Bank Pressures Dellauder Project Partners for Debt Recovery Amid Legal Negotiations

In the quiet chambers of Taneytown's city hall, a pressing financial issue took center stage during the Mayor and City Council Workshop on September 3, 2025. The discussion revolved around the Dellauder bankruptcy, a situation that has left the city entangled in a web of debt and legal negotiations.

Robert Smillow, a key figure in the meeting, outlined the predicament: a bank has acquired the debt associated with Dellauder and is now seeking repayment from the city. This development has raised concerns among council members, as they grapple with the implications of this financial obligation. The city has been holding onto over $20,000 in retainage from the project, which is now under scrutiny as the bank pushes for its share.

The city is currently collaborating with a law firm that represents the bond company involved in the case. Smillow noted that communication has been ongoing, with special counsel reaching out to the bond company's attorney. However, responses have been slow, leaving the city in a state of uncertainty.

As the council deliberated, the possibility of needing to "cut our losses" was mentioned, highlighting the urgency of the situation. The discussions underscored the challenges local governments face when navigating complex financial landscapes, especially when external entities like banks and bond companies are involved.

This meeting not only illuminated the immediate financial concerns of Taneytown but also served as a reminder of the broader implications such situations can have on community resources and future projects. As the city awaits further correspondence, the council remains vigilant, prepared to make tough decisions in the face of financial adversity.