CWDI forum is standing room only

By Debra Messick
Posted 4/20/24

Every seat at Chesapeake Grove Intergenerational Center was filled by 6 p.m. Thursday, April 18. An estimated one hundred sixty-nine people attended in person with more watching via live stream to hear from the governing board of Cambridge Harbor.

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CWDI forum is standing room only

Posted

CAMBRIDGE - Every seat at Chesapeake Grove Intergenerational Center was filled by 6 p.m. Thursday, April 18. An estimated 169 people attended in person with more watching via live stream to hear from the governing board of Cambridge Harbor.

Cambridge Waterfront Development Inc. Executive Director Matt Leonard, board members, and several development partners offered warm welcomes along with project background, updates and answers to questions swirling through the community since City Manager Tom Carroll’s resignation in March, citing opposition to its direction.

Dorchester County Chamber of Commerce Executive Director Bill Christopher moderated the event. The chamber, a contracted CWDI partner, received questions submitted electronically by an April 15 deadline, selecting those most frequently asked to pose to board members.

Speakers included secretary/treasurer Frank Narr, former director of Sailwinds, among the original waterfront development planners 30 years earlier; board president Angie Hengst, Cambridge Rotary and Ironman/Eagleman leader; and vice president Shay Lewis-Sisco, Dorchester County Schools career coach and Moving Dorchester Forward community engagement coordinator.

Matt Leonard, executive director since 2022, provided an overview of CWDI’s vision and efforts to date, in the process, appearing to answer some of Carroll’s stated concerns, among them the failure to acquire a master developer.

Leonard divulged that while CDWI had interviewed seven potential master developers since 2018, problematic common conditional factors had emerged from each. These ranged from wanting the land for free, to expecting CWDI to pay for the development of a team of experts, just as CWDI already has done.

Each prospective developer also expected the site’s boat ramp to be relocated at community expense, because that's real estate they would want to develop, “as in, dense condos on the water,” Leonard said.

“They want the public spaces to be built with public funds, something we’re already doing. And they want infrastructure to be built with public funds, something we are pursuing,” he said.

“Some of what we’re doing is like what a master developer would do. The difference is, we put the community’s interests first, insisting on public waterfront access, and public parks added and expanded,” Leonard said.

He highlighted several Phase I project “anchors” moving forward, including likely final agreement this summer for a 90-room boutique hotel, a $25 million expansion of Yacht Maintenance Co., bringing additional jobs and an 850-foot boat lift, among the East Coast’s largest, to increase capacity.

Last year CWDI also purchased the Richardson Maritime Museum, revitalizing plans to eventually create a living maritime history museum and campus.

Phase I funding has come from federal, state and to a smaller degree, local funding.

Turning to Phase II, Leonard shared additional good news that building of the expanded promenade is scheduled to begin in July of this year, funded by a federal grant.

Phase II will also feature “seven acres of open public spaces, mostly on the waterfront, something that you won't see from a master developer because they would want to monetize that area,” he said, along with 750 planned public parking spaces. “Most developers we've talked to want to keep those private for property owners “ Leonard said.

But Phase II is also where the proposed need for Tax Incentive Funding (TIF) arises.

Keenan Rice, president of CDWI development partner MuniCap, Inc., spoke of the need for and benefits of TIF, another issue disputed by Carroll.

Rice explained that a $7 million budget gap currently exists, and that without TIF, that gap would balloon to $30 million.

“CWDI been very successful in getting state and federal money. Of the $13 million raised, only $400,000 or so was supplied by the city and county, a great job of leveraging city and county money to attract in other money. On that basis, it’s reasonable to assume that the remaining $7 million can be bridged. But raising $30 million to bridge the gap would be a bridge too far,” Rice said.

Rice, who has worked on numerous municipal TIF efforts, pointed out that CWDI “doesn't get a penny” from the funding, which goes entirely for public infrastructure, and that all private development “has to pay for itself.”

Because the bonds are issued as special revenue bonds, there is no liability to either the city or county, Rice said. And they would be repaid solely from new tax dollars generated, he said.

TIF funding would create public tax dollars from a property not currently producing any, projected to total $10 million to the city and county after 30 years, with more expected.

The money would be helping create public amenities for the entire community, including an upgraded beach, parks, walkways along the water, with the addition of restaurants that would likely be attracted to locate nearby, Rice said.

Leonard then discussed another fiscal planning benefit. “Quite often you see a public project with enough money to build it, but not enough to sustain it,” he said. “CWDI has planned for long-term sustainable funding through charges to property owners, with no taxes needed.

“It’s like an HOA, but the dollars we get benefit the wider community and visitors to Cambridge, not just the immediate property owners. So again, we shift costs away from the city and county,” Leonard said.

Christopher then began asking the first of the 67 questions submitted electronically, most concerning the Y, including, "What is the current status of the Y?" and "Why would you consider putting a nonprofit, non-tax generating entity on prime waterfront?"

