He was the millionaire businessman Mayor William Donald Schaefer called on more than two decades ago to help out with a big problem.
Some 20 acres of lumberyards and warehouses between the then-newly redeveloped Inner Harbor and Fells Point faced an uncertain future. Schaefer wanted John Paterakis Sr., bakery magnate and campaign contributor, to do the city a favor and buy the land. For $11 million, Paterakis did, but the city backed down on a promise to buy back the industrial stretch later.
Paterakis took a gamble and pushed ahead, methodically developing Harbor East, a collection of waterfront towers where people live, work and shop that has been credited with shifting and redefining the city's downtown.
"It was clear early on and abundantly clear to Mayor Schaefer that one of the keys to the future development of the city would be linking the Inner Harbor to Fells Point and beyond," said Mark Wasserman, a senior vice president at the University of Maryland Medical System who served as a physical development coordinator in Schaefer's city administration. "There was discussion between the mayor and Mr. Paterakis about stepping in and ensuring control about that part of the city to ensure its future development would be controlled and compatible. The results are there for everyone to see."
Paterakis, the 80-year-old head of Baltimore-based H&S Bakery whose development reach has since extended eastward toward Fells Point, was indicted Tuesday afternoon on charges that he violated campaign finance rules by writing a $6,000 check to pay for a poll for a city councilwoman. He could not be reached yesterday.
The charges were brought by a Baltimore grand jury at the request of State Prosecutor Robert A. Rohrbaugh, stemming from a three-year-old investigation into City Hall corruption. Mayor Sheila Dixon was indicted in January on charges that she stole gift cards donated to her office by developers who believed Dixon would give the cards to needy families.
Paterakis has become one of the city's most prominent developers. One of his companies, H&S Properties Development Corp., is also building the mixed-use Harbor Point project between Harbor East and Fells Point, where Morgan Stanley will move early next year.
And his involvement in city business, development and politics goes way back.
