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Council weighs terms for Lot 10 subrecipient agreement as developer resumes planning
Summary
City attorneys and administration briefed council on the history of Lot 10, state PAYGO grants the city received, and a draft subrecipient agreement for Mentis Lot 10 LLC. Council asked for clarifications on eligible expenses and a proposed disbursement schedule before any final subrecipient agreement is signed.
City attorneys and administration on July 14 returned the Lot 10 redevelopment project to the council’s work session agenda to update members on a draft subrecipient agreement and next steps after state funding awards.
Attorney Heather Conyers said the city declared Lot 10 surplus in 2016, sought proposals in 2021, and sold the property to Mentis Lot 10 LLC following a council contract and recorded deed. The city later applied to the Maryland Department of General Services (DGS) for pay‑go consolidated capital bond funds, seeking a $3 million and a separate $1 million award for design and infrastructure; Conyers told the council the city received awards for those requests and accepted the funds by ordinance in December 2023 subject to a subrecipient agreement with the property owner.
Conyers said she has drafted a subrecipient agreement using prior city templates but needs council guidance on the agreement’s “exhibit B,” which she described as a reimbursement/disbursement schedule: the council must decide at what milestones and in what amounts the city will reimburse the developer for eligible project expenses. Conyers advised the group that, because the city lacks an overarching contract from the state outlining some eligibility questions, she needs written guidance from DGS on whether certain pre-award developer expenses are eligible for reimbursement; she cited a developer request for reimbursement of approximately $124,000 in pre-award expenses as an example requiring express state authorization in writing.
Administration officials said they held recent meetings with the developer and with the surveyor to explore parking solutions and to determine whether the city might acquire a portion of the property back to create needed public parking, a change that would affect the developer’s site plan and scope. Mayor Randolph Taylor and staff described “productive” conversations with the developer and a two-week target for a preliminary design and parking options that would inform the subrecipient disbursement schedule.
Council members and legal staff agreed on a work plan: (1) the city should seek written direction from DGS about eligibility for pre-award costs; (2) procurement, finance and legal staff should coordinate on grant-portal access and documentation processes; and (3) administration will pursue parking options and return with a preliminary site concept and proposed exhibit B to the subrecipient agreement. Conyers and administration said they expect to return to a work session within roughly two weeks with revised materials for council review.
No formal vote was taken; council provided direction to staff and asked for written state confirmation of eligible expenses before the city executes a reimbursement schedule.
