Cambridge’s City Manager, Tom Carroll, resigned Monday over what he says is a lack of progress in changing the direction advanced by the Cambridge Waterfront Development Inc. (CWDI) for Cambridge Harbor. Mr. Carroll is the second City Manager to leave under this City Council in less than 3 years. So, what is CWDI and what are the problems?
CWDI is an independent non-profit agency set up in 2018 and funded by the City, the County and the State. The members of the board of CWDI were appointed (not elected) by the three entities. The purpose of CWDI is to oversee the development of the approximately 35 acres of land where the old hospital was on the Choptank River. By creating a single entity such as CWDI, the City, County and State allow developers to deal with just one agency instead of having to deal with the three different governmental entities. This idea has been used all over the US to develop areas but usually agencies such as CWDI hire experienced, professional development companies. CWDI is trying to develop the property on its own.
Our CWDI wants to set itself up as a permanent organization to handle all real estate, tax issues and maintenance in its area of control – very much like becoming a city within a city. CWDI is setting up funding streams using increased real estate taxes to pay for employees’ salaries and maintenance operations. This area of the City could have different codes and rules made by an appointed group and not by elected City officials. CWDI would have a separate maintenance organization, separate equipment to maintain its properties and a separate marina which it will operate.
Our CWDI wants the City, County and State to put up over $50 million for infrastructure – sewers, electrical, streets, parks, parking lots, sidewalks, and public art, etc. before any companies have committed to the project. The City would have to take out a huge loan of $33 million to net $22 million and would have to wait at least 30 years, if not more, to get paid back though increased taxes. It is estimated that the City and County would, with interest, pay $60 million over the life of the loan (or $2 million a year between the governments).
Keep in mind that even after the taxpayers have put up $60 million over 30 years for the Cambridge Harbor project, CWDI would, under their current proposal, still have a funding gap of millions. They would need to seek funding from other public subsidies or come back to the City for more funding to close this gap.
Our CWDI has an additional problem in that there is not enough “economic value” (taxable land) to make the project work financially for the City. CWDI has set aside almost the entire waterfront from the bridge around to the Richardson Museum for nonprofit use. In addition, they are planning to put the “Y” in the premier spot on the site. (CWDI states that there is no deal with the Y but if you follow the money, CWDI has spent $5,000 on plans for developing the old “Y” site and the “Y” has spent $47,000 of the City’s ARPA funds on plans for the CWDI site).
Our CWDI is very guarded with its information. It refuses to give the City pertinent information and is not cooperating with the City. Therefore, we now have two amphitheaters being planned, one at the Packing House and one at Cambridge Harbor. The City will also have two marinas – the old City Marina, which is not full and needs a lot of work, and now a new proposed and taxpayer-subsidized marina at Cambridge Harbor. It seems like there could be better coordination for multi-million-dollar projects like marinas and million-dollar projects like amphitheaters in a small City like Cambridge.
Our CWDI does not provide the public with minutes of its meetings, detailed budgets or the details of its plans. CWDI has been in existence for over 5 years and has yet to announce one private company committing to the site. Therefore, the City is being asked to develop the site with no tenants in sight. It could be a very lonely, expensive place.
There seem to be major problems with the CWDI, and the public does not know enough to make a fair assessment because the information needed is being held tightly. I can only assume that if the City Manager finds it so troubling that he feels he needs to resign, then the City Council should take action and lay out the issues to the citizens.
What can you do? Contact your City and County Council representatives and tell them to withhold any funds until all the issues are worked out in open sessions. Enough of this closed-door decision-making – let the light shine in and let the citizens know what is going on.
Chuck McFadden is the president of the Cambridge Association of Neighborhoods.
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