Maryland Stadium AuthorityMaryland StadiuM authority SeaSonS of Celebration 2 sincerely, john morton iii, chairman This was our first celebration in a year that included a ravens playoff

Seasons of Celebration

2012 Annual Report

MarylandStadium Authority


Camden Yards is aglow in orange for post-season play.

Even Cal shows a touch of tangerine when the September sun sets over left field.

S e a S o n S o f C e l e b r a t i o n

2 0 1 2 a n n u a l r e p o r t

Our• Toplan,finance,buildandmanagesporTsand

enTerTainmenTfaciliTiesinmaryland.

• provideenjoymenT,enrichmenT,educaTionandbusinessopporTuniTiesforciTizens.

• developparTnershipswiThlocalgovernmenTs,universiTies,privaTeenTerprise,andThecommuniTy.

OurThemarylandstadiumauthorityismorethanthenameimplies.ourprojectspromotehistoricpreservation,adaptivereuse,communityredevelopment,culturalarts,andcivicpride.msahasthelatitudetonegotiatewithothergovernmentjurisdictionsanddepartmentswithinthestate.Thisincludescreatingpublic-privatepartnershipsforfinancingandoperatingfacilities.

Themarylandstadiumauthorityisacatalystforimprovingqualityoflifeandcreatingaclimatewhereindustrycanflourish. everyprojectundertakenbymsahascontributedtothecommunitywhereitislocated,andthelocaleconomyithelpssupport.

Themarylandstadiumauthorityrepresentsmorethanbuildings. ourcontinuinglegacyisfoundinactivitiesandattractionsthatentertain,educateandenrichthemarylandexperienceforthosewholiveandvisithere. ourprojectsprovidealinkwithourpastandaninvestmentinourfuture.Theyofferopportunitiesforourbusinesssectorwhileprovidingenjoyableexperiencesforcitizensofallages.

Table of

Chairman’s Letter ....................................2

twenty years at Camden yards...........3

the team pLayer .........................................7

offiCe of sports marketing .................. 13

a year at the yards ................................. 15

projeCts and studies ..............................23

growing a garden of greats ...........29

board of direCtors ................................30

on deCk ......................................................34

2012 finanCiaL statement .....................36

the benefaCtor ......... inside baCk Cover

Front cover: Fans cheer the last out

of the last regular season game of 2012. Final score:

Orioles 6 / Red Sox 3

Back cover: Not the Village People, but

joyous Ravens fans (and one Texans ringer,) prior

to the January 15th playoff game at M&T Bank Stadium

Contents

Mission

Vision

1

miChaeL j. frenzExecutive Director

M a r y l a n d S t a d i u M a u t h o r i t y


2

sincerely,

johnmortoniii,chairman

Thiswasourfirstcelebrationinayearthatincludedaravensplayoffgame,20thanniversaryoforiolepark,spectacularsailabrationfestivities,oriolespost-seasonrun,returnofinternationalsoccer,andyetanotherwinningravensseasonthatledtothesuperbowl.

Themarylandstadiumauthorityplayedasupportingroleineachofthesehighprofilestories.weenjoyedabanneryearourselvesaswepromotedadditionalusesofourcomplex,providedenvironmentalenhancementstoouroperationsandfacilities,andwelcomedmoremarylandersandvisitorstoourcampuswithavarietyofcommunityeventsandactivities.

maintainingandimprovingthisiconicvenueisourmandate.weaccomplishedagreatdealin2012throughenhancementstooriolepark.aninfluxofvisitorscelebratedthenewamenitiesalongwiththeresurgenceoftheorioles.

ourgreatestresponsibility,however,isthesafetyandsecurityofourtenantsandvisitors.This,too,isreflectedinourfacilityimprovements,partnerships,andpoliciesenactedin2012.

wehavealotmoretolookforwardtoin2013andbeyond,andinviteyoutoenjoythejourneywithus.

Chairman’s

SeaSonS of CelebrationS2012 began aT camden yards wiTh The sTar-spangledbannerraisedoverveTeransmemorialTocommemoraTeThewarof1812bicenTennial.asoneofThemosTvisible––andvisiTed--sTaTeproperTiesinmaryland,wehelpedseTTheToneforayearofsTaTewidefesTiviTies.

Letter


“Someone once said

that art is the creation

of something that

previously wasn’t

there, but something

that the future will

make necessary. That

is Camden Yards.”

Buck Showalter, Opening Day 2012

sincerely,

johnmortoniii,chairman

Thanks to off-season

improvements which lowered the railing, the

Flag Court became a

popular viewing area. Standing room ticket-holders elbowed

their way into position as soon as the gates opened for playoff

games.

Almost unimaginable in April, a playoff game at home in October electrifies the fan base.

Twenty Years atCamden YardsThe 20Th anniversary season of oriole park aT camdenyards—TheballparkThaTforeverchangedbaseball—wasoneoriolesfanswon’TsoonforgeT.wehonoredlegendsandcelebraTedaposTseasonberTh,ThrillingsupporTersThroughouTbalTimoreandallofbirdland.

2 0 1 2 a n n u a l r e p o r t 3



4

“Oriole Park at Camden Yards, now the tenth

oldest park in baseball, remains the standard

bearer by which all new ballparks are judged, and

thanks to the cooperation between the Maryland

Stadium Authority and the Orioles, we expect it

will remain so for decades to come.”peterangelos

Opening Day, 2012Photo by Todd Olszweski

Boog Powell and Miss Catherine, ballpark fixtures

since 1992, marvel at the crowds streaming in two

hours before the game.

Seen in late summer, Oriole Park is especially inviting. The

newly-accessible picnic area and statuary garden created

a public park, connecting the stadium complex to a revitalized

downtown and expanding university campus.

As the Oriole flies — Birdland reaches in every direction.

2 0 1 2 a n n u a l r e p o r t 5

t w e n t y y e a r S a t C a M d e n y a r d S

“More than

2.1 million

fans enjoyed

this beautiful

ballpark, which

was enhanced

this year with

amenities such

as the Roof

Deck, Dempsey’s

Brew Pub and

Restaurant,

and the

Orioles Legends

sculpture area.”peterangelos

These Sox fans grabbed rooftop rail seats just as

soon as the gates opened.

Even though the Orioles are in New York, these Grand

Prix visitors are following them from the rooftop deck.

The new rooftop deck and lower railing over the bullpens were

instant favorites for fan viewing.

They filled quickly when the

Eutaw Street gates opened.



6

“All of these

improvements

were completed

to benefit all fans

at the ballpark, as

well as for those

visiting the park

on non-game days

or during the

off-season.”peterangelosIt didn’t take long for

Dempsey’s Brew Pub in the Warehouse to become

a favorite neighborhood sports bar. By the end of

the 2012 season, it was the place for locals and

convention-goers to stop in and watch the O’s on

the road. Here, a roomful of regulars cheer the

home team as they play their first post-season

game in Texas.

Well after baseball season, the statue garden is still an attraction

to Baltimore visitors. Here, Brooks Robinson is flanked by two of the beautiful red maples that give the

park an autumn glow.

6

2 0 1 2 a n n u a l r e p o r t

#1 ranked Virginia defeats #3 ranked Cornell in overtime in the second of three Face-Off Classic matches. 17,138 fans attended over a full day of lacrosse at M&T Bank Stadium

The Face-Off Classic, featuring top NCAA teams in double or triple header events, has been a tradition at M&T Bank Stadium since 2007. It will return in 2013.

t h e t e a M p l a y e r

7

The Team

TwenTy years afTer oriole park opened as aTranscendenTmodelforurbanredevelopmenT,camdenyardshasevolvedinToaninTernaTionallyrecognizedsporTscomplex.

Player

Tomarylandresidentsandvisitors,thisstate-ownedfacilityismuchmore–atransitcenterandvenuewhereactivitiesandeventsoccuryearround.Themarylandstadiumauthorityandourtenantpartnerstakegreatprideintheroleweplayasastageformanypublicgatherings,largeandsmall.camdenyardsisacommunityassetandteamplayerinservingcitizensofmaryland.

Even in early March, lacrosse tailgating

goes on. These revelers, here for

the Konica Minolta Face-off Classic,

are not deterred by the frigid weather.

Do the math:Konica Minolta Face-Off ClassicMarch 8, 2012$1.27 million spending10 equivalent jobs$529,000 total earnings$98,000 state taxes$34,000 local taxesCrossroads Consulting



8 M a r y l a n d S t a d i u M a u t h o r i t y

The field at M&T is fitted with a natural grass pitch to meet

international standards.

SoCCerinTernaTional soccer reTurned To m&T bank sTadium in 2012 wiTha “friendly” maTch beTween liverpool and ToTTenham fooTballclubsofTheenglishpremierleague.supporTersfromaroundThecounTrycameTocheerTheirsides.

Do the math:Tottenham-Liverpool SoccerJuly 28, 2012$6.3+ million spending70 equivalent jobs$2.7+ million total earnings$582,000 state taxes$148,000 local taxesCrossroads Consulting

In addition to cheers and chants, Liverpool fans sing

their theme song.

8


2 0 1 2 a n n u a l r e p o r t 9

Sodding the field at M&T was nothing compared

to the landscaping required for the return

of Monster Trucks. For the second consecutive year, this family-friendly event delighted children

of all ages.

monSter jam

BmW anD exotic car festival

In September, a BMW & Exotic Car Festival took place with all proceeds going to the Wounded Warrior Project.

Beautiful weather and the convenient location made the turnout much greater than expected. The BMW show will

be returning in 2013.

No one enjoys an afternoon at Camden Yards

more than these helpers

Do the math:Monster Jam, June 2, 2012$2.6+ million spending30 equivalent jobs$1.7 million total earnings$195,000 state taxes$55,000 local taxesCrossroads Consulting



10

Grand prix of baltimoredespiTehavingjusTThreemonThsToorganizeamulTi-milliondollarevenT,TheTeamofraceonandandreTTimarkeTingmanaged To pull off The second annual grand prix ofbalTimore. many of The acTiviTies and aTTracTions weresTagedaTcamdenyards.

Ryan Hunter-Reay takes the lead after a brief rain delay. Television

cameras at Turn 8 captured this iconic view of the Camden complex

Watching exotic sports cars get assembled was an

entertaining part of the event.

The Warehouse defines the length of Pit Lane, with the

Baltimore Convention Center terrace providing a perfect VIP

viewing area.

Do the math:Economic Impact of the 2012 Grand Prix of Baltimore

Over 131,000 spectators

58% from outside Baltimore area; 32% from outside Maryland

64% of tickets purchased by non-locals, representing $2.88 in new money brought to area.

Total business volume impact of the 2012 Grand Prix of Baltimore is estimated at $42,300,930.

Government revenues generated as a result of the 2012 Grand Prix are calculated at $2,642,500.

Source: Forward Analytics

2 0 1 2 a n n u a l r e p o r t 11

Community ServiCe

Charity walks, fund raisers, and community awareness

events are held at the Camden Yards complex throughout

the year. “Breath Deep,” benefiting research and

treatment for lung cancer, was held in Oriole Park.

Families and friends of lung cancer patients fill the stands before

participating in a walk around the warning track

on a beautiful fall morning.

On August 2, 2012, M&T Bank Stadium was the setting for the first Baltimore Project Homeless Connect, a large one-day homeless outreach effort that connected more than 1,000 homeless individuals and families with medical and dental care, legal and benefit advice, and hosts of other services.

This event was sponsored by the Office of the Mayor and United Way of Central Maryland. Hundreds of volunteers helped match the homeless with their needs and counseling for other benefits.

The stadium was an ideal location because of its access to light rail, buses and shuttles. It is also large enough to accommodate the number of clients and volunteers who participated.

t h e t e a M p l a y e r



12

S e a S o n S o f C e l e b r a t i o nS e a S o n S o f C e l e b r a t i o n

The entire complex is used for Marathon staging, from registration at M&T Bank Stadium to

the festival in the parking lots and supporter sections in the picnic areas.

Community has always been the focus of the Baltimore Marathon. This year, local artist (and MICA

student) Grant Lindahl drew a chalk mural to greet runners as they reached the finish line. He left pieces

of chalk nearby for supporters to add messages of encouragement on the last stretch of the course.

baltimore marathon

As they pass Oriole Park, runners can see the finish line

Do the math:Baltimore Running Festival generated an estimated $38.6 million, $8.1million more than the 2011 race.

A total of 26,100 runners participated – 1,100 more than in 2011. In all, 50 states and 24 countries were represented in the 2012 field.

The 2012 Running Festival also raised $1.7 million for charity, a new record for the organization.

Source: Regional Economic Studies Institute at Towson University.

This young lady is a proud

Marylander, but about 40% of participants

are from out of state, making the economic impact even

greater.


2 0 1 2 a n n u a l r e p o r t 13

Terry Hasseltine, Director of Office of Sports Marketing, delivering a message on the

economic benefits of sports travel.

Office of

TheofficeofsporTsmarkeTingwascreaTedbyThemarylandsTadiumauThoriTyanddeparTmenTofbusinessandeconomicdevelopmenTin2007ToaTTracTandpromoTesporTsevenTsandrecreaTionalopporTuniTiesThroughouTThesTaTe.

in2012,TheofficeofsporTsmarkeTingenjoyedsuccessinbringingnewevenTsTomaryland.TogeTherwiTh Their Team maryland parTners, osm focused on righTs-holders and organizers of amaTeuraThleTic,olympicqualifyingandyouThTournamenTs.

ThislucraTivesegmenTofTheTourismmarkeTbringsmulTipleTeamswiThfamiliesandfriendsToThesTaTeforseveraldaysaTaTime.

