Plamondon offers Eagles $650k for adjacent property valued at $1.23m

Plamondon has offered the Eagles social club $650,000 for their 100 year old property at 216 East Patrick Street and two small open lots to the immediate west used for car parking. The offer was revealed to Eagles’ members at a general meeting last week. A local committee has been formed to recommend next steps but the ultimate decision rests with the head office of the club in Grove City (Columbus) Ohio.

Plamondon’s site plan for the hotel shows the two-lane driveway to the lower level parking garage and loading dock making use of the Eagles parking lot property. City officials responded to the Plamondon site plan late last year with a long list of problematic issues, one of which was the apparent location of the access driveway on land not owned by the applicants. 

At the meeting it was said that Plamondon offer was open for 30 days, even though the Eagles would see no money until the closing of the developer with the City, County and State as well as project lenders which could be two, three or more years away. Plamondon representatives presented their offer to the Eagles as their best & final offer.  

That sounds like bluff because it is the hotel developer who needs the deal much more than the Eagles do. The Eagles say they have replace their roof, install new air conditioning and make other improvements to their building for it to continue to provide attractive meeting space. 

The $650k offered looks low. It is barely half the official state valuation of the property — which is $1.23m (see table). State valuations are usually regarded as conservative relative to market values. $1.5m would seem more like a fair market value offer. 

Also it is unclear the Eagles could buy new land let alone finance a new building for their 200 person club for $650k. 

There are Eagles clubs in Brunswick and Hagerstown so the head office in Ohio may see financial advantage in consolidating clubs. 

Another odd aspect to these negotiations is that the City not Plamondon is proposing to own both the land the lower level parking garage which needs the Eagles most westerly lot for access. Logically the City should be negotiating for land it will pay for and own.

The latest project budget in Appendix B of the Amended & Restated MOU of June has two items:

— “Land Acquisition $4,216,500” which apparently covers purchase of the Randall’s lots of the old Frederick News-Post site

—“Land Acquisition — additional land $526,825” which is apparently what the City has allowed for the Eagles purchase. 

Of course a blowout in City costs for land would not be surprising. When the project was first bruited the overall tab was $45m. Now it is close to twice that.

2018/08/14

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