MEMORANDUM

TO: City Council

FROM: David J. Deutsch, City Manager

SUBJECT: MC/PG 123-07

DATE: January 25, 2007

Staff has just learned today of the existence of a bill sponsored by Delegate Hubbard which is titled “Prince George’s County – Maryland-Washington Regional District – Municipal Annexation – Enforcement of Covenants” (MC/PG 123-07). The bill applies to “ANY MUNICIPAL CORPORATION IN THE MARYLAND-WASHINGTON REGIONAL DISTRICT IN PRINCE GEORGE’S COUNTY”. The thrust of the bill is in section (B) which is printed below.

“(B) FROM AND AFTER 10 YEARS AS OF THE DATE OF ENTERING
INTO A LAND USE COVENANT AS PART OF AN ANNEXATION AGREEMENT, A MUNICIPAL CORPORATION OR ANY OTHER PARTY TO THE COVENANT MAY NOT ENFORCE THE COVENANT IN ANY WAY THAT CONFLICTS WITH THE ZONING CLASSIFICATION OF PROPERTY SUBJECT TO THE COVENANT UNLESS ALL PARTIES TO THE COVENANT AGREE TO EXTEND IT.”

The bill appears to restrict land use covenants to a 10-year life span when the covenant conflicts with the zoning classification of the subject property.

This bill is extremely harmful to municipal interests generally and to Bowie specifically. The bill represents an intrusion into the rights of local government and has the potential for negative effects on 26 municipalities in Prince George’s County. The impact of the bill could also be viewed as potentially harmful to certain municipalities in Montgomery County in the future, although this current legislation is narrowly aimed at Prince George’s.

The specific impact of the bill in Bowie relates to the Maryland Science and Technology Center/Melford property. This property has had certain covenants controlling parts of the development in place since 1985. Various owners purchased property with the full knowledge of the existence and the impact of the covenants. There is a question as to whether this legislation could be applied retroactively.

A land use covenant represents a contract between two parties. Although development is ongoing at MSTC/Melford which is totally consistent with the covenants, the owner wants to pursue an alternate vision for the property involving 866 residential units, which although permitted by the M-X-T zoning classification, are prohibited by the covenants.

Council has felt so strongly about the validity of the covenants that it authorized the City Attorney to seek a writ of certiorari when the Court of Special Appeals did not completely endorse the lower Court’s ruling in favor of the covenants. The Court of Appeals granted certiorari and the case will be heard on February 1 in Annapolis.

MML has been alerted about this bill, given that it has broad potential impact. The bill is one of five proposals on various subjects scheduled to be heard at the County Affairs Committee and Bi-County Public Hearing next Thursday evening at Prince George’s Community College.

Council should oppose the bill; it runs absolutely counter to our long-standing policy of seeking greater land use authority.

MC/PG 123-07 is harmful not only to Bowie’s specific interest but to the broader universe of Prince George’s County’s cities and potentially municipalities in other counties. There is no legitimate reason for the State Legislature to insert itself in this issue, particularly when a judicial decision is expected to be received within two to three months.

DJD/asf