Subcommittee hears MSA budget; Camden Yards lease, ground‑lease questions loom

The Education, Business and Administration Subcommittee reviewed the Maryland Stadium Authority’s FY25 budget and a detailed briefing on the Camden Yards lease, where speakers said a new 30‑year lease and possible ground‑lease development are the central, unresolved issues.

DLS budget analyst Patrick Frank told the panel the authority manages the Ravens and Orioles stadiums, issues bonds and oversees several construction projects. Frank said the draft Orioles lease contemplates moving operations and maintenance from the authority to the Orioles and includes a proposed $3,300,000 annual payment to the team if it assumes O&M responsibilities. “There is a new lease, and it is for 30 years,” Frank said during his presentation.

Why it matters: a change in operations, a ground lease or long extensions could shift revenue streams and development rights away from the authority and raise parity questions for the Ravens. Frank showed comparative data for 21 stadiums indicating that smaller metropolitan markets often receive larger construction subsidies, and he flagged deficiencies and budget items that include $1,980,000 proposed for the Baltimore City Convention Center and $1,300,000 in special funds from major event proceeds.

MSA officials, including board chair Craig Thompson and capital projects lead Gary McGuigan, told lawmakers no ground lease has been executed and that any ground‑lease terms would be subject to extensive due diligence and required state approvals. The agency said fair‑market valuation of potential lost MSA cash flows would be complicated because private leases or parking revenues could be foregone only years later, and those effects depend on project specifics that are not yet determined.

On parity, MSA said if the Orioles exercise development rights or take over O&M consistent with lease benchmarks, the Ravens could seek comparable amendments to their lease. “If the Orioles proceed to exercise their right to development in compliance with all benchmarks…we believe the Ravens would have the right to request an amendment to their lease to obtain a comparable benefit,” an MSA representative said.

The analyst also noted a statutory constraint: by state law bond maturities cannot exceed lease terms, limiting the effective bond term until a final lease arrangement is settled. That legal limit affects how long MSA or the state could amortize debt tied to stadium projects.

What’s next: MSA and the team expect to continue negotiations; Frank said the parties aim to work toward a ground‑lease agreement by December 2027 but stressed the agreement’s form remains undecided. DLS recommended concurrence with the agency’s allowance; committee members asked the agency to follow up with additional economic and parity analyses.

Ending: The subcommittee moved on after the presentation and Q&A; MSA agreed to provide additional details on valuations and timeline as negotiations proceed.