Sports Marketing

In 2012, the Colonial Athletic Association men’s basketball tournament was

awarded to Baltimore for 2014-16. In addition to local excitement, this

represents $6.5 million in economic impact, $500,000 in tax revenue and 5,500

hotel rooms each year.

2012 USATF National Junior Olympic Track & Field Championships were held at Morgan State University in 2012.

More than 8,400 athletes from all over the country came to Baltimore for a week in July 2012. It was their largest event to date.



14

The Office of Sports Marketing was instrumental in organizing the “Challenge at Musket Ridge” for the Ladies Professional Golf Association’s

Symetra Tour in August 2012.

The governing body for the new Olympic sport of BMX will be holding the East Coast Nationals at Chesapeake BMX in Severn, June 14-16, 2013. This is a major qualifier for national ranking, and is expected to draw a large field of competitors.

OSM assisted marketing efforts to expand existing Maryland-based tournaments, such as the Columbia Invitational, an elite soccer club event. The Columbia Invitational, sanctioned by the national governing body, grew from 325 teams in 2011 to 500 teams from throughout the mid-Atlantic region over the 2012 Memorial Day weekend.

14


2 0 1 2 a n n u a l r e p o r t 15


A Year at thein2012,marylandsTadiumauThoriTyimplemenTedimprovemenTsinoperaTions,services,andfaciliTiesaroundThecomplexThaTwillcarryinTo2013andbeyond.

Safety firStofall maryland sTadiumauThoriTy’s responsibiliTiesaT camdenyards, The mosT imporTanT is securiTy – of The valuable sTaTe

properTyinoursTewardshipandThesafeTyofallThosewhoworkandvisiThere.

Maryland Stadium Authority and the Baltimore Orioles helped advance the

Department of Homeland Security’s message to all citizens congregated in

public places. The “See Something, Say Something” reminders appeared Opening

Day as vertical banners, video board announcements, and transit placards.

Yards

“Security is our

Highest Priority”

johnmorton Chairman,

Maryland Stadium Authority

Multi-agency task forces meet regularly at the Camden Yards complex because of its size and proximity to many jurisdictions. This

particular seminar on surveillance techniques, held in the Ravens press room, was sponsored by the Department of Homeland

Security. By hosting these training sessions, MSA is able to include security staff that would otherwise not have the opportunity to attend.

2 0 1 2 a n n u a l r e p o r t16

Outfitted in bright yellow shirts, the security team is a visible presence throughout the complex.

The use of bicycles gives them increased mobility and shortens response time.

One of the most ambitious projects completed during the off-season was a new security control center at M&T Bank Stadium. The original center, almost 15 years old, could no longer accommodate the safety, security, and facilities representatives and new technology needed to

meet response standards.

The new security control offers enhanced communication and surveillance capabilities.

on Deck for2013

In 2013, the Oriole Park Security Control Center in the stadium

will be updated.

These Baltimore City officers use the lower stadium lots for training. The courses are modified for motorcycle and dirt bike testing as well.

C a M d e n y a r d S

2 0 1 2 a n n u a l r e p o r t 17

Finance Director David Raith studies bids during MSA’s bond refinancing in May. Prudent management of the agency portfolio has saved millions in interest through the years.


TheproperTy and porTfolio managemenT; mainTenance and improvemenT of camdenyardsarekeyresponsibiliTiesofmarylandsTadiumauThoriTy.Theygofarbeyondday-To-dayoperaTions,involvingsTraTegyandinnovaTionTomaximizeourasseTsandminimizeourexpendiTures.2012wasanoTherbanneryearforrevenuegeneraTionandexpensereducTiondueToaddiTionalevenTs,increasedaTTendance,properTyredevelopmenT,resourceconservaTion,andbondrefinancing.

Producers

Property Management–whileitishardtotop100%occupancy,whichthewarehouseachievedin2011,ourtenantamenitiesincreasedin2012withtheadditionofdempsey’sbrewpubandrestaurantonopeningday.

Parking–withoutaddinganyasphalt,thecamdenyardsparkinglotsincreasedtheirnetrevenueby10%in2012–againofalmost$200,000intotal.

onefactorisanincreaseinmonthlyparkers,includingnewclientsfromnearbymajoremployers.anotheristhe

increaseinoriolesattendance(includingtwopost-seasonsellouts.)

Thelargestportioncamefromparkinglotrentals–hostingspecialevents,stagingsatelliteshuttlesorprovidingstorageforconventionexhibitors.

The Eutaw Street Market is a welcome addition to the Warehouse for tenants and commuters. The Market offers a variety of quick meal options and sundries during regular hours, and carry-out

beverages and snacks during games.

Do the math:

In 2012, refinancing $29 million in tax-exempt and taxable bonds yielded interest rates of 0.43% to 2.5%. This will save MSA $520,000 annually or $5.355 million over the remainder of the term.



18

The handsome period signs added to the Warehouse

façade in 2012 give greater visibility to Camden Yards

and help promote it as a year-round destination.

Increased attendance at Oriole games and greater demand for cellular service necessitated additional antennae. This one was installed in left field near the end of the season, along with a larger dish on the roof. While this improved service, a more comprehensive solution is on tap for 2013.

The Warehouse is still generating revenue on the roof. Vince

Steier is seen here with some of his tenants, a network of telecommunication devices that lease space.

Do the math:

Maryland Stadium Authority, which takes 8% of ticket revenues via the admission tax, received a welcome windfall in 2012, thanks to our winning teams and the post-season games they hosted.

The Ravens 2012 Division Playoff in January generated $ $745,000.

The Orioles two division games in October yielded $454,866.

2 0 1 2 a n n u a l r e p o r t 19


on Deck for2013

MSA is currently soliciting bids to host a distributed antenna system in Oriole Park. Verizon, who installed a DAS in M&T Bank Stadium in 2011, is

expected to extend the service to at least one co-locater (provider)

in 2013.These contracts will significantly increase MSA’s hosting revenues.

Lots G-H are leased several times a year for product demonstrations on road courses like this. MSA also makes the space available to law enforcement partners for testing and training with their vehicles.

Camden Yards has hosted its share of beautiful brides over the past twenty years, but none lovelier than Nicole

Sherry -- Head Groundskeeper for the Orioles.

2012 was another banner year for catered events at the complex, with a record number of proms, weddings,

reunions, and parties taking place around the complex.

One of the Warehouse’s original

tenants, XL Health, had a growth spurt of its own in 2012.

Governor O’Malley came for the

announcement when they

merged with insurance giant

UnitedHealth Group to bring 335 new health care service jobs to the State of Maryland.


20 M a r y l a n d S t a d i u M a u t h o r i t y

environmental SenSitivityasoneofThemosTvisiblepublicfaciliTiesinThesTaTe,camdenyardsservesasamodelforbesTpracTicesinresourceconservaTion,recycling,sTormwaTermanagemenT,andenvironmenTallysensiTivelandscaping.ourefforTsreflecTThegoalsofTheo’malleyadminisTraTionToreduceenergyconsumpTionandincreaserecycling.

in2012,weappliedadapTivereuseandinnovaTiveTechnologyToreducecosTs,eliminaTewasTe,and limiTwaTerconsumpTion. wealsoconTinued efforTsToreplacehighmainTenanceTurfwiThnaTivevegeTaTionandperennialsThaTsTemrunoffandabsorbsTormwaTermoreeffecTively.

These irises are not only lovely (and color-appropriate,) they are an important defense against erosion caused by stormwater draining from the adjacent parking lots. Together with the rocks and grasses, they provide a breakwater for the rain garden that absorbs runoff instead of silting the watershed.

These native beautyberry shrubs not only celebrate football season with their vivid purple blooms, they stabilize the surface at a one-time problem area around the fuel pumps.

In early spring, a failing swale that drained directly into the Middle Branch was replanted,

incorporating more pervious soil and hardy ornamental grasses. By late summer, the

grasses were established enough to withstand even the wrath of superstorm Sandy. They

now provide an attractive border to the nearby Gwynns Falls Trail.

Before

Now

2 0 1 2 a n n u a l r e p o r t 21


enerGy reduCtionmsasuppliesregularenergyconsumpTionfiguresToThesTaTeofmaryland.

These graphs and pie charTs show how significanTly energyconsumpTion dropped in 2012, and how iT conTinues To fall aswe enhance our conservaTion pracTices, originally ouTlined ingovernoro’malley’sempowermarylandprogram.

TheseongoingreporTsfromThefaciliTiesinourcomplexareposTedonlineaTThemarylanddeparTmenTofgeneralserviceswebsiTeaT:hTTp://www.dgs.maryland.gov/energy/energydaTabasepublic.hTml.



22

in2012,recyclingatcamdenyardsincreasedfrom388tonsto485tons--aremarkable25%.increasedorioleattendanceandimprovedprocessesatbothstadiumsmadethispossible.

Thespikeispartofabroadertrendthathasseenrecycling

increase50%since2008.msaworkswithallcontractors,partners,tenantsandthirdpartyeventstoensurerecyclingplansareinplacebeforetheyenterthecomplex.

msaandourpartnersareregardedasindustryleaders

inrecycling.in2012,thegreensportsallianceinvitedrepresentativesofmsa,ravens,andoriolestoasummersummitatthewhitehousetoexchangeideaswithotherstadiumoperatorstomakesportsfacilitiesmoreeco-friendly.

reCyClinG

Joining the “Green Team” tailgate patrol this year were several of Baltimore City’s “Green Schools.” These student volunteers shared their enthusiasm

for recycling as they greeted incoming fans.

Parking lot patrols were key to retrieving recyclables and making “Green Team” efforts so successful this year.

Susan Thorman, MSA’s Director of Baseball Operations and Facilities, and Tom Orsulak, Orioles Director of Food Services, visit Chesapeake Compost Works. Vinnie Bevivino, left, shows them how compost is generated in an old Curtis Bay rail barn. The Oriole and MSA hope to establish a composting pilot program in 2013.

on Deck for2013

· A composting pilot program at Oriole Park· An orientation with all new MSA hires

about recycling policies.· A study on the recycling habits of fans at

Oriole Park to determine ways to improve our current recycling efforts.

· A recycling committee, comprised of representatives from MSA, Ravens and Orioles, which meets semi-annually to discuss recycling best practices and ways to improve.

2 0 1 2 a n n u a l r e p o r t 23

p r o j e C t S a n d S t u d i e S

oCean City Convention Center expanSionindecember,2007,TheTownofoceanciTyaskedThesTadiumauThoriTyTo conducT a feasibiliTy sTudy for anoTher expansion of TheirconvenTioncenTer.

Thestudyevaluatedtheexistingstructure,thecurrentconventionmarket,optionsforcapitalimprovements,andthescopeforaperformingartscenter.

Thefeasibilitystudywasreleasedindecember,2008andinaugust,2010,theoceancitycouncilapprovedplansforan$8.9millionexpansionofballroomand

exhibitionspace.Thisprojectbrokegroundinaugust,2011andwascompleted–ontimeandwithinbudget–inoctober2012

Project executive: Gary a. mcGuiGan

assistant Project manaGer: tiara roBertson

(Phase ii) Project cost: $14 million

estimateD comPletion Date: 2014

onnovember7,2011,theoceancitycouncilapprovedplansforanadditional$14millionauditoriumthatincludestwotiersoffixedseating,dressingrooms,andaticketofficeandconcessionarea.

The1,248-seatperformingartsvenuewillbeamajorupgradeovertheconventionhall’sexistingballroomandstage.

Thisproposalwasapprovedbythemarylandgeneralassemblyduringtheir2012session.itiscurrentlyindesignandwillbebidin2013.

Mayor Rick Meehan and members of the Ocean City

Town Council officially open the new Convention Center

expansion in November. The expanse of windows

overlooking the bay created a breathtaking sunset view

in addition to providing critically needed space to

hold multiple events.

The second part of the Ocean City Convention Center Expansion will be this versatile performing space, envisioned as a year-round amenity for visitors and residents alike.

This phase is currently in design. Construction is expected to begin in Fall 2013, and the and the project completed in 2014.



24

Coppin State univerSity ComplexThe sTadium auThoriTy compleTed consTrucTion of The $134,000,000physicaleducaTioncomplexaTcoppinsTaTeuniversiTyin2010onTimeandapproximaTely$3millionunderbudgeT.

“The projects Maryland Stadium

Authority managed at Coppin

have been transformational – not

just for our campus, but the West

Baltimore Community we serve.”

dr.maqboolpatelAssociate Vice President for Administration and Finance

Coppin State University

The old Coppin Center was demolished in 2011.

Thisprovidednecessaryfundingtodemolishtheold110,000sq.ft.coppincenterandredevelopittoincludegreenspace,lawnareas,newlandscape/hardscape,sitelighting,andparking.

Thisproject,locatedadjacenttothenewlyrenovatedcampusquad,beganinoctober2011andwasplantedinearlyspring2012.

coPPin center Demolition

Project executive: Gary a. mcGuiGan

Project Director: eric johnson

DesiGn/construction BuDGet: $2.3 million

construction manaGer: BrouGhton construction

architect: horD, coPlan, & macht

With the demolition complete, environmentally-sensitive landscaping was installed in May to define the campus quad. Project was completed on time, on budget.

