Queen Anne's Co. to go ahead with $5 million land deal

The Baltimore Sun

Queen Anne's County officials say they intend to go ahead with plans to purchase a 270-acre Grasonville property using $5 million in public funds, despite concerns that the price is too high.

State Comptroller Peter Franchot had asked the county to delay today's scheduled settlement of the purchase. Queen Anne's County is using $4.6 million in state Open Space funds and $400,000 of county money to buy the tract, part of a property known as the Kudner Farm.

The deal has drawn criticism because the $5 million price is higher than either of two appraisals of the property, which put its value at $3.6 million and $4.6 million. The owner, David Sutherland, has known state Natural Resources Secretary John R. Griffin for years and served on Gov. Martin O'Malley's transition team as a member of a work group on the environment.

The state Board of Public Works approved the deal last month. Franchot raised questions about the price but ultimately voted for the purchase.

Yesterday, Queen Anne's County Attorney Patrick Thompson told Franchot that the county could not delay the settlement because Sutherland didn't want to postpone it, and the county was obligated by contract to go forward.

"The seller is not agreeable to any postponement of settlement," Thompson wrote. "Given the terms of the contract of sale, and the unwillingness of the seller to cooperate in postponing the closing, and the unanimous approval of funding from the Board of Public works, I have no alternative but to advise my clients that they are contractually obligated to proceed to settlement as scheduled."

Sutherland's attorney, Karl Phillips, said in a letter to the county that his client negotiated in good faith and pointed out that the Board of Public Works approved the deal. As a result, he said, Sutherland is "not inclined to reopen negotiations at this late juncture."

Eric Wargotz, president of the county commissioners, said the county's hands are tied; if it decided not to settle, it could be sued for the contract's full amount. "We have a contract with the seller, so it's not our decision," said Wargotz, a Republican. "We're under contractual obligation to follow through."

Franchot declined to be interviewed yesterday but issued a statement expressing his disappointment.

"Based on information that has come to light since the [Board of Public Works] approved this purchase, I remain concerned that Maryland taxpayers are not getting the best value for their money," the statement said. "There are many questions that I believe should be answered before this transaction proceeds, so I am disappointed that Queen Anne's County and the Department of Natural Resources are moving forward with the closing."

The Kudner Farm deal has stirred debate in Annapolis, in part because of Sutherland's long-standing connections in political circles. O'Malley has said he does not know Sutherland. But Griffin, the natural resources secretary, invited Sutherland to be a member of the administration's Work Group on Environment and Natural Resources. And Griffin did consulting work for Sutherland's company before he became DNR secretary.

Franchot, in his request to delay the deal, questioned several assumptions made in the higher appraisal, including that the property could be hooked up to public water and sewers and would be the site of a sports complex.

The property is not hooked up to water and sewer lines.

O'Malley spokesman Rick Abbruzzese said the governor had no concerns about the sale going forward. "I think the governor feels that this tract of land is worthy of preservation," he said.

rona.kobell@baltsun.com

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