4
competitive bidding process. The MTA leased the Property to the Symphony
Center on June 8, 2000, for a term of 91 years.
The MTA approved Symphony Center’s Master Site Plan for the
Property. The Master Site Plan includes four buildings: two office buildings
at 1010 and 1040 Park Avenue, a parking garage at 1030 Park Avenue, and
an apartment building at 1020 Park Avenue (collectively the
“Improvements”). [901, LLC] does not claim a property tax exemption for
any part of the apartment building.
The MTA provided Symphony Center a
$6.8 million grant “[i]n consideration of the various obligations undertaken”
in constructing the parking garage. Pursuant to the Grant Agreement,
Symphony Center is required to provide at least sixty parking spaces for “the
tenants and occupants of governmental and commercial office buildings” on
the Property.
On October 24, 2000, [901, LLC] was formed by Symphony Center
to develop the Property. [901, LLC] is a for-profit entity. On June 7, 2001,
Symphony Center assigned the Ground Lease to [901, LLC]. [901, LLC]
“expressly agree[d] to assume all of the obligations of [Symphony Center]
under the Ground Lease and under all contracts, including the Grant
Agreement. The assignment was made to “facilitate the development of the”
Property. “[901, LLC] constructed [the] [I]mprovements on the Property.”
On January 28, 2004, the MTA and [901, LLC] amended the Ground
Lease. Before amending the Ground Lease, [901, LLC] could “sell, assign,
transfer or convey, sublet or license the Property, or any part thereof” without
the MTA’s prior written consent. [901, LLC] did need to provide the MTA
prior written notice if [901, LLC] took any of these actions. Pursuant to the
Amendment, “[901, LLC] may not subdivide the [Property], or sell, assign,
transfer or convey, sublet or license the [Property], or any part thereof”
without the MTA’s prior written consent, but [901, LLC] “can sublet or
license retail spaces and office spaces within the Improvements” without the
MTA’s consent or providing the MTA prior written notice. [901, LLC]
subleases the Property to various for-profit, non-profit, and governmental
subtenants. Upon the expiration of the Ground Lease, [901, LLC] will yield
the Property to the MTA and have no right in or to the Property, including
the Improvements.
901, LLC v. Supervisor of Assessments of Balt. City, No. 24-C-21-000219, slip op. at 2-4
(Balt. City Cir. Ct. Apr. 14, 2023) (first, third, eighth, tenth, eleventh, seventeenth, and
eighteenth alterations supplied by the circuit court) (citations and footnote omitted).
Appellant filed three applications for exemption for the Property (the