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Commission approves $100,000 settlement to terminate troubled ABC Business Park ground lease with Frostburg State University
Summary
After staff described a long-term liability tied to an amended 2001 ground lease that could have accrued into the millions through 2076, commissioners approved a $100,000 payment from the revolving building fund to terminate the county's lease obligations and clear the liability.
Commissioners approved a $100,000 settlement to terminate a county ground lease related to Frostburg State University's ABC Business Park.
Jeff Barclay summarized how an amended sublease and earlier terms created an accruing county liability (staff stated the liability would have continued through 2076 and quantified the county's exposure at a little over $4,000,000 in accrued obligation if left unchanged). Staff and Frostburg State agreed settling for $100,000 from the revolving building fund would remove the long-term liability, allow the university to regain control of the land, and permit the building owners to pursue a sale. The county's action mirrors approvals the university's board of regents has already taken.
The commission approved the termination and settlement by voice vote. Public commenters emphasized transparency and asked whether the matter had been discussed in public work sessions prior to the recommendation; staff said the matter had been handled at staff level and placed before the board for action.
