1

Submission to Office of Legislative Audits & Board of Public Works

Downtown Frederick Hotel & Conference Center by Peter Samuel March18,2019SUMMARY:TheDowntownFrederickHotelandConferenceCenterproject(DFH&CCorjust‘hotelproject’)sponsoredbytheCityofFrederickisthesubjectofextraordinarywasteandfraud.UnderMarylandlaw§12–102itistheBoardofPublicWorks’dutytoseethatstatefundsflowonlytoprojectsthatareefficientlyandcompetitivelyprocured.1Similarlyat§2–1217theOfficeofLegislativeAuditsexiststoinvestigateandpreventfraudorwastebystateagencies,andtoadvisethelegislaturewherethisoccurs.2TheCityofFrederick’s(City)procurementofthehoteldeveloperPlamondonHospitalityPartners(Plamondon)forthehotelprojectdeservesinvestigationbytheOfficeofLegislativeAudits.MeanwhiletheBoardofPublicWorksshouldfreezeallfundsappropriatedforthisproject.From2010onkeyaspectsoftheprocurementofahoteldeveloperwereoutsourcedbytheCitytoashadypublic-privatebodymostcommonlyknownastheDowntownHotelAdvisoryCommittee(DHAC3).TheDHACspecifiedthehoteltobesoughtintheRFP,decidedsitestobeconsidered,theformoftheprocurement,theselectionofconsultants.TheRequestforProposals,RFP14JissuedbytheCityinFebruary2014,wasissuedinthenameoftheDHAC.TheDHACformedtheselectioncommitteewhenproposalswerereceived,anditscoredthetwoproposals,presentingtheMayorandBoardofAldermenwithwhatitclaimedwasaclearwinnerinPlamondon4.TheDHAChasalsobeenthesourceofpromotionaladvocacyonbehalfoftheproject.Ithasorganizedsupporterstodominatemeetingsandpaidfor‘independent’expertstoplacefavorablearticlesinnewspapersandmagazines.5

1http://mgaleg.maryland.gov/webmga/frmStatutesText.aspx?pid=&tab=subject5&stab=&ys=2015RS&article=gsf&section=12-102&ext=html&session=2015RS/2https://www.ola.state.md.us/top_pgs/Organizational%20Structure/organization_struc_main.html3Pronounced‘dee-hack’4PlamondonisusedtomeanPetePlamondonJrandhisfamilybusinessPlamondonHospitalityPartnerswhichisthelargesthoteloperatorinFrederick.5http://frederickhotelboondoggle.us/2016/09/griffin-key-points-for-recruited-speakers-says-no-taxpayer-s-to-be-used-calls-for-demolition-of-dilapidatedfire-damaged-tannery/

2

ItconductedrepeatedlobbyingexpeditionstoAnnapolisinpursuitofstatefunds,whilebeingsupportedbylobbyistshiredbytheFrederickCountyChamberofCommerce,butwithmajorityfundingbyCityandCountygovernments.6TheDHACwasrifewithconflictsofinterestcomprisingCity-appointedofficialsandinterestgroupswantingpublicfundingforahotelunderCitysponsorship.7TheDHACwasformedbytheCityoutofapre-existingChamberofCommercelobbygroupforapubliclysupportedhotelandconferencecenter.AtakeypointinitsworkthechosendeveloperPetePlamondonJrhimselfwasamemberoftheDHAC.8Plamondoncompanyrepresentativesappeartohavebeeninstrumentalinabandonmentofthecompetitivetwo-stageprocedurerecommendedbyCity/DHACconsultant,JonesLangLaSalle(JLL).PlamondonwasthencloselyinvolvedwiththewritingoftheRequestforProposals(RFP).JLL’sfunctionincludedestablishingcriteriaforselectingthedeveloperandsettingupthescoringmethodologyoftheDHAC.Plus,aJLLstafferwasamemberoftheDHACwhichscoredthebidsandchosethewinner.TherewascontinuousPlamondon-JLLcommunicationformanyweeksbeforetheRFPwasissuedandbetweentheissuanceoftheRFPandthedeadlineforsubmissions,allthisinflagrantviolationofCityPurchasingRulesandestablishedcompetitiveprocurementpractices.9http://frederickhotelboondoggle.us/2018/03/anirban-basu-downtown-hotel-shill-paid-1600-for-frederick-news-post-article-paid-byguess-who/6http://frederickhotelboondoggle.us/2017/02/city-continues-lobbying-for-dhcc-10750-being-spent-this-session-in-annapolis/7The DHAC comprises City and County ‘economic development’ officials and representatives of five business groups — Frederick County Chamber of Commerce, Major Employers Group, Downtown Frederick Partnership, Tourism Council of Frederick County, and East Frederick Rising. The latter are the interest groups who want a publicly funded DFH&CC. The selected developer Pete Plamondon Jr was apparently a member of the DHAC until not long before the procurement. He was publicly recognized as a member of DHAC, being introduced as such by DHAC chairman Robbins at the beginning of a DHAC presentation to the Mayor & Board of Aldermen meeting, February 6, 2013. Video of the meeting.8See footnote 5.9Theseprovidefora‘blackout’betweenRFPissuanceuptothedeadlineforproposalsduringwhichtheonlycommunicationsbetweenproposersandprocurementofficialsmaybequestionsinwriting,withquestionsandanswerssharedwithotherproposer(orproposers.)

3

BadstartTheDHACgotofftoabadstartin2010.ThefirstChairmanoftheDHAC,appointedbythen-MayorRandyMcClement10waslocalbusinessmanMarkGaver,awell-knowncharmingFredericksocialitebut,unknownatthetime,aseriousconman.WenowknowthataroundthetimeofhisappointmenttochairtheDHACGaverhadbegunalong,patientbankfraudwhichovereightyearsgarnerednearly$50millionaccordingtotheUSJusticeDepartmentindictmentinDecember2017–almostcertainlythelargestfraudinFrederick’shistory.11TheGaverfraudbasedonforgedfinancialreportsandclaimsof‘classified’governmentcontractswasconductedattheexpenseofshareholdersoftheSantanderbankandtheemployeesofhisowncompany.InlessthantwoyearsGaverhadgivenuphispositionaschairoftheCityhotelcommittee,butthisscoundrelhadsetthepatternfortheDHAC’sshadymodeofoperation.ClaimedforthebenefitofStateofficials12tobeprimarilyaFrederickCountyChamberofCommerceoperation,theDHAC’smeetingswereconvenedbyRichardGriffin,theMayor’sDirectorofEconomicDevelopmentandtheCity’sprojectmanagerforthehotel.Griffin,asalariedCityofficialsettheagenda,sentoutemails,briefedthechairmanandactedasthecommittee’sexecutivesecretaryinfollow-up.DHACmeetingswereusuallyheldinCityHall.13AppointedbytheMayor,runbytheCityDED,andgivenCitytaskstoperform,theDHACwasclearlyaCity‘publicbody’requiredtoobservethestateOpenMeetingsActrequirementstoprovidepublicnoticeofmeetings,publishanagenda,operateonlywithaquorum,compileminutesandadmitthepublicincludingreportersto10Gaver’sappointmentasthefirstchairmanoftheDowntownHotelAdvisoryCommitteewasannouncedbythen-MayorRandyMcClementonFebruary3,2010.FrederickNews-Post2010/02/04.11GaverwasconvictedofalltencountsofbankfraudandmoneylaunderingbyajuryinUSDistrictCourtinBaltimoreAugust1,2018andwassentencedbyUSJudgeRichardD.Bennettto17yearsinprisonDecember13,2018.seehttp://frederickhotelboondoggle.us/2018/08/gaver-guilty-first-hac-chair-mark-gaver-convicted-for-50m-bank-fraud/Earlierhttp://frederickhotelboondoggle.us/2017/12/first-hac-chairman-mark-gaver-arrested-and-charged-with-50m-bank-fraud-fnp/#more-2513/Sentencing:https://www.fredericknewspost.com/news/crime_and_justice/cops_and_crime/former-frederick-business-owner-sentenced-to-years-for-m-fraud/article_d195cd63-0769-5934-b24d-bd24d5bf75eb.html/12CitysubmissiontotheStateOpenMeetingsComplianceBoarddated2018/04/13inchallengebytheauthor.13ThisdescriptionoftheoperationsoftheDHACisbasedona90-minuteinterviewwiththesuccessortoGaverasDHACchairmanEarlRobbinsinStarbucksonNMarketStreet,August28,2017aswellascommunicationsobtainedthroughPIAfilings.