Leonard answered that the Y had reached out to them along with other development partners, expressing interest and submitting reasons for doing so.

“Very clearly, it seemed to us, what they were offering was very beneficial to the mission of Cambridge Harbor,” Leonard said. “Lately the YMCA of the Chesapeake has built some fantastic new facilities that are bringing hundreds to thousands of people on site daily, not just seasonally, people who eat at restaurants, support retail shops, and ensure that residential properties are more valuable to people. While we’re not working with the Y now, when they’re ready with a real plan and real financing, we feel they are a great activation partner,” he said.

In answer to a follow-up question about the current Y property, Leonard spoke as a resident living a half block away, and a Y member. “I think what fills that space should be residential, single-family homes, matching the rest of the neighborhood, the same density, same size,” he said.

Another question asked whether board members were responsive to the bodies that appointed them, the city, county or state.

Lewis-Sisco, a city appointee, replied, “Yes, I have been in constant contact with our city manager and city commissioners.”

According to Hengst, “We are to relay information back and forth, but our main responsibility is to CWDI and furthering its mission. Of course, we are reporting back to our appointing bodies and are taking any comments, questions or concerns they may have back to the board for discussion, absolutely.”

Responding to a question about board members’ conflicts of interest, Narr shared that “we have a conflict-of-interest policy we all have to follow; we have to publicly disclose the same type of information any elected officials do, abstaining if there is ever a conflict.”

Another question concerned "the contract you have with the city and county" and whether CWDI was, as had been rumored, in breach of contract. Leonard replied simply, “No, we are not in breach of any contract.”

In answer to whether there wasn’t already too much public space in Cambridge, Hengst didn’t hesitate. “The public overwhelmingly wants more public space, especially waterfront. There is no large public space with access to the waterfront right now. You go to Talbot County, there’s not much, or any, public access to water,” she said.

Another person wondered if it wasn’t a waste of public funds to build a property that's going to be underwater in 50 years, asking whether it wouldn’t be better to fix the sewer system.

Kenneth Usab of CWDI partner Morris, Ritchie, and Associates, replied that design plans are taking into consideration sea level rise. “We’re very fortunate that the bulk of the property is at a fairly higher elevation than other areas of Dorchester County and Cambridge,” he said.

Usab also pointed out one important aspect of TIF funded improvements is upgrading some of the water sewer infrastructure, including a gravity sewer main that extends toward the former Sailwinds Park, featuring old clay pipe and leaky joints. “The area where these are located is covered by the Master Plan Matt presented, along Byrn Street, and will be upgraded with newer pipe that doesn’t leak,” he said.

Additional questions concerned the area’s unsightly fencing and creating a new marina when the Cambridge Yacht Basin isn’t full.

Someone else wanted to know about the mayor’s role with CDWI, following his announced proposal to amend the articles of incorporation, and Matt Leonard answered.

“So, we always appreciate it when someone is concerned about the project and has some ideas on how we can operate better. We recognize that's what the mayor was trying to do when he made his announcement Tuesday. When the board meets again May 22, we’ll decide whether those changes to the articles are necessary to help us improve our organization and accelerate our mission,” Leonard said.

Christopher announced that the current CDWI website, built specifically for attracting businesses, would be getting updated. “After feedback from you folks, our job is to rebuild that website; hopefully within three weeks you’ll see a new version, easier to use to access and find things, and mobile friendly. Once we go live, let us know what else is needed and we’ll be able to make changes,” he said.

A closing question involved which development plans have changed over the years, and what are projected to possibly change. Narr, the group’s 30-year veteran, had the final words.

“When you look at the original 1992 plan, there’s a hotel at the point; today, the hotel is at the point! Thirty years ago, we saw a lot of open space in front of the hospital, which we thought would be here forever, but is now gone. That was a game changer for us, transforming an 11-acre space into a 40-acre opportunity.

"Going forward, working to be financially feasible and sustainable, we have one chance to do this and sometimes the right answer is right now we need to wait. The beauty of being a nonprofit is not having to answer equity investors expecting to turn a quick profit. The important thing is, we have a plan, and that plan is dynamic. We will look for developers who can deliver and are willing to adhere to the community vision. That's why I'm still here,” he said.

Leonard noted that he was still responding to questions from the press and individuals.

Sisco-Lewis had a question for those gathered and listening. “As we are having conversations about this project, please remember that all CWDI board members are doing this on a volunteer basis. I would ask that you have some grace, and give us some patience, especially on social media. I also ask that you turn to elected officials for answers. I welcome questions at shayspeaks@cwdimd.org. If I don’t have answers, I’ll share transparently that I don’t, but I will find out. While I may not know all the ins and outs of development, I know about workforce development, and I know how to ask the difficult questions when I’m at the table."

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