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Monday, February 09, 2009

SALISBURY MALL OWNER LOSES BIG TIME – AGAIN – IN COURT


It’s official but not yet final because of an appeal by the mall owner.

On January 6 the Wicomico Circuit Court ruled for the “Hovnanian” firm that once wanted to develop a residential complex at the site of the old Salisbury Mall. The loser is the property owner – Salisbury Mall Associates – whose representatives, Natelson and Dzaman, once were the golden boys of the City administration of Barrie Tilghman with the support of the City Council under the “Dream Team” (Comegys, Dunn and Cathcart) and later the Comegys-Smith-Shields triad.

Judge Donald C, Davis ruled that the mall owner’s development contract with Hovnanian is “null & void” and ordered that Hovnanian is entitled to get back its deposit of almost $1.7 Million. The mall owner has appealed to the higher court in Annapolis.

The “Salisbury Mall Saga” is another huge debacle for Comegy’s campaign for election as mayor. He has claimed previously to have attracted Natelson and Dzaman from Baltimore by supporting their request for special zoning status and for a special “TIF” subsidy funded by the City, both of which were approved. The County refused to give them a special “TIF” subsidy.

And it’s the second major defeat for the mall owner’s scheme to develop the property. Several years ago the Circuit Court struck down the initial zoning ordinance that Comegys and others approved despite opposition from local residents, who successfully appealed the Council’s unlawful decision.

Remember the comments by Comegys and, before he left the Council (and the City), Dunn that the mall property would be developed just as soon as the zoning and TIF subsidy deal were approved? All we hear from them and Cathcart now about this mess at the mall is silence.

And here’s what they were saying when the “mall madness” was in the formative stage, as reported in the Daily Times on the dates mentioned below:

DEC. 17, 2003 (“Old Salisbury Mall Plan”)

"We wouldn't realize any increases until the bond is paid off, even though the value goes up," City Councilman Gary Comegys said…. "This is exciting," Dunn said….

MAY 4, 2004 (“Old Salisbury Mall”)

Any tax deal would be supported by privately-financed bonds. "That puts the burden on the developers to keep the (project) moving along," city Councilman Gary Comegys said.… This is a terribly exciting project," City Council President Michael Dunn said.

SEPT. 7, 2005 (“Mall redevelopment”)

"Sometimes these things leave here and get away from us and I don't want to see that happen," City Council Vice President Gary Comegys said.

JAN. 24, 2006 (“City Council”)

In a 4-1 vote, the council approved the rezoning of Village at Salisbury Lake, which would develop 823 residential units along with commercial use…. A few residents groaned at Comegys ' last words. "I feel we'll all be looking back and say, 'I'm glad that we're doing this.' "

MAY 27, 2006 (“Old Mall Filing”)

Council Vice President Gary Comegys , who supports the development, said he believes the city is on solid legal ground. "I'm not a lawyer, but as I read our zoning ordinance as it pertains to planned development districts, we followed the letter of the code," Comegys said. "The courts will have to decide that."

SEPT. 8, 2006 (“Old Mall Site Not Developed As Planned”)

A Wicomico Circuit Court judge ruled Thursday that the city government failed to complete some necessary steps in approving a Planned Development District on the site of the Salisbury Mall , meaning the site cannot be developed as originally proposed.

MAR. 6, 2007 (“Tax Increment Financing for Old Salisbury Mall”)

"This is a community issue," Comegys said. "It is critical to the Civic Center to be a viable entity."

JUNE 22, 2007 (“Old mall appraisal moves forward”)

Foreseeing the economic downturn that the region could sustain without this parking, Salisbury City Councilman Gary Comegys declared in March that he would not support the city's TIF with the developer until the county had the opportunity to purchase the spaces. "I just wanted to bring it to everyone's attention that this parking lot is bigger than a city issue," Comegys said earlier this year. "It behooves us to do whatever we can do so that we get an opportunity to negotiate for the parking area for the Civic Center."

Now the county has set its maximum price to pay for the 5 acres at $1 million. Cannon would not say what happens if the appraisal exceeds their maximum.

