State of the Sawtooth

Stakeholders air Canal Place concerns

Kevin Spradlin

CUMBERLAND - Tree House Toy Shop co-owner Margy Pein expressed frustration over the lack of progress in the Canal Place project during a two-hour meeting among stakeholders Wednesday at the Human Resources Development Commission building on Frederick Street.

"We didn't expect to profit from it. We're in this for much, much more than profit," Pein said. "Five years ago, we bought into the dream. Now, we're living a nightmare."

Pein also described disappointment over lack of cooperation and support from the Canal Place Preservation and Development Authority.

The dream, she said, is dying.

Members of the Canal Place board, along with all four members of the District 1 legislative delegation, shared with Pein that things are moving forward - despite years of delay - and things are, hopefully, on track.

Trestle Development LLC, of Altoona, Pa., applied Tuesday to the city for a building permit for the planned hotel. City Administrator Jeff Repp said the permit would "probably be issued in the very near future" and city officials had seen plans for the building before the permit request was filed.

Assistant Attorney General Phil Deter, who serves as counsel to the board, said Trestle has six months from the date the permit is issued to break ground. Adding on the time the city is reviewing the completed permit application, Trestle has 18 months to open a hotel - or mid-September 2009.

Within four years after the opening of the hotel, Deter said, plans must be submitted for the Footer Dye Works building or the pad for a proposed restaurant must be constructed with a franchise in place.

The company is in default of its lease if it fails to execute these actions, Deter said. Control of the land in question would revert back to Canal Place if that occurs.

Part of the resentment among shop owners and the general public - as well as elected officials from Cumberland, Allegany County and the state - is an apparent cloak of secrecy behind the negotiations with Trestle Development, who signed the lease March 11 to operate the hotel, and Trestle's new partner, Concord Hospitality.

Board member John "Jack" McMullen Jr. said he understood all along the negative perception the board suffered during negotiations. But the idea that nothing has been occurring is far from reality, he said, and highlighted the partnership between all the entities and people interested in seeing Canal Place succeed.

"We represent too, too many people to allow anything to come between us and the conclusion of the lease successfully," McMullen said. "None of this could be talked about publicly."

Deter said copies of the lease would be available Thursday. He said details of the lease include a series of deadlines that Trestle must meet.

Delegate LeRoy Myers, who, with Sen. George Edwards arranged the meeting, asked Deter if it's possible Trestle could bring in a third party - such as Washington real estate developer and builder Michael Joy - to save the sawtooth portion of the Footer Dye Works building or renovate the entire structure.

Deter said the property's currently under the control of Trestle. Any decision would be up to the company.

Some estimated Canal Place would see only $46,000 a year from the hotel based on a 70 percent occupancy rate. And that assumed rate could be high, others said, without an attraction such as the proposed Canal boat rides to draw people to Cumberland.

The rewatering of the canal, and the ability to offer tourists canal rides along the Potomac River, have been delayed because the railroad bridge needs to be relocated - a significant, and currently unfunded project.

After the meeting, however, board Chairman Howard Buchanan noted the audience failed to take into consideration that the city and county have tentatively agreed, with conditions, that they will contribute the hotel's eight percent hotel/motel tax to Canal Place, which could annually generate more than $300,000.

Myers and Edwards said that cooperation between local governments and Canal Place is essential - and mandatory, as the state will phase out its funding of the operational budget over the next two years.

"Last year, they cut (the amount)," Edwards said. "This year, some tried to take it all. You're going to have to generate revenue to keep this going."

Edwards challenged the board to keep stakeholders - elected officials, shop owners and the public - informed on events at Canal Place.

Contact Kevin Spradlin at kspradlin@times-news.com.