Council approves inspection agreement for 149 N. Potomac and awards Wellers Alley fence contract; purchase plan for YMCA property moves forward

The Hagerstown City Council met in a special session and approved an inspection agreement to begin a 60‑day study period on the city’s proposed acquisition of 149 North Potomac Street — commonly referenced in the meeting as the former YMCA — and moved forward with a state grant‑funded streetscape and screening project behind the downtown post office.

Doug Reason, a city staff member presenting the purchase documents, said the negotiated purchase price with 149 North Potomac LLC (Mike Fitzgerald, owner) is $2,500,000 and the contract includes a 60‑day study/inspection period. Reason said the inspection agreement was placed on the special‑session agenda to allow the city to begin the 60‑day review in advance of the agreement’s effective date and that the acquisition strategy is intended to "stabilize the property and return it to the private sector for highest and best use as a tax contributing property."

The council approved the inspection agreement in special session by voice vote. The city attorney and staff said that, if acquisition is completed, the property would be listed on the city’s competitive negotiated sale list so private developers may submit offers for redevelopment; staff and elected officials repeatedly said the city does not intend to be a long‑term owner of the property.

On a separate special‑session motion the council approved a contract to fabricate and install decorative fence panels along Wellers Alley (the alley behind the U.S. Post Office at 44 W. Franklin St.). That project is 100% funded by a $100,000 Maryland Department of Housing and Community Development (DHCD) grant. The council awarded the contract to Panella Contracting LLC for $83,169 and authorized up to $16,831 in additional expenditures for testing, inspections and contingencies.

City staff described the Wellers Alley work as both a beautification and safety measure: the fence and associated design would screen the post office storage yard and discourage loitering on a retaining wall where people had congregated. Staff said they had consulted with the post office, nearby businesses and building owners and that the post office supports the screening approach.

Why it matters: The inspection agreement for 149 North Potomac is the first formal step toward city acquisition of a large downtown property that officials say has sat vacant and could be redeveloped for mixed use. The Wellers Alley contract uses state grant funding to target a downtown viewshed and address reported loitering; both actions change the near‑term capital and planning landscape for downtown Hagerstown.

Ending: City staff said the purchase documents, inspection results and any subsequent ordinance for acquisition will return to council for final approval; they also said the Wellers Alley work must be completed within the DHCD grant schedule and will proceed under the approved contract.