5-19-09

Baltimore Sun Article

HCC president vows to return $1.7M in surplus budget funds College had used money to purchase historic Belmont estate in Elkridge By Larry Carson | larry.carson@baltsun.com 8:12 AM EDT, May 19, 2009

Howard Community College President Kate Hetherington publicly promised Monday night to return $1.7 million in surplus budget funding used without county government knowledge to help buy the historic Belmont Conference Center in Elkridge. The promise, made at a County Council hearing and backed by a signed letter to County Executive Ken Ulman and each council member, is the latest in a string of difficulties involving Belmont since the college took over operation of the 18th century estate in 2004. First, the college erected a huge metal exhaust fan visible over the kitchen of the 18th century estate home used for conferences, weddings and to teach college students the hospitality business and culinary arts. Then former college President Mary Ellen Duncan admitted to state legislators that $1 million she had said was a "gift" to help pay for the original purchase of Belmont by the Howard County Community College Foundation was actually a loan from a developer who hoped to build on some of the land.

All along, a group of Elkridge residents, including immediate neighbors of the secluded estate, have strongly opposed the college's involvement, fearing it would lead to private development and disrupt the ambiance of the estate and the surrounding area. They formed a private Save Belmont group to oppose the college's plans. Belmont is at the edge of Patapsco State Park and is accessible only via a long, winding one-lane private road. Much of the land owned by residents there is permanently preserved as open space. The college was to have used donated money for its half of the purchase price in buying Belmont from the foundation. But college officials revealed at a council budget work session earlier this month that they instead had used money left over from their fiscal 2008 operating budget.

"They didn't have the authority to use anything but donor funds," said Councilwoman Courtney Watson, an Ellicott City Democrat who represents the area. Watson was visibly upset at the work session when she learned about the funds and how they had been used. Other large agencies, such as the school system and the county library system, either return surplus money to the county or ask for specific approval for a new use. But Monday night, Watson praised Hetherington for working over the past week to find a solution and resolve the problem. "You have come up with some very good ideas to make it (budgeting) user-friendly for the council and the executive," Watson told Hetherington at the hearing, held at school board headquarters. When the college sells a 13-acre property with a house on it adjacent to Belmont, the proceeds will be used to repay the money, Hetherington said. No sale is imminent, however. "Any expenditure from the surplus reserve fund can only be made with a County Council-approved amendment to the appropriation for the operating budget," Hetherington's letter said. She also specifically acknowledged that under state law, county officials "have final authority to approve the operating and capital budget of the college." Hetherington agreed to regularly share budget data and audits.

Critics, including Elkridge residents Cathy Hudson and Dale N. Schumacher, have sought to convince the council this spring that the college is pouring money into Belmont — which is still not breaking even — while taxpayers and students pay for it. Critics say hospitality training doesn't require a 68-acre, high-maintenance estate. Howard Community College has the state's highest per-credit tuition costs, though college officials point out that some of that money goes to scholarships for needy students. College officials have also said that enrollment continues to increase, bringing more demands on the school's campus buildings in Columbia. Hudson, who attended the meeting but wasn't aware of the behind-the-scenes bargaining over the past week, hit a hopeful note. "I hope it's a beginning of a new era," she said. "I hope Dr. Hetherington can take it in a new direction."

6-1-07 The state Department of Natural Resources has offered to purchase Belmont and Dobbin using about $5 million of state funds while allowing the college to run the facility. This would enable the college to keep the $2.2 million that it has raised from donations, and it would allow the college to keep the $2.2 million that the county has budgeted. The college would also have the $566,000 allocated for debt repayment that they could use. All totaled, the college could have Belmont to run and get $5 million dollars to spent on some other needed project at the college.

However, the college does not seem to be interested in getting the state’s $5 million. They testified that they didn’t want any DNR oversight (despite the fact that they are surrounded by state park and what happens at Belmont will directly affect the park). And shortly after the budget was approved, the new college president said, “this was the first year we didn't get a full compliment of capital funding”, yet they aren’t availing themselves of what the state is offering. Two projects that they have delayed are the funding of a new Medical Careers Building that will house rapidly growing health majors and the renovations of the Clark Library whose electrical system (that includes the college’s main computer, telecommunications and networking systems) needs a critical overhaul.

Save Belmont questions the priorities of the college that would place the funding of Belmont above these two critical projects.

Capital Budget update – amendments to the funding for the college to purchase Belmont:

Four members of the county council (Council Members Ball, Fox, Sigaty and Terasa) voted against these basic, due-diligence proposals:

1. Requiring an appraisal of Belmont to be sure more than the appraised value was not paid by the taxpayers.

2. A provision that would have returned money to Howard County Government if HCC sold the land, sold any part of the land, or leased the land for a nonpublic purpose.

3. A provision that would have required HCC to provide a business plan and proforma financials as a condition of the funding.

4. A provision requiring the $2.2 million of debt service to be placed in escrow before Howard County funds were appropriated. <

All members supported:

1. MHT easement language being incorporated in the deed and the transfer of title being a condition of the appropriation.

2. First right of refusal for Howard County government.

5-15-07 DNR has proposed the use of stateside Program Open Space monies to purchase entirely the Belmont and Dobbin properties. Unlike last year's proposal that used a different funding source, this proposal would not require active recreation facilities. The college could enter into a longterm lease of the property and continue running it as a retreat center and as a training facility for their students. The County Council requested to have the offer in writing. Click here to see DNR's letter

This funding would allow the county to put $2.2 million towards another worthwhile project, or use it to lower taxes. The college would get to use the $2.2 million from private donations to help pay off the $4 million dollars of debt from the building of the Horowitz Center that students are paying $3/credit hour to pay off. Everybody has to give a little, but there is also something for everybody in this scenerio. It is the fairest solution available.

4-26-07 The county council at their public hearing heard several hours of testimony concerning Belmont. Representatives from the hospitality industry, some business leaders and college representatives spoke in favor of the funding. However, no civic, environmental, or historic preservation group supported the funding for the college to purchase Belmont. Groups that expressed concern in person or in writing about the funding included the Maryland Environmental Trust, Howard County Citizen's Association, the League of Women Voters, Preservation Howard County, the Howard County Historical Society, Greater Elkridge Community Association, the Friends of the Patapsco Valley and Heritage Greenway, Inc., the Howard County Bird Club as well as members of the Rockburn Land Trust.

4-2-07 Despite widespread concern from community groups and a vote for no funding from the Howard County Planning Board, the County Executive has proposed funding $5 million dollars for the college to purchase Belmont and begin renovations and additions as part of their $34 million expansion plan -- approved by the College Board just two months ago. Click here to see the plan

3-4-07 Planning board unanimously votes for "No Funding" for Howard Community College purchase of Belmont. "the Board is uncertain as to how Belmont fits into HCC's Master Plan..." and "Allowing Belmont to operate as a government use and as a matter of right evades such conditions already established through previous zoning decisions. It disrupts the balance between property's historic value and the adjacent comunities. Allowing this classification...would permit expansion at will without consideration fo the impact and intensity of use on surrounding communities." For full text click here.