Financing

DOVER, Del. - Magna Entertainment Corp. says it needs additional debtor-in-possession financing as it works to emerge from Chapter 11 bankruptcy. Canada's Magna, the largest horse track owner in the United States, previously reached agreements with a subsidiary of its parent, MI Developments, for $64.4 million in financing. But Magna, which filed a reorganization plan two weeks ago, says it is facing liquidity issues because of an unexpected decline in horse racing revenues and weather-related race cancellations at Santa Anita Park in California.

Maryland dog lovers are upset by a ruling in the highest court in the state that says pit bulls are “inherently dangerous,” which means owners and landlords can be liable for the first bite a pit bull makes. But dog bites of all breeds turn out to be expensive. The Insurance Information Institute reports that last year insurers paid out nearly $479 million in dog bite claims with the average claim reaching $29,306. That's an increase of $3,230 per bite over last year. The number of bite claims last year totaled 16,292, up by 522 from the year before.

The state is kicking off a $150,000 campaign to advertise financing help for small businesses in Maryland. The state Department of Business and Economic Development said Tuesday that it will be running ads — online and on radio stations for 10 weeks — to spread the word that four of the state's financing programs still have money to extend after receiving $23 million in federal funding through the Small Business Jobs Act of 2010. The state, which has spent or earmarked about $1.3 million since getting the OK to start using the money last June, has until 2018 to allocate it all. The "Financing that Fits" campaign advertises the Maryland Small Business Development Financing Authority, which gives credit guarantees; the Maryland Industrial Development Financing Authority, which gives loan guarantees; the Maryland Venture Fund, which invests in startup companies; and Neighborhood Business Works, which provides gap financing.

Despite financing more than $140 million city contracts in the past 12 years, donating tens of thousands of dollars to Democratic candidates and being a member of Mayor Stephanie Rawlings-Blake's inner circle, J.P. Grant III has largely avoided the limelight. Then this week Grant, a West Baltimore native, stepped into the public glare as one of the latest saviors of the troubled Baltimore Grand Prix. City leaders, of course, already knew him. When he walked into a meeting of Baltimore's spending board this week, they greeted him warmly.

Mayor Stephanie Rawlings-Blake will consider a request for up to $35 million in city tax increment financing for infrastructure projects related to the proposed doubling of Under Armour's Locust Point headquarters in South Baltimore. The board of the Baltimore Development Corp., the city's economic development agency, planned to forward the request to the mayor Thursday. The BDC board on Thursday also heard updates on developer Lexington Square Partners' proposed $150 million apartment and retail development on downtown's west side, in an area long targeted for urban renewal.

Dear Mr. Azrael:My husband and I recently contracted to have a home built. The home is scheduled for construction to begin in October with an estimated settlement in January.We have put a down payment down and expect to put down over 20 percent at settlement. We need to secure a mortgage company [and] pay for an appraisal fee and a credit report.My question is that, since January is so far away, and no one knows what the rates will be, what is the best way to handle the financing?Do we just go ahead and go with [the builder's mortgage company]

Signet Bank has provided construction financing and its affiliate, Signet Mortgage Corp., has provided residential financing for Nu-Homes Inc.'s development at Parson's Ridge in Bel Air.A grand opening preview of the model homes was on Sept. 14. This opening included a luncheon and tours of the award-winning homes, The Tidewater and The Millwood. The models, with prices starting at $239,000, are offered through Will Schneider and Joy Schene of Prudential Preferred Properties.Present at the opening were members of the Harford County Association of Realtors and its president, Joan Ryder.

MicroProse Inc. said yesterday that it closed its $10 million financing with Spectrum HoloByte Inc.As part of the financing agreement, MicroProse also said that Spectrum has appointed Patrick S. Feely, Gilman G. Louie, Barry James Folsom and Frank Murnane to the MicroProse board, representing one-half of its members.John W. Stealey Sr., MicroProse's co-founder and principal stockholder, has resigned as president and chief executive, and Spectrum intends to appoint a replacement acceptable to MicroProse.

Univax Biologics Inc. of Rockville yesterday lost its financing for a new manufacturing plant and headquarters, as Bioplex Group Inc. backed out of a $45 million deal to build a 130,000-square-foot facility that was set to open in 1996.Bioplex, which has dual headquarters outside Boston and San Diego, said it was pulling out of the deal and suspending all biotechnology activities because of pending litigation. Bioplex officials couldn't be reached late yesterday after the announcement, and Univax officials say they don't know what the lawsuit is about.

Federal investigators now have evidence linking the two principal suspects in the Oklahoma City bombing to the robbery of an Arkansas gun dealer last November and speculate that this may explain how the bombing was financed.In what could quite literally be the key to the case, a bank safety deposit key stolen in the robbery of the gun dealer's home in November was found in April when federal agents searched the Herington, Kan., home of one of the bombing suspects, Terry L. Nichols.And the robbery victim believes that Timothy J. McVeigh, the other principal bombing suspect, may have been involved in the robbery, in which a masked man knocked him unconscious, bound and gagged him, and took guns, jewels, gold and silver valued at almost $40,000.