4

observethosemeetings.However,theDHACoperatedforsevenyearsdoingpublicbusinessontheCityhotelprojectbehindcloseddoors.ItcontinueduntilafteritwaschallengedbymeatthestateOpenMeetingsComplianceBoardinthefallof2017.14ThroughPublicInformationActfilingsandwiththehelpofoneCityAldermanwehavemanagedtogetanumberofDHACandotherCitydocumentswhichmakeclearthattheDHACmissionwastocontriveaprocurementthatlookedcompetitive,buttosteerthecontracttoPlamondon.Inemailsprojectofficialssaidthattheappearanceofcompetitionwasessentialtoobtainstatemonies.15Evidenceofthefraudfollows:1.BackroomCitycommitteerejectedcompetition-friendlytwo-stageprocurementrecommendedbyconsultantJLLTheCity’sleadconsultantJonesLangLaSalle(JLL)proposedtoDHACatwo-stageprocurementinordertomeettheCitydesiretocontrolthehotelsite.TheCitywouldprocureahotelsiteinthefirststage,negotiatingwiththeownersoffoursitesjudgedsimilarinsuitability.HavingsecuredasitetheCityprocurementwouldproceedtoasecondstageinwhichanunlimitednumberofhoteldeveloperscouldmakeproposalsfordevelopingthechosenCitysite.Thiswouldallowfullandopencompetitionfortherighttodevelopthehotelonthatsite.Moreimportant,competitionfortherighttotheCity,CountyandStatefinancialsupportbeingheldoutasinducement.JLLalsopointedoutthatbysecuringthesitefirsttheCitywouldbeinabetternegotiatingpositiontogetagoodbuyontheland.InitiallytheDHACsupportedthe

14There the City Attorney argued the DHAC was a local Chamber of Commerce, not a City, entity. This contradicted repeated public statements that the DHAC was appointed by the Mayor. And it was inconsistent with City Hall being the normal venue for DHAC meetings and the central role of the City’s Richard Griffin in calling meetings, setting the agenda, and the City’s financing of DHAC consultants to the tune of about $300,000. In calling DHAC a Chamber of Commerce entity the City was saying, in effect, it had outsourced procurement of a developer as City ‘partner’ to a business group, the very group which had been lobbying for taxpayer underwriting of the project. 15ExtensionofthedeadlineinRFP14JwasurgedbyGriffinonthesegroundswhenWormaldsaidhewasotherwiseunabletosubmitaproposal–inanemailtoCitypurchasingofficerKandiFullerton.

5

two-stageprocurement.16Thesite-first/developer-secondprocedurewasanintegralpartoftheDHACpresentationattheJuly31,2013Mayor&BoardWorkshop.Therewasnomentionatalloftheoptionofthesingle-stage,bring-your-siteoption,eventuallyimplementedsevenmonthslaterasRFP14JintheSpringof2014.AttheJuly31,2013meetingtherewaswide-rangingdiscussionofotherissues,butthepro-competitiontwo-stageprocurementwasacceptedbyallasThePlan.Promisesweremadeofanotherhearingbeforetheprocurementwasfinalized,butnofollow-uphearinghappened.Thesummer2013Workshopwasthelastpublichearingontheprocurementbeforethesingle-stageRequestforProposalswasissuedasRFP14JonFebruary19,2014.Theadviceofatwo-stageprocurementwasclearlyarticulatedinaJLLreportfortheDHACdatedOctober11,2013butthereportwasnotdistributedorreleasedtothepublic.17Itstates:“JLL’srecommendationwas(andcontinuestobe)toselectasitefirstandsecureitthroughanoptionagreementorlandpurchasecontract.Oncethe(hotel)siteissecured,stepstoselectahoteldeveloperthroughanRFPprocesscancommence.”(p4)JLL’swording“was(andcontinuestobe)”suggeststherewasadisagreementinwhichDHACwantedtolimitcompetitionwhileitsconsultantJLLwantedtobeontherecordasfavoringopencompetition.WiththeDHACalwaysmeetingbehindcloseddoorsknowledgeofthisdisagreementwaskeptundercoverattheverytimethatthetermsoftheRFPwerebeingrewrittenandtheprocurementconducted.16AtaMayor&BoardofAldermen(M&B)WorkshoponJuly31,2013,RichardGriffinonbehalfoftheDHACdistributedJLLslidesoneofwhichwasaProjectScheduleshowingasiteacquisitionfirstfollowedbyaseparateprocurementofadeveloper.MonthlycolumnsshowedtheSiteacquisitioncompletedinsevenmonthsendinginSeptember,andthedeveloperprocurementthenbeginninginOctoberandtakingsixmonthsafterthat.JLLpresenterJohnGibbalsospoketoatwo-stageprocurement.Seehttp://frederickhotelboondoggle.us/2018/03/procurement-rfp14j-workshopped-but-never-presented-discussed-or-voted-on-by-mayor-board-at-public-hearing/#more-275317IsoughtacopyofthisreportunderthePublicInformationActinthesummerof2017.ItwasinitiallydeniedbytheCityinvoking‘deliberativeprivilege.’IprotestedandasympatheticAldermanintervenedwithCityofficialstoreleasethedocument.TheCityrelentedandwegotthereport.Aldermenwe’vespokentoseemedunawareofitsexistence,soitappearstohavebeenkeptwithintheDHACandtheCityDED.

