Moving to protect Western Maryland's leading vacation attraction, Gov. Parris N. Glendening announced yesterday that the state will buy Deep Creek Lake from its corporate owner for $7.8 million.

The purchase by the state assures that the public will have continued access to Deep Creek, the economic mainstay of Garrett County and the largest freshwater lake in the state.

Glendening called the purchase a "once-in-a-life opportunity."

"One of the state's most treasured resources, Deep Creek Lake, is now guaranteed public protection forever," the governor said at a State House news conference.

The purchase includes the 3,700-acre lake, which attracts an estimated half-million visitors a year, and more than 1,000 acres on the water's edge. The governor said the money will come from the state's Program Open Space and will not require the General Assembly to appropriate additional money.

The main effect of the purchase, Glendening said, will be that "the status quo will be preserved" for property owners and vacationers.

The deal is one of the largest real estate purchases in Maryland history, though the price falls short of the $25.3 million the state paid last year for 1,800 acres of development-threatened land at Chapman's Landing in Charles County.

The deal comes a year after GPU Inc., the Morristown, N.J.-based utility that has owned the 74-year-old lake since 1942, announced plans to sell its Deep Creek hydroelectric plant and the lake as part of a plan to leave the electricity-generating business.

The news alarmed Garrett County business leaders and Deep Creek property owners, who feared new private ownership might bring higher docking fees, increased development pressure and restrictions on access. Western Maryland legislators sought help from the governor, who agreed to acquire the lake and its 70 miles of shoreline.

Deadline missed

In June, GPU said it would enter into exclusive negotiations with Maryland for the sale of the lake. The company and state set a Sept. 30 deadline for a price agreement -- which they missed by six months.

The agreement apparently resolves the ownership status of the lake and its shoreline. The state owns the water in the lake, but GPU owns the lake bed and the narrow buffer strip that surrounds the water.

Karen Myers, manager of the Deep Creek office of the Long & Foster real estate firm, said the announcement would give a boost to business in the area.

"It takes a little bit of doubt out of the future of the lake," she said.

The negotiations, which were put on hold about the time of the election in November, were conducted out of the public view and under a no-disclosure agreement.

'Full and fair value'

The final price falls well short of what the company had sought.

Some of the early estimates of its asking price were as high as $28 million.

Administration officials said the $7.8 million figure falls well within appraisers' valuations, which ranged from $4.5 million to more than $20 million.

GPU officials said they were satisfied with the outcome. "We believe we received the full and fair value," said GPU Vice President David Brauer.

Throughout the talks, the state held a trump card because of its power to condemn the land through its right of eminent domain.

"We made it clear to GPU in the very beginning -- not in a mean way but in a straightforward way -- that this land has to remain in public use," said Deputy Chief of Staff Eugene R. Lynch, the governor's representative in the negotiations.

'Maryland's Mark McGwire'

Western Maryland legislators, who had been nervous about the pace of the negotiations, had few complaints yesterday.

House Speaker Casper R. Taylor Jr., an Allegany Democrat, praised Glendening.

"It's clear we should begin calling the governor Maryland's Mark McGwire," Taylor said. "He's certainly hitting a home run today."

Del. George C. Edwards, a Garrett Republican, said the announcement was good news not just for his home county, where hotels, restaurants and vacation homes on the lake make up 50 percent of the property value.

"This truly is a statewide initiative," Edwards said.

Pub Date: 3/31/99