2 0 1 2 a n n u a l r e p o r t 25


StudieSin2012,marylandsTadiumauThoriTycompleTedseveralsTudiesrequesTedbylocaljurisdicTionsTodeTermineThemarkeTshareandpoTenTialcosTofprojecTsunderconsideraTion.

newrequesTsforsTudiesToevaluaTeleaseTerms,managemenTsTrucTure,and faciliTy upgrades were received in 2012, as well as requesTs forfurThersTudiesondesignandcosTesTimaTes.

wiComiCo County studyinseptember2010,wicomicocountyrequestedthestadiumauthoritytoperformastudyontheiragingyouthandciviccenterinsalisbury.

crossroadsconsultingperformedthepreliminarymarketstudytoevaluatetheexistingfacility,itsuses,andwhetheritiseconomicallyfeasibletorenovateandexpanditorbuildanewone.

Thestudy,releasedinjanuary2012,recommendedrenovatingtheexistingfacilityandexpandingballroomandexhibitspaceinsteadofbuildinganewfacility.

“A Maryland

Stadium Authority

feasibility study has

become the ‘Good

Housekeeping Seal

of Approval’ when

the state considers

investing in

proposed projects.”

fredpuddester,Former MSA Chairman



26

City of frederiCk ConferenCe Center studyinjuly2011,mayorrandymcclementoffrederickrequestedmsatoreviewandupdatea2008studycommissionedbythecityforahotel/conferencecenterprojectenvisionedforthedowntownbusinessdistrict.

Thestudyupdate,releasedinjuly2012,waspreparedbycrossroadsconsultantsandhospitalityandgamingsolutionsundercontracttothestadiumauthority.itconcludesthatfrederickhassufficientmarketdemandforafull-service,200-roombrandedhotelwith15,000squarefeetofmeetingspaceindowntownfrederick.

Thestudyfoundthatthehotelwhenstabilizedwillgenerateapproximately52,600roomnights,280jobs,and$25millionineconomicimpact.

basedonresearchandanalysisofthegrowingmarketandpopularityoffrederick,crossroadsdeterminedthecommunitywouldbenefitonmanylevelsfromahotel/conferencecenterinthedowntownhistoricdistrict––includingthecreationof280permanent,full-timejobsthatwouldcreate$9millioninpersonalearningsandincreasedactivityintheretail/hospitalityoutlets.

troy park tennis and sports Center studyinsummer2011,howardcountyexecutivekenulmanrequestedthestadiumauthoritytoconductamarketandeconomicstudytodeterminethefeasibilityoftheTroyparkTennisandsportscenter,aprojectproposedbytheTennispatronsofhowardcounty.

Thescopeofthe$75,000studywastodetermineeconomicprojections,andpossibleappropriateadditionalprogramelements.

Themarketstudy,releasedinapril2012,determinedtherearerelativelyfewtop-tiereventswhichrequireafacilityofthismagnitude.whilethereismarketdemandfromdiverseusers,itisnotsufficienttooffsetthecostsofon-goingoperationsanddebtservice.

2 0 1 2 a n n u a l r e p o r t 27


maryLand horse park studyinaugust2011,themarylanddepartmentofagricultureaskedmsatoperformaviabilitystudyforamarylandhorseparkbasedontheextensivestudyperformedin2006onaspecificsite.

Themarylandhorseindustryboard,adivisionofmda,wantedtodetermineifthisreportisstillapplicabletothecurrentmarketandeconomybeforepursuingtheprojectagain.

phasei,releasedinnovember2012,foundthedevelopmentofamarylandhorseparkcontinuestobevitaltothegrowthofthestate’shorseindustry,butofferssomenewapproachestotheinitialstudy.

Thatstudyrecommendedbuildingalargecentralfacilitysimilartothekentuckyhorseparkinlexington,kentucky.Thenewstudyfindsthatmarylandalreadyhasmanyoftheessentialcomponentsforsuchaparkatexistingfacilities.

Thenewstudysuggeststhatanewhorseparkcanbemadeupofasystemofexistingandperhapsupgradedequinefacilitiesacrossthestatethatcanbelinkedtogetherandoperatecooperativelyratherthanasstrictlyindividualvenues.whilesuggestingthatalinkedsystemwouldlikelyworkformaryland,thestudymakesnoconclusiverecommendationonactualimplementationandleavesthedooropentootherpossibilities.

phaseiiofthestudywillinvestigatehowtomaximizetheuseofthestate’scurrentequinefacilitiesandhowthesefacilitiescouldattractnationalandinternationalevents,competitions,andvisitorstomaryland.

phaseiiwillbegininearly2013.itisfundedjointlybythemhibandthemarylanddepartmentofbusinessandeconomicdevelopment.

show pLaCe arena and prinCe george’s County equestrian Center studyindecember2011,maryland-nationalcapitalparksandplanningcommissionofficiallyrequestedmsatostudytheoperationsoftheshowplacearenaandequestriancenterinuppermarlboro.

The$40,000study,fundedbythem-ncppc,willevaluatethepotentialoftheexistingfacilityandmakerecommendationshowoperationsandmarketingcanbeimproved.

anadditional$55,000studywillexaminemanagementpracticesandgovernancestructureofallfacilities.

Thesestudieswillbeconductedinconjunctionwithprincegeorge’scountydepartmentofrecreationandparks.Theyareexpectedtobecompletedin2013.



28

bowie LaCrosse stadium / youth sports CompLexinfebruary2012,themaryland-nationalcapitalparksandplanningcommissionrequestedmarylandstadiumauthoritytoperformamarket/economicstudyonthepotentialofalacrossestadiumtohousetheprofessionalchesapeakebayhawksmllfranchise,andanchoranadjacentyouthsportscomplexthatwouldaccommodateamateurleaguesandtournaments.

Thestudy,releasedonfebruary8,2013,focusesontheexistinggreenbranchathleticcomplexnearbowiebaysoxstadium.

basedonthefindingsoftheinitialstudy,m-ncppcrequestedthestadiumauthoritytoperformasecondstudytodeterminethescopeandprogramelements,developadesign,determinepotentialpublicprivatesectorfundingpartners,anddeviseamanagementstrategy.

iftherequestisapproved,phaseiiofthestudywillbefundedbym-ncppc.

arthur perdue stadiuminjune2012,wicomicocountyrequestedmarylandstadiumauthoritytoperformamarketandeconomicstudyofarthurperduestadium,homeoftheoriolesaffiliateshorebirds,todeterminehowrevenuescanbeincreasedinthecounty-ownedfacility.Thestudywilldeterminewhatenhancementsandamenitiesarenecessarytokeepthefacilitycompetitiveinthemarketandretaintheteamwhentheleaseexpiresin2015.Thestudyisbeingperformedbycrossroadsconsultingservices,inc.itisexpectedtobereleasedinearly2013.

2 0 1 2 a n n u a l r e p o r t 29


Growing a Gardenof GreatsinaddiTionTobeinganinTernaTionallyrecognizedsporTsfaciliTy,camdenyardsisapopularpublicpark.in2012,ourcampuswasenhancedwiThaTimelesslegacyThaThasbecomeaninsTanTvisiToraTTracTion.

off-seasonmodificationstothebullpenpicnicareamadeitaccessibletothepublicduringdaylighthours,affordingabeautifulviewofthefield.aspartofthe20thseasoncelebrations,astatueofeachoriolehalloffamerwas

unveiledeverymonthinadedicationceremony.

Thenew“gardenofgreats”becameoneofthemostpopularmeetingplacesinthestadium,andafocalpointoftherevitalizedeutawstreetcorridor.

Brooks Robinson

Cal Ripken, Jr.

Overlooking the Field of Dreams

Eddie Murray

Frank Robinson

Earl Weaver

Jim Palmer



30

john morton iii, Chairman johnmortoniiiwasappointedtothemarylandstadiumauthorityboardonjuly1,2008.onnovember7,2008,governormartino'malleyselectedhimtosucceedfrederickw.puddesteraschairman.

mr.morton,aseniorbusinessandfinancialservicesexecutive,bringsextensiveexperiencetothemsaboardincludinghavingservedasceoandpresidentofthreemajorfinancialinstitutions,asaboardmemberforfourpubliccorporationsandasaleaderinbusiness,professional,educationalandcivicorganizations.

from1996to2006,mr.mortonservedinvariouscapacitieswiththebankofamerica/nationsbank,includinghisroleaspresidentofthemid-atlanticregionfrom1997to2001,andaspresidentofpremierbankfrom2001to2005.

priortohisservicewithbankofamerica,mr.mortonwaschairman,ceoandpresidentoftheboatmen'snationalbankofst.louis,missouri,thefarmandhomefinancialcorporationofkansascity,missouriandwiththeperpetualfinancialcorporationofmclean,virginia.

mr.mortonalsohasservedaschairmanofthegreaterbaltimorecommittee,asdirectoroftheuniversityofmarylandcollegeparkfoundation,andascommitteechairmanoftheefforttobringthe2012olympicstothewashington/baltimoreregion.mr.mortoncurrentlyisadirectorwiththeu.s.navalacademyathleticandscholarshipprograms.hewasinstrumentalinraisingfundsforthecommunityactivitiesassociatedwiththe2000army-navygameinbaltimore.

mr.mortonisa1967nuclearsciencegraduateoftheu.snavalacademy.heearnedamasterofbusinessadministrationdegreefromharvarduniversityin1973.

Board ofDirectorsThe maryland sTadium auThoriTy is governed by a sevenmember board of direcTors, who serve sTaggered fouryearTerms.sixdirecTorsareappoinTedbyThegovernor,wiThoneappoinTedbyThemayorofbalTimore.

2 0 1 2 a n n u a l r e p o r t 31

Directors

joseph C. bryCejosephc.bryceisagovernmentrelationsspecialistwithmaniscanninginannapolis.priortojoiningthefirm,heservedsixyearsasseniorpolicyandlegislativeadvisortogovernoro’malley.

mr.brycewastheassociatevicechancellorforgovernmentrelationsattheuniversitysystemofmaryland.hehasalsoservedasthechieflegislativeofficerforgovernorparrisn.glendening,thelegislativeassistanttosenatepresidentThomasv.mikemiller,jr.,andwasanassociateatcovington&burling.

mr.bryceisa1989magnacumlaudegraduateoftheuniversityofmaryland,anda1993summacumlaudegraduateofgeorgetownuniversitylawcenter,wherehefinishedfirstinhisgraduatingclass.

Leonard j. attman leonardj.attmanwasappointedasamemberofthemarylandstadiumauthorityonjuly1,2005.presidentofattmanpropertiescompany,mr.attmanhasmorethanfourdecadesofexperienceinresidentialandcommercialrealestatedevelopment.hisprofessionalexperienceincludesthedevelopmentofapartmentcommunities,individualhomedevelopments,shoppingcentersandarecreationalpark.

mr.attmanattendedtheuniversityofmaryland.hisinvolvementinprofessional,civicandphilanthropicorganizationsincludesmembershipontheboardsofsinaihospital,theshosanas.cardinhighschool,bethTfilohbrotherhood,theboardofdirectorsofthereginaldf.lewismuseumandthesignal13foundationforthebaltimorecitypolicedepartment.inadditionheactivelyparticipatesintheactivitiesofmanyotherorganizationsincludingtheadvisoryboardfortheshockTraumaunitattheuniversityofmarylandmedicalsystems.mr.attmanwasthefounderandservesaschairmanoftheboardofdirectorsoffuturecarewhichmanagesninenursinghomefacilitiesservingmorethan1,300patientsandprovidingemploymentformorethan1,500people.

M S a b o a r d



32

john p. CoaLejohnp.coalewasappointedamemberofthemarylandstadiumauthorityonjuly1,2012.alifelongmarylander,mr.coalewasborninbaltimoreandnowresidesinhistoricannapolis.hisgrandfatherwasoneofthepartnerswhopurchasedthest.louisbrownsfranchisein1954andbroughtthemtobaltimoreastheorioles.

mr.coalegraduatedfromtheuniversityofmarylandin1969andreceivedajurisdoctoratefromuniversityofbaltimorein1972.heestablishedaninternationaltortpracticeandbecameanationalleaderinthelitigationagainstthetobaccoindustry,servingaschiefnegotiatorinthehistoricalfinancialsettlementwiththestates.

mr.coalehasservedasanadvisortopresidentbillclinton,governormartino’malley,andsenatorjohnmccain.

althoughsemi-retired,hecontinuestopracticelawwithcoale,cooleyinwashington,dcandservesontheboardoftheuniversityofmarylandmedicalsystem.

weLdon h. Lathamweldonlathamisaseniorpartnerinthewashington,dcofficeofjacksonlewisllp.herepresentsfortune200companies,andfederal,state,andlocalgovernmentagenciesinavarietyoflegalmatters,includingcorporatediversitycounseling,employmentlaw,andgovernmentrelations.

mr.lathamservesascounseltothepepsicoglobaldiversityandinclusiongovernancecouncilandtheomnicomgroupdiversityadvisorycommittee.heisamemberofthenationalemploymentlawcouncilandeconomicclubofwashington.

mr.lathamservedasassistantgeneralcounsel,whitehouseofficeofmanagementandbudget;generaldeputyassistantsecretary,departmentofhousingandurbandevelopment;memberofthedefensedepartmentadvisorycommitteeonprocurementandTechnicaldatarights;civilianaidetothesecretaryofthearmy;memberoftheu.s.smallbusinessadministrationnationaladvisorycouncil.

mr.lathamisanadjunctprofessoroflawatthegeorgetownuniversitylawcenterandaformerguestprofessoratboththeuniversityofvirginiaandhowarduniversityschoolsoflaw.mr.lathamholdsab.a.inbusinessadministrationfromhowarduniversity,aj.d.fromgeorgetownuniversitylawcenter.

