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Trust issue over Belmont

Residents find that HCC leader misspoke about a $1 million `gift'

March 26, 2006|By LARRY CARSON , SUN REPORTER

In the long battle over the historic Belmont estate in Elkridge, the element of trust, or the lack of it, has been a major issue for community members opposing Howard Community College's plans for the property.

They got more fuel for their suspicions last week.

Despite previous assertions by college President Mary Ellen Duncan that builder Harry L. "Chip" Lundy contributed $1 million to the deal as a gift, Duncan and Lundy said this week it actually was part of a written agreement to develop senior housing at the 18th-century estate.

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Duncan testified before the county's General Assembly delegation Feb. 8 that Lundy, a former college board member, gave the $1 million freely as a gift, with no strings attached, and had not asked for his money back.

On Friday, Duncan said she had misspoke.

"It was wrong," she said. "Bottom line, it was wrong. I said an incorrect thing."

Duncan also said that she "told them [the delegation] that at that time because we had offered Mr. Lundy his million in return and he refused to take it."

She added that the builder has been "very generous" and has paid tens of thousands of dollars more than the $1 million to help make the Belmont deal work -- including $150,000 in closing costs.

Lundy said the agreement "was not a gift."

"It was more of a business arrangement," he said, which was confirmed by a copy of the written agreement between Lundy and the private Howard Community College Educational Foundation obtained by The Sun. "We were going to make some profits."

His intention, he said, was to build senior housing and split the profits with the foundation to help retire the $4.2 million loan the college obtained -- in addition to his $1 million -- that was used to buy the property from the American Chemical Society in November 2004.

"After we signed the agreement, it became evident that the concerns of the citizens were not going to allow any development," Lundy said. "We pulled it off the table really very quickly."

He said he has not asked for his money back.

However, Lundy is likely to receive a refund if County Executive James N. Robey's plan to have the county buy the 68-acre estate and the adjoining 13-acre Dobbin property is consummated, county officials said.

Duncan said she told community residents from the beginning that senior housing was an idea being considered for Belmont, but that plan was dropped early, she said.

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