City of Frederick Hotel – What’s The Rush?

George Wenschhof

The idea for a hotel and convention center located in downtown Frederick is hardly a new one and actually dates back over thirty years to the days when Democrat Ron Young was mayor of The City of Frederick, Maryland.

Today, the absence of coordination and defined purpose for the project put forth by City of Frederick Republican Mayor Randy McClement threatens to derail a potential crown jewel project. This project could serve as an anchor, alongside the bustling Carroll Creek development, further strengthening an already vibrant downtown.

Muddying the future of a downtown hotel has been an unfortunate series of recent events ranging from a bungled request for a lobbyist, a signing of a poorly communicated memorandum of understanding and the floating of the idea of raising the hotel tax from three to five per cent.

Determining the feasibility, where to locate it and how to pay for it would all seem like reasonable steps to follow before proceeding haphazardly on a project of this magnitude.

After the feasibility of the project is determined, what is needed for a project of this significance is to hold open discussion on what role the city should take (partnership role and with whom, whether to purchase site, providing some level of funding, waiver of permitting fees, reduced taxes, etc.), allowing for public input, leading to consensus on the way to proceed.

A task force appointed by the mayor has done a lot of solid work, only to have its efforts soiled by these latest series of events.

The unsubstantiated request for a lobbyist by City of Frederick Republican mayor Randy McClement received intense public criticism, including from this writer, and according to several sources, the lobbyist has withdrawn his request, illustrating the inappropriateness of the request.

The rush to sign a memorandum of understanding, which took place at the last mayor and board meeting, left many wondering why this was needed now and what, if any, obligations were attached to it.

What followed, was the announcement by Democratic state delegate Galen Clagett (District 3-a) asking the Tourism Council of Frederick County to support his intention to file a bill to increase the hotel tax in Frederick County, raising an estimated $700,000 annually.

In a lengthy interview, Clagett informed me of his intention, saying he believed the city should own the land where the hotel would be built. He added he further believed future hotel tax funds received after the hotel site was paid, could be used for the construction of an aquatic center located in the recently acquired city park land, and a theater in the round on a portion of Carroll Creek.

All wonderful ideas, but apparently put forward without support. During a telephone interview with Democratic state senator Ron Young (District 3), he said ”asking county hotels to pay for competition against them does not make sense and he would not support it.” Young added he did not believe the other city delegate; Republican Pat Hogan would be in favor of raising the tax either, making it unlikely the county state delegation would support the idea.

Also, left out in the rush to push a raise in the county hotel tax were a discussion and a vote of approval by the mayor and board on the idea. Let’s not forget city voters may not like the idea of buying land for a hotel at a time when city coffers are strained.

Young said he strongly supports the construction of a downtown hotel and still believes a convention center would also work, but other funding sources need to be considered.

The updated feasibility study and the memorandum of understanding is needed to request a one million grant from the state stadium authority.

It would appear the board of directors of The Tourism Council would be wise to delay a vote of support on the increase of the Frederick County hotel tax.

The mayor’s executive assistant; Josh Russin explains the mayor wants to move forward on this project in this term and roughly spelled out the process the mayor wished to follow. Russin indicated the needed economic update of the feasibility study will be received in March.

Included in the process Russin sent me, was a Request For Information (RFI), which would be utilized to identify the land the hotel would be built on. Interested owners of appropriate parcels of land located downtown could submit their property for consideration. A “to be determined” rank and review criteria would be used by a city committee who would select the parcel.

Democratic Alderman Karen Young, who was the first to object to the hiring of a lobbyist, said she was concerned about the proposed site selection process, preferring a professional with specific hotel/convention center experience, be utilized to determine the optimum site. She suggested the consultant being used to update the feasibility study be considered to help identify the site, as they are experienced in this field.

She also stressed to me her support of the overall project.

The good news surrounding the concept of a downtown hotel is that much support exists. The Chamber of Commerce and the Tourism Council of Frederick County are two significant organizations who have signaled overall support of the project.

What is needed now is for the mayor to slow the process down and take control of this project. Communicating more effectively with city voters and all parties involved is a must.

First, the update of the feasibility study needs to be received, reviewed and shared with the public. If, this shows the project is doable, the mayor should move forward with his board of alderman, the other stakeholders in this project and the public to determine what role the city will play.

Then, a reasonable timeline to implement the project should be developed.

A project of this size is sure to have lots of intrigue, ranging from politicos wanting to leave a legacy to property owners jockeying to have their site selected.

All the more reason the mayor needs to conduct the process with care and full transparency. This would help ensure a successful project with the greatest benefit for the city and its residents.

Speed is not the issue – doing it right is.

Stay Tuned….

---

To receive "Daily Updates" from Air-it-Out with George Wenschhof, click on "Subscribe to this feed" below.

Interesting Times at City Hall

George Wenschhof

One has to wonder these days, what is going on in city hall in The City of Frederick, Maryland?

Republican Mayor Randy McClement followed his bizarre scheduling of a city workshop on an ill advised discussion on a vote by mail election, held days before Christmas, with an equally disturbing request for $28,000 to pay for a lobbyist, held just days after the New Year celebration.

Advancing the idea of a hotel/convention center to be built in downtown Frederick is a good idea. It has the support of the Frederick Chamber of Commerce, the Downtown Frederick Partnership as well as Frederick Tourism.

In addition, a symbolic memorandum of understanding was reached between the city and county governments; the signing of which was a mere formality. Bipartisan support is also there from the Frederick County state delegation, signaling strong support to assist in obtaining available state funding for the project.

However, once again the Mayor has clearly shown an inability to effectively advance an issue by consistently failing to communicate with his board of aldermen and with the voters who put him in city hall.

