East Baltimore Development Inc.

“The form 990 was prepared by mcgladrey in consultation with the chief financial officer and the controller of ebdi. The form was then reviewed with the president and chief executive officer as well as the audit committee of the board of directors in april 2015 prior to submission. The audit committee includes senior executives from a foundation and partners with national and local accounting firms. The comments of the review team were incorporated into the final document and emailed to the full board of directors prior to submission.”

“Ebdi has a written conflict of interest policy. Key employees, officers and directors update annually their disclosure statement. Any conflicts are reviewed by the audit committee of the board and reported to the board of directors. Any action items before the board require the board member with the potential conflict to recuse themself from voting on the item.”

“The compensation of the president and ceo is established by the board of directors and is determined and documented annually based upon comparable compensation data. Bonuses for the previous year are determined based upon achievement of specific organizational goals. The compensation of officers and key employees is established by the president and ceo with approval of the board of directors through the budget process.”

“Organizational documents, the conflict of interest policy, and the financial statements are available to the public, for the same period of disclosure as set forth in section 6104(d), upon written request to the controller. The controller will arrange a mutually convenient time for review at the main office of ebdi at 1731 east chase street, baltimore, maryland.”

“As planned, ebdi has funded current operations with new markets tax credit loans, which creates a timing difference in the recognition of expenses and corresponding revenue. The revenue will be recognized when the loans are retired with existing commitments of tax increment bonds issued by the city of baltimore and the funding of a memorandum of understanding from the annie e. Casey foundation. These temporarily restricted net assets will become unrestricted net assets at that time. The planned use of new markets tax credit loans described above resulted in negative net assets for ebdi as of june 30, 2014.”

“The following make up the total other fees for services expenses as set forth on line 11g, part ix: infrastructure contractors $3,088,192 demolition contractors 1,354,502 design services / park 829,427 site development 733,467 prof. Services/elev8 530,408 security services 362,507 engineering services 346,049 other services 771,873 _________ total part ix, line 11g: $8,016,425 ==========”