6

2.Plamondondraftthebasisforthesingle-stageRFPThequestionarises:howdidtheDHACcometoabandonthecompetitivetwo-stageprocurementagainsttheadviceofconsultantJLL,andincontradictionoftheDHAC’slaststatementtotheBoardofAldermenandthepublic.PlamondonanditssupportersontheDHACapparentlydidnotwantarealcompetitiveprocurement,onlytheappearanceofit.Thesubjectmusthaveariseninthelatefallof2013whenJLLfelttheneedtoputonrecordtheirrecommendationthattheDHACstickwithatwo-stageprocurementtomaximizecompetition.Theyworkedona‘siteacquisitionstrategy,finalsubmission’November6,2013throughNovember25,JLLtimesheets18show.AshortDecemberandthefirstweeksofJanuary2014occupiedJLLwithworkon‘Plamondonproposal/presentationcorrespondence,’theirbillingsshow.AtthispointtimesheetssuggestPlamondonsubmittedsuggestionsontheprocurementRFPinthefirstweeksof2014.JLL’sPeteLambisreported3hours“CoordinatewithPl(amondon)regardingdraftinghotelRFP…”onJanuary15,2014andJanuary26hereported4hoursworkas“Review/editPl(amondon)versionofRFP,submittoRichard(Griffin,Cityprojectmanager.)”PlamondonmadeaprivatepresentationoftheirsubmissiontoaspecialDHACmeetingJanuary13afterwhichJLLbilledsevenhoursforreview.Theconsultantsthenbilleddayafterdayfor“draftingRFP”and“Plamondoncorrespondence.”BehindcloseddoorsPlamondonandtheDHACwereinstrumentalinjettisoningtheannouncedtwo-stageprocurementinfavorofthePlamondon-authoredsinglestageprocurement.GiventhattheMayor&Boardwerepresentedwiththetwo-stageprocurementinwhichtherewouldbeunlimitedcompetitionfortherighttodevelopaselectedsiteattheirlastmeetingbeforetheissuanceofthesingle-stageanti-competitiveRFPinFebruary2014itcouldbearguedthattheRFP-as-issuedwasunauthorized19andlegallyinvalid.Insteadofthepromisedfollow-upataformalpublicmeetingoftheMayor&Board

18JaneWeirandIobtainedhundredsofJLLinvoicestotheCitythroughPublicInformationActfilings.TheinvoicescontainedtimesheetsshowingdaybydayworkbyfiveJLLconsultantsworkingfortheDHAConCitycontract.19“Allpurchasesforcommoditiesorservicesthathaveacumulativetotalforthelifeofthecontractof$50,000ormoremustbemadebyformalcompetitivesolicitations.TheapprovalofTheBoardofAldermenisrequired.”Page25,SectionIVofCityofFrederickPurchasingPoliciesandProceduresManual.NoapprovalforRFP14JwasgivenbytheBoardofAldermenanditstermswerelessthanfullycompetitive.

7

ofAldermenthereseemtohavebeensomeselectiveprivatemeetings,buttheirscopeisunknown.OneoftheAldermanatthetime,ShelleyAloi,toldustherewereprivatemeetingsofAldermenwithCityprojectmanagerandDHACsecretaryRichardGriffin.ButthenewMayor,thenAlderman,MichaelO’Connorhasheatedlydeniedanyclosed-doormeetingonthesubject.20AnotherAldermanDonnaKuzemchakhascharacterizedtheabandonmentofthetwo-stagecompetitiveformatasaunilateralactionofthethen-MayorMcClementandDEDheadGriffinandhascomplainedthatitwasneverproperlyputtotheBoardofAldermen.Inanycasethesingle-stageRFPwentforwardinsuchamannerastodrasticallylimitcompetition.Onlyeligibletobidwerehoteldeveloperswith‘control’--eitherownershiporanegotiatedcontract-to-buy–ofanapprovedsite.ProposalshadtobelinkedtooneoffourDHAC-selecteddowntownsites.Fewerreally,sinceoneofthesiteswasthedowntownPostOffice.TherehasbeentalkthatthePostOfficemaybedownsized(sortingofmailnolongeroccurshere)buttheUSPShasnotproposedsellingtheproperty,soitwasnotarealchoiceforahotel,atleastnotintheCity’splannedtimeframe.Theownerofanotherofthefoursites(Jemal/UnionMills)alreadyhadplansfordevelopingofficespaceandwasn’tinterestedindoingahotel,reducingpotentialbidstoamaximumoftwo.TheDHACthereforereceivedonlytwoproposals,onefromPlamondonforahotelcomplexontheoldFrederickNews-Postsite21andasecondfromtheEdWormald,amajorcommercialdeveloperwhoownedasitenearbyknownastheGalleriasite.Hewaspartneredwithhotelspecialists.Compoundingthelimitedopportunityforcompetitionwastheearlydeadlineforproposals.AsissuedonFebruary19,2014RFP14JrequiredproposalstobesubmittedbyApril3–injust43daysor6weeks!Onlydeveloperswithadvanceinsideinformationaboutthehotelspecifications,andmuchofaproposalalreadyworkedupatthetimeofRFPissue,couldmeetsuchshortadeadline.Asitwasthesecondproposer,Wormaldsaidwithjusttwoweekstogothathecouldn’tcomplete20Giventheimportanceoftheextraordinaryswitchfromthetwo-stageprocurementtoasingle-stageRFPneverbeingheardatapublichearingIsubmittedacomplainttothestateOpenMeetingsComplianceBoard2018/03/28aboutthisbeingdecidedinprivatemeetings.Seehttp://frederickhotelboondoggle.us/2018/03/complaint-to-state-open-meetings-compliance-board-about-backroom-deal-on-city-procurement/TheBoard,unfortunately,saiditdidnothaveenoughinformationtomakearuling.21ChoiceoftheoldFrederickNews-Postsitemeantuntilarecentchangeinownershipthelocalnewspaper’sownershadamajorfinancialinterestinthesuccessofthehotelproject.Thishassurelybeenafactorinthenewspaper’sunwillingnesstoinvestigatethescandalsurroundingtheprocurementandtodownplaycriticismsandbadnewsabouttheproject.

8

hissubmissionwithoutmoretime.Extensionsweremadetokeephimintheofficialrace,anditendedup73daysor10.5weeks.3.ClosePlamondon-GriffinrelationshipgoeswaybackThishotelasaCity-sponsoredprojectwasinitiatedbyPetePlamondonJr,principalofthePlamondoncompany.Hehassaidasmuchhimself.SpeakingatacelebratorypubliceventApril13,2016PlamondontracedcollaborativethinkingontheprojecttothedaythatstatefundingforanewFrederickI-70Interchangewasannounced--November17,2005.ThatnewinterchangeandtheassociatedextensionofEastStreetproducedanew‘gateway’totheDowntown.PlamondonsaidinhistalkthatherememberedthedayhehadpickeduptheFrederickNews-PostfromhisfrontlawnandreadtheirreportthatthelongplannednewinterchangewasnowfundedforconstructionbytheState.HesaidhehadthencalledRichardGriffin,longtimedirectoroftheCity’sdepartmentofeconomicdevelopmentandsaidtoGriffin:“Nowwecantalkseriouslyaboutadowntownhotel.”22Emphasizingthe‘seriously’theclearimplicationwasthattheyhadpreviouslytalkedofaCity-sponsoreddowntownhotel,butthathehadtakenthepositionthatapre-requisitewasthenewEastStreet‘gateway.’Withnewsthatthenew‘gateway’interchangewasbeingbuiltPlamondonhadinitiatedtalkswithGriffin.Thetwohavebeencloseontheprojecteversince.PlamondonasamemberoftheDowntownHotelAdvisoryCommittee(DHAC)untilatleastFebruary2013wasinontheclosed-doordeliberationsaboutsitesandthespecificationsforthehotelinthelead-uptotheissueoftheRequestforProposals.234.ShamcompetedprocurementSo,therearemanyindicationsthattheselectionofPlamondon-developer/FrederickNewsPost-sitewasadonedealbythebeginningof2014andthattheRFP14Jprocurementwasconductedtoproducemerelytheappearanceofcompetition.22Imadeatranscriptwasmadefromthese56-minutevideos:http://cityoffrederick.granicus.com/MediaPlayer.php?view_id=27&clip_id=2886Alsohttps://youtu.be/41AkVsQxrXw23AtaMayor&BoardWorkshopFebruary6,2013toendorsetheDHACrecommendationofJonesLangLaSalle(JLL)asprincipalconsultantHACchairmanEarlRobbinsbeganbyintroducingthemembersoftheDHACinthemeetingroom.“PetePlamondonfromPlamondonEnterprises”wasoneofthoseintroducedasamemberoftheDHAC.24http://mgaleg.maryland.gov/webmga/frmStatutesText.aspx?article=ggp&section=5-508&ext=html&session=2015RS&tab=subject5

