Sept. 9—FROSTBURG — A multimillion-dollar deal for the state to buy a private company is expected to be presented to the Maryland Board of Public Works on Wednesday.
The Maryland Department of Natural Resources plans to purchase Savage River Lodge from owners Jan Russell and Mike Dreisbach for $8.7 million.
According to Friday’s BPW agenda, the proposal includes $870,000 “to stabilize the structural integrity of the improvements present on the land at the time of acquisition, eliminate health and safety hazards, protect water quality, and provide public access.”
The funding source for the amount of $9,570,000 is listed as Outdoor Recreation Land Loan, Program Open Space Stateside.
If the project is approved, the transfer could take place in early 2025, connecting the 42-acre site to 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 (lodges, cabins and yurts) that will be used to expand overnight accommodations in an area where these amenities are in high demand,” the agenda states. “The acquisition will increase recreational opportunities for hiking, biking, cross-country skiing, snowshoeing and fishing. It will also expand public access to hunting lands in Savage River State Forest and simplify boundary management by eliminating a holdout.”
On the agenda were two appraisals for the lodge starting in 2023, including $6,800,000 by Terrence W. McPherson and $9,800,000 by Georgia L. Nichols.
The appraisals were reviewed by Dave Wallenberg, DNR’s chief appraiser, the document said.
Approval
In December, DNR media manager Gregg Bortz said the owners of the lodge in Annapolis had met with DNR Secretary Josh Kurtz and “others in DNR leadership” to discuss the matters.
“DNR management routinely meets with landowners whose properties are adjacent to or located on DNR properties regarding their potential future use of their land,” he said at the time. “Since this was an informal meeting, there was no agenda or minutes.”
On Friday, in response to a Cumberland Times-News request for details about the deal between the state and the lodge owners, Bortz said BPW approval is needed before DNR can enter into an agreement.
“There is no contract that can be shared at this time,” he said. “Information on the proposal is on the agenda for the board.”
Board
According to Maryland.gov, the Public Works Board, which consists of the governor, auditor and treasurer, is the highest governing body within state government.
The powers and duties of the Board include approving expenditures for all general bond funds; capital improvements, except state roads, bridges and highways; sale, lease or transfer of real and personal property of the State; and control over purchasing policies, regulations and the approval of most contracts exceeding $200,000.
“The Board’s modern mission is broad, but can be summarized as protecting and enhancing the financial integrity of the State by ensuring that significant expenditures of the State are necessary and appropriate, financially responsible, fair and lawful,” the website states.
“This is done through biweekly meetings where board members review and vote on a large number of proposals from the agencies,” the report said.
“When 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.”
‘Without conscience’
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 the money DNR plans to spend on Savage River Lodge could be better used in other parts of the state where it is needed.
“They’re just throwing money at this and the taxpayers aren’t getting any benefit,” he said. “I’ve seen DNR make mistakes before.”
Savage River Lodge is a “failed business” that failed to attract a private buyer.
“It is unconscionable for the state to come to their aid,” Gregory said.
He said DNR should have held a public hearing so taxpayers could have their say on how their money was spent.
“DNR has not been very cooperative,” Gregory said, citing “silence among elected officials” and a “backroom deal.”
‘Dark’
John Bambacus is a former state senator and mayor of Frostburg and a member of the Garrett County Forestry Board.
The BPW is responsible for representing the interests of taxpayers, he said.
In contrast, the transaction the state has entered into with private entrepreneurs puts taxpayers in the resort and restaurant sector, he said.
Bambacus has asked DNR several times for the purchase contract for the lodge.
“Nobody is willing to step forward and inform the public of the conditions,” he said.
“The public has been deliberately kept in the dark.”
Teresa McMinn is a reporter for the Cumberland Times-News. She can be reached at 304-639-2371 or tmcminn@times-news.com.
