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December 11,2012
Ms. Sarah T. AlbertMandated Reports SpecialistLibrary and Information ServicesDepartment of Legislatives Services90 State CircleAnnapolis, MD 21401
Dear Ms. Albert:
This report for Fiscal Year 2012 is submitted herewith, along with audited Financial Statements of thePenMar Development Corporation (PMDC) as required by Chapter 306, Acts of 2008, Code EconomicDevelopment, Article, sec. 11-520 of the Annotated Code of the Public General Laws of Maryland.
In the audit conducted by Albright Crumbacker Moul & Itell, LLC, PMDC received an unqualified cleanopinion, with no material weaknesses or control deficiencies.
In 1997, state legislation was passed creating PenMar Development Corporation (PMDC) to act as theLocal Redevelopment Authority (LRA) for Fort Ritchie. Instead of redeveloping the property, PMDCsold the property to Corporate Office Properties Trust (COPT) in phases with the last phase transferring in2007. The property was sold for $9M. The initial payments totaled $5M with the last payment of$4Mdue in 2016.
In April 2011, COPT took a $28M impairment loss on the Fort Ritchie project. Following this actionCOPT approached PMDC and requested forgiveness of the $4M payment. In October 2011, PMDCrejected their request. COPT stated they had lost interest in developing the property. COPT then toldPMDC they planned on shuttering the property, putting a fence around the property and closing out allleases for the 200 plus people living on the property and the commercial leases by the fall of 20 12. COPTdid offer an alternative, that being, would PMDC be interested in taking back the property. The PenMarBoard of Directors believed they still had an obligation to create jobs and generate tax revenues andPMDC began negotiations with COPT. On January 10,2012, a letter of intent was signed by both partiesand the purchase and sales agreement was signed on February 13,2012. PMDC then began a 90 studyperiod, ending on May 14, 1012. After the due diligence period, PenMar, after consultation withWashington County government officials, the State of Maryland and U.S. elected officials, resumedownership ofthe property on July 24,2012. PMDC agreed to a payment of $2M from COPT, in place ofthe $4M due on the sale amount, and the deed to Fort Ritchie.
The lawsuit is no longer active with the withdrawal of COPT. The community has tired of the delays inredevelopment and appears to welcome PMDC once again as the owners of Fort Ritchie in the hope thatsomething good is in store for the property and the community.
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14320 Barrick Avenue, P.O. Box 699, Cascade, Maryland 21719 301.241.4050
After the transfer, PenMar began using David Rawle of the AG's Office for legal counsel.
Residential Housing
• 83% of the 96 duplex or townhome units available are leased.• Approximately 200 people live at Fort Ritchie.
The Fort Ritchie Community Center, which opened in September 2008, continues to be a shining exampleof what the future holds for Fort Ritchie. It offers recreational opportunities to the local residents, as wellas a location for community activities. It receives no tax dollars. It currently has over 1,400 members.
Fort Ritchie remains an important part of the local community. Over the last weekend in June, localleaders organized Mountain Top Heritage Days, including fireworks, drawing about 5,000 participants.At other times during the year a triathlon, a duathlon, and several bicycle competitions were held. Other,non-athletic, community events were held throughout the year.
The PMDC Board of Directors is at full strength, with all fifteen designated positions filled. It is a strong,focused Board, providing expert oversight to redevelopment efforts.
