SALISBURY, Md. - A developer has warned Salisbury city officials that the city could face legal action over a stalled downtown redevelopment project, just weeks after another developer sued the city for $40 million over a separate canceled development.
Mentis Capital Partners, the company behind Salisbury’s tallest building, “The Ross,” is planning to build a hotel and convention center on Lot 10, a property off Route 13 once used for Saturday flea markets. The project was awarded $4 million in state infrastructure grant funding in 2023, but Mentis says the money still hasn’t been released by the City.
According to the company, Mayor Randy Taylor has refused to sign a required subrecipient agreement that would trigger the disbursement of state funds. “We are only being held up by the signing of a subrecipient agreement to allow the funding to start moving forward on the project,” said Mentis developer Nick Simpson.
In a letter sent Friday to the mayor and city council, attorneys for Mentis threatened legal action if the City does not confirm the Mayor will sign the agreement by May 19.
Mayor Taylor defended his decision, saying Mentis has not yet submitted basic materials typically required for such projects.
“They haven't really even submitted a site plan. No vertical drawings. They haven't given us a commitment letter or any kind of flag letter that they've got a hotel interested in the site,” Taylor said.
Simpson disputes that, saying the grant is specifically intended to fund early-stage development work, including site plans.
Taylor criticized the developer’s approach, calling the threat of legal action counterproductive.
“All these agreements were signed before I ever got here,” he said. “But now we've recognized the problems, we're trying to resolve them. And I think they're trying to resolve it by putting the city on the spot. And I don't think that's an effective approach.”
City Council President D’Shawn Doughty issued a statement Monday saying the council “fully supported the Lot 10 redevelopment project” and that further delay “risks not only a transformative project for our city but also the trust of our state partners.”
The dispute comes just weeks after the developers behind the canceled Marina Landing project on Fitzwater Street filed a $40 million lawsuit against the city, alleging officials wrongfully blocked their plans.
For Mentis, the outcome may now rest on a single signature.