DEC. 30, 2007 (“Old Salisbury Mall demolition”)

The project's residential builder, K. Hovnanian Homes of Maryland LLC filed a complaint Oct. 12 in the Circuit Court of Wicomico County to activate a termination clause in its contract. The Landover builder asserts it can opt out because the project's timeline is behind schedule.

26 comments:

Anonymous said...

Joe:

Thanks for telling us. I can't believe nothing has been in the Daily Times or on TV about this ruling -- it happened a month ago!

Anonymous said...

Gary Comegys claims the Old Mall as one of HIS accomplishment. Look what you have accomplished in 5 years Gary...ABSOLUTELY NOTHING.

Is Gary Comegys one of the owners of that LLC? Is Dunn one of the Salisbury Mall Associates? Have they made any money off this project?

Anonymous said...

And let's not forget how Comegys called citizens "cave people"--who would want this guy as our Mayor.

Anonymous said...

How does all this leave the City taxpayers as Comegy's pushed for the TIF on the mall? Taxpayers screwed.

Wymzie said...

Great Article Joe!

Anonymous said...

We are [*] close to losing $14,000,000,000

Anonymous said...

We are THIS [*] close to losing $14,000,000,000

Anonymous said...

What a fiasco! Aren't these guys in trouble in Virginia, too? I read or heard that somewhere.

Long live the Maulers and the Judge who shot down illegal rezoning and stood up for the people!

Anonymous said...

Curse you, Mike Dunn! May your flesh fall from your bones and your hands quake.

(Hey, look! It worked!)

Anonymous said...

Good reporting, Joe. Keep up the good work.

Anonymous said...

What should happen with this property is that it should be purchased by the county for the future construction of a new arena to replace the WYCC.

It is clear that if the right entertainment is booked in the present WYCC, that the event can be sold out in a matter of hours.

It would not mean that the present WYCC would have its uses. A new arena could be built on the end of the property that backs up to the Twilley Center. A nice hotel chain (such as Mariott) could be soliceted to build on the end of the property near the present WYCC. All three buildings could be connected by covered walkways so that people could travel between the buildings without having to go outdoors.

Companies look to book conventions and trade shows at venues that have on-site or near by full service hotels in order to save the attendees companies money on rental cars and other associated transportation costs.

Think of what the benefit to our city and county would be with the increased convention business that a facility like this could draw.

Anonymous said...

Hey Joe,

1:52 has a very good point.

Why don't you do a post and ask people what they think should be done with the "old mall" property?

You might get some interesting feedback on this topic.

joe albero said...

Wait till tomorrow. I have a really cool post going up about it.

Anonymous said...

Barrie, Dunn and Gary--all cut from the same cloth. Each was SO wrong in their handling of this mall mess. From the beginning they should have been alert, but they were not. And then those three compounded their errors by pushing that TIF on the taxpayers.

By comparison, the County leaders nixed the TIF and now (as then) look very astute in doing so. Too bad Barrie and Gary were so dumb about the whole deal.

Anonymous said...

2:05 & 1:52 --

That's ridiculous, even if this was not a major recession.

Recall the history of the former "National Indoor Tennis Tournament" -- that is the main reason we have the white elephant we now have. As soon as the boxing craze flames out, there won't be any more need for the space then there has been for 99% the past 20 years.

Having 5 or so boxing cards a year won't cut it. And the current facility is ample for that as it is now.

Anonymous said...

Natelson & Dzaman's Virginia (Colonial Beach) projest in DO-Do, too --

"What Dzaman and Natelson may not be aware of is that the Circuit Court will not evaluate information in the same way as the BZA. Rather, the Circuit Court would examine the fashion in which the BZA reached their decision; the mechanism in place. In the meantime, another year tick tocks away as the planting season disappears; fall is the best time for planting trees. The Town will be looking at 2009 and another year of town resources being used to monitor compliance by the same project. If the Town kept timesheets, how many attorney hours and zoning hours would be shown spent over the past three years on this housing development?

When asked her reaction to Chesapeake Townhome Development characterizing themselves as "good neighbors", long-time resident Dale Sawdy had this to say, "It's a big lie, a total lie. They're arrogant and care nothing about Colonial Beach. All they want is the money." Another long-time resident, Steve Kern said, "There is a lot more damage there than what they are willing to admit to." Should the case be appealed to the Circuit Court, Kern says he will be there "with bells on".

