Hagerstown council terminates contract for 149 North Potomac after study finds multi-million-dollar stabilization costs
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Summary
The Mayor and City Council voted in a Nov. 4 special session to terminate the city's contract to purchase 149 North Potomac Street after a staff study found immediate stabilization and repair costs in the multi-million-dollar range.
The Mayor and City Council voted in a Nov. 4 special session to terminate the city's contract to purchase 149 North Potomac Street after a staff-commissioned study showed large, immediate stabilization and repair needs.
City staff explained the purchase contract included a 60-day inspection and study period that ran from Sept. 11 to Nov. 10. Jim Bender, city engineer, and planning staff said consultants found the building's "as-is" condition would require multi-million-dollar work to stabilize and reposition the structure; staff characterized the likely immediate work as "probably talking 2 plus million dollars" in addition to any purchase price.
Councillors said they had hoped for a development partner and noted the city's limited fiscal capacity. Several members said the building's age and condition made it a high-risk, high-cost project for taxpayer funds in the current economic and political climate. One councilmember described the decision as a pragmatic response to an uncertain environment for large public investments.
In the special session the council approved a resolution terminating the contract of sale with 149 North Potomac LLC. The mayor was authorized to notify the seller and the city's deposit will be returned. Staff confirmed the contract allows termination during the study period "for cause or for no cause."
Why it matters: 149 North Potomac is a prominent downtown property; council had explored city ownership to spur redevelopment but staff estimates showed substantial immediate costs. The council concluded the fiscal risk to taxpayers outweighed potential redevelopment benefits without a committed partner or alternate funding sources.
What's next: Staff said the city will make the termination notice official and return any deposit. Councilmembers and staff said they would continue to make information available to private developers and look for future opportunities, including demolition or private redevelopment, rather than direct city-led redevelopment at this time.
Ending: The termination will be finalized by formal notice from the mayor and city staff; the property remains privately owned and available for private-sector proposals.
