garrett county commissioners – Page 8

Adventure Sports Center expected to break even

OAKLAND — Garrett County’s Adventure Sports Center International will break even for the year, according to Scott Weeks, county assistant director of financial services, and the county was able to save some money.

As of Dec. 31, Weeks is projecting a revenue of about $772,000 and expenses of $745,000 with a net income of roughly $28,000. For 2011, ASCI was at a net loss of about $151,000 — revenue was about $784,000 and expenses were $935,000.

The county was able to see the increase in net income because of reductions, according to Weeks.

“We had a decrease in our salary and fringes of $105,000,” said Weeks during the county commission meeting Tuesday. “We reduced some of the staffing there. We have been able to stabilize the operations and see a positive cash flow in the organization.”

The utilities cost for ASCI decreased by $40,000, of which $25,000 was for electric. Legal and professionals services as well as repair and maintenance were decreased by $19,000, according to Weeks.

The county agreed to purchase ASCI’s debt for $600,000 in March; the debt was $3.2 million and had about $180,00 in accrued interest, according to Weeks. All of ASCI’s payables flow through the county and they operate under the county’s internal control structure now, said Weeks.

“We got all that for $600,000,” said Weeks. “Before we purchased their debt, they were ready to come back to us and say, ‘We need $50,000.’ As of today, ASCI will owe the taxpayers $692,000.”

The commissioners agreed to pay $100,000 toward the ASCI debt with the money garnered from an increase in the hotel tax rate. At a meeting in May, commissioners voted to increase the hotel tax rate from 5 percent to 6 percent effective July 1. That increase generated roughly $300,000, according to Weeks.

“We are making progress on getting paid back,” said Weeks. “We have positive cash flow.”

An accounting change had to be made because ASCI was on a calendar year and the county operates on a fiscal year from July through June 30.

“So we made an accounting change and switched them (ASCI) over to a June 30 fiscal year,” said Weeks. “When I give a comparison, I have a June 30 audited figure that auditors are finalizing this week. The last thing I have for ASCI is December 31, 2011, audited financials. What I’m doing today, I took January and am projecting out where we are going to finish in December.”

In 2009, ASCI requested a $300,000 line of credit from the commissioners because it was unable to make cash flow, according to Weeks.

“They took out $50,000 in June of 2009,” said Weeks. “Then in February 26, 2010, they took out another $100,000. It was an interest-free loan and they were paying it back over a 10-year period.”

ASCI did make a $50,000 payment back to the county and in January 2012 asked the commissioners for another $50,000.

This year, ASCI served 10,436 rafters and last year served 10,431, according to Michael Logsdon, acting director of ASCI. ASCI employed 93 people in 2012, most of whom were guide staff comprised of high school and college students.

Since 2007, ASCI has employed 600 seasonal employees and served more than 66,7000 guests.

“Staffing is a concern because that’s a big expense item,” said Logsdon. “We have been really trying to make sure that we are staffed properly and not overly staffed or underly staffed.”

Total payroll was $300,000 for calendar year 2012, according to Weeks.

ASCI and Garrett College staff are working to formulate a three-year strategic plan from 2013 to 2015. The plan will address critical areas such as education, ASCI facilities, business growth, strategic alliances, community service, business sustainability and conservation of resources, according to Logsdon.

“We have to enhance what we do up here; it’s sort of been a one-trick pony,” said Logsdon, who noted that plans include hydrodynamic learning stations and a giant swing.

People are mostly coming into the area for other reasons, according to Logsdon.

“They probably didn’t come here just to take a two-hour rafting trip,” said Logsdon. “We are trying to figure out where they are coming from and we want to diversify the product line so they have something to do at ASCI besides ride the raft.”

Contact Elaine Blaisdell at eblaisdell@times-news.com.

Judge dismisses Garrett marina complaint

Elaine Blaisdell Cumberland Times-News

OAKLAND — An attempt to have a Garrett County marina decision overturned was dismissed Monday by Circuit Court Judge Jim Sherbin.