2 0 1 2 a n n u a l r e p o r t 33

M S a b o a r d

kaLiope parthemos kaliopeparthemosisbaltimoredeputymayorofeconomicandneighborhooddevelopment.ms.parthemosoversees17agencies,includingthoseinvolvedineconomicdevelopment,transportationandtourism.priortoacceptingtheseresponsibilitiesin2010,msparthemoswasdeputychiefofstaffforthepresidentofcitycouncil,nowmayor,stephanierawlings-blake.shewasappointedthecity’srepresentativetothemsaboardbymayorrawlings-blakeinapril,2010.

ms.parthemoshasabachelorofsciencedegreefromuniversityofmaryland,baltimorecountyandjurisdoctoratefromuniversityofmarylandschooloflaw.sheservedasapublicdefenderforfiveyearsandalsoasafostercarecaseworkerpriortoworkinginthecityadministration.

manervia w. riddiCk manerviaw.riddickisseniorvicepresidentforbusinessdevelopmentandpublicaffairsatstrategicsolutionscenter,inc,awashingtonareagovernmentandbusinesssupportservicesconsultingfirm.sheservesasssc’steamleaderonmajorenergyservicesprojectsfornationalandinternationalclients.

beforeherretirement,mrs.riddickwasthedirectorofpublicaffairsforwashingtongas.heroccupationalbackgroundandexperienceincluderegulatory,legislative,community,andconsumerdevelopment.shewasavicepresidentandgeneralmanagerofmetrovisionofprincegeorge’scounty,thelocalcabletelevisioncompanywhichisnowafranchiseofcomcast,inc.

mrs.riddickheldnumerouspositionswiththeu.s.departmentofjustice,fromspecialassistanttotheassistantattorneygeneraltonationaldirectorofpolicyplanningandcoordinationfortheofficeofjuvenilejusticedelinquencyprevention.mrs.riddickalsohasanextensivehistoryofsocialandcivicvolunteerservice,whichincludestheboardofdirectorsandexecutivecommitteeofnexushealth,chairofthemarylandcenterboard,andmemberofthefoundationboardfornorfolkstateuniversity.

herpastaffiliationsalsoincludeboardleadershipwiththemarylandandprincegeorge’scountychambersofcommerce.

mrs.riddickisagraduateofnorfolkstateuniversityandfurthergraduatestudyinurbanplanningandpublicadministrationatolddominionuniversity,innorfolk,va.

on Deck for2013

34

A new kind of 5K fun will be coming to Camden Yards in 2013. The “Color Run” splashes

participants with pigment at every kilometer and a rainbow blast at the finish line. More fun than

pre-K finger painting and every bit as messy, this family event will take place in May.

International soccer will return to M&T Bank Stadium with the CONCACAF Gold Cup tournament in July. Two matches will be held featuring national teams from North American and Caribbean countries.

The pageantry of college football returns to Camden Yards as the University of Maryland

takes on West Virginia September 21, 2013.

Justin Timberlake, Jay-Z Tour To Make Baltimore StopConcert will be held in August at M&T Bank Stadium.

on Deck for2014

35

The NCAA Men’s Lacrosse Championship will return to M&T Bank Stadium over Memorial Day Weekend in 2014. This tournament is a great favorite with youth lacrosse clubs and school teams. Activities for youngsters are located throughout the complex.

The United States Naval Academy will play two games at M&T Bank Stadium in the fall of 2014. The first is August 30th against Big Ten

powerhouse Ohio State.

University of Maryland will be returning to M&T Bank Stadium in October.

“America’s Game” between Army and Navy will take place December 13th.



36

2012 Financial

wehaveauditedtheaccompanyingstatementofnetassetsofthemarylandstadiumauthority(theauthority),acomponentunitofthestateofmaryland,asofjune30,2012,andtherelatedstatementsofrevenue,expenses,andchangeinnetassets,andcashflowsfortheyearthenended.Thesefinancialstatementsaretheresponsibilityoftheauthority’smanagement.ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

weconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamerica.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.webelievethatourauditprovidesareasonablebasisforouropinion.

inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionoftheauthorityasofjune30,2012,andthechangesinitsfinancialpositionanditscashflowsfortheyearthenendedinconformitywithaccountingprinciplesgenerallyacceptedintheunitedstatesofamerica.

accountingprinciplesgenerallyacceptedintheunitedstatesofamericarequirethatmanagement’sdiscussionandanalysisbepresentedtosupplementthebasicfinancialstatements.suchinformation,althoughnotpartofthebasicfinancialstatements,isrequiredbythegovernmentaccountingstandardsboard,whoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatementsinanappropriateoperational,economic,orhistoricalcontext.wehaveappliedcertainlimitedprocedurestotherequiredsupplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedintheunitedstatesofamerica,whichconsistedofinquiresofmanagementaboutthemethodsofpreparingtheinformationandcomparingtheinformationforconsistencywithmanagement’sresponsestoourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringourauditofthebasicfinancialstatements.wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithevidencesufficienttoexpressanopinionorprovideanyassurance.

SB & Company, LLC Certified Public Accountants huntvalley,marylandseptember27,2012

report of independent publiC aCCountantS

Totheboardofthemarylandstadiumauthority

Statement

2 0 1 2 a n n u a l r e p o r t 37

Statement2 0 1 2 f i n a n C i a l S t a t e M e n t

manaGement’S diSCuSSion and analySiS

Overview of the Financial Statements and Financial Analysis

Themarylandstadiumauthority(theauthority),acomponentunitofthestateofmaryland,ishonoredtopresentthefiscalyear2012financialstatements.Theauthority’sresponsibilitiesincludeoperationofthebaseballandfootballstadiums,theb&owarehouseandcamdenstationlocatedatcamdenyards,oversightofseveralconventioncenters,andconstructionmanagementforvariousprojectsthroughoutthestateofmaryland.

Therearethreefinancialstatementspresentedforthereader:thestatementofnetassets;thestatementofrevenue,expensesandchangeinnetassets;andthestatementofcashflows.

Statement of Net Assets

Theauthority’sstatementofnetassetspresentstheassets,liabilities,andthenetassetsasofjune30,2012.Thestatementofnetassetsprovidesthereaderwithafinancialpictureoftheauthority’sassets(currentandnoncurrent),liabilities(currentandnoncurrent),andnetassets(assetsminusliabilities)orthefinancialpositionoftheauthorityattheendofthefiscalyear.

fromtheinformationpresented,theuserofthestatementofnetassetsisabletodeterminetheassetsavailableforthecontinuingoperationsoftheauthority.Theuserisalsoabletodeterminewhatcashandcashequivalentsareavailableandamountsowedtoandbytheauthority.Thepurposeofthestatementofnetassetsistoshowtheuserwhatisavailableforfutureneedsoftheauthority.

Thenetassetsaredividedintofourcategories.Thefirstcategory,“investedincapitalassets,”reflectstheauthority’sinvestmentfurnitureandequipmentandfacilityrights.Thesecondcategory,“restrictedfordebtservice,”representsfundsheldbytheauthoritywiththerestrictedpurposeofpayingdebtserviceontheoutstandingbonds.Thethirdcategory,“restrictedforcapitalassets,”isfundsavailableforuseonspecificprojectsonly.Thefinalcategory,“unrestricted,”isavailablefundsheldbythecomptroller’sofficeatthestateofmarylandlesstheliabilityrelatedtotheinterestrateswap.

belowisacomparisonofthestatementsofnetsassetsasofjune30,2012and2011:

As of June 30, 2012 2011ASSETS currentassets $47,686,961 $43,162,436capitalassets,net 132,249,467 151,928,189othernoncurrentassets 193,644,193 202,352,039Total Assets 373,580,621 397,442,664 LIABILITIES currentliabilities 34,851,387 31,449,886noncurrentliabilities 252,948,707 267,912,332Total Liabilities 287,800,094 299,362,218 NET ASSETS investedincapitalassets 89,655,981 119,632,015restrictedfordebtservice 3,030,919 3,985,118restrictedforcapitalassets 4,372,323 3,104,560unrestricted (11,278,696) (28,641,247)Total Net Assets $ 85,780,527 $ 98,080,446



38

duringfiscalyear2012,totalassetsfortheauthoritydecreasedfromtheprioryearbyapproximately$23.8milliondollars,dueto:1)cash,cashequivalentsandrestrictedinvestmentsincreasedapproximately$4.3millionasaresultofcollectionofaccountsreceivablesandunspentrestrictedinvestment;2)capitalleasesreceivabledecreasedbyapproximately$3.1millionwhichincludesa$0.6millionincreaseinrestrictedcashandcashequivalentsthatareavailabletobeusedforcapitalprojectsanddebtservice,anincreasefornewcapitalreceivablesof$16.9millionandadecreaseof$20.0millionfor2012principalpaymentreceived;and3)intangibleassetsdecreasedby$17.6millionasaresultofanincreaseincapitalimprovementstothecamdenyardscomplexof$11.9million,adecreaseof$16.7millionforcapitalleasesandadecreaseof$12.8millionfordepreciationanddisposals.

Thedecreaseinnetaccountsreceivableofapproximately$3.7millionistheresultofthefollowing:paymentsreceivedandthewriteoffofbalanceduefromthebaltimoreracingdevelopmentllcforreimbursementofcostsrelatedtoimprovementstothecamdenyardsfor$2.7million,adeclineinoriolerentforbehindhomeplateadvertisingof$0.1million,adeclineof$0.8millionofreimbursementsfromthebaltimoreravens,adeclineinticketsinthefourthquarterof2012of$0.4millionandanincreaseof$0.4millionforotherreceivableandadjustmentstotheallowanceforbaddebt.deferredfinancingcostsdecreasedapproximately$0.9millionasaresultof$0.7millionbeingcapitalizedfromtheissuanceoftheseries2011revenueandtheseriesa&bbonds,adeclineof$1.4millionforthedisposalofthebalancesrelatedtotheseries1998aandseries1999bondsplustheliquidityproviderandadecreaseof$0.2millionforthe2012amortization.notesreceivabledecreasedby$0.1millionresultingfromanincreaseof$0.3millionrelatedtotherenovationsofsuiteslesstheprincipalpaymentsmadeof$0.4million.prepaidexpensesdeclined$0.7millionforinterestexpenserelatedto2012paidin2011.finally,furnitureandequipmentdecreasedbyapproximately$2.1millionbecauseofthecurrentyear’sdepreciationof$2.1million.

Totalliabilitiesforthefiscalyear2012decreasedbyapproximately$11.6million.interestandaccountspayableforfiscalyear2012decreasedbyapproximately$0.8million.Thereasonsforthedecreasearetheinterestpayableaccruedinfiscalyear2012decreaseby$0.9millionmainlyrelatedtotherefundingofthedebtserviceseries1998aand1999bondsandanincreaseintradepayablesof$0.1million.deferredrevenuedecreasedbyapproximately$0.9millionasaresultofdeferredrevenuebeingrecognizedasincomeinfiscalyear2012of$0.3millionandthewriteoffof$0.6millionrelatedtobaltimoreracingdevelopment.Therewasanincreaseintheequipment,financing,andleaserevenuebondsofapproximately$9.7millionasaresultnewdebtandbondpremiumtotalingfor$114.2millionand$104.5millionusedtodefeasetheseries1998aandseries1999bondsandpaidtowardstheoutstandingprincipalontheleaserevenuebonds.finallyforfiscalyear2012,thederivativeliabilitydecreasedby$19.6millionasaresultoftheterminationoftheaigcreditlocalswapagreementandthechangeinthefairmarketvaluesofderivatives.

Statement of Net Assets (continued)

Statement of Revenue, Expenses and Change in Net Assets

belowisacomparisonofthestatementsofrevenue,expenses,andchangeinnetsassetsfortheyearsendingjune30,2012and2011:

For the Years Ended June 30, 2012 2011

operatingrevenue $34,225,994 $31,602,181operatingexpenses 43,655,216 41,134,610 operatingloss (9,429,222) (9,532,429)nonoperatingexpenses (21,026,971) (17,487,697) lossbeforecontributions (30,456,193) (27,020,126)contributionsfromprimaryandlocalgovernmentsandothersources 18,156,274 22,034,970

decreaseinnetassets (12,299,919) (4,985,156)netassetsatbeginningofyear 98,080,446 103,065,602Net Assets at End of Year $ 85,780,527 $ 98,080,446

2 0 1 2 a n n u a l r e p o r t 39

2 0 1 2 f i n a n C i a l S t a t e M e n t

Thechangeinnetassetsasseenonthestatementofnetassetsisbasedontheactivitythatispresentedonthestatementofrevenue,expenses,andchangeinnetassets.

Thepresentationofthestatementofrevenue,expenses,andchangeinnetassetsdisclosestherevenueandexpensesfortheauthorityduringfiscalyear2012.Therevenueandexpensesarepresentedinoperatingandnonoperatingcategories.

attheendoffiscalyear2012,thestatementofrevenue,expensesandchangeinnetassetsdiscloseda$12.3milliondecreasetonetassets.Thefollowinginformationexplainsthedecreasetonetassets.

operatingrevenuegeneratedatthecamdenyardssportscomplexforfiscalyear2012totaled$34.2million.Thematerialpercentageoftherevenuereceivedbytheauthorityrelatetotheoperationofthestadiums.Thebaltimoreorioles’rentisbaseduponapercentageofrevenuestreamsformulaandthebaltimoreravenspay100%oftheoperatingandmaintenanceexpensesofthefootballstadium.Thisaccountsforapproximately$14.6millionoftherevenueforfiscalyear2012.