9

Statedsimply,itwasashamcompetedprocurement.Plamondon’swinningproposalwasknowninsomedetailtotheCityDepartmentofEconomicDevelopment(DED)andtotheDHACwellbeforetheofficialRequestforProposals(RFP14J)wasissuedFebruary19,2014.January13,Plamondongaveafullpresentationofitsproposaltoaspeciallyscheduled2-hourmeetingofDHAC.AwrittencopyofthePlamondonproposalwasreceivedbyDecember2013--atleasttenweeksbeforetheRFPwasissued(February19,2014)andatleastfivemonthsbeforeproposalswereofficiallydue(May9,2014,afterextension.)WeknowthatfromPIA-obtainedtime-sheetsthatJLLsubmittedtotheCityinsupportoftheirmonthlyinvoicesforservicesrenderedtothehotelproject.ThetimesheetsshowthatJLLwasworkingonPlamondon’ssubmission(orproposal)fromDecember10,2013.AtthesametimeJLLwaswritingtheRFP!Infederallawandbestprocurementpracticesanyunsolicitedproposalisunacceptableifacompetedprocurementiscontemplated.Theroutineisthatitsreceiptshouldbeannounced,andtheproposalisreturnedtotheofferorunread.Federallawmakesclearanunsolicitedproposalcannotbeusedbyoneproposertogetmoretimeforconsiderationthancompetitors.AlsoStatelawat§5–508states:“(a)Anindividualwhoassistsanexecutiveunitinthedraftingofspecifications,aninvitationforbids,arequestforproposalsforaprocurement,ortheselectionorawardmadeinresponsetoaninvitationforbidsorrequestforproposals,orapersonthatemploystheindividual,maynot…(2)assistorrepresentanotherperson,directlyorindirectly,whoissubmittingabidorproposalforthatprocurement.”24TheactivitiesofJLLconsultantsunderCitysupervisioncontravenethisprovisioninlaw.JLLconsultantswereassistingtheDHACandtheCityindraftingtheprocurementRFPforweeks,whilealsoworkingwithPlamondononshapingitsbidbeforeformalsubmission.Furthermore,aspreviouslyoutlined,JLLworkedwithadraftRFPandanewlyanti-competitivesingle-stageprocedurewhosedraftwasprovidedbynoneotherthanPlamondon.JLL’sPeteLambisandTylerKrehbieleachincludeasServicesRenderedinthetimesheetswithJLLInvoice008848datedJanuary31,2014thefollowing:“Plamondon24http://mgaleg.maryland.gov/webmga/frmStatutesText.aspx?article=ggp&section=5-508&ext=html&session=2015RS&tab=subject5

10

proposal/presentationcorrespondence”2hoursonDecember10,2013(Citybill$620)fivemonthsbeforeanyproposalshouldhavebeenavailabletoanyonebuttheCityPurchasingManager,andtenweeksbeforetheRFPwasissued.LambishadmetPlamondonpeopletwomonthsearlieronOctober10,2013for5billablehours(Citybill$775.)WeknowthePlamondonproposalwasreceivedbeforeDecember10,2013fromtheconsultants’invoice-supportingtimesheets.CallitanunsolicitedproposalorafirstdraftsubmissionfortheplannedRFP,thehighlyprematurePlamondonproposalwasnotannounced,letalonereleased.ItsreceiptwasnevermentionedinCitypresentationstotheMayorandBoard.OnlydiscoveredinourinvestigationitwaskeptsurreptitiouslybehindthecloseddoorsoftheDHACandtheCityDEDduringthetimewhenitshouldhavebeenatopicforconsiderationofelectedofficialsandthecitizensofFrederickwhosefuturetaxeswereontheline.25CallittheSecretPlamondonProposal.JLLconsultantsworked35.5hoursonthisSecretPlamondonProposalandbilled$5503.WorkcontinuedinFebruary2014accordingtoanotherInvoice011530(datedApril30)ondraftingtheRFPinparallelwithworkonthePlamondonProposal.Therewasanothermeetingscheduledand8hoursbilledFebruary13($1240)“Plamondonproformareview.”‘Proforma’orprofitandlossprojectionsaretheheartofaproposal,thebottomlineliterally.5.CityPurchasingDepartmentsidelinedbyDEDandDHAC,purchasingrulesfloutedTheCityPurchasingDepartmentwasalmostcompletelysidelinedbytheDepartmentofEconomicDevelopment(DED)andtheDowntownHotelAdvisoryCommittee(DHAC)inthesubstanceofthishoteldeveloperprocurement.OnFebruary20,2014Lambisbilled3hours,$465for“DistributeRFP.”26

25ByonereadingtheCityhadthelegalrighttoacceptthePlamondonproposalofDecember2013oruseittonegotiateacontractprovidingCityassistance,omittinganycompetitiveprocurement.Bythisaccountthe‘competition’inthespringof2014wasmountedsolelyonthegroundsthatitwasneededtogainstatefinancialsupport.26UnderCityrulesheshouldn’thavedonethat.TheveryRFPtheyhaddraftedandweredistributingcontainedthisonp4:“I.NOTICETOPROPOSERS,AUTHORITYTODISTRIBUTERFPPACKAGES:TheCityofFrederickPurchasingOffice(andwebsite,ifapplicable)isthesoleentityauthorizedtoprovidethisRFPpackagetointerestedcompaniesorindividuals.”Distributiondoesn’tinitselfseemabigdeal,thoughtheintentionistoensurethatallbiddersreceivethefull