Sincerely,
~n~, , K, 1£ ..II ~
Doris J. NippsExecutive Director
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PMDC BOARD OF DIRECTORSFY2012
Peggy S. BusheyPresidentCavetown Planing Mill CompanyP.O. Box 51Cavetown, MD 21721Office: 301-733-7940, Extension 211Cell: 240-675-0808Email: [email protected]
James C. DevlinDirector of Finance ReportingFrederick Memorial Hospital11380 Hearthwood DriveWaynesboro, PA 17268Home: 717-387-5710Office: 240-566-3781Email: [email protected]
Ruth Anne CallahamWashington County Commissioner100 W. Washington St.Hagerstown, MD 21740Office: 240-313-2209Email: [email protected]
Patrick E. FleagleMainstreet Waynesboro, Inc.109 Ridge Ave.Waynesboro, PA 17268Home: 717-762-8265Office: 717-635-1110Email: [email protected]
William D. Carter14611 Water Company RoadCascade, MD 21719-1924Home: 301-241-4501Email: [email protected]
Tim Henry-TreasurerCEOCentra Bank19224 Chippendale CircleHagerstown, MD 21742Home: 301-665-3755Office: 301-739-4577Email: [email protected]
Sam Cool-ChairmanVice PresidentPlanet Technologies18523 Old Colony LaneHagerstown, MD 21742Office: 240-864-3007Email: [email protected]
Peter J. KurzFinancial & Management Consultant103 Rachel's CourtSmithsburg, MD 21783Home: 301-824-2855Fax: 301-824-6958Email: pjkurz(cll.gmail.com
Jason M. DivelbissDivelbiss & Associates13424 Pennsylvania Ave.Hagerstown, MD 21742Office: 301- 791-9222Home: 717-597-5225Email: [email protected]
Eleanor LakinRegistered Architect, Retired121 Lakin Ave.Boonsboro, MD 21713Home: 301-432-8108Email: [email protected]
BOARD OF DIRECTORS FY2012(continued)
w. Christopher MotzPresident, Maryland CampusesKaplan University400 Clayton Ave.Waynesboro, PA 17268Home: 717-765-0163Office: 301-766-3660Email: [email protected]
Doris J. Nipps, SecretaryExecutive Director20236 American WayHagerstown, MD 21742Office: 301-241-4050Home: 301-797-7376Fax: 301-241-4141Cell: 301-988-0061Email: [email protected]
L. Patrick Pascoe-Vice ChairmanP.O. Box 21713626 Crawford AvenueBlue Ridge Summit, PA 17214-0217Home: 717-794-5727Email: [email protected]
Steve E. Patterson, EsquireSalzmann Hughes, P.C.15452 Norwood Ave.Blue Ridge Summit, PA 17214-9738Home: 717-794-2255Office: 717-762-3170Email: [email protected]
John Van Der CruyssenRegional Sales ManagerWatertronics, John Deere Landscapes5832 Rowland Hill Rd.Cascade, MD 21719Home: 301-241-3469Office: 240-626-7462Email: [email protected]
Michael S. ZampelliBusiness ManagerAssociated Radiologists322 E. Antietam St.Hagerstown, MD 21740Home: 301-790-2462Office: 301-739-6147Email: [email protected]: [email protected]
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PenMar Development CorporationFY 2012
Board of Directors-Ex Officios
MemberMeeting Attendees Designees for DBED:
Christian S. JohanssonSecretaryMaryland Department of Business and
Economic DevelopmentWorld Trade Center401 E. Pratt St.Baltimore, MD 21202Office: 410-767-6302
800-541-8549Fax: 410-333-6911Email: [email protected]
Brig. Gen J.M."Mike" Hayes USMC (Ret.)DirectorMilitary & Federal FacilitiesMaryland Department of Business and
Economic DevelopmentWorld Trade Center401 E. Pratt St.Baltimore, MD 21202Office: 410-767-2988
800-541-8549Fax: 410-333-6609Email: [email protected]
Robert C. BrennanExecutive DirectorMaryland Economic Development Corporation100 N. Charles St., Suite 630Baltimore, MD 21201Office: 410-625-0051Fax: 410-625-1848Email: [email protected]
Lisa S. SwobodaAssistant DirectorMilitary & Federal FacilitiesMaryland Department of Business and
Economic DevelopmentWorld Trade Center401 E. Pratt st.Baltimore, MD 21202Office: 410-767-6077Fax: 410-333-6792Email: [email protected]
Timothy R. TroxellExecutive DirectorHagerstown-Washington County Economic
Development CommissionCounty Administration Building100 W. Washington St.Hagerstown, MD 21740Office: 240-313-2280Fax: 240-313-2281Email: [email protected]
Annabelle E. SherAssistant DirectorMilitary & Federal AffairsMaryland Department of Business and
Economic DevelopmentWorld Trade Center401 E. Pratt St.Baltimore, MD 21202Office: 410-767-6853Fax: 410-333-1836Email: [email protected]
