continue providing services at existing levels, outlines the specific services the Waterfront Partnership will provide and sets out a funding formula for public and private dollars.

City agencies will continue to provide a baseline level of service. The Department of Public Works will empty trashcans, sweep streets and sidewalks, and remove floating trash from the water. The Department of Transportation’s Inner Harbor Maintenance division, staffed with electricians, masons, carpenters and general maintenance personnel, will continue to provide critical day-to-day support services and capital maintenance. The Inner Harbor Police Unit will continue patrolling the Inner Harbor basin area.

Please outline additional details and steps contained in the Ordinance regarding operation of the District?
Only commercial property owners within the District boundaries will be required to pay the surcharge. It is hoped, however, that homeowners will voluntarily contribute to support the services from which they will also likely benefit.

The City Council Ordinance creating the District will include the names of Interim Board Members who will be responsible for recommending to the Board of Estimates a full Board of Directors and a first year Financial Plan. The Financial Plan will include the budget, funding sources, projected expenses and a surcharge rate required to meet the budget. To date, discussions by the Waterfront Partnership Board have included a recommended budget of $1.3 - $1.5 million and a surcharge rate of seventeen or eighteen cents per one hundred dollars of assessed value. However, the first year budget of the Benefits District will not be formally set until the ordinance passes and a public hearing on the budget is held by the Waterfront Partnership, followed by approval of the budget by the Board of Estimates.

The services to be provided within the District will be similar to those currently provided. The Waterfront Partnership intends to remain “lean and nimble” by obtaining most services under contract instead of direct employment. Given the exceptional service received to date, landscape services are anticipated to continue to be provided by Ruppert Nurseries, a private landscape company. Their services include the planting and maintenance of seasonal flowers, planting, hanging and maintaining colorful hanging flower baskets on poles, renovation and manicuring of turf areas and overall maintenance of an attractive set of gardens along the promenade; provision of hospitality services are expected to be provided by Block by Block, a division of Brantley Services, widely considered to be a nationally respected leader in ‘clean, safe and hospitality services’ for BIDS ; and supplemental City maintenance services will be provided through the services of the Living Classrooms’ Project Serve workforce development program.

It is expected that the District will begin operations formally as the Waterfront Management District, on July 1, 2007.

Will the district be expanded over time to include the entire 7.4- mile promenade?
A District structure starting in an initial area and expanding outward has the advantage of providing for gradual buy-in from its constituencies. The Mayor’s Advisory Committee believed the creation of an Inner Harbor Benefits District should lay the groundwork for expanding the district over time to cover the entire waterfront promenade. Not doing so, some have cautioned, would further separate the Inner Harbor from the rest of the promenade in organization, funding, and maintenance. Support for the creation of a waterfront District exists in the area currently being served – from the Rusty Scupper to Bond Street Wharf. The District will be expanded beyond this area only if there is support for the expansion voiced by the impacted property owners and communities along the waterfront promenade. For years, organizations like the Baltimore Waterfront Promenade Partnership have advocated for a unified approach to managing the entire length of the promenade from Canton to Locust Point. All of the public spaces and parks along the Promenade face challenges similar in nature to the Inner Harbor – challenges inherent in providing a consistently high standard of maintenance in a linear park that comprises distinctly different districts.

Another alternative for adjacent areas that are interested in purchasing services would be to enter into a fee-for-service contract with the Waterfront Partnership for specific services. For example, if residential and commercial property owners in the 800 block of Bond Street were interested in receiving regular street sweeping services, the property or business owners in that block could join together and contract with the Waterfront Partnership to extend the street sweeping services to include their block.

Additional questions?

Please contact the Waterfront Partnership to obtain any additional information. You can continue browsing our website or call Laurie Schwartz, managing consultant at 410-467-1880 or email Laurie at laurie@waterfrontpartnership.org .

A copy of Ordinance # 07-417 will be posted on our website shortly; in the meantime, please visit here on the Baltimore City Council web site for more information, or you can click on ‘legislative information center’ then ‘legislative file search’ and type in for keywords, Waterfront Management District from the Baltimore City Council's main page.