Theteamsarerequiredtopaya10%ticketchargetothestateofmarylandofwhichtheauthorityreceives8%andbaltimorecityreceives2%.Therevenuefromtheadmissiontaxesforbothteamswasapproximately$9.8million.

locatedatthecamdenyardssportscomplexaretheb&owarehouseandcamdenstationthatwererenovatedforofficeandmuseumspace.Therearecurrentlytenantsrentingmorethan220,000squarefeetthat,combinedwithseveralcellularantennasites,generateapproximately$3.9millionayear.otherrevenuefromthecamdenyardssportscomplexincludeparkingreceiptsfromnon-gamedays,othernon-professionalevents,cateringcommissions,trademarkrevenue,constructionmanagementfeesforotherconstructionprojectsnotpartofthecamdenyardssportscomplexandadjustmentstocapitalassets,whichtotalapproximately$6.0millionforfiscalyear2012.

non-operatingrevenueforfiscalyear2012was$1.1millionwhichisgeneratedbyseveralsources.in2007,thebaltimoreravenspaid$1.7milliononthepaymentoptionofthechillerandgeneratorplants.aportionofthesesavingsisrecognizedasrevenueeachyear.in2011,thebaltimoreracingdevelopmentwastopayatwelvepercent(12%)returnonthecapitalinvestmentmadebytheauthorityofapproximately$2.0million.Thisreturnwouldbepaidoverfiveyears.forfiscalyear2012,thisfigurewasapproximately$0.4million.Thesecondsourceofnon-operatingrevenueisinvestmentincomereceivedonmoneyheldbytrusteesonvariousbondissuances,fromanoutstandingnotefromthebaltimoreoriolesandtheamortizationofbondpremiums.itapproximates$0.7millionforfiscalyear2012.

overall,revenueforfiscalyear2012increasedbyapproximately$2.6millionfromrevenueinfiscalyear2011duetoadecreaseinoriolesrentof$0.1million,increaseinadmissiontaxesofapproximately$0.8millionastheresultofhigherticketssalesandprices,increaseinbaltimoreravens’contributionof$1.2millionforhigheroperatingandutilitycosts,$0.1milliondecreasefromwarehouseandstadiumrentalrevenue,anda$0.6millionincreaseinmiscellaneoussalesandparkingrevenues.

netoperatingexpensesincreased$2.5millionforfiscalyear2012.explanationsfortheincreaseinfiscalyear2012areasfollows:

• duringfiscalyear2012,utilitycostsforthecamdenyardscomplexincreasedby$1.0million.Theauthorityreceivedenergyrebatesof$0.8millionin2011andtherewasacostincreaseof$0.2millioncomparingtofiscalyear2011.

• contractualservicesdecreasedby$2.0millionmainlyrelatedtobuildingrepairsnotneededinfiscalyear2012.• depreciationexpenseincreasedby$1.3millionbecauseofthenumberofcapitalprojectscompletedoverpast

severalyears.• miscellaneousexpensesincreasedby$1.8millionasaresultofthewriteoffofthebaltimoreracingdevelopment

receivable.• fixedchargesincreased$0.3millionaresultofhighercostsrelatedtotheliquidityservicesforthevariableratedebt.• salariesandwagesincreased$0.1millionforaone-timebonuspaidtofull-timeemployeesandhigherbenefitcosts.

non-operatingexpensesincreasedby$2.8millioninfiscalyear2012.Therewasadecreaseininterestexpenseof$0.9millionrelatedlowerinterestrates.investmentincomeincreasedby$0.6millionresultingfrominterestearnedonnotesreceivabledeclining$0.2millionandamortizationofbondpremiumsincreasedby$0.8million.Thestate’sshareoftheoperatingdeficitforthebaltimoreconventionandoceancityconventioncentersdecreasedby$2.4millionaresultofdecreasedcosts.contributionstoprimarygovernmentincreasedby$1.8millionbecausetherewasnostaterentpaymentmadein2011.finally,thechangeintheliabilityduetothefairvalueofthehedgeincreasedby$5.7million.

Statement of Revenue, Expenses and Change in Net Assets (continued)



40

Statement of Revenue, Expenses and Change in Net Assets (continued)

Theauthorityalsoreceivedappropriationsfromthestateofmarylandtobeusedforseveralpurposes.anappropriationwasmadefortheoutstandingcapitalleasereceivablesduefromthestateofmaryland.Themoneyreceivedfromthestateofmarylandalongwith$1.0millionreceivedyearlyfrombaltimorecityisusedtopaythedebtserviceontheoutstandingbondsissuedbytheauthority.Theauthorityalsohasacontractualobligationtopayone-halfoftheoperatingdeficitsattheoceancityconventioncenterandtwo-thirdsoftheoperatingdeficitofthebaltimorecityconventioncenter.further,theauthorityisrequiredtocontributeannuallytoanimprovementfundfortheoceancityandbaltimorecityconventioncentersof$50,000and$200,000,respectively.Thetotalofthesecontributionsforfiscalyear2012wasapproximately$18.2million.

Statement of Cash Flows

Thelaststatementpresentedisthestatementofcashflows.Thestatementpresentsdetailedinformationabouttheactivitiesinvolvingcash,andthestatementisbrokendownintofiveparts.Thefirstpartofthestatementrelatestotheoperatingcashflowandshowsthenetcashusedtooperatethecamdenyardssportscomplex;thesecondrelatestothecashflowresultingfromnoncapitalfinancingactivities;thethirdrelatestocashflowfromcapitalandrelatedfinancingactivities;thefourthrelatestothecashflowfrominvestingactivities;andthefifthreconcilesthenetcashusedtotheoperatinglossonthestatementofrevenue,expenses,andchangeinnetassets.

belowisacomparisonofthestatementsofcashflowsasofjune30,2012and2011:

For the Years Ended June 30, 2012 2011

cashflowsfrom: operatingactivities $9,714,657 $1,910,445noncapitalfinancingactivities (105,913,515) (19,898,490)capitalandrelatedfinancingactivities 112,853,433 5,322,483investingactivities (12,725,114) 12,594,768 netdecreaseincashandcashequivalents 3,929,461 (70,794)cashandcashequivalents,beginningofyear 2,310,296 2,381,090Cash and Cash Equivalents, End of Year $ 6,239,757 $ 2,310,296

Capital Assets and Debt Administration

Theauthorityhad$11.9millionofadditionstocapitalassetsin2012.Theauthorityhadanincreaseindebtduring2011of$114.1millionduetotheseries2011camdenyardsrevenueandseries2011a&brefundingbondissuances.debtwasalsodecreasedbyprincipalpaymentsanddefeasementoftheseries1998aandseries1999bondsof$104.5million.

Economic Outlook

Theauthorityisnotawareofanyfacts,decisionsorconditionsthatwillhaveasignificantimpactonthefinancialconditionsduringthefiscalyearbeyondthoseunforeseensituationsthatwillhavethesameglobaleffectonvirtuallyalltypesofbusinessoperations.

Theauthorityhasthesupportofthemarylandgeneralassemblyforitscurrentactivities.Theauthoritywillcontinuetomonitorrevenueandcloselywatchexpenditurestothebestofitsability.

2 0 1 2 a n n u a l r e p o r t 41


ASSETS

currenTasseTscashandcashequivalents $6,239,757restrictedinvestments 7,403,242accountsreceivable,net 7,638,810duefromprimarygovernment 3,384,727interestreceivable 172,244notereceivable,currentportion 488,181capitalleasesreceivable,currentportion 22,360,000Total Current Assets 47,686,961noncurrenTasseTsprepaidexpensesandotherassets 49,828notereceivable,netofcurrentportion 3,939,458capitalleasesreceivable,netofcurrentportion 188,306,167deferredfinancingcosts,net 1,348,740capitalassets:furnitureandequipment,net 7,299,488intangibleassets,net 124,949,979netcapitalassets 132,249,467Total Noncurrent Assets 325,893,660 Total Assets 373,580,621

LIABILITIES

currenTliabiliTiesaccountspayableandaccruedexpenses 8,240,804interestpayable 1,802,449deferredrevenue 176,357bondspayableandcapitalleases,currentportion 24,631,778Total Current Liabilities 34,851,387noncurrenTliabiliTiesaccruedexpenses,netofcurrentportion 976,013bondspayableandcapitalleases,net 229,275,599deferredrevenue 705,427interestrateswapliability 21,991,668Total Noncurrent Liabilities 252,948,707

Total Liabilities 287,800,094

NET ASSETS

investedincapitalassets 89,655,981restrictedfordebtservice 3,030,919restrictedforcapitalassets 4,372,323unrestricted (11,278,696) Total Net Assets $ 85,780,527

Statement of net aSSetS

year endedjune 30, 2012

Theaccompanyingnotesareanintegralpartofthisfinancialstatement.



42

operaTingrevenuebaltimoreorioles’rent $5,479,504baltimoreravens’contributions 9,075,671admissiontaxes 10,332,250warehouserents 3,880,644cateringcommissions 574,552parkingrevenue 2,093,253miscellaneoussales 2,790,120Total Operating Revenue 34,225,994operaTingexpensessalariesandwages 7,718,708Telephoneandpostage 56,068Travel 43,333utilities 4,165,761vehicleexpense 67,657contractualservices 11,652,984parking 1,429,590suppliesandmaterials 719,039depreciationandamortization 14,912,464fixedcharges 587,579miscellaneous 2,302,033Total Operating Expenses 43,655,216operaTingloss (9,429,222)

nonoperaTing(expenses)revenuecontributionstoothersforoperatingdeficitandcapitalimprovements (5,099,102)contributiontoprimarygovernment (1,750,000)investmentincome 1,191,040changeinfairmarketvalueofswaps (107,735)interestexpense (15,261,174)Total Non Operating Expenses (21,026,971)lossbeforecontributions (30,456,193)Contributions from Primary Governments 18,156,274changeinnetassets (12,299,919)Totalnetassets,beginningofyear 98,080,446Total Net Asset, End of Year $ 85,780,527

Statement of revenue, expenSeS, and ChanGe in net aSSetS

year ended june 30, 2012


2 0 1 2 a n n u a l r e p o r t 43


cashflowsfromoperaTingacTiviTiesreceiptsfromcamdenyards $37,657,397paymentstoemployeesandrelateddisbursements (7,749,605)paymentstosuppliers (20,193,135)Net Cash From Operating Activities 9,714,657

cashflowsfromnoncapiTalfinancingacTiviTiescontributionsfromprimarygovernments 17,406,274conventioncenteroperatingdeficitandcapitalimprovements (4,863,693)principalpaidonbondspayableandcapitalleases (103,737,858)interestpayments (14,718,238)Net Cash From Noncapital Financing Activities (105,913,515)cashflowsfromcapiTalandrelaTedfinancingacTiviTiespurchasesofcapitalassets 3,255,769proceedsfromcapitalleasesreceivable 3,147,664proceedsfromdebtissuance 106,450,000Net Cash From Capital and Related Financing Activities 112,853,433cashflowsfrominvesTingacTiviTiespurchaseofinvestments (14,011,968)interestoninvestments 961,031proceedsfromnotereceivable 325,823Net Cash From Investing Activities (12,725,114)netchangeincashandcashequivalents 3,929,461cashandcashequivalents,beginningofyear 2,310,296Cash and Cash Equivalents, End of Year (including restricted cash of $72,085) $ 6,239,757adjusTmenTsToreconcileneToperaTinglossTocashflowsfromoperaTingacTiviTiesoperatingloss $(9,429,222)adjustmentstoreconcileoperatingloss:depreciationandamortization 14,912,464effectsofchangesinnon-cashoperatingassetsandliabilities:accountsreceivables 3,431,618duefromprimarygovernment (214)accountspayable 663,289prepaidexpenses 136,722Net Cash From Operating Activities $ 9,714,657

Statement of CaSh flowS

year ended june 30, 2012




44

1. NATURE OF OPERATIONS

Themarylandstadiumauthority(theauthority)wasestablishedbylegislationenactedbythestateofmaryland(thestate),effectivejuly1,1986,(annotatedcode1957,sections13701through13722ofthefinancialinstitutionsarticle),toselectasiteanddevelopfinancingalternativesforstadiumfacilitiesinthebaltimoremetropolitanarea.effectivejuly1,1987,thelawwasamended(chapter123,1987lawsofmaryland)toenabletheconstructionofnewfacilities,includingbaseballandfootballstadiums,inthecamdenyardsareaofbaltimorecity(thecity).Theamendmentalsoestablishedthattheauthorityisanindependentunitintheexecutivebranchofthestategovernment.

during2009generalassemblysession,thegeneralassemblymovetheauthorityfromthefinancialinstitutionsarticletothenewlycreatedeconomicdevelopmentarticle,sections10-601to10-658.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity Theauthorityisacomponentunitofthestateofmaryland.Theauthorityisgovernedbyaboard,sixmembersof

whichareappointedbythegovernorofthestateofmarylandandonememberbeingappointedbythemayorofbaltimorecitywiththeconsentofthemarylandstatesenate.

Measurement Focus and Basis of Accounting Theaccompanyingfinancialstatementsoftheauthorityarereportedusingtheeconomicresourcesmeasurement

focusandtheaccrualbasisofaccounting.revenueisrecordedwhenearnedandexpensesarerecordedwhenaliabilityisincurred,regardlessofthetimingofrelatedcashflows.grantsandsimilaritemsarerecognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmet.

Theauthorityhastheoptionundergovernmentalaccountingstandardsboard(gasb)statementno.20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, toelecttoapplyallfinancialaccountingstandardsboard(fasb)pronouncementsissuedafternovember30,1989,unlessfasbconflictswithgasb.Theauthorityhaselectedtonotapplyfasbpronouncementsissuedafternovember30,1989.

indecember2010,thegovernmentalaccountingstandardsboard(gasb)issuedstatementno.62(gasb62)Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements whichintendedtoenhancetheusefulnessofthecodificationofgovernmentalaccountingandfinancialreportingstandardsbyincorporatingguidancethatpreviouslycouldonlybefoundincertainfasbandaicpapronouncements.Therequirementsofthegasb62areeffectiveforfinancialstatementsforperiodsbeginningafterdecember15,2011.earlierapplicationisencouraged.Theauthorityhasevaluatedtheimpactofthegasb62anddidnotexpectamaterialimpactonthefinancialstatements.

