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Frederick Board of County Commissioners' Letter to Maryland Board of Public Works


Ms. Sheila McDonald
Executive Secretary
Maryland Board of Public Works
Louis L. Goldstein Treasury Building
80 Calvert Street, Room 117
Annapolis, Maryland 21401
Re: Frederick County Grant Agreement

Dear Ms. McDonald:

The Board of County Commissioners ("Board") of Frederick County, Maryland, hereby provides its check in the amount of $200,000 in full satisfaction of its obligations under the State of Maryland Capital Projects Grant Agreement dated January 26, 2011, among the State, the Board of Trustees of the Community Foundation of Frederick County, Inc., and the Board (copy enclosed).

The Grant Agreement terminates under § 8 when the State bonds used to fund the grant are repaid in 2026. Prior to that time, the Board is required to obtain the Board of Public Works' (BPW) prior written consent to sell the facilities.

The Board has requested that the BPW provide its prior written consent to a proposed sale of the Citizens Care and Rehabilitation Care and Montevue Assisted Living facilities as provided in Paragraph 13 of the Grant Agreement. As authorized by State law (Chapter 678 of the Laws of 1912), the Board seeks to sell the facilities and apply the proceeds to retire the County debt issued in connection with them. The Department of General Services has recommended that the BPW approve the sale and allow the County to retain the sale proceeds.

The County's request has been on the BPW agenda twice (July 24, 2013, and August 21, 2013) but action has been deferred both times.

If the BPW was to view the sale prior to the repayment of State bonds as a default, the Grant Agreement provides that the remedy is a repayment of the Grant. (Paragraph 12). (All payments have been made under the Grant Agreement, so withholding further payments is not and applicable remedy in this situation. Subparagraph 12(a)(iii).  Termination of the Grant Agreement is also not applicable. Subparagraph 12 (a)(iv)).

By repaying the full amount of the Grant, the Board has fully performed the Grant Agreement.

Thank you for your consideration of this matter. If you have any questions, please contact County Attorney John Mathias at 301-600-1031.



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