11

Tothispointaround50hoursandabout$7,800ofJLLtimehadbeenspentonPlamondon’ssecretproposal.Bycontrast1.5hours($233)wasbilledforameetingbackinOctoberwiththeotherproposerEdWormald.Apartfromthe90-minuteMeet&GreetnofurthercontactwithWormaldoccurreduntilaftertheRFPwasissued.That’sabout97percentattentiontoPlamondonto3percentWormald.WiththeRFPofficiallypostedFeb20,2014thesamepatternofdealingswithPlamondoncontinued—asiftheCityprocurementruledidnotexistthatlimitscommunicationbetweenaproposerandtheCitytowrittenquestionsviathepurchasingmanager.ApparentlytheSecretPlamondonProposalmorphedintotheofficialPlamondonProposalthatisdressedupwiththeMay9duedate.PerhapsitwasamendedindiscussionswithJLL?WhatisclearisthataftertheRFPwasofficiallypostedJLLwentonasbefore,havingameetinglessthanaweeklateronthePlamondonProFormaof8consultanthours($1240billed)onFebruary26.JLLerJohnGibbbilled3.5hours($543),alsoonFeb26studying“PlamondonFinancials.”11moreconsultanthourswerespentonreviewofPlamondon’s“ProForma”March2.Fivemorebillingslist“PlamondonCorrespondence”March15andMarch17.Twomorearecalled“RFPCorrespondence.”April24therewere“CallswithProspectiveDevelopers”—againincompletedisregardofCityPurchasingrules.OneofthesewouldhavebeenEdWormaldwhohadotherwisebeentotallyleftoutofallthemeetings,thereview,thecorrespondenceandpresentationsandthefinancialanalysisdonewithPlamondon.Thetime-sheetsweobtainedshowsome81JLLconsultant-hourscostingtheCityover$12,000weredevotedtoPlamondonthroughMay9,2014whenproposalswereofficiallyopened.Wormaldbycontrastgotthatinitial1.5hoursbilledat$233,andnomore.OnthatbasisJLLgavePlamondon97percentoftheirattentionbeforethebeginningoftheofficialassessment.AttentiontoWormaldlookstohavebeenameregesturetosupportthenarrativeofacompetedprocurement.27ResponsibilityRFPpackageandareonalisttoreceiveanyamendmentsorQuestions&Answers.ItdoeshoweversuggestacasualattitudetowardCityrules.27WormaldhimselftoldJaneWeirinatelephoneconversationthathegottheclearimpressiontheDHACselectioncommitteewasnotinterestedinhisproposalandhadmadeuptheirmindonthewinner.ButhehasmadenopubliccomplaintabouttheprocessandhasplayednopartintheoppositiontotheCity-Plamondonproject.

12

fordeploymentofJLLtimeultimatelylayswiththeCityofficialandDHACexecutive,RichardGriffinwhosawwhatworkwasbeingdoneandinitialed‘OKtopay’theinvoiceswithtime-sheetslayingoutworkperformed.6.ConsultantJLLdeployedoutsidespecifiedcontracttasksJonesLangLaSalle(JLL)wasemployedbytheCitythroughprocurementRFP#13-F,2012plusextensionsofa“DowntownHotelDevelopmentConsultant”contract.Theconsultant’sresponsibilitiesarelaidoutintwolists:“ForthepurposesofthisRFP,consultingservicesaredefinedas,butnotlimitedto:—Attendingmeetings—Developingappropriatesite/developerselectionmechanism—Analyzingfinancialproposals&developingfinancialplans—Evaluatingproposalsandotherdocuments—Reportinginbothwrittenandoralformats—Developingrecommendations—Providinglabor,personnel,equipment(computersetc.),suppliesandtravelasnecessaryforprovidingconsultingservices—EnsuringthattheCityandtheAdvisoryCommitteeinterestsareprotectedandgoalsareaccomplished.(RFPp16)Underaheading‘SpecificServices’theRFPhasthis:“TheConsultantshallprovideataminimumbutnotlimitedtothefollowingspecificservices:1.Developanoverallapproachtotheproject.2.Developaprojectscheduleandkeybenchmarkdates/milestones.3.ServeasanadvisortotheCityandHotelAdvisoryCommitteeandprovide“bestpractices”adviceandrecommendations.4.Attendandleadmeetingswithstakeholdergroups.5.Reviewpertinentdocumentsandstudies.6.Attendpublichearingsandworkshopswithelectedofficials.7.DevelopappropriateselectiontoolssuchasbutnotlimitedtoaRequestforProposals(RFP’s)tosolicitandselectthedowntownhotelsiteanddevelopmentteam.8.AnalyzeproposalsandmakeawardrecommendationstotheHotelAdvisoryCommittee.9.Developprojectcostestimatesandrecommendafinancingstrategywithsourcesandusestoassistwiththeimplementationoffinancingtools.10.Coordinatewithmajorhotelbrandstoensurethatindustrystandardsarebeingconsidered.28ThesametwolistsoftaskswerecontainedinsubmissionstotheMayor&BoardwhentheydiscussedawardofthehoteldevelopmentconsultantcontracttoJLLinFebruary2013.2928RFP#13-F, p16, 1729ThetermsofJLL’semploymentasconsultantstotheDHACwerediscussedbytheMayor&BoardofAldermenataworkshopFebruary6,2013,andatahearingFebruary21.See

13

ThosewerethetaskstheMayor&BoardassignedtoJLLinawardingthecontract.TheMayor&BoardapprovedcontractdidNOTauthorizeJLLtoworkwithPlamondononitsRFP.TheydidNOTauthorizeJLLtohelpPlamondoninitspresentationstotheCity.TheMayor&BoarddidNOTauthorizeJLLasanagentoftheCitytomeetwithadeveloper,PlamondonanddealwithPlamondoncorrespondenceandbilltheCityforallofthisworkwithPlamondonintherunuptotheissuanceoftheRFP.AndtheMayor&BoardofAldermendidNOTauthorizeJLLtoserveontheselectioncommitteeviarepresentationontheDHAC.30Noneofthosetaskswerecontractedfor,andtheirperformancehelpedmakeamockeryofacompetitiveprocurementprocess.AccordingtoinvoicesobtainedunderthePublicInformationActalargeportionofJLL’sworkwasoutsidethescopeofitscontractasapprovedbyelectedofficials.UnderCityprocurementrulesallcorrespondenceontheRFPfrombidderswassupposedtoberoutedthroughKandiFullerton,then-directorofpurchasing.Normallyshepublisheditfortheotherbidders,orinthiscase,theotherbiddertoseealso.March15and17therewerebillingsfromPeteLambisforPlamondonCorrespondence—1.5hours.That’sintheperiodthebidderisnotsupposedtomakeanycontactwithanyCityemployeeoragentoftheCitylikeJLLexceptthroughMsFullerton.Thatrulewasflouted.Theyhadbeenreviewingthe‘proforma’orsensitiveheartofthePlamondonbidbothbeforeandimmediatelyaftertheRFPwentoutandhandlingcorrespondencewithPlamondondirectly,itappears,notthroughpurchasingchiefMsFullerton.7.ScoringoftwoproposalsbiasedInthesummerof2014thedowntownhotelselectioncommittee(DHACplusPeterLambisofJLL)scoredtheproposalsofPlamondonandWormald.TheresultwasannouncedthiswayinasubmissiontotheMayor&BoardofAldermendatedAug28,2014foraworkshopSept3,2014:“TeamPlamondonreceivedthehighscoreof84.0(winning)byasignificantmargin.TheSelectionTeamisunanimousinits

http://cityoffrederick.granicus.com/MediaPlayer.php?view_id=12&clip_id=1594&meta_id=35636#30The RFP (p4/5) specifically forbade proposers from being in contact with members of the selection committee. JLL consultant Peter Lambis was a member of the selection committee and billed the City for time spent in correspondence with Plamondon – see details in examples of documentary evidence.