Sherbin granted a request by County Attorney Gorman Getty III to dismiss the action. St. Moitz Properties LLC, Bill’s Marine Service Inc. and Silver Tree Marine LLC had sought a judicial review of the county’s decision to amend text in the Deep Creek Watershed Zoning Ordinance.

The ammendment to the zoning ordinance allows Bill Meagher, owner of the Lakeside Creamery, to create a mini-marina for boat rentals, according to attorney Greg Skidmore of Skidmore, Alderson and Duncan of Oakland, who represented the marinas.

The decision whether or not to grant the motion to dismiss came down to whether or not the text amendment was considered spot zoning, applying to just one small area of land or comprehensive zoning, applying all land.

Both Sherbin and Getty agreed that the amendment pertained to comprehensive zoning.

“The change in the text ordinance applies to every parcel at the lake, not just one parcel,” said Getty. “This is not spot zoning.”

The commissioners followed the correct procedures in making the text amendment to the ordinance, by providing a study, holding a public hearing, soliciting public comment and by obtaining a recommendation from the planning commission, according to Sherbin.

“It would be different if the commissioners made this decision during a private meeting,” said Sherbin.

Skidmore argued that the amendment to the ordinance pertained to spot zoning and in particular Meagher’s property.

Meagher petitioned the Deep Creek Watershed Board of Zoning Appeals for a variance to the ordinance and then, about a month later, before a conclusion could be reached, withdrew his petition, according to Skidmore.

Meagher then took his request to the commissioners and a public hearing was held and the public comment period was extended.

During a June 5 meeting, upon the suggestion of the planning commission, county commissioners approved the text amendment to the ordinance to add a new category for boat rentals as a separate service that would not offer any of the other services associated with a marina.

Commissioners Gregan Crawford and Robert Gatto voted in favor of the amendment, with chairman Jim Raley opposing it.

During a May public hearing, Raley said he had concerns about Meagher’s decision not to offer services on-site.

Sherbin also granted Skidmore’s request to consolidate two separate appeals pertaining to the mini-marina.

St. Moritz Properties LLC, Bill’s Marine Service Inc. and Silver Tree Marine LLC have also filed a interpretive appeal in opposition of the zoning administration’s decision in June to grant Meagher’s request for a boat rental permit.

Meagher planned to offer 12 personal water crafts and four pontoon boats as rentals as well as offer guided tours. He would use local marinas for services.

“We didn’t want to do sales. We didn’t want to do repairs. We didn’t want to do a lot of the things that the marina does,” said Meagher during the public hearing. “The only thing we wanted to do was a boat rental business.”

The aforementioned businesses filed the petition because they felt like they have been “specially and adversely affected” by the commissioners’ decision, according to the petition.

Contact Elaine Blaisdell at eblaisdell@times-news.com.

Garrett commissioners approve hotel tax raise

Representative asks county for longer transition period

Elaine Blaisdell Cumberland Times-News

— OAKLAND — Garrett County commissioners unanimously approved on Tuesday a resolution to raise the Hotel Rental Accommodations Tax rate from 5 percent to 6 percent, effective July 1.

The commission also voted to discuss the implementation of the increased rate after hearing from a representative from Taylor-made Deep Creek Vacations.

The representative stressed that the company understood the need for a rate increase and asked the commission to allow for more of a transition period, explaining that updates of company software will be necessary in order to compensate for the new increase. The representative also said that the company wasn’t happy with the process of notification.

The commission followed the same procedure of notification in the summer of 2005, when the rate was increased from 4 percent to 5 percent, according to Wendy Yoder, director for the Department of Financial Services.

Because of the hardships of those rental contracts, the county decided to amend the reporting procedure in advance, according to the notification sent to county rental agencies.

“Contracts and confirmed reservations made prior to the receipt of this notification will be honored at the 5 percent tax rate,” said the email notification that the rental agencies received form the county.

“You will be required to submit taxes calculated at the new rate of 6 percent for contracts and reservations made after the receipt of this notification for all arrivals July 1, 2012, and after. What this means is that for any month whereby you are remitting the tax to the county that includes tax collected at both rates, you must remit your gross rental receipt to us broken down by the rate at which they were collected.”

