FROSTBURG — A multimillion-dollar deal for the state to purchase a private business is scheduled to be presented to the Maryland Board of Public Works on Wednesday.
The Maryland Department of Natural Resources plans to buy Savage River Lodge from owners Jan Russell and Mike Dreisbach for $8.7 million.
According to the BPW agenda on Friday, the proposal includes $870,000 “to stabilize the structural integrity of improvements existing on land at the time of acquisition, eliminate health and safety hazards, protect water quality, and provide public access.”
The funding source for the $9,570,000 is listed as the Outdoor Recreation Land Loan, Program Open Space Stateside.
If approved, settlement could happen in early 2025 and the transaction will connect the 42-acre property with the surrounding Savage River State Forest.
The lodge would be managed by the Maryland Park Service as part of the New Germany State Park Complex.
“The property includes established facilities (lodge, cabins and yurts) that will be used to expand overnight accommodations in an area where these amenities are in high demand,” according to the agenda. “Acquisition will increase recreational opportunities for hiking, biking, cross country skiing, snowshoeing, and fishing. It will also expand public access to the hunting area in Savage River State Forest and simplify boundary management by eliminating an inholding.”
The agenda listed two appraisals for the lodge from 2023, including $6,800,000 by Terrence W. McPherson and $9,800,000 by Georgia L. Nichols.
The valuations were reviewed by Dave Wallenberg, DNR’s chief review appraiser, the document stated.
Approval
In December, DNR media relations Manager Gregg Bortz said the lodge owners had met with DNR Secretary Josh Kurtz “and others in DNR leadership” in Annapolis to discuss the business.
“DNR management routinely talks with landowners of tracts that abut or reside within DNR properties on their potential future use of their lands,” he said at the time. “As this was an informal meeting there was no agenda nor minutes taken.”
On Friday, in response to a Cumberland Times-News request for details of the deal between the state and lodge owners, Bortz said approval by the BPW is required before DNR can complete any agreement.
“There is currently no contract that can be shared,” he said. “Information regarding the proposal is on the agenda before the board.”
Board
According to Maryland.gov, the Board of Public Works, which consists of the governor, comptroller and treasurer, is the highest administrative body in the state’s government.
The board’s powers and duties include approval of expenditures for expenditure of all general obligation bond funds; capital improvements except for state roads, bridges and highways; sale, lease or transfer of state real and personal property; and control of procurement policy, regulations and approval of most contracts that exceed $200,000.
“The modern mission of the board is vast but may be summed up as protecting and enhancing the state’s fiscal integrity by ensuring that significant state expenditures are necessary and appropriate, fiscally responsible, fair, and lawful,” the website states.
“This is done through semi-monthly meetings in which the board members review and vote on a myriad of agency proposals,” it states.
“In reviewing and approving capital projects, procurement contracts, and the acquisition, use, and transfer of state assets, the board assures Marylanders that executive decisions are made responsibly and responsively.”
‘Unconscionable’
Grantsville resident Mike Gregory worked for DNR for 30 years as a park ranger and manager at locations across the state, including Savage River State Forest.
On Friday, he said money DNR plans to spend on Savage River Lodge would be better used in other areas of the state where it’s needed.
“They’re just throwing money at this with no benefit to taxpayers,” he said. “I’ve seen DNR make mistakes before.”
Savage River Lodge is “a failed business” that couldn’t attract a private industry buyer.
“For the state to come in and bail them out is unconscionable,” Gregory said.
He said DNR should have held a public hearing for taxpayers to comment on how their dollars are spent.
“DNR hasn’t been forthcoming,” Gregory said and talked of “silence among elected officials” and a “backroom deal.”
‘Dark’
John Bambacus is a former state senator and mayor of Frostburg, and member of the Garrett County Forestry Board.
The BPW is responsible for upholding the best interest of taxpayers, he said.
In contrast, the transaction the state has taken up with private business owners throws taxpayers into the resort and restaurant industry, he said.
Bambacus asked DNR multiple times for the contract of sale on the lodge deal.
“Nobody is willing to step forward and inform the public of the terms,” he said.
“The public has been intentionally left in the dark.”