CAMBRIDGE, MD. - The Cambridge city manager has announced his resignation, citing concerns over the controversial harbor project.
City Manager Tom Carroll's decision to resign comes as a result of his opposition to the proposed Cambridge harbor project. The ambitious plan, spearheaded by Cambridge Waterfront Development Incorporated (CWDI), envisions a vibrant waterfront with amenities such as biking trails, residential complexes, restaurants, and retail outlets. However, Carroll has voiced reservations about the project's financial feasibility and its potential impact on the city's resources.
A significant portion of the project's funding, approximately $22 million, is proposed to be sourced from tax increment financing (TIF). According to the Executive Director of CWDI, these funds would be raised through private bond investors and repaid through the city and county's debt service, based on the anticipated new income generated by the project.
"It would be a net of 22 and a half million dollars of income to the project which would have to be used for public infrastructure streets, streetscape, water, sewer, those types of things. And then the debt service on that would be paid through the increased revenue realized through the city and county from the development of houses and retail and hotel and all the other amenities out there."
Leonard went on to explain, "It's a 30 year debt interest. So there is interest on top of that. So the city would pay 30 million overtime, the county would pay 30 million overtime..." Leonard says the city would receive $10 million of net income once the property is developed. "...But, both of them would receive 40 million overtime so they would actually have a net positive cash flow on that debt service."
Despite assurances from CWDI regarding the project's economic benefits, Carroll expressed skepticism about the city's ability to repay the investment. He highlighted concerns about the financial burden on the city, stating, "I've been essentially asked to stand by and watch the Cambridge harbor project proceed in a manner that I know will not be successful."
In response, CWDI says going with the TIF is the only way because private developers would not be interested in investing. "A 3 and half acre park, a promenade, a lot of greenspace out there open to the public 24/7, making sure that the public boat ramp stays open, because of that, private developers cannot put enough density out there."
However, Carroll expressed concern that the project could leave the city with unresolved financial gaps in the future. He emphasized the need for responsible development that does not burden the city with long-term financial obligations. He says, "I think the city has been straddled with a number of projects where we are left to figure to how to close a gap or make something happen years after a developer has left town. So we're just not going to abide that."
Lastly, Leonard added, "We believe that it is very important that the community understands the great value of not only the TIF but the project being completed. Again, it's a $155 million positive economic impact."
Carroll included, "This is not the right path. I have raised my objections. The council has listened and CWDI has not so I am not going to sit by and watch them drive a car the car off a cliff."
As the dispute persists, CWDI has announced plans to hold more public meetings to provide additional details about the proposed project funding.
Carroll's resignation will take effect on May 17.
