ANNAPOLIS — Maryland’s Secretary of Commerce Harry Coker Jr. said Sphere Entertainment Co.’s decision to build a second U.S. location in Prince George’s County shows that companies want to invest in the state.
Gov. Wes Moore announced in January that Sphere Entertainment will build a smaller version of its Las Vegas venue at the National Harbor. Coker said he expects the event space to open within the next four years and generate more than $1 billion for the state.
“Just imagine when people are landing in Washington, D.C. if you will, they’re going to see that Sphere sitting on the hilltop in Prince George’s County,’’ Coker said. “That is big time.”
Capital News Service talked with Coker about the Sphere, legislative wins and goals for the commerce agency. He also discussed key issues in Maryland, including the pros and cons of data centers and the impact of federal layoffs.
The interview with Coker has been shortened for brevity and clarity.
Q: What were some of the wins coming out of Maryland’s legislative session?
A: Biggest wins, not just for Maryland businesses, but for our residents — no tax increases, which is a big plus. The budget was balanced and not on the back of businesses or our residents, so that was a huge win for us.
Q: What were some of your priorities for the legislative session?
A: Support for tourism and the arts. Too often, folks are fixated on big tech and large manufacturing companies, which are important, but tourism and the arts are very important to our economic growth and to our wellness.
Q: How does the Department of Commerce balance supporting small businesses and attracting and retaining big companies?
A: We know we need both. More Marylanders are employed by small and medium businesses than big companies. We want to retain them, but we also want to help them grow their market share.
Q: What is the estimated timeline for (the Sphere) construction?
A: I expect that within four years it should be open. Prince George’s County is working with all of its partners to expedite permitting, zoning, processing and the like.
Q: Why do you think Maryland was attractive to Sphere Entertainment?
A: Under the Moore-Miller administration, we have been very business development minded and agile in our pursuit of new businesses. We work in partnership with local and county partners. Sphere Entertainment (officials) saw that partnership, they saw our agility, they saw what we have delivered and they wanted to be a part of that. It’s also 24/7 foot traffic. Las Vegas is Las Vegas, but there’s no other place in this region like the National Harbor and Prince George’s County when it comes to the foot traffic that would be there.
Q: What will be the anticipated economic impact of the Sphere?
A: The economic analysis showed that it was going to be a $1.5 billion annual economic benefit to the surrounding area and the state. That’s fabulous.
Q: Last year, thousands of federal workers in Maryland were laid off. How did those layoffs impact Maryland businesses?
A: No state has been impacted to the degree that Maryland has with regards to the number of federal jobs lost. That is tragic for those individuals and their families and their loved ones. There’s also consultants, engineering firms, logistics firms that support some of those federal departments and agencies that have been cut back. That has also increased the amount of jobs that we’ve lost in Maryland as a direct result of some of the policies coming out of Washington. This can’t be overlooked, there’s a ripple effect when we don’t have money in our pockets. We don’t do as much grocery shopping, we don’t take vacations, we don’t go to the movies.
Q: What are the economic benefits of data centers and how do those weigh against the potential drain on resources and energy?
A: It increases the tax base so that minimizes a need to raise taxes. That’s a general statement, but it applies to data centers. Data centers also bring a lot of construction jobs.
Absolutely, there are challenges. If you look back to Gov. Moore’s State of the State remarks in January, he said that data centers need to hire Marylanders. Those data centers need to bring their own energy. They need to not raise energy rates for our residents. We also are taking a look at what’s the impact to traffic (and) any concerns the local community has. We are not saying no to data centers, we’re saying ‘Yes and this is what needs to happen.’