For example, if a gross rental receipts in a given month is $6,000 and charged taxes at the rate of 5 percent on $2,000 and 6 percent on $4,00 then the remittance must be broken down that way, according to the notification. Hotel rental tax collected on the amount would total $340, with $100 collected on the 5 percent rate and $240 collected on the 6 percent rate.

The hotel rental tax is due to the county by the 21st of each month. If it’s not remitted by that date, penalty and interest charges will apply.

The rate increase resolution came about after the requested legislation was passed in General Assembly and was approved by Gov. Martin O’Malley, according to Chairman Jim Raley.

Contact Elaine Blaisdell at eblaisdell@times-news.com

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Garrett County commission agrees to take ownership of ASCI

Will pay $600,000 to secure debt

Elaine Blaisdell Cumberland Times-News

2012 — OAKLAND — On Tuesday, Garrett County commissioners voted unanimously to take ownership of Adventure Sports Center International and authorized the expenditure of $600,000 to secure the assignment of ASCI debts from Susquehanna Bank.

“We have basically changed the assignment of debt as of today. So the debt is really a repayment to the county,” said Chairman James Raley.

Susquehanna Bank will split the debt and distribute half to First United Bank & Trust, according to Commissioner Gregan Crawford.

“As part of that process, ASCI’s principal financial partners, First United Bank & Trust and Susquehanna Bank, proposed and offered a significant debt re-duction opportunity to the county in the event that the county accepted ASCI’s offer,” said Crawford. “The financial partners, who have contributed significantly to the process and the county’s consideration of this matter, have agreed to accept the assignment of debt in the sum of $600,000 in full satisfaction of ASCI’s debt obligations to those financial institutions.”

The $600,000 debt from ASCI will be paid with hotel/ motel accommodations tax revenue, according to Crawford.

The money for the debt came out of the general account to pay the banks, with the amortization coming out of the accommodations tax, according to Raley.

The accommodations tax is used to fund the Chamber of Commerce and Economic Development, according to Crawford.

“Accommodations tax can not be used to fund the school system,” said Crawford. “Once this debt is resolved, ASCI can concentrate more of its resources on fulfilling its corps functions. As public funds were used, we have a responsibility to succeed. The easy way out would to turn our backs, walk away and watch $24 million in capital costs go away. Whose interest will that serve then.”

A bill that is currently in consideration in Annapolis would raise the accommodations tax from 5 percent to 6 percent, according to Raley.

“That bill has progressed and gotten favorable readings from Senate side and the House side,” said Crawford.

ASCI is a nonprofit and is home to a manmade whitewater course and Forks Run, a 550-acre recreation area. The original debt accrued by ASCI was $3 million.

“We can not allow ourselves to give up this project,” said Raley. “I think this project is still in its infancy. I think we can grow this project and I think if you work with us we can make that happen.”

On Jan. 5, the board of directors of ASCI offered the full title to the facilities to the commissioners. The commission has been deliberating this matter since then, according to Crawford.

“The county has reviewed all information concerning the ASCI’s facilities, including its assets, liabilities, long-term value to county and community and has consulted with ASCI’s financial partners,” said Crawford. “The taxpayers of this county, the state, the federal government have made significant investments in this property.”

The $17.7 million project was built with $6.1 million from the county, $5.8 million from the state and $2.6 million in federal funds, according to The Associated Press.

Before the public had a chance to ask the commissioners questions, Raley noted that he understood their concern over the county’s decision to assume ownership of ASCI.

“I do believe it has its best chance of success under the current setup,” said Raley. “It’s not done. We still have some work to do after today. But I want you to note they have been open discussions to the extent that they can be. I have read your emails. I have read your social media posts and I do understand what you are saying.”

Negotiations would have to be handled in executive session, according to Raley.

The majority of the business owners and residents that spoke at the press conference had a variety of questions and some made it clear they were not happy with the decision.

“I just think this is a bad decision. It’s going to put us in a mess for years,” said Mountain Lake Park Mayor Leo Martin.

Martin noted that he didn’t fully understand where the $600,000 was coming from.