14

recommendation.”ButWormald’stotalscoreandthebreakdownsofthescoringremainedamysteryformorethantwoyears.Aftermultiplerequestswefinallygotthedetailedscoring,anExcelspreadsheet.Itaveragedthescoresofthevariousmembersoftheselectioncommitteeandroundedtheresults.Weweretoldtherewasnoreportbytheselectioncommittee.Wormaldscored70.5outofapossible100,comparedtoPlamondon’strumpeted84.0/100.SuchaclearcutwinforPlamondonwasoddonmanycounts,andthecloseronelookedtheodderitgot.Herewe’llhighlightjusttwoissues.First,streetfrontageisacrucialissueforanyhotelbecausethatestablishesitsvisualpresence.Visitorswanttofinditeasily.InasmallcitylikeFrederickithelpsifthehotelisonaprimaryentryroutejustoffinterstatehighways.Wormald’sGalleriasiteisidealhavingfullfrontagetoEastStreetwhichcomesdirectlyofftheinterstates.Italsohasunobstructedstreetfrontageontwoothersides,thefourthbeingboundedbyCarrollCreekPark.Plamondon’ssiteisterribleonthisscorebecauseitislargelylandlockedbehindthehistorictrolleybuilding.IthaslimitedstreetfrontageonnarrowCarrollStreetandonlyspaceforaproblematicdrivewayonanarroweasementoveraneighbor’sparkinglotonPatrickStreet.That’sit.YetundertheheadingBuildingOrientationtoStreets/ParktheDHACscorersgaveeachproposal2.0/2.5.BuildingOrientationtoStreetsisabigissueforahotelanddeservessomethingintherange10to15pointsoutofatotal100score,not2.5/100.BothsitesmakeequaluseofaCarrollCreekParkfrontage,theirfourth-side.Wormald’ssiteiswaysuperiorforahotel.AnobjectivescoringwouldhavegivenWormaldascoreof8/10or12/15toPlamondon1.5/10or2/15.Second,historicpreservationissuesareimportantgiventhatalotofthevisitorappealofdowntownFrederickisits18thand19thcenturyurbancharacteranditsstatusasanationallyrecognizedhistoricpreservationdistrict.31Again,historicissuesareunderweightedbyDHACat2.5/100.Moreappropriatewouldbe5/100or10/100.Wormaldisalmostcompletelyclearofhistoricpreservationissuessincethesiteisunbuilt.ItisalsoslightlyfurtherfromthehistoricallyscaledbuildingsofPatrickStreetthanthePlamondonsite.Butthebiggestdifferenceisthatthe31Frederick’sdowntownretainstheambienceofitshistoryfromcolonialtimeswithdensestreetfrontsoftwo-andthree-storybuildings.AverypopulardaytripforresidentsofthenearbyWashingtonmetroareathesevisitorssustainitsdowntowneconomyofspecialtyshopsandrestaurantsinawalkable,historicsetting.

15

Plamondonsitehastwohistoricbuildingsdeemedbyhistoricpreseravtionagenciesof“unusualimportance”(atrolleyterminalbuilding,andtheBirelyTannery)plusanarcheologicalsitedeemedworthyofextensivework.Thetanneryisthelastremainingleathertanningbuildinginthestatedatingbacktothe19thcentury.Thesearemajorhandicapsforthekindoflargescalemodernconferencehotelproposedfordevelopmentonthissite.Halfthetrolleybuildingandallofthetanneryareproposedfordemolition,whereasontheWormaldsitethereisnothingtobedemolished.AnobjectivehistoricpreservationscoringwouldbePlamondon0.5/2.5andWormald2.0/2.5.WithlargerweightingthescoreswouldoftheorderWormald4/5or8/10toPlamondon1/5or2/10.TheDHACscoredPlamondon2/2.5toWormald1/2.5--atravestyrevealingblatantbias.7.Majordeparturesin2017fromthePlamondonproposalof2014andthePlamondon-CityMOUofDecember2015Publicfundingofabout$23m32immediatelyaftertheselectiondeclinedto$19.6mintheMOUinDecember2015andgrewto$31mbyMarch2017.Thentheprojectchangeditscolorsagain.Majorchangestotheprojectwereannouncedbythethen-MayorRandyMcClementatameetinghecalledMay18,2017:thehotelwhichwasbeingdownsizedfrom207roomstoabout180andtheconferencecenterreducedfrom24,000sfto20,000sf.Oneoffivestorieswasbeingtakenoffthehotelandanewwingaddedmidlot.AlargerCitybasementparkinggarageunderthehotelcomplexwasnowproposed—for160carsversusabout100previously.ButthebiggestnewswasthatPlamondonwaspreparedtotakeonthecostofbuildingtheconferencecenterwhichinthefirstMOUwasapublicsectorresponsibility.ThenMayorMcClementsaid:“Iamthrilledwithwherewearetodaywiththisproject…Iamevenmoreproudtobeabletostandhereandtellyouthatnopublicdollarswillgointotheconstructionoroperationofthehotelorconferencecenter.”3313monthslater(June22,2018)therepackageddealwasformallyincorporatedintoanAmendedandRestatedMemorandumofUnderstandingwithPlamondon(A&RMOU).32SourcesofPublicFundingslidep19ofDHACpresentationtoProposalSelectionWorkshopofMayorandBoardSept42015.33TranscriptbyauthorMay18,2017.

16

Thereisatradehere.InreturnfortakingoverthecapitalcostoftheConferenceCentertheCityistakingonthefullcostsofthefoundationsofthehotelcomplexinanexpandedCity-fundedbasementparkinggarage.Thiswillprovidea‘podium’orengineeredplatformonwhichthedevelopercanbuildhishotel,relievinghimofthecostsandrisksofexcavation,soilcontamination,floodproofing,pilingsandcolumns.TheparkinggarageinthenewMOUisabout50percentlargerwith160spaces.34Publicsector(City,County,State)costswereputat$17.5million,anapparentmajordropfrom$31millionpreviouslycited.35BytheendoftheyearasCityofficialsgeareduptolobbyyetagainforStatemoneytheycontemplatednewadditionstothecostoftheproject:purchaseofextraland($527,000)andtheadditionofanotherfloortotheundergroundparkinggaragetakingthenumberofcarsparkedfrom160to234.Thisraisedtheestimateofpublicfundingto$22.25million,$10.5millionofwhichwastobeStatecapitalgrants.36Costestimateforthetwin-deckgarageisjustover$16.1millionor$69,000perparkingspace.ThisisoverfourtimesthecapitalcostforparkingspacesthatisfinanciallyviableinFrederick.37Three-quartersofthecostorover$12millionshouldberegardedasmoneybeingspenttobuildthefoundationsofthePlamondonhotelabove.Thisistheoldfloodplainwhichwouldneverotherwisebechosenasthelocationforaparkinggarage.AndwithoutStatesupportitisunlikelyanyFrederickofficialswoulddareproposesuchgrosslywastefulcarparking.8.DishonestyandsecrecyPromotersoftheDFH&CChavefrequentlyresortedtosecrecyanddishonestytopromotetheirscheme.DishonestyhasbeenexhibitedinrepeatedclaimsthatconsultantsrankedthechosenFrederickNews-Postsitethebestofthoseavailable.WhentheconsultantJLLsiterankingwasfinallyobtaineditshowedtheyputthePostOfficesitetopand

34TheinitialMOUofDecember2015providedfor104parkingspaces35Page3ofnewMOUJune2018.36DowntownFrederickPublicInfrastructureBudget,DowntownHotelandConferenceCenter–LandandParking,anundatedSourcesandUsesofFundsspreadsheetobtainedbyPIArequest,apparentlyproducedinNovember201837WalkerParkingConsultants2015studyfortheCitycalculatedthatanynewparkingbuiltformorethan$15,900percarspacewouldnotbefinanciallyviableandwouldrequiresubsidization.The234-spacegaragetobeviableasagarageshouldcostnomorethan$3.72millionascomparedtotheproposed$16.5mstructureforwhichtheCityseeksStatesupport.