Theauthoritydistinguishesoperatingrevenueandexpensesfromnonoperatingitems.operatingrevenueandexpensesgenerallyresultfromprovidingservicesandproducinganddeliveringgoodsinconnectionwiththeauthority’sprincipalongoingoperations.revenueandexpensesnotmeetingthisdefinitionarereportedasnonoperatingrevenueandexpenses.

Cash Equivalents TheauthorityconsidersallcashondepositwiththeTreasuryorfinancialinstitutionstobecashequivalentsaswellas

allhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless.

Investments investmentsarestatedatfairvalue.sharesofmoneymarketmutualfundsarevaluedatquotedmarketprices,which

representthenetvalueofsharesheldbytheauthorityasofyear-end.

2 0 1 2 a n n u a l r e p o r t 45


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Capital Assets furnitureandequipmentarestatedatcostanddepreciatedusingthestraight-linemethodoverthreetotenyears.

Thecapitalizationthresholdforallcapitalassetsis$1,000.

intangibleassetsarecapitalizedatcostandamortizedusingthestraight-linebasisoverlifeoftherelatedcontracts.

Capital Leases Receivable underthetermsofthemasterlease,principalandinterestpaymentsontheauthority’sleaserevenuebondsare

paidbythestatewhendue.Theauthorityhasestablishedacapitalleasereceivableequaltothefutureprincipalpayments,lessanyunspentproceeds,onitsoutstandingdebt.

Deferred Financing Costsfinancingcostsassociatedwiththeissuanceofbondsandnotesaredeferredandamortizedoverthelifeofthedebtusingtheeffectiveinterestmethod.amortizationexpensewas$172,758fortheyearendedjune30,2012,andisrecordedininterestexpenseintheaccompanyingfinancialstatements.accumulatedamortizationwas$1,294,109asofjune30,2012.

Project AdvancesTheauthorityisoverseeingprojectsforvariousstateuniversitiesandlocaljurisdictions.advancesarereceivedtopayforexpensesincurredortobeincurred.unexpendedadvancesarenotthepropertyoftheauthorityandarerecordedasliabilities.Therewerenoadvancesoutstandingasofjune30,2012.

Use of Restricted Assets whenanexpenseisincurred,theauthorityfirstappliesresourcesavailablefromtheapplicablerestrictedassets

beforeapplyingresourcesfromunrestrictedassets.Theauthority’sassetsarerestrictedinaccordancewithsections13-715,13-716,13-717,13-717.1,and13-717.2ofthefinancialinstitutionsarticleoftheannotatedcodeofmaryland.

New Pronouncements Thegasbissuedstatementno.65,itemspreviouslyreportedasassetsandliabilities,effectiveforfinancial

statementsforperiodsbeginningafterdecember15,2012,statementno.67,financialreportingforpensionplans-anamendmentofgasbstatementno.25,effectiveforfinancialstatementsforperiodsbeginningafterjune15,2014,andstatementno.68accountingandfinancialreportingforpensions-anamendmentofgasbstatementno.27,effectiveforfinancialstatementsforperiodsbeginningafterjune15,2013.Theauthorityisstillintheprocessofdeterminingtheeffectofimplementingthesegasbstatementsandwilladoptthesegasbstatementsbeforetheeffectivedate.

3. DEPOSITS AND INVESTMENTS

asofjune30,2012,theauthorityhadcashondepositinaninternalpooledcashaccountwiththemarylandstateTreasurer(theTreasurer).TheTreasurermaintainstheseandothermarylandstateagencyfundsonapooledbasisinaccordancewiththeannotatedcodeofthestateofmaryland.ThestateTreasurer’sofficeinvestspooledcashbalancesdaily.Theinvestmentconsistedofdirectpurchasesofsecuritiesorrepurchaseagreements.Thetotalofthecashaccountswas$5,675,035asofjune30,2012.

Thecarryingvalueofotherdepositsasofjune30,2012,andtheassociatedbankbalanceswere$564,722,whichwerecoveredbyfederaldepositoryinsurance.

asofjune30,2012,theauthorityhad$339,043ofunspentmasterequipmentandenergyperformanceleasefinancingsheldwiththestateTreasurerrestrictedforthepurchaseofequipment.ThesefundsareinvestedbythestateTreasurer.

asofjune30,2012,theauthorityhadabalanceof$7,064,200infundsheldbytrusteesforvariousbondseries.Thebankofnewyorkheld$5,861,205andm&Tbankheld$1,202,995.asofjune30,2012,thesebalanceswereinvestedinvariousmoneymarketmutualfundaccountswhichmatureinlessthanayear.Themoneymarketfundsusedbym&Tbankandthebankofnewyorkareratedaaabymoody’sandaaabys&p.



46

3. DEPOSITS AND INVESTMENTS (continued)

asofjune30,2012,m&Tbankhadthefollowinginvestmentsandmaturities:

Investment Maturities (in Years)

Investment Type Value Less than 1 1-5 6-10 11-15 More than 15moneymarket $1,202,995 $1,202,995 - - - -

asofjune30,2012,thebankofnewyorkheldthefollowinginvestmentsandmaturities:

Investment Maturities (in Years) Investment Type Value Less than 1 1-5 6-10 11-15 More than 15moneymarket $5,861,205 $5,861,205 - - - -

Theauthorityisrestrictedbythetrustindentureforeachbondissuanceastothetypeofinvestmentsthatcanbeutilized.alltransactionsmustbecompletedbythestateofmarylandTreasurer’soffice.

Interest rate riskinterestrateriskistheriskthatchangesininterestratesthatwilladverselyaffectthefairvalueofaninvestment.

Theauthorityhasnoformalinvestmentpolicythatlimitsinvestmentmaturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromchangesininterestrates.

Custodial credit riskforaninvestment,custodialcreditriskistheriskthat,intheeventofthefailureofthecounterparty,theauthoritywouldnotbeabletorecoverthevalueofitsinvestmentsorcollateralsecuritiesthatareinthepossessionofanoutsideparty.investmentsecuritiesareexposedtocustodialriskifthesecuritiesareuninsured,arenotregisteredinthenameoftheauthority,andareheldbyeither(a)thecounterpartyor(b)thecounterparty’strustdepartmentoragentbutnotintheauthority’sname.

noneoftheauthority’srestrictedinvestmentsareexposedtocustodialcreditrisk.

Credit riskcreditriskistheriskthatanissuerorothercounterpartytoaninvestmentthatwillnotfulfillitsobligations.

Foreign currency riskforeigncurrencyriskistheriskthatchangesinexchangeratesthatwilladverselyaffectthefairvalueofaninvestment.

Theauthorityisnotexposedtoanymaterialamountofforeigncurrencyrisk.

Concentration of credit riskconcentrationofcreditriskistheriskoflossattributedtothemagnitudeoftheauthority’sinvestmentinthesecuritiesofasingleissuer.

2 0 1 2 a n n u a l r e p o r t 47


4. ACCOUNTS RECEIVABLE

accountsreceivableasofjune30,2012,consistedofthefollowing:

baltimoreorioles $4,314,179cityofbaltimore 508,000baltimoreravens 1,781,323other 1,035,308Total $ 7,638,810

5. NOTE RECEIVABLE

undertheorioles’lease,theoriolesshallreimbursetheauthorityforamountsadvancedtoequip,furnishandrenovateprivatesuitesinorioleparkatcamdenyards.privatesuiteconstructioncostsarerepayableovera30-yearperiodandfurnishingandrenovationcostsoverafive-yearperiodwithinterestat6.5%,whichwasadjustedonapril1,2012,totheprimerateofinterestplus1.75%.interestincomefortheyearendedjune30,2012,was$262,392.

futurenotereceivablepaymentstobereceivedasofjune30,2012,wereasfollows:

For the Years Ending June 30, 2013 $488,1812014 488,1812015 488,1812016 429,6202017 410,9662018-2022 2,054,8282023 67,682Total $ 4,427,639

6. CAPITAL LEASES RECEIVABLE

asofjune30,2012,thecapitalleasesreceivableconsistedofthefollowing:

Totalminimumleasepaymentstobereceived $272,885,617less:unearnedinterestincomerangingfrom2%to6.25% 60,800,617principalbalanceonoutstandingdebt 212,085,000less:liquidassetstobeusedinconstruction 1,418,833Total $ 210,666,167



48

6. CAPITAL LEASES RECEIVABLE (continued)

futureminimumleasepaymentstobereceivedasofjune30,2012,wereasfollows:

For the Years Ending June 30, 2012 $32,202,2692013 32,228,6752014 30,926,3112015 25,882,9662016 24,541,9052017-2021 95,238,3612022-2026 31,865,130Total $ 272,885,617

capitalleasesreceivableactivityfortheyearendedjune30,2012,wasasfollows:

Beginning Balance Principal Reductions Ending BalancecapiTalleasesreceivable camdenyards $158,254,075 $(4,052,974) $162,307,049baltimorecityconvctr 17,520,550 4,180,661 13,339,889oceancityconvctr 6,551,224 1,186,267 5,364,957montgomerycounty 17,000,000 1,005,000 15,995,000hippodrome 14,487,981 828,719 13,659,262Capital Leases Receivable $ 213,813,830 $ 3,147,673 $ 210,666,157

7. CAPITAL ASSETS

furnitureandequipmentandintangibleassetsactivityfortheyearendedjune30,2012,wasasfollows:

Beginning Balance Additions Reductions Ending BalancecapiTalasseTs:furnitureandequipment $20,857,123 $28,994 $- $20,886,117less:accumulateddepreciation 11,456,223 2,130,406 - 13,586,629Capital Assets, Net $ 9,400,900 $ (2,101,412) $- $ 7,299,488 inTangibleasseTs: facilityrights $284,176,537 $11,925,298 $16,722,975 $279,378,860less:accumulateddepreciation 141,649,248 12,779,633 - 154,428,881Intangible Assets, Net $ 142,527,289 $ (854,335) $ 16,722,975 $ 124,949,979

Thefacilityrightsrelatetotheauthority’srightsinvariousfacilitiesthattheauthorityconstructedorrenovated.Theserightsareintangiblesandarebeingamortizedoverthetermsofagreementswiththerespectivefacilities.

2 0 1 2 a n n u a l r e p o r t 49


8. BONDS PAYABLE AND CAPITAL LEASES

bondspayableandcapitalleasesasofjune30,2012,consistedofthefollowing:

leaserevenuebondspayable: 2002series:issued$10,250,000injuly2002at3.0%to5.7%perannum,dueinvaryinginstallmentsthroughseptember15,2013 $2,410,0002002series:issued$20,250,000injuly2002at5.0%to6.25%perannum,dueinvaryinginstallmentsthroughjune15,2022 13,660,0002003series:issued$23,185,000injanuary2003at2.0%to5.0%perannum,dueinvaryinginstallmentsthroughjune15,2024 15,995,0002004series:issued$8,730,000infebruary2004at3.0%to5.21%perannum,dueinvaryinginstallationsthroughdecember15,2024 7,240,0002006series:issued$31,600,000indecember2006atavariablerate;dueinvaryinginstallmentsthroughdecember15,2014 13,555,0002007series:issued$73,500,000infebruary2007atavariablerate;dueinvaryinginstallmentsthroughmarch1,2026 60,775,0002011series:issued$6,630,000inmarch2011at2.25%perannum,dueinvaryinginstallmentsthroughdecember15,2015 5,395,0002011aseries:issued$31,435,000indecember2011at0.8%to3.1%perannum,dueinvaryinginstallmentsthroughdecember15,2019 31,435,0002011bseries:issued$62,915,000indecember2011at1.5%to5.0%perannum,dueinvaryinginstallmentsthroughdecember15,2019 61,620,000Lease revenue bonds payable 212,085,000

revenuebondspayable: 2010series:issued$10,000,000inapril2010at2.90%annum,dueinvaryinginstallmentsthroughdecember15,2013 9,245,0002010series:issued$11,100,000inaugust2011at1.32%annum,dueinvaryinginstallmentsthroughdecember15,2015 11,100,000

capiTalleases:2007masterequipmentleasefinancingindecember2007at5.6%rate,dueinvaryinginstallmentsthroughjanuary1,2018 2,312,5842011masterequipmentleasefinancinginapril2011at5.35%rate,dueinvaryinginstallmentsthroughjanuary1,2020 3,493,8492010masterenergyperformancecontractlease-purchaseagreementinjanuary2011at4.09%rate,dueinvaryinginstallmentsthroughjuly1,2022 2,228,8282010masterenergyperformancecontractlease-purchaseagreementinjanuary2011at6.11%rate,dueinvaryinginstallmentsthroughjuly1,2022 5,492,766subtotal 245,958,027mealoan,1.0%dueinvaryinginstallmentsthroughjuly2021 1,000,000subtotalleaserevenuebond,revenuebondspayableandcapitalleases $246,958,027plusunamortizedpremium(includesunamortizedpremiumsrelatedtobothseriesof2002,2003andthe2004revenuebondspayableof$2,813,$52,645,$1,234,and$78,respectively,asofjune30,2011) 7,019,413lessunamortizeddiscount(includesunamortizeddiscountrelatingtothe1995and1996revenuebondspayableof$9,999and$62,488,respectively,asofjune30,2011) (70,063)Net Bonds Payable and Capital Leases $ 253,907,377