“That $600,000 is going to push something out of the budget sometime,” said Martin. “It has to, unless you are going to raise taxes. It’s the tax payers financing all of this. I think you guys need to speak in clear language about that.”

Raley reiterated that it was coming from the accommodations tax.

“The accommodations tax is up this year compared to other years. It has been another record year,” said Raley.

One resident questioned whether the general funds that are being used to pay the debt are taken from taxpayer money. Raley agreed that the general fund contained taxpayer money.

“We are using our funds (out of the general fund) to fund the payoff from the bank,” said Raley in response. “We are not borrowing money from the bank or paying the bank’s interest. We are using our own funds and they will be repaid,” said Raley, noting that it was a one time expenditure.

Raley encouraged residents to keep faith.

“I encourage you don’t give up. Think positive,” said Raley. “Roll up your sleeves like you do here in Garrett County. Let’s make it happen because we own it. It’s part of the Garrett County economic picture and the project is somewhat of the envy of many other places.”

Contact Elaine Blaisdell at eblaisdell@times-news.com

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Garrett County officials detailing takeover of flailing whitewater course in western Md.

THE ASSOCIATED PRESS
First Posted: March 27, 2012 – 3:16 am
Last Updated: March 27, 2012 – 3:16 am

HAGERSTOWN, Md. — Garrett County officials are publicly revealing details of their planned takeover of a manmade whitewater course in western Maryland near McHenry.

The county commissioners have scheduled a news conference Tuesday morning in Oakland.

The county said last week it will take over the recreational and training site from Adventure Sports Center International.

The nonprofit group opened the publicly funded course in 2007. It has defaulted on more than $3 million in bank loans to cover construction cost overruns.

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Garrett County to take over manmade whitewater course

Deal will not affect 2014 ICF championship

Associated Press

HAGERSTOWN — Garrett County will assume ownership of a manmade whitewater course near McHenry after the nonprofit developer of the Western Maryland tourism and training site defaulted on more than $3 million in bank loans, county officials and the development group said Wednesday.

The deal won’t affect the International Canoe Federation’s plans to hold its 2014 world whitewater paddling championships at the 5-year-old mountaintop course, said Duane Yoder, board chairman of Adventure Sports Center International, the nonprofit developer.

Yoder and Garrett County Administrator G. Lamont Pagenhardt said the county won’t be liable for the center’s bank debt.

County officials will announce details of the transaction Tuesday, Pagenhardt said.

Yoder said the deal will sustain the publicly-funded enterprise.

“I think it’s a pretty successful outcome in terms of keeping what we have out here, keeping the whole outdoor-recreation brand alive in the county,” Yoder said.

The center’s executive director, two-time Olympian Matt Taylor, said he’s leaving to become executive director of the Westwind Stewardship Group in Otis, Ore. Westwind owns 529 acres of mostly undeveloped coastal land used for outdoor education activities.

Yoder said Taylor’s departure wasn’t due to Adventure Sports’ financial problems.

Taylor said the Adventure Sports complex, which also includes 550 wooded acres, remains a relevant and exciting part of the Deep Creek Lake resort area.

“The ultimate long-term sustainability of any nonprofit or public entity can be a challenge because of the economy,” Taylor said.

The $17.7 million project was built with $6.1 million from the county, $5.8 million from the state and $2.6 million in federal funds. The 1,700-foot, recirculating whitewater course is used by both raft-riding tourists and world-class athletes.

Unexpected construction costs led the center to borrow $3.2 million from Susquehanna Bank and First United Bank & Trust. The center defaulted on the loans after D.C. Development LLC, the struggling owner of the nearby Wisp ski resort, stopped making $180,000 annual payments to the center for marketing services.

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MACo Supporting Local Lawmakers' BOE Funding Bills

Feb. 16, 2012

Garrett County commissioner Gregan Crawford announced yesterday that the Maryland Association of Counties (MACo) has voted to support House Bill 660/Senate Bill 586 – Education – State Aid – Grant to Limit Decreases in Funding. Crawford is a member MACo’s board of directors and Legislative Committee.