Source:

http://www.stpns.net/view_article.html?articleId=108510810810987111018

Anonymous said...

FYI:

Monroe Point files appeal of Colonial Beach BZA ruling

The Board of Zoning Appeals (BZA) upheld the findings of the Town's Zoning Administrator at a hearing on October 21, 2008 regarding Monroe Point and Chesapeake Townhome Development (CTD). That decision has now lead to an appeal by the developers which will look at the process by which the decisions of the public officials will be examined. What the BZA upheld was Chuck Bird's, the zoning administrator's, findings that the planting remediation schedule for the development was still not complete more than two years later and that in addition to what was originally specified in the plan, the developers, Mike Dzaman and Jonathon Natelson would have to plant an additional 450 additional canopy and under-story trees.

I wonder what the folks in VA know about the Salisbury Mall mess that they are in (and Comegys created).

Anonymous said...

The have had citations here for several years. See this blast from their past...

Beach halts shoreline work

May 4, 2006 12:50 am

A track excavator clears vegetation Tuesday near the water at a townhouse development site at Monroe Point in Colonial Beach.

By FRANK DELANO
By FRANK DELANO
A Colonial Beach official yesterday ordered a townhouse developer to stop clearing areas near the water and to begin replanting them this spring.

Building and Zoning Director Chuck Bird ordered the developers of Monroe Point to remove excavating equipment from the buffer zones beside Monroe Bay and Monroe Creeks.

Bird also ordered Michael Dzaman and Jonathan D. Natelson to submit by May 12 a plan to replant shrubs and ground covers this spring and trees this fall.

Anonymous said...

To 2:48

It sure is a shame that you, like many other people in this area, have no vision for our future.

If you had the experience and know how of the entertainment and convention industry that I do, you might be able to open your eyes a bit as to what needs to happen to put our city on the map for these types of events.

Do you have any idea of the economic impact that a facility like this could have for our area?

By the way that your comment was written, it shows your ignorance to things that need to happen that could make the quality of life in our area much better.

Anonymous said...

Joe, In your story tomorrow.... would it address what use the existing Civic Center property would be good for? There are just too mant white and blue "Sperry" signs in this town now.
Being on the unemployment line, maybe I should become a sign painter; I've got some blue and white paint here at the house.

Anonymous said...

In order to do anything decent with the civic center, the county would need to buy additional land - wasn't the Civic Center property donated with a no-alcohol clause?

Anonymous said...

3:27 --

Hooray for Hollywood, and this sure ain't it! ROTFLMAO.

Don't forget this little gem: "If you build it they will come." NOT

Anonymous said...

The fly on the wall in that photo, taken after a City Council hearing, clearly recalls their conversation:

Dunn: See, Johnny, I told you it would be a piece of cake, despite Debbie Campbell and the Dirty Dozen.

Natelson: I never thought they would be duped again after "Sassafras Meadows." Mikey, you and Bubba Comegys are the greatest.

Anonymous said...

The dirty dozen had smelled those buzzards from 100 miles away. As smug as they were to us at council meetings I hope their butts get raked over the coals, pack up camp and get the you know what off this eastern shore and never come back.

Anonymous said...

Comegy's most famous parrott saying
"development will pay for development" "growth will pay for growth"

Again, Mr. Comegy's has shown his lock step with the failed Mayor's administrtion, but that is not the worst of it, he has not had a single thought of his own since I have been watching or listening.

That is why the person put out lies to the renter about the "good guys" Gary is a patsy, more of the same pay backs and "gifts" for friends. Sure, I would support the most stupid ones too.

The renters and the readers are smarter this time..believe me.

Anonymous said...

The good thing is that we don't need to bash Gary or Shanie. Just wait for the forums when they start talking.

er um me be the bubba R-necks-mare, i'z works for SHA, city council VP, Municiple league, Humame society appointment, zoning board, Zoo, parsons cemetary, SAPOA, if need be in emergency I'z can still jump on dat far truck, you know bubba likes his toyz.

Speaking at all is his own worst enemy.