The latest request for money to pay for a lobbyist was hastily put together and poorly justified, with the belief the votes were there for quick passage. Interestingly, the lobbyist job duties listed by the mayor were mostly administrative in nature and easily handled by existing staff.

The renegotiation of existing airport leases to bring them to market rate is but one of the administrative duties listed to justify the hiring of a lobbyist. This is a federal requirement for the release of 13.6 million in federal funds for the planned airport expansion. This requirement has been known for some time and the fact this has not been done reflects poorly on the mayor.

With the Frederick county state delegation already on board, a lobbyist is not needed for this project.

Standing in the way of quick approval for the lobbyist request was Alderman Karen Young, who in spite of support from her three Democratic colleagues on the board, cried foul and asked the simple question; “Why was this needed”?

A good question considering the wheels had already been greased for advancement of a hotel/convention center in downtown Frederick.

When I spoke with Alderman Young she told me she had never been talked to in regard to the hiring of a lobbyist. Young has made no secret she is weighing the possibility of running for mayor in 2013. All the more reason Mayor McClement should have spoken to her.

What is needed, more than a lobbyist, according to multiple sources is an update of the feasibility study for the project which was done several years ago. At a cost of around twenty-five thousand, the update is needed to help secure available state funding for the project.

The mayor would be wise to drop the ill advised request for a lobbyist and instead clearly explain the need for an update of the feasibility study, asking for private and public funds to pay for it.

Two years into his first term, Mayor McClement continues to shun the media, refusing to hold press conferences and only communicating with his board of aldermen by holding individual monthly meetings with his executive assistant always present.

This is a less than satisfactory manner, to accomplish anything of merit, for the citizens of Frederick. Instead, his approach has led to many questionable outcomes.

Whether, it was the long dragged out clumsy Request For Proposal for the lease of Harry Grove Stadium which resulted in a less than satisfactory lease for city taxpayers, the lengthy and inconclusive Fraternal Order of Police negotiations, a bicycle path to nowhere on W. Seventh Street, a highly questionable vote by mail proposal, the inability to secure millions in federal funds for the airport expansion and now a unexplainable need for a lobbyist, the mayor continues to fail to exhibit the basic management skills required of his office.

The City of Frederick deserves better leadership - voters should demand it.

---

To receive "Daily Updates" from Air-it-out with George Wenschhof, click on "Subscribe to this feed" below.

What’s The Next Step with Harry Grove Stadium Lease?

George Wenschhof

Originally published 8-21-2011

The handling of the lease of Harry Grove Stadium by the City of Frederick has raised more questions than was intended since Mayor Randy McClement issued a Request for Proposals (RFP) back in the spring of this year.

Rather than dwell on the less than satisfactory manner the award process has been to date, it would behoove the mayor and aldermen to examine the options available to them to ensure the city ends up with the best terms available for the use of the stadium – city residents deserve no less.

Public scrutiny of the terms of the lease agreement being negotiated by the city with The Keys has highlighted significant income differences to the city in various areas compared with the terms proposed by Frederick Atlantic LLC. Some of these areas were discussed in my column published on August 17, 2011.

In that column, I also pointed out the mayor and board of aldermen had never really discussed the pluses and minuses of charging for parking, stadium naming rights, and various billboard advertising options which have been identified as potential revenue streams for the city.

The lack of effort by the city to limit excessive pricing of concessions at the stadium was another disappointment discovered as the award process/lease negotiations have played out.

Rather than conduct a do-over of the issuance of the RFP, the possibility exists for the mayor and/or board of aldermen to require a few additional steps be taken prior to the ratification of the stadium lease.

While, the city RFP review committee has recommended The Keys and lease negotiations are taking place with them, no formal action has been taken by the mayor and board to affirm/confirm the recommendation by the review committee.

In addition, no lease agreement has been presented to the mayor and board for an official vote.

The intent of these proposed additional steps prior to ratifying a lease agreement would be to ensure the city receives the best lease possible from the two respondents to the RFP.

Prior to continuing lease negotiations with The Keys, discussion should take place in the next city mayor and board workshop with an agreement to implement the following steps:

First, review the Harry Grove Stadium financial pro forma (AL v. Keys and Proposed Keys Lease) prepared by Aldermen Karen Young – confirm the projected city expenses portion with city financial staff – instruct RFP review committee to use the projected city expenses when they evaluate clarified lease offers received in step three.

Second, decide on what additional revenue streams are acceptable to the city. This would include naming rights and a determination on “what” is available to be named, parking revenue, billboard advertising, and the price of concessions.

Third, instruct the RFP review committee to request private and separate oral presentations from both bidders (allowable under the RFP issued) to clarify their proposed terms based on the agreed upon additional revenue streams from the decisions made in the mayor and board workshop in step two.

This is important as City administrator Josh Russin in an article written by Katherine Heerbrandt in the Frederick Gazette was quoted as saying "The changed items — the split in revenues for signs and parking — were not part of the selection committee's purview, and only came up in the negotiations process."

In addition to clarifying proposed revenue splits on the agreed upon additional revenue streams, if any other areas of the submitted proposals need to be discussed to ensure “apples are being compared to apples”, the review committee would have the opportunity to do so at this time.

Fourth, have the RFP review committee (or a designee, if privacy is preferred) present in a mayor and board workshop, their ranking of the two proposals and their subsequent recommendation.

Unless, objection to the recommendation is heard from a majority of the aldermen at the workshop, the finalization of the lease agreement would then take place to be formally ratified at a following mayor and board meeting.

These steps should have been taken in the first place to ensure transparency and to preserve the integrity of the Request for Proposal process.

It is not too late for them to still happen – city residents deserve it.

Stay tuned…

---

To receive "Daily Updates" from Air-it-Out with George Wenschhof, click on "Subscribe to this feed" below.