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The proposed legislation, which was introduced by Sen. George Edwards and cross-filed in the House of Delegates by Delegates Wendell Beitzel, Kevin Kelly, and LeRoy Myers, was drafted for the purpose of requiring the state to provide a certain grant to a county board of education for fiscal years 2013 through 2015 if certain funding provided to a county board decreases by not more than 5 percent.

Approval of this legislation by the Maryland General Assembly would equate to additional funding for the Garrett County Public School System, estimated to be $1 million. The Garrett County Board of Education is estimating a loss of state revenue for FY 2013 of $2.7 million. Favorable review of this legislation by the General Assembly and the governor would reduce the predicted deficit, according to county administrator Monty Pagenhardt.

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Commissioners Issue Statement On Board Of Education Funding Issue

Feb. 9, 2012

The Garrett County commissioners issued a statement during their public session on Tuesday concerning the local Board of Education’s fiscal year 2013 funding woes. About 50 local residents turned out to hear the announcement.

Commission board chair Jim Raley prefaced the statement reading by noting that he and the other two commissioners have attended all the BOE public hearings regarding the possible closures of Dennett Road, Friendsville, and Kitzmiller elementary schools.

“It is important to understand that while the state of Maryland has cut funding to education in Garrett County due to the wealth factor formula and the declining student population, the county has increased funding in excess of requirements known as the maintenance of effort by $860,000,” Commissioner Gregan Crawford read from the statement. “In fiscal year 2012, the Board of Education funding level was reduced by the state by $1.5 million, while Garrett County increased funding by $1.7 million, which is equivalent to all new tax revenue due the county.”

The commissioners noted that they recognize the serious financial situation that the BOE faces and that closing schools requires complex decisions that will have long-term implications on communities.

“The commissioners also recognize and emphasize that the issue and actions regarding school budgets, closure of schools, and the overall decisions about our school system rest in the elected members of the Board of Education,” Crawford read. “Any action on the part of the board of commissioners as the funding sources is not intended to usurp their difficult decisions.”

The statement notes that Garrett County government has also experienced a financial shortfall and that there are numerous challenges to securing funding for public services for residents, property owners, and visitors.

“Initial estimates reveal that the county real estate values have declined for FY 2012 and likely will result in a loss of $1.4 million in revenues to the county,” Crawford read. “Therefore, we are willing and open to increase county government’s financial appropriation to the Garrett County public school system, but are unable to provide a solid figure at this time, due to several variables.”

In the mean time, he indicated, the commissioners will do the following:

• Encourage the BOE to review retirement incentives in order to encourage retirements that will allow for the reduction of staff numbers without eliminating the jobs of new employees.

• Encourage the BOE to collaborate with the county to identify areas where overlapping services and practices may be consolidated and/or reduced in order to mitigate costs related to maintenance of effort.

• Encourage the BOE to continue to engage the public, central office staff, instructional staff, and administrative personnel for input in ways to enhance and maximize operations, as well as consider all options and proposals that can generate savings.

• Provide and direct additional funding, within affordability parameters, thus allowing the BOE the opportunity to look at a long-range vision of school needs based on projected enrollments and community interests as contained in the reports to be presented by the school communities.

• Support legislation (SB 586/HB 660) proposed by Sen. George Edwards and Del. Wendell Beitzel to cap the loss of state funding to any school district to a 5.5 percent limit.

Raley asked for the public’s help in getting SB 586/HB 660 passed in the Maryland General Assembly.

“We need to inundate the legislative folks with calls, comments, e-mails on that bill,” Raley said. “We need to give that bill some momentum.”

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Md. county won't bail out whitewater course

Posted: Feb 07, 2012 12:19 PM EST Updated: Feb 07, 2012 12:19 PM EST

OAKLAND, Md. (AP) – The Garrett County Commissioners say they won’t bail out a manmade whitewater course near Deep Creek Lake.

The nonprofit Adventure Sports Center International asked the county last month to consider taking over the mountaintop complex, including payments on about $3 million in bank loans.

The commissioners said Tuesday they won’t consider a takeover that would include the debt obligations.

