Baltimore Jewish Times to receive financial reprieve from Baltimore City

Posted on October 30th, 2009 by JewishByte

JewishByte Baltimore - A big hoopla seems to be in the making, regarding the recent announcement of financial reprieve to the Baltimore Jewish Times, from the Baltimore City Development Corp. First off, the “financial break” is worth a total of $15,000. As an aside the reprieve is for the parent company of the Jewish Times, Alter Media Corp, affecting all subsidiaries including the Baltimore Jewish Times, Style Magazine and Chesapeake Life.

It is not a new phenomenon for any government entity to offer financial incentives to any private company, either in the form of tax breaks, special loans or other subsidies. It is a normal practice, to retain and attract local businesses to a specific locale. Especially in light of the economic downturn, many private homeowners have renegotiated or were allowed to suspend or modify payments. Commercial businesses are no different and are suffering from the same issues. We also feel it needs to be pointed out that, the Jewish Times is not receiving loan forgiveness, rather they are being allowed to suspend principal payments on the loan, to avoid layoffs or foreclosure. However to satisfy the public interest we bring you the Baltimore Sun story published in yesterday’s edition.

Baltimore Sun By Annie Linskey- Baltimore officials extended a financial break on Wednesday to the struggling Baltimore Jewish Times, which like many media outlets has been hard hit by the national economic downturn.

A deal, approved unanimously by the city’s Board of Estimates, allows the weekly newspaper to suspend principal payments on a $150,000 relocation loan for the next two years. While it saves the paper from having to lay off another staff member, the move raises questions about how news outlets objectively cover cities that have extended financial help.

Calling the concern “valid,” publisher Andrew A. Buerger said the transaction would not affect the Times’ reporting.

Buerger stressed that accepting the Baltimore Development Corp. loan in 2002 had no impact on the paper’s work and pointed to watchdog articles about poor police response times in Jewish communities. He vowed to continue such coverage.

“I don’t think our editorial department is even aware” of the restructuring, he said.

“We looked at what costs can we control,” Buerger said. “We are not getting out of the loan.”

Buerger said that he has laid off four staff members in the past year as advertising revenue declines, and the suspension of loan payments will save a position. The paper has about 45 staff members, including 10 in the newsroom, he said.

The city initially extended the loan to the paper to lure it back from Owings Mills. The money, lent at a 3 percent interest rate, was intended to cover relocation costs. The paper has repaid $40,000 in principal, and will continue its weekly interest payments.

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