Hotel's state funding unravels
UPDATED 11:09 a.m., 3.16.17
State funding for Frederick’s downtown hotel and conference center has taken another hit. Maryland’s Department of Legislative Services recommends a “de-authorization” of $1 million in general obligation bond funds originally authorized in the 2016 session.
The $30.35 million public portion of the $84 million public-private partnership project included $17.85 million in state grants over the next three years, including $16 million in general obligation bond grants, and $1.85 million from the Department of Housing and Community Development.
Governor Larry Hogan’s five-year capital improvements budget removes all funding support of the project. The recommendation from DLS was included in its analysis of the miscellaneous grants in the capital budget, and was presented to the capital budget subcommittee on Monday, Mar. 13.
According to the DLS analysis:
“Absent a State commitment to the project, it is unclear if the developer will press forward with the overall project as envisioned or remove certain public elements such as the conference center portion.”
Pete Plamondon, Jr., of Plamondon Enterprises, Inc. was unavailable for comment Tuesday.
“The City continues to explore all funding options for the project. We continue to have conversations with administration officials,” Mayor Randy McClement said, via city spokesperson Patti Mullins.
Del. Karen Lewis Young (D-Dist. 3A) and Del. Carol Krimm (D-Dist. 3A) sponsored a bill in the 2016 session for the Maryland Stadium Authority to establish funding for the project. Both delegates were in session and unavailable for comment.
Sen. Michael Hough (R-Dist. 4), who has led the opposition to the public funding portion of the hotel and conference center said via text: “Scores of independent agencies have looked at the proposed downtown hotel and conference center and they are saying ‘don’t fund it with taxpayer money.’ First the Maryland Stadium Authority, then the Maryland Economic Development Corporation and now the nonpartisan Department of Legislative Services have all said ‘don’t fund the hotel.’ If this project goes forward, it should do so without taxpayer support. This is crony capitalism.”
Updates to follow. Read related story here.