50

8. BONDS PAYABLE AND CAPITAL LEASES (continued)

ondecember15,1998,theauthorityissuedthetaxablesportsfacilitiesleaserevenuerefundingbonds,series1998aandb,toretire,togetherwithcertainotherfunds,theauthority’ssportsfacilitiesleaserevenuenotes,series1989c,andtopayrelatedfinancingandissuancecosts.principalandinterestontheseries1998aandbbondsarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.Theinterestratesfortheseries1998aandbbondsarebasedonthe30-dayusdlibor,whichisresetweekly.

ondecember9,1999,theauthorityissuedthetax-exemptsportsfacilitiesleaserevenuerefundingbonds,series1999,toretire,togetherwithcertainotherfunds,theseries1989dbonds.Theseries1989dbondswereusedtofinancetheconstructionoforioleparkatcamdenyardsandinparttorefinancethecostsofacquiringandpreparingthepropertyatthesite.Theinterestratefortheseries1989dbondsisbasedonthe30-dayusdlibor,whichisresetweekly.

onjuly10,2002,theauthorityissuedtaxablesportsfacilitiesleaserevenuebonds,series2002,toretire,the2001bondanticipationnotes.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.interestispayablesemiannuallyatratesvaryingfrom3.0%to5.7%perannum.Thebondsmatureseriallyinvaryingamountsthroughseptember15,2013.

onjuly10,2002,theauthorityissuedtaxablehippodromeperformingartscenterTaxablerevenuebonds,series2002,tofinance,togetherwithcertainotherfunds,renovationofthehippodromeperformingartscenter.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.interestispayablesemiannuallyatratesvaryingfrom5.0%to6.25%perannum.Thebondsrequireasinkingfundredemptionbeginningjune15,2014.

onjanuary14,2003,theauthorityissuedtax-exemptmontgomerycountyconferencecenterleaserevenuebonds,series2003,tofinance,togetherwithcertainotherfunds,constructionofthemontgomerycountyconferencecenter.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateunderthemasterlease.

interestispayablesemiannuallyatratesvaryingfrom2.0%to5.0%perannum.Thebondsmatureseriallyinvaryingamountsthroughjune15,2024.

onmarch2,2004,theauthorityissuedtaxablecamdenstationleaserevenuebonds,series2004,torenovatecamdenstationlocatedatcamdenyards.principalandinterestarepayableprimarilyfromthebasicrenttobepaidbythestateofmarylandunderthemasterleaseagreement.interestispayablesemiannuallyatratesvaryingfrom3.0%to5.21%perannum.Thebondsmatureinvaryingamountsthroughdecember15,2024.

ondecember9,2006,theauthorityissuedtheTaxexemptbaltimoreconventioncenterleaserevenuerefundingbonds,series2006,toretiretheseries1994bonds.Theseries1994bonds,(alongwithothersources)wereusedtofinancetheconstructionoftheexpansionofthebaltimoreconventioncenter.Theinterestratefortheseries2006bondsiscalculatedweeklybyitsremarketingagentusingthe30dayusdlibor.

onfebruary1,2007,theauthorityissuedtheTax-exemptsportsfacilitiesleaserevenuerefundingbondsfootballstadiumissue,series2007,toretiretheseries1996bonds.Theseries1996bondswereusedtofinancetheconstructionofthefootballstadiumatthecamdenyardscomplex.Theinterestratefortheseries2007bondsiscalculatedweeklybytheremarketingagentusingthe30dayusdlibor.

indecember2007,theauthorityreceivedboardofpublicwork’sapprovaltoborrow$3.5millionfromthestateofmarylandmasterequipmentleasefinancingprogram.principalandinterestarepayablefromexcessrevenuegeneratedatthecamdenyardscomplex.interestispayablesemiannuallyattherateof5.6%perannum.Thisfinancingissettomatureonjanuary1,2018.aspartofthesettlementagreementbetweentheauthorityandthebaltimoreorioleslimitedpartnershipdatedseptember2007,theauthoritywasallowedtoborrow$250,000fromthesupplementalimprovementsfundwiththeconsentofthebaltimoreorioleslimitedpartnership.Theauthoritymustrepaytheloanwithinthreeyearsoftheborrowingat0%interest.Thefullamountborrowedwillbepaidbackbyaugust2012.

innovember2009,theauthorityenteredintoacontractwithpepcoenergyservicestoprovideenergyupgradesandenhancementstoorioleparkatcamdenyardsandthewarehouse.Theenergyupgradesandenhancementswillcostapproximately$6.0million.Theauthorityisfinancingthecostsunderthestate’senergyperformancecontractlease-purchaseagreementover12years.interestispayablesemiannuallyattherateof6.11%perannum.Thisfinancingissettomatureonjuly1,2022.

2 0 1 2 a n n u a l r e p o r t 51


8. BONDS PAYABLE AND CAPITAL LEASES (continued)

innovember2009,theauthorityenteredintoacontractwithpepcoenergyservicestoprovideenergyupgradesandenhancementstom&Tbankstadium.Theenergyupgradesandenhancementswillcostapproximately$2.4million.Theauthorityisfinancingcostsunderthestate’senergyperformancecontractlease-purchaseagreementover12years.interestispayablesemiannuallyattherateof4.09%perannum.Thisfinancingissettomatureonjuly1,2022.

Theauthorityandthebaltimoreravensagreedtopurchaseandinstall$9.6millionofnewaudioandvideoequipmentfundedby$5.6millionfromthebaltimoreravensand$4.0millionfromtheauthority.Theauthority’ssharewasfinancedunderthestate’smasterequipmentlease-purchaseprograminapril2011andamortizedover10years.interestispayablesemiannuallyattherateof5.35%perannum.Thisfinancingissettomatureonjanuary1,2020.

onapril15,2010,theauthorityissuedsportsfacilitiesTaxablerevenuebonds,series2010,torenovateorioleparklocatedatcamdenyards.principalandinterestarepayableprimarilyfromlotteryproceedsreceivedbytheauthority.interestispayablesemiannuallyatarateof2.9%perannum.Thebondsmaturedecember15,2013.

onmarch16,2011,theauthorityissuedtheoceancityconventioncenterexpansionleaserevenuerefundingbond,series2011intheamountof$6.6million.proceedswereusedtorefundtheoutstandingbalanceoftheseries1995,$6.5million,alongwith$125,000forclosingcosts.interestispayablesemiannuallyattherateof2.25%perannum.Thebondmaturesdecember15,2015.Theapproximatedifferenceintheseries1995andseries2011debtservicepaymentis$0.4million.Thisresultedinapresentvaluesavingsataninterestrateof2.25%of$0.4million.

onaugust17,2011,theauthorityissuedsportsfacilitiesTaxablerevenuebonds,series2011,torenovateorioleparkandthewarehouselocatedatcamdenyards.principalandinterestarepayableprimarilyfromlotteryproceedsreceivedbytheauthority.interestispayablesemiannuallyatarateof1.32%perannum.Thebondsmaturedecember15,2014.

ondecember21,2011,theauthorityissuesthesportsfacilitiesleaserevenuerefundingbonds(baseballstadiumissue)series2011a(federallyTaxable)andthesportsfacilitiesleaserevenuerefundingbonds(baseballstadiumissue),series2011b(alternativeminimumTax)of$31.4millionand$62.9millionrespectively.Theproceedsplusbondpremiumof$7.7millionwereusedtorefundtheoutstandingbalanceoftheseries1998a,$11.0million,theoutstandingbalanceoftheseries1999,$70.6million,theterminationfeetoterminatetheinterestrateswapagreementwithaigfinancialcorporation,$19.7millionandissuancecostsof$0.7million.Theapproximatelydifferenceintheseries1998aandtheseries1999comparedwiththeseries2011aandseries2011bis$1.9million.Thisresultedinapresentvaluesavingsattheinterestrateof2.09%of$1.7million.

debtservicerequirementssubsequenttojune30,2012,wereasfollows:

For the Years Ending June 30, Principal Maturities Interest Total2013 24,631,778 10,969,531 35,601,3092014 34,124,167 9,875,664 43,999,8312015 34,510,217 8,574,141 43,084,3582016 20,595,127 7,368,718 27,963,8452017 20,159,115 6,463,669 26,622,7842018-2022 84,516,047 18,246,983 102,763,0302023-2026 28,421,476 3,933,387 32,354,963Total $ 246,958,027 $ 65,432,093 $ 312,390,120



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9. NONCURRENT LIABILITIES

noncurrentliabilityactivityfortheyearendedjune30,2012,wasasfollows:

Beginning Amounts Due Balance Additions Reductions Ending Balance Within One Year

compensatedabsences $871,673 $334,934 $482,049 $724,558 $35,000workers’compensation 200,036 265,000 126,036 339,000 52,545revenuebondsandcapitalleasepayable,net 244,230,168 114,163,801 104,486,592 253,907,377 24,631,778deferredrevenue 1,763,227 - 881,443 881,784 176,357interestrateswapliability 41,591,454 790,960 20,390,746 21,991,668 -Total $ 288,656,558 $115,554,695 $126,366,866 $277,844,387 $ 24,895,680

10. DEFERRED REVENUE

Theauthorityreceivedanadvancepaymentforitsportionofachillerandgeneratorplantfromthebaltimoreravensthatwouldbeincludedinitsfutureoperating.Theauthoritywillreceivea12%returnfromthebaltimoreracingdevelopment,llctoreimbursetheauthorityforimprovementsdoneatthecamdenyardscomplex.revenuetoberecognizedinsubsequentyearsasofjune30,2012,willbeasfollows:

For the Years Ending June 30, 2013 176,3572014 176,3572015 176,3572016 176,3572017 176,357Total $ 881,784

Theadvancedpaymentisrecordedasdeferredrevenueasofjune30,2012,andwillberecognizedasrevenueduringthefollowingyears.

11. INCOME FROM STATE AND MUNICIPAL SOURCES

contributionsfromtheprimarygovernmentrepresentspaymentsreceivedfromthestateofmarylandunderthemasterleaseandotheragreementstofunddebtservice,operatingdeficits,andcertaindevelopmentcostsforvariousauthorityprojects.

duringtheyearendedjune30,2012,baltimorecitymadeanannualcontributionof$1millionpertheannotatedcodeestablishingtheauthority.ThecityfundsareinvestedwiththestateTreasurerforthepurposeofretiringtheauthority’sdebtincurredtoconstructorioleparkatcamdenyards.

12. VALUATION OF INTEREST RATE SWAP AGREEMENT

Objective of the Interest Rate Swaps. Theauthorityenteredintofourinterestrateswapsforthepurposeofhedgingorfixingitsinterestexpenseassociatedwiththeauthority’sseries1998,1999,2006and2007bondissuances.

Theauthorityreceived$15,522,129and$3,313,500,onapril1,1996,andjune10,1998,respectively,pursuanttotheaboveswapagreementsaspremiumsontheswapagreements.Theswappremiumswereusedtowardthecostofconstructingthefootballstadium.inaddition,semiannualliquidityfeeswererequiredfortheoctober1,1993,swapagreementundertheliquidityguaranteeagreementthroughtheissuedateofthenewvariableratedebt.

Thefees,whichtotaled$760,762,areincludedindeferredfinancingcostsandarebeingamortizedoverthelifeofthenewvariableratedebt.

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12. VALUATION OF INTEREST RATE SWAP AGREEMENT (continued)

ondecember9,1999,theauthorityissued,inaccordancewiththeoctober1,1993swapagreement,tax-exemptvariableratebonds,series1999,toretirethe$121,380,000ofoutstandingseries1989dbonds.Thisrefundingresultedinanexcessofthereacquisitionpriceoverthenetcarryingamountoftheolddebtof$3,467,367.Thisdifference,whichisreportedasadeductionfromleaserevenuebondspayable,isbeingamortizedtointerestexpensethroughtheyear2019,thelifeofthenewbonds.Theauthoritycompletedtherefundingtoreduceitsdebtservicepaymentsby$1,727,891andtoobtainaneconomicgainof$10,323,329.

Terms.Thenotionalamountsoftheswapsmatchtheprincipalamountsoftheassociatedbondissues.Theauthority’sswapagreementscontainscheduledreductionstotheoutstandingnotionalamountsthatmatchscheduledprincipalreductionintheassociateddebt.Theterms,includingthefairvaluesandcreditratingsontheswapcounterpartiesasofjune30,2012,areasfollows:

Terms.Thenotionalamountsoftheswapsmatchtheprincipalamountsoftheassociatedbondissues.Theauthority’sswapagreementscontainscheduledreductionstotheoutstandingnotionalamountsthatmatchscheduledprincipalreductionintheassociateddebt.Theterms,includingthefairvaluesandcreditratingsontheswapcounterpartiesasofjune30,2011,areasfollows:

Fixed Variable Swap Counter- Associated Notional Effective Rate Rate Fair Termination partyBond Issue Amount Date Paid Recieved Values Date Ratingseries2006 $13,475,000 12/05/08 5.875%** sifma*** $(1,143,275) 12/15/2014 a2/a+/aseries2007 60,540,000 12/05/08 5.69%to5.80** sifma*** (20,848,393) 3/1/2026 a2/a+/aTotal $ 74,015,000 $(21,991,668)

* calculatedratebaseduponthefixedpaymentsestablishedintheswapagreementsdividedbythenotionalamountoutstandingateachfixedratepaymentdate.series2006swaphasonerate(5.875%)forthefinaltwomaturitiesofthe2006bonds.