17

theNews-Post(Plamondon)andGalleria(Wormald)equal-second.Dishonesttoohasbeentheconstantrefrainthattaxpayercontributionsaregoingonlyto‘publicinfrastructure’associatedwiththeproject.Taxpayermoneyisbeingsoughtforthelandpurchaseandforasubstantialshareofso-called‘softcosts’(studies,consultants,lobbyistsetc)noneofwhichare‘infrastructure.’Themajor‘infrastructure’costisabasementparkinggarage,whichasdiscussedearlierputsontaxpayerstherisksandcostsofallthefoundationworkforthehotelcomplex.Land,lobbyists,code-requiredparking,andfoundationsarenot‘publicinfrastructure.’Also,dishonesthavebeentherepeatedclaimsbyCityofficialsaboutthe‘returnoninvestment’fromthehotel,supposedly:$25.8mannualspending,$1.5mextrastatetaxes,110netnewjobs,$745,000,catalystforover$100mfollowupdevelopmentdowntown.38Allthesecalculationsdependon(1)theprojectbeingfinanciallyviable,and(2)theyallassumethat100%ofthebusinessattractedtothenewhotelisnewbusinesscomingtotheCityandtheStatewith0%attractedawayfromcompetinglodgingfacilities.Experienceelsewhere,andcommonsense,indicateagoodproportionofnewactivityattheCity-sponsoredhotelwouldbeattractedawayfromotherhotelsandeventvenues,sonetlocalbenefitswouldbemuchlowerthancitedinCitypropagandaforthehotel.SecrecyhasbeenbuiltintotheprojectfromitsverybeginningthroughtheCity’soutsourcingofkeydecisions(specificationsforthehotel,site)andkeyadministrativeandpoliticalprocesses(procurement,scoring)totheDowntownHotelAdvisoryCommittee(DHAC.)AndtheCitythroughitsdirectorofeconomicdevelopmentworkingbehindcloseddoorshasconcealeddecision-makingfromthetaxpayersitexpectstoprovidesometensofmillionsofdollars.OriginalrationaleforCity-sponsorshipandStatefundingwasthatwithoutthissupportnobusinesswoulddevelopadowntownhotel.39ThisrationalecollapsedinNovember2017wheninvestorsannouncedplanstodevelopahotelonthesiteoftheoldVisitationAcademyjusttwoblocksawayfromthePlamondonsite.TheyhaveaskedfornoCity(orState)financialsupport.38Page2ofProjectOverview‘one-pager’December27,2018.39AtleastonehoteldeveloperhassaidthatasfarbackastenyearsagohewasdiscouragedfromdevelopingahoteldowntownbyCityofficialsandtheDHACgroup,whowerecandidaboutopposinganycompetitionwiththeCity-sponsoredproject.

18

9.Costescalation,wasteandmismanagement

SincetheCity-sponsoreddowntownhotelprojectwaslaunchedtheoverallcosthasclosetodoubled,goingfrom$45millionin201140to$81mtoday.Upfronttaxpayersupportproposedhasvariedwildlyfromalowof$11milliontoahighof$54million,thelatestnumberbeing$22.3million.Thechangingcostsinpartreflectchangingspecificationsoftheproject.Carparkingforexamplehasvariedwidely:250spaces,104,750,830,167,234,someatgrade,someelevatedinadeck,someburrowedunderground.Thehotelitselfhasvariedbetween180and207rooms.Andthemeetingspacehasvariedbetween14,000squarefeetand24,350.Thehotelhasquietlyshedsomefeaturesofaso-called5-starestablishment,droppinganindoorpoolandotherluxuryfeatures.In2015/2016theMarylandStadiumAuthoritywasbeingcourtedforsupport.ItaskedtheCityforindependentcostestimates.ThenorthernVirginiabasedForellaGroupcostedtheprojectasthenconfiguredat$121m41ratherthantheCity’sestimateof$84m.Thepublicfundingrequiredhadballoonedto$54m.Inresponsetheprojectwasseriouslyscaledback,car-parkingbeingthemainsubjectofcuts.FortwoyearstheCitystuckwith$31mastheirestimateofneededpublicsupport.Thentheprojectwasparedbackagain,especiallythecarparkinggarageunderneaththehotel,butalsothehotel.BythetimeoftherevisedMOUinthesummerof2018thepublicsectorcontributionwaspareddownto$17.5m.AtvarioustimestheCityhaspresentedabasicprojectandan‘enhanced’project,theenhancementconsistingofextraparkingspaceandpurchaseoftheneighboringproperty.The‘enhancements’(allpublicsectorcosts)havevariedbetween$19min2015and$5.75minthe2019legislativesession.SomeCityofficialssaythese‘enhancements’40BriefingforMayor&BoardMay31,2011.41Ashasbeentypicalwiththisprojectsuch‘badnews’waskeptfromthepublicandtheBoardofAldermenatthetimeandhasonlybeenobtainedlongafterviaPublicInformationActfilings.

19

are‘essentials’notoptionalitems.OneinvolvespurchaseofneighboringlandtoallowarampbetweenthestreetandtheCityparkinggarage.Thatundergroundparkinggarage(deemed‘publicinfrastructure’)hasvariedbetweenonelevelandtwolevels,parkingbetween160and234cars.Designedtosupportthehotelcomplexabove,itistoberoofedwitha‘structuralpodium.’Attwolevelsand234parkingspacesthecostisestimatedbytheCityat$16.15mor$69,000perspace—comparedtolessthan$20,000perspaceinregularabove-groundparkinggarages.At$69,000perspacetaxpayersaren’tjustbuyingparkingspacesor‘publicinfrastructure,’they’rebuyinganexpensivefoundationstructureforthehotel.UntilthishotelprojecttheCityofFrederickhasalwaysmanagedtofinanceitsparkinggarages(ithasfive)asaself-supportingbusinessoperation,parkingfeesbeingsettopaytoservicethedebtalongwiththeoperatingcosts.TheCitydidnotneedtoaskforstatesupportforanyofthoseparkinggarages.But$69,000perspaceparkingattheCityhotelisnotabusinessproposition.Itisverbalwrappingaroundalavishsubsidytoafavoredhoteldeveloper.Mayorsays"Noquarterback"IncommentsonthehotelprojectasanewMayoriinearly2018MichaelO’Connorsaid:“what’softenbeenfrustratingformeasIwatchedthis(project)fromtheperspectiveoftheBoardofAldermenis,I’mnotreallysuresomeoneisactuallythequarterbackofthisproject.”42Hewasreflectingontheglacialpaceoftheproject.Predictedin2010toopenin2014aseachyearhaspasseditsscheduledopeningdatehasbeenputbackayear,suchthat,fornineyearsnow,ithasbeenperpetuallythreeorfouryearsfromopening.Keystudiesusedtojustifytheprojectarebasedonmarketdatafrom2009and2010.AfterinitialsupportboththeMarylandStadiumAuthorityandMarylandEconomicDevelopmentCorporationdeclinedtobeinvolvedintheproject.ThoseagenciesjudgedtheFrederickhotelprojecttobeespeciallypoorlyconceivedandpoorlymanaged.Theprojecthasemployedabouttenconsultinggroupsorconsultantsatacostofseveralmilliondollars.Muchoftheirworkhasprovedworthlessbecauseplanshavechangedorbecausesomuchtimehaspassedthatthedataandassumptionsarecompletelyoutofdate.Thelastmarketsurveyfortheproject,lookingatthedemand