The center’s operators defaulted on the bank loans after the group that owns the nearby Wisp ski resort stopped paying them for marketing services. The Wisp owners filed for bankruptcy protection in October due to a slowdown in sales of vacation home sites.

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Garrett commissioners to detail ASCI debt, reveal county’s position

Chairman says nonprofit group may consider transferring ownership

Elaine Blaisdell Cumberland Times-News

OAKLAND — The Garrett County Commission will provide a more detailed review today of Adventure Sports Center International’s debt situation and will make known the county’s position, according to Monty Pagenhardt, county administrator.

The commissioners made a public statement at the Jan. 17 meeting that they met in executive session earlier that day to discuss legal, financial and personnel implications for ASCI in regard to the default of $3 million of capital debt obligations.

ASCI is a nonprofit entity and not under the authority of the county commissioners, according to Pagenhardt. The financial institutions involved with the debt collection are Susquehanna Bank and First United Bank & Trust.

Adventure Sports Chairman Duane Yoder told The Associated Press that the group may consider transferring ownership to Garrett County or Garrett College.

The $3 million debt was incurred during cost overruns in construction of the actual whitewater course and pond, Matt Taylor, executive director of ASCI explained to the Times-News in a previous interview. ASCI broke ground on the whitewater facility in 2004 and opened in the spring of 2007.

“The ASCI whitewater course is a one-of-a-kind facility and a combination of unique building challenges and high cost of materials. Most of the facility was built in the years following Hurricane Katrina, which greatly inflated certain material and transportation costs (that) led to the overruns,” said Taylor in a previous interview with the Times-News.

Today’s 9 a.m. public meeting agenda will also include a briefing in regard to the county public school system’s fiscal 2013 budget.

The school system is $2.6 million in debt because of enrollment and wealth loss, according to the five-year plan proposal outline. The school system hopes to reduce the budget by $3 million by:

• Eliminating the high school driver’s education program, $200,000.

• Eliminating full-time school enrichment teaching positions, $165,000.

• Closing Dennett Road, Kitzmiller and Friendsville elementary schools, $2.16 million.

• Providing a retirement incentive.

• Reducing the transportation budget by $128,000.

• Reducing the maintenance budget by $100,000.

The five-year plan, developed by Sue Waggoner, interim superintendent of schools, also calls for:

• Reduction of six instructional assistant positions, $150,000.

• Reduction of academic intervention, $50,00.

• Reduction of three high school positions, $165,000.

• Reconfiguration of grade levels, making middle school fifth through eighth grades.

On Jan. 17, the board of education decided against moving fifth-grade students into middle school and instead considered a grade school alternative that will be based on next school year’s kindergarten enrollment numbers.

A decision on the proposed school closings will not be made until the March 13 board meeting.

“We are $3 million short. There is no way around the closings,” said Waggoner during the January public meeting.

The county commission will also discuss the Good Will Volunteer Fire Department boundary dispute. The fire department, which is located in Lonaconing, wants to provide service in Garrett County and receive fire tax revenue. The commission has no authority in this matter and the fire department has received a letter from the Public Safety Department explaining that there is a process, according to Pagenhardt.

The land-use management work session that was supposed to be discussed today was rescheduled to Feb. 14 at 1:30 p.m. to allow sufficient time for review and discussion.

Also on the agenda:

• County roads department will provide an update on the status of Westernport and Lower New Germany roads and an update on federally mandated radio equipment.

• An update will be provided on the Garrett County Airport and its 50th anniversary plans.

• A 2012 legislative update will be provided.

Contact Elaine Blaisdell at eblaisdell@times-news.com

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Category: garrett county commissioners

Adventure Sports Center expected to break even

Judge dismisses Garrett marina complaint

Garrett commissioners approve hotel tax raise

Garrett County commission agrees to take ownership of ASCI

Garrett County officials detailing takeover of flailing whitewater course in western Md.

Garrett County to take over manmade whitewater course

MACo Supporting Local Lawmakers' BOE Funding Bills

Commissioners Issue Statement On Board Of Education Funding Issue

Md. county won't bail out whitewater course

Garrett commissioners to detail ASCI debt, reveal county’s position

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