** whenbarclaysbankplcbecamethereplacementswapprovider,thevariableratethattheauthorityreceiveschangedfromtheratepaidontheassociatedtax-exemptvariableratebondissuetoaratebasedonchangesonthesifmaindex.

Thetablebelowsetsforthasummaryofchangesinfairvaluefortheyearendedjune30,2012,andthefairvalueasofjune30,2012.

Change in Fair Value Fair Value as of June 30, 2011 Classification Fair Value Classification Amount

Fair value hedge payfixedinterestrateswap changein $(107,735) swapvaluation $21,891,668 fairmarket liability valueofswaps

Fair Value.becauseinterestrateshavedeclinedfromratesthatwereineffectondatestheswapswereenteredinto,allswapshaveanegativefairvalueasofjune30,2012.Thefairvaluesoftheswapsweredevelopedbyanindependentvaluationconsultanttotheauthoritythatdoesnothaveavestedinterestintheswaps,usingamarketacceptedmethodsimilartothezerocouponmethodexamplepermittedbyaccountingprinciplesgenerallyacceptedintheunitedstatesofcalculatingfairvalue.Themethodologyusedconsistsofcalculatingthefuturenetsettlementpaymentsrequiredbytheswapagreement,assumingthatthecurrentforwardratesimpliedbytheyieldcurvecorrectlyanticipatefuturespotinterestrates.Thesepaymentsarethendiscountedusingthespotratesimpliedbythecurrentyieldcurveforhypotheticalzerocouponbondsdueonthedateofeachfuturenetsettlementdateoftheswap.

1998A Swap and 1999 Swap Termination.ondecember21,2011,theauthorityrefundedthe1998aand1999bondswiththeseries2011aandbbonds.Theswapsassociatedwiththeseries1998aand1999bondswereterminated.byreplacingthevariableratebondswiththefixedratebondsandterminatingtheswaps,theauthorityeliminatedtherisksinherentwithbothvariableratedebtandswaps.Theunamortizedportionofthedeferredfinancingcostfortheseries1998aand1999bondsof$598,957werealsowrittenoff.



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Credit Risk.asofjune30,2012,theauthoritywasnotexposedtocreditriskbecausetheswapshadanegativefairvalue.however,shouldinterestrateschangeandthevalueoftheswapsbecomepositive,theauthoritywouldbeexposedtocreditriskintheamountequaltotheswaps’fairvalue.barclaysbankplc,thecounterpartytotheconventioncenterswapandthefootballswapwasrateda+bystandardandpoor’s,a2bymoody’sinvestorsservice,andabyfitchasofjune30,2012.iftheauthority’sratingsfordebtsecuredbythemasterleasewiththestateofmarylandfallbelowbbb+orbaa1bys&pandmoody’soraresuspended,thefairvalueoftheswapwillbefullycollateralizedbytheauthoritywithcashorsecurities.collateralwouldbepostedwithanindependentthirdpartycustodian.Theauthoritywasratedaa+bystandardandpoor’s,aa2bymoody’sinvestorsserviceandaabyfitchasofjune30,2012.

12. VALUATION OF INTEREST RATE SWAP AGREEMENT (continued)

Basis Risk.basisriskistheriskthattheinterestratepaidbytheauthorityonunderlyingvariableratebondstobondholdersdiffersfromthevariableswapratereceivedfromtheapplicablecounterparty.Theswapsbothhedgetax-exemptrisk,andthereforeasofjune30,2012withregardtax-exemptinterestrisk,theyarenotexposedtobasisrisksincetheauthorityreceivesavariableratebasedonthesifmaswapindextooffsetthevariableratetheauthoritypaysonitsbonds.

Termination Risk. Theswapagreementsprovideforcertaineventsthatcouldcausethecounterpartiesortheauthoritytoterminatetheswaps.Theswapsmaybeterminatedbythecounterpartiesortheauthorityiftheotherpartyfailstoperformunderthetermsoftheswapagreements.iftheswapsareterminated,theauthoritywouldnolongerhavesyntheticfixedrateobligations.also,ifatthetimeofterminationofoneofitsswaps,theswaphasanegativefairvalue,theauthoritywouldbeliabletothecounterpartyforapaymentequaltotheswap’sfairvalue.

Swap Payments and Associated Debt. asratesvary,variable-ratebondsinterestpaymentsandnetswappaymentswillvary.Theseamountsassumethatthecurrentinterestratesonvariableratebondsandthecurrentreferenceratesofhedgingderivativeinstrumentswillremainthesamefortheirterm.astheseratesvary,interestpaymentsonvariableratebondsandnetreceipts/paymentsonthehedgingderivativeinstrumentswillvary.Theswap-netinterestcolumnreflectsonlynetreceipts/paymentsonderivativeinstruments,thenetswappaymentsareasfollows:

variable–raTebonds(1)

For the Fiscal Years Ending Bond Swap - Net June 30, Principal Interest(2) Interest(3) Total2013 $7,230,000 $118,928 $4,012,727 $11,361,6552014 7,650,000 107,360 3,606,598 11,363,9582015 8,065,000 95,120 3,174,661 11,334,7812016 3,485,000 82,216 2,863,851 6,431,0672017 3,685,000 76,640 2,670,850 6,432,4902018 3,890,000 70,744 2,466,710 6,427,4542019 4,115,000 64,520 2,250,872 6,430,3922020 4,350,000 57,936 2,022,502 6,430,4382021 4,595,000 50,976 1,781,043 6,427,0192022 4,860,000 43,624 1,525,937 6,429,5612023 5,140,000 35,848 1,256,070 6,431,9182024 5,435,000 27,624 968,045 6,430,6692025 5,750,000 18,928 663,441 6,432,3692026 6,080,000 9,728 341,134 6,430,862Total $74,330,000 $860,192 $29,604,441 $104,794,633

(1) includesprincipaldueonthebonds,interestdueonthebondsandnetswappayments(fixedrateinterestpaidlessvariablerateinterestreceivedbasedontheoutstandingnotionalamountoftheswap)ontheconventioncenterswapandfootballswapagreementsandrelatedbonds.

(2) asofjune30,2012,theauthority’stax-exemptvariableratefordebtservicerequirementsbondswas0.16%.

2 0 1 2 a n n u a l r e p o r t 55


13. RISK MANAGEMENT

Theauthorityisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestructionofassets;errorsandomissions;injuriestoandillnessofemployees;andnaturaldisasters.Theauthorityparticipatesinthestate’svariousself-insuranceprograms.Thestateisself-insuredforgeneralliability,propertyandcasualty,workers’compensation,environmentalandantitrustliabilitiesandcertainemployeehealthbenefits.

Thestateallocatesthecostofprovidingclaimsservicingandclaimpaymentsbycharginga“premium”totheauthoritybasedonapercentageoftheauthority’sestimatedcurrentyearpayrollorbasedontheaveragelossexperiencedbytheauthority.Thischargeconsidersrecenttrendsinactualclaimsexperiencedbythestateasawholeandmakesprovisionsforcatastrophiclosses.

Therehavebeennosignificantreductionsininsurancecoveragefromtheprioryear.additionally,settlementshavenotexceededinsurancecoverageforthepastthreefiscalyears.

14. OPERATING LEASES

leaserentalincome

Theauthorityhasleasedcertainofficespaceinthecamdenyardswarehousetovarioustenantswithtermsrangingfrom3yearsto20years.Thefutureminimumleaserentalstobereceivedonnoncancelableoperatingleasesasofjune30,2012,wereasfollows:

For the Years Ending June 30, Amount2013 3,772,8302014 3,694,5762015 3,893,5852016 2,540,7272017 800,8862018-2022 1,789,2532023-2026 1,549,571Total $ 18,041,428

leaserentalincomefortheyearendedjune30,2012,was$3,880,644.

15. RETIREMENT PLANS

Maryland State Retirement and Pension SystemTheauthoritycontributestotheretirementandpensionsystemofmaryland(thesystem),establishedbythestatetoprovidepensionbenefitsforstateemployeesofvariousparticipatingentitieswithinthestate.althoughthesystemisanagent,multiple-employerpublicemployeeretirementsystem,thesystemdoesnotperformaseparatevaluationfortheauthority,andtheauthority’sonlyobligationtothesystemisitsrequiredannualcontribution.Thesystempreparesaseparatecomprehensiveannualfinancialreport,whichcanbeobtainedfromtheretirementandpensionsystemofmarylandatthestateofficebuilding,120eastbaltimorestreet,baltimore,maryland21202.

Funding Policy Theauthority’srequiredcontributionisbaseduponapercentageofcoveredpayrollbasedonthestate’sallocationofitsannualcost.Theentryagenormalcostmethodistheactuarialcostmethodused.boththeauthorityandcoveredemployeesarerequiredbystatestatutetocontributetothesystem.Theemployeescontributefrom2%to5%ofcompensation,asdefined,dependingontheparticipant’splan.Theauthoritymadeitsrequiredcontributionduringfiscalyearsendedjune30,2012and2011,of$608,196and$593,577respectively.



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15. RETIREMENT PLANS (continued)

Other Post-Employment Benefitsmembersofthestateretirementandpensionsystemofmaryland(thestatesystem)andtheirdependentsareprovidedpostemploymenthealthcarebenefitsthroughthestateemployeeandretireehealthandwelfarebenefitsprogramTheplanisacostsharingdefinedbenefithealthcareplanestablishedbythestatepersonnelandpensionsarticle,section2-501through2-516oftheannotatedcodeofmaryland.Theplanisself-insuredtoprovidemedical,hospitalization,prescriptiondruganddentalinsurancebenefitstoeligiblestateemployees,retirees,andtheirdependents.Thestatedoesnotdistinguishemployeesbyemployer/stateagency.instead,thestateallocatesthepostemploymenthealthcarecoststoallparticipatingemployers.

financialinformationfortheplanisincludedinthestateofmarylandcomprehensiveannualfinancialreport,whichcanbeobtainedfromthecomptrollerofmaryland,louisl.goldsteinTreasurybuilding,annapolis,md21404.

aseparateactuarialvaluationisnotperformedbytheauthority.Theauthority’sonlyobligationtotheplanisitsrequiredannualcontribution.Therewasnorequiredcontributionfortheyearendedjune30,2012.

Plan Description

Theauthority’semployeesaremembersoftheplan.membersmayenrollandparticipateinthehealthbenefitsoptionsiftheretireeendedstateservicewithatleast10yearsofcreditableservicewithinfiveyearsbeforetheageatwhichavestedretirementallowancewouldbeginoriftheretireeendedstateservicewithatleast16yearsofcreditableservice.

Funding Policybeginninginfiscalyear2008,statelawrequiresthestate’sdepartmentofbudgetandmanagementtotransferanysubsidyreceivedasaresultofthefederalmedicareprescriptiondrugimprovementandmodernizationactof2003orsimilarsubsidytotheopebTrusttoprefundopebbenefits.Tofurtherprefundbenefits,duringfiscalyear2008,thestatetransferredfromthestatereservefunddedicatedpurposeaccount.additionally,thestateisrequiredbylawtoprovidefundingeachyearfortheplanforthestate’sshareofthepay-as-you-goamountnecessarytoprovidecurrentbenefitstoactiveandretiredemployeesandtheirdependents.fundsmayalsobeseparatelyappropriatedinthestate’sbudgetfortransfertotheopebTrust.

basedoncurrentpractice,thestatesubsidizesapproximately50%to85%ofcoveredmedical,dental,prescriptionandhospitalizationcostsdependingonthetypeofinsuranceplan.Thestateassessesasurchargeforpostemploymenthealthcarebenefits,whichisbasedonhealthcareinsurancechargesforcurrentemployees.costsforpostretirementbenefitsareforstateofmarylandretirees.

formerauthorityemployeeswhoarereceivingretirementbenefitsmayparticipateinthestate’shealthcareinsuranceplans.Theseplans,whichprovideinsurancecoverageformedical,dentalandhospitalcosts,arefundedcurrentlybythepaymentofpremiumstothecarriersand,understatepolicy,arecontributory.substantially,allemployeesbecomeeligibleforthesebenefitswhentheyretirewithpensionbenefits.

16. LITIGATION

inthenormalcourseofoperations,certainclaimshavebeenbroughtagainsttheauthority,whichareinvariousstagesofresolution.managementbelievesthattheultimateresolutionoftheclaimswillnothaveamaterialadverseeffectontheauthority’sfinancialposition.

The Benefactor

in2012wecelebratedthelifeofartmodell,themanwhobroughtnflfootballbacktobaltimoretwelveyearsafterthemayflowervansdeparted.

artmodell’scontributionstothecityofbaltimorewerenotlimitedtothefranchiserelocation.heandhiswifepatwereknownfortheirphilanthropy,withgenerouscontributionstotheperformingartsandeducationalopportunitiesfortheunderprivileged.

itwasaltogetherfittingthattheravenstributetotheirfounderwasnationallytelevisedonthefirstmondaynightofthe2012season.duringhismanyyearsofteamownership,artmodellhelpedbrokerthenfl’spartnershipwithtelevision.healsorecognizedthesingularfocusthatmondaynightfootballcouldbringtothegame,andchampionedtheconceptthatbecameanentertainmentevent.

althoughhecametobaltimoreintheautumnofhislife,artmodelllivedthatseasontoitsfullest.

weasacity,state,andsportsfacilityarethericherforit.

“He gave us our Sundays back.”John Moag

Art Modell with Stadium Authority Chairman John Moag at the stadium groundbreaking in 1995.

A heartfelt tribute on Opening Night, 2012.


Documents

Maryland Stadium AuthorityMaryland StadiuM authority SeaSonS of Celebration 2 sincerely, john morton iii, chairman This was our first celebration in a year that included a ravens playoff