42quotedFrederickNews-Post2018/03/24

20

andsupplyofhotelaccommodationintheFredrickareawascompletedinOctober2013.Therehavebeenhugechangessincethen!ThereisstillnosetofsiteplansordrawingscapableofmeetingCitybuildingandplanningcode.TheonehotelsiteplansubmittedtoCityplanners--inNovember2017--generatedaresponselisting25problemissues.43Someofthemaresmallissues,rathereasilyaddressed,butotherslikevehicularaccessareverydifficultbecauseofthesite'slimitedstreetfrontageanditsclosenesstoamajorsignalizedintersection.Inresponsetoacommentthatthesitethatthey'dchosenforthehotelwasthemostdifficultsite,aseniorCityofficialoncecommented:"Yeswedeliberatelychosethemostdifficultsite.It'ssuchadifficultsiteonlytheCityiscapableofdevelopingit."44Wasthishubris,theideathatCityofficialsaresomuchsmarter,somuchmoreingeniousthanprivatedevelopers?OrareminderthattheCitywiththepoliticalsupportitcanmusterhasaccesstomoremoneytospenditswayoutofdifficulties?OrwasthereasuggestionthatsincesomanyruleshavetobebrokenatthissiteonlytheCityitselfasanapplicantcangetthepermits?Maybeabitofallthree?CONCLUSION:CitysponsorshipandpublicsupportforadowntownhotelinFrederickisunnecessary,wastefulandunfair.Hotelsareabusinessandarenormallyandproperlyprovidedbyinvestorswithoutlocalgovernmentsponsorshiporpublicfunds.TheCityofFrederick’sDowntownHotelprojectisatravesty,acasestudyinwhygovernmentshouldnotsponsorahotel.Afternearlytenyearsofconsultants,lobbying,publicmeetingsandpoliticalposturingtheprojecthasstillnotevenproducedbasicplanscapableofgettingCitypermits.StategrantshavebeenmadebuttheCityhasbeenunabletodocumenttheprojectandtherefore,ithasforfeitedthosegrants.RationaleforCitysponsorshipandpublicsubsidiesforadowntownhotelcollapsedin2017wheninvestorsboughtthevacantVisitationAcademynearbyandannouncedtheywereconvertingitintoahotelasaself-supportingprivateinvestment.TheCity’sdowntownhotelprojecthasbeenacorruptboondoggleofasmallcabalofpoliticalinsidersfromthebeginningin2010whenitwasledbyMarkGaver,alocalbusinessmansubsequentlychargedandconvictedofsome$50millionoffraudand43LettertoBohlerEngineeringfromPamReppert,CityPlanner,Dec18,2017.44Commenttotheauthorinconversation,noclearmemoryofdate,butlikely2015or2016.

21

currentlyserving17yearsinfederalprison.Gaver’sDowntownHotelAdvisoryCommittee(DHAC)assignedbytheCitytochooseasiteandadeveloperwasclearlyaCityentitybutwasallowedtoflagrantlyviolatetheStateOpenMeetingslaw.Behindcloseddoorsitjettisonedtheconsultants’recommendedcompetitiveprocurementaspresentedtotheMayorandBoardinthesummerof2013andunilaterallyadoptedarestrictive‘competition.’DHAC’sadoptedRequestforProposals(RFP)wasbasedonadocumentproducedbyoneofthe‘competitors’—Plamondon.Doesaprocurementgetmorecorruptthanthat?MakingafurthermockeryofthepubliclystagedprocurementPlamondon’sdetailedproposalwaspresentedtotheDHAC—inclosedsessionnaturally—weeksbeforetheformalRFPwasevenissued.CityconsultantsJLLinbreachoftheircontractandofCityrulesworkedwithPlamondononhisproposalastheRFPwasbeingwritten.TheexistenceofaprematurePlamondonproposalwasconcealedfromtheBoardofAldermen,thepublicandtheStateandonlyrevealedyearsaftertheeventwhenCitydocumentswereobtainedwithPublicInformationActfilings.ExtensivediscussionwithJLLandtheproposalpresentationmeetingwithDHACpriortotheissuanceoftheRFPgavePlamondontheopportunitytofine-tuneit,givinghimanunfairadvantageoverhissolecompetitorWormald.DespitethatadvantageWormald’sproposalwas,arguably,superiorbecausehissiteismuchbettersuitedforahotelthanPlamondon’ssite.45ButthescoringdownplayedimportantaspectsofthesitesandPlamondonwasdeclaredthewinnerbyDHAC.ClearlythewinnerwasinrealitychosenbytheDHACcaballongbeforetheofficialRequestforProposalsRFP14JwasissuedFebruary2014.TheCityofFrederick’sRFP14JusedtojustifytheselectionofthehoteldeveloperPlamondonwasafakecompetedprocurement—afraudonthecitizensofFrederickandacorruptcontrivancetomilktheStatetreasuryforthebenefitofapolitically-connectedfewinFrederick.

PeterSamuel2019.03.18

45Plamondon’ssiteislandlockedanddifficulttoaccessfromtheinterstateswhereasWormald’ssiteisdirectlyoffEastStreetandI-70.Wormald’ssiteisclearofbuildingswhereasPlamondon’ssitehastwohistoricallysignificantbuildings,aTrolleyBuildingandtheBirelyTannery.Evenin2019theCityisconsideringpurchaseoftheEaglesClubadjacenttothePlamondonsiteinordertoprovidearamptotheproposedundergroundparkinggarageundertheplannedhotel.Wormald’ssitehasclearstreetfrontageonthreesidesandisrightnexttoanunderutilizedCityparkinggarage.

22

NOTE:Examplesofourdocumentaryevidencefollowthroughpage32:

23

24

25

26

27

28

29

30

31

32

33

Spreadsheetshowsmanyhoursofconsultanttimespentworkingwithsubsequent‘winner’PlamondonbeforetheofficialprocurementbeganwithreleaseofanRFP.JLLfavoreda2-stageprocurementthatwouldselectasitefirst,thenopenthatsitetocompetitionfromanydeveloper.ButJLLwasover-ruledandaskedtowriteanRFPbasedonaPlamondondraftwhichlimitedcompetitionbyrequiringdevelopersto‘bring’asiteinasingle-stageprocurement.

34