LOGIN NOT A MEMBER? REGISTER

FOR PRESS CONTACT US  SUPPORT

The Maryland Public Policy Institute

• RESEARCH
• EXPERTS
• EVENTS
• MPPI PRESS
• ABOUT US
• POLICY BLOG

Too Many Questions in State Agency Move

Originally Published in the Baltimore Sun

Government Transparency

by Marta Hummel Mossburg

OP-EDS

So much for transparency in Gov. Martin O'Malley's administration. Mr. CityStat cum StateStat professes a love for data but shrouds the truth with the same gusto with which he bares his biceps in sleeveless T-shirts.

Take the planned move of the Department of Housing and Community Development (DHCD) from Anne Arundel County to Prince George's County. Discussions surrounding the change have been going on for over a year and earlier this month became almost final with the selection of a developer and location. The Board of Public Works has yet to approve it.

The whole thing is a mystery when the math of the relocation is analyzed. And then there is the issue of the chosen developer, Carl Williams, about whom the state has revealed nothing except that he is a "Prince George's county resident."

First, it's interesting that in a state with a top 10 spot for its share of foreclosed homes and ongoing $1 billion-plus deficits, the government could be so cavalier in upgrading its own offices. The current Crownsville headquarters, owned by the state, is adequate. And since Anne Arundel is home to the largest share of agency employees, the location is convenient.

The state pays about $1.5 million per year currently, compared to an estimated $3 million to $4 million at the new location. This is on top of the cost of the move — about $1 million, according to reports from employees of DHCD. The current site will sit empty — and earn no revenue — after it is abandoned and could eventually be sold.

When legislators soliloquize about teachers being fired and disabled people being abused unless taxes are raised, ask them how they found the money for brand-new luxury office space in Prince George's and in the $1.5 billion planned State Center development in Baltimore.

Now to Carl Williams. He is named as one of the principals behind Grand Central Development, the firm that won the bid to build the new DHCD headquarters in New Carrollton.

Grand Central's bid achieved the highest score of 16 proposals submitted, according to the state. But it has not revealed anything about the scoring criteria or the company. A search of State Department of Assessments and Taxation records shows that the company was formed Nov. 9, 2010, lists the resident agent as David L. Woody and address as 10721 Wayfarer Rd. in Germantown.

Mr. Woody did not respond to a phone call and his answering machine message sounded as if it was a personal residence. Multiple searches revealed no website for the company.

The Gazette reported in July that Mr. Williams is president of St. Paul Community Development Corp., which residents of Capitol Heights in Prince George's County accused of letting a vacant property turn into a "part ghost town, part jungle." The article also noted that the company is "connected to The Woodviews at St. Paul Limited Partnership," which purchased the abandoned apartments in 2004, but "filed for Chapter 11 bankruptcy in 2009."

News reports show that Mr. Williams both butted heads with former County Executive Jack Johnson, who pleaded guilty to bribery in federal court, and cooperated with his administration. One press release from 2007 from the Carl Williams Group includes praise from Mr. Johnson about another development: "…We are confident that this is a mutually very beneficial transaction for all parties involved, and we look forward to working with you in the very near future," said Mr. Johnson.

There are indications that Mr. Williams may not have the resources to develop this project on his own. It would be nice to know if Mr. Williams is just a figurehead for an out-of-state developer or the main player — especially given the suffering construction industry in the state and the millions that will be invested by state taxpayers in this project.

Financially, the move makes no sense, as it would cost millions and merely shift resources from one location to another. Promises of increased economic benefit are completely speculative at this point; given the state's projected deficits, the project should not be considered at all. Combined with the lack of transparency over the developer, Treasurer Nancy Kopp and Comptroller Peter Franchot should reject the proposal when it comes before the Board of Public Works.