Development Agency

Speaking for the first time since a city agency received a subpoena and the offices of a prominent Baltimore developer were raided, Mayor Sheila Dixon characterized the investigation by state prosecutors yesterday as a witch hunt. Dixon, who said she has done nothing wrong and who argued she did not know what the Maryland state prosecutor's office is looking into, said she is cooperating with investigators but believes the probe could be politically motivated. "What would help me is if you go to the state's [prosecutors]

Howard's state legislators like the idea of establishing an independent county economic development authority, but they say legislation to convert the county Department of Economic Development needs work before being introduced in the General Assembly.The county delegation meets Jan. 27 in Annapolis to discuss and possibly vote on local legislation, including the bill proposed by County Executive Charles I. Ecker to establish a quasi-governmental organization called the Howard County Economic Development Authority.

The state agency charged with improving Maryland's economy has appointed two more executives, filling the remaining vacancies in its top management two months after the department was reorganized.Stephen J. Lynch Sr., a former vice president for First Fidelity Bancorp's Maryland division, is assistant secretary for finance of the state's Department of Business and Economic Development. He'll run programs to invest public and private money with the aim of creating and preserving Maryland jobs.

Mayor Kurt L. Schmoke took a step yesterday toward merging the city's two major downtown development groups into a single agency.The mayor has asked David M. Gillece, president of Baltimore Economic Development Corp., to look at the feasibility of merging BEDCO and Center City-Inner Harbor Development Corp.Center City-Inner Harbor Development was created last year by combining the operations of Charles Center Inner Harbor Management Corp., which was responsible for development around the Inner Harbor, and Market Center Development Corp.

Now that it's official and public knowledge that Maryland is last in job creation and only 6th from last (44th) in having a business-friendly environment according to the Tax Foundation, some response is required. Let's get rid of the Baltimore Development Corporation, the Maryland Department of Business and Economic Development and any public or quasi-public group in this state that has business development in its charter. Think of all the millions of dollars we could save to put to better use, like lowering the personal and corporate tax rates here.

Saying he will recruit the best and the brightest to revamp Baltimore's economic development agency, Roger C. Lipitz, the new board chairman, pledged yesterday to work closely with the corporate community to find ways to attract and create more jobs.Mr. Lipitz, the prominent entrepreneur chosen to overhaul the beleaguered Baltimore Development Corp., also said a priority will be developing a strategic economic plan for the city."In terms of the business community, we've got some work to do there.

Joan Meekins moves from the Office of Tourism to the county Department of Economic Development today.Ms. Meekins, tourism director since 1990, now is marketing administrator for the development office."

Mayor Kurt L. Schmoke announced yesterday that he has decided to merge Baltimore's two quasi-public economic-development agencies, the Baltimore Economic Development Corp. and Center City-Inner Harbor Development Inc., by July 1.The idea has been under study since November. It was seen in part as a cost-saving measure, but the mayor said yesterday that he is convinced it also will provide a more effective way to promote the continued investment by businesses in Baltimore.David W. Gillece, BEDCO president and acting head of Center City-Inner Harbor, will head the as-yet-unnamed agency.

Operations are winding down at Eastern Home Products Inc. in Southwest Baltimore after the company announced that it didn't have enough money to continue in business. Eastern Home and its subsidiaries -- Eastern Manufacturing Products Inc., Home and Roam Leisure Products Inc. and Eastern Standard Corp. -- manufacture above-ground swimming pools and window blinds. Its retail stores sell pools, spas and pool tables. About 20 of the company's work force of nearly 200 are working. More than 125 workers were surprised when they were laid off abruptly in late January.

THE FEDERAL government's largest homeownership program -- FHA mortgage insurance -- is under attack for allegedly allowing lenders and realty agents to pressure appraisers to illegally inflate property valuations, ignore serious defects and building code violations and discriminate against racial minorities in the real estate appraisal profession.The allegations already have triggered an investigation by the General Accounting Office, and are expected to be the subject of congressional hearings.