A Baltimore home builder pleaded guilty Thursday in connection with a construction investment scheme that defrauded victims of more than $14 million, the Maryland U.S. attorney's office said. Brian McCloskey, 44, spent at least two years — from 2009 to 2011 — targeting people with money to invest in construction projects or who needed financing for their own projects, including a hotel in Bowie. He told the investors to put "large sums of money" in an escrow bank account to prove liquidity for purposes of getting financing, and that they would receive a high rate of return for their efforts, according to his plea agreement.

Your recent article about corporate contributions to candidates is worth reading ("O'Malley weighs donor changes," April 30). However, the practice of big business being involved behind the scenes is not new. Companies with employees having expense accounts in the past have "suggested" they send personal checks for themselves and wife and carry the amount on their expense accounts showing entertainment (dinner) with clients or customers. If employees were limited by budget restrictions in the amount that could be submitted on the expense account, it was waived to accommodate the "contribution.

This afternoon, Gov.Martin O'Malleyplans to sign what may be the most significant step toward increasing transparency in Maryland's system of campaign finance in years: a requirement that those who contribute more than $500 to a single candidate during an election cycle list their occupation and employer. That's a good thing; it will give the public a much better idea of who is backing candidates for office and why. However, the fact that this step only brings Maryland up to some semblance of the standard the federal government has employed since the 1970s, and a majority of other states have long held as well, shows just how far the state has to go if voters are to have confidence that the entire campaign finance system isn't just a means for special interests to buy influence.

So the tax deadline is here and you don't have the money to pay the bill. It's time to act, not panic. You might have more options than you know — courtesy of the Internal Revenue Service. The agency has been easing up on financially strapped taxpayers and last month expanded its "Fresh Start" initiative, which allows some jobless workers to put off paying their taxes for six months without paying a stiff penalty. "There are probably more options than most people are aware of," says Abe Schneier, senior technical manager with the American Institute of CPAs.

Under Armour's proposal to double the size of its Locust Point headquarters in South Baltimore has been sent to Mayor Stephanie Rawlings-Blake for final approval. The Baltimore City Council on Monday night approved changes that would allow the $1 billion global sports apparel company to build a new office tower and the city's first Under Armour store and expand other office buildings on its waterfront campus. The mayor is supporting a request from the city's economic development agency for up to $35 million in city tax increment financing for infrastructure projects near the campus, a mayoral spokesman said Tuesday.

Yo-yo financing is what happens when you drive off the lot with your newly purchased car, only to be reeled back in days or weeks later by the dealer because the financing didn't go through. Your choice: Return the car or keep it and accept less-favorable financing terms. And by that time, your trade-in might be gone. It's unclear how often this happens. A new report by the Center for Responsible Lending suggests it's not uncommon. The nonprofit polled five national organizations serving more than 2,100 consumers with auto-finance complaints.

Don't forget the stadium.In the NFL's expansion derby, Baltimore has one hole card that's an ace.It is the only city in the country with public financing in place for a new open-air football stadium.It's important to remember the stadium because if Floridabusinessman Malcolm Glazer manages to buy majority control of the New England Patriots, it would be viewed as a setback for Baltimore's expansion effort. The same thing happened last year when the city lost Robert Tisch, who bought half the New York Giants.

One month after it negotiated an agreement to enable it to move ahead with the construction of a $39 million federal office building, a group headed by Otis Warren and Theo Rodgers has been unable to obtain financing for the project.The U.S. General Services Administration sent an official to Baltimore yesterday to determine the reason for the delay and will decide soon on whether to wait for Mr. Warren's group or to go with another developer.Mr. Warren could not be reached for comment. But John Thompson, director of business and public affairs for the GSA's Philadelphia office, said he understands the developer has been unable to sell the bonds needed to raise funds for the construction of the 11-story, 300,000-square-foot building, planned for the southwest corner of Baltimore and Howard streets.

The March 22 Sun article "State audit questions $200,000 payment to BCCC" cites an assertion by Department of Legislative Services (DLS) auditors that the college received a "potentially questionable" payment from a company that was leasing space to the BCCC Life Sciences Institute at the University of Maryland Baltimore BioPark. The audit finding specifically states that "BCCC could not adequately explain the $200,000 payment, and in addition, it was not disclosed to the Department of General Services (DGS)

Mayor Stephanie Rawlings-Blake will consider a request for up to $35 million in city tax increment financing for infrastructure projects related to the proposed doubling of Under Armour's Locust Point headquarters in South Baltimore. The board of the Baltimore Development Corp., the city's economic development agency, planned to forward the request to the mayor Thursday. The BDC board on Thursday also heard updates on developer Lexington Square Partners' proposed $150 million apartment and retail development on downtown's west side, in an area long targeted for urban renewal.