Maryland

Town bypasses normal channels to aid major development

By Dick Cooper

Talbot County officials weren’t enamored of the town of Trappe’s desire to build a major housing development, so they twice turned down the Eastern Shore hamlet’s efforts to upgrade local sewer and water capacity, in 2004 and 2005. And theoretically, that should have been the end of it. But it wasn’t.

Five years’ worth of state and locals records obtained by The Center for Public Integrity reveal an unprecedented and, at least temporarily, successful campaign by Trappe to go around the normally required county approval to get permission for the upgrades directly from the Maryland Department of the Environment (MDE). While it is unclear if any laws were broken, state officials now say they are looking into the matter. And while the recession has temporarily shelved the development, questions over the legality and propriety of what happened remain unresolved.

The documents obtained by the Center, including e-mails, letters, and memos, show that as early as 2004 MDE officials knew that Trappe did not have the required Talbot County approval to build a wastewater treatment plant for the proposed Trappe East development. And yet, on May 30, 2006, MDE issued the town a construction permit for a sewer plant large enough to handle the waste from the entire proposed development: 2,000 homes and 400 units of commercial space on more than 900 acres along Route 50. The development, according to documents, has the potential to increase the population of Trappe from its current 1,100 residents to more than 7,000 and is expected to take 15 to 20 years to complete, if it ever gets underway.

A surprise to county officials

Talbot County officials said they did not know Trappe had received the MDE permit to construct a 540,000-gallon-a-day sewer plant until earlier this year when the town sought — and later withdrew its application for — a $21 million federal stimulus grant to build the plant and a water tower.

Virginia

Bank becomes largest private landowner in Loudoun

By Dusty Smith

IStar Financial, a New York-headquartered lender, will take ownership of more than 4,100 acres of Loudoun County land previously assembled by Vienna, Virginia-based Greenvest LC. A foreclosure auction for Greenvest’s land, held in front of the historic Loudoun County Courthouse, drew dozens of spectators Tuesday morning, but only a couple of lackluster bidders. Greenquest had earlier defaulted on a $130 million loan from iStar, which precipitated the need for the auction.

Virginia

Major developer faces foreclosure or bankruptcy

By Dusty Smith and Joe Eaton

The largest private landowner in Loudoun County, Virginia, Greenvest LC — the focus of a series of bruising development battles — has defaulted on a $130 million loan, putting the majority of its real estate holdings into a foreclosure auction scheduled for Tuesday at the county courthouse.

Maryland

Government layoffs spark debate over zoning, development

By Dick Cooper

On the surface, the consolidation of planning departments in Worcester County, Maryland, seems a reasonable response to a recession-fueled drop in home sales and new construction. But the timing of the cuts, coming amid a major rewrite of development policies for one of the East Coast’s premier beach-front communities, is drawing suspicion from environmentalists and scrutiny from both the state planning department and the editorial page of the Baltimore Sun.

Virginia

In victory for builders, sprinkler systems in new VA homes will be optional

By Dusty Smith

Score one for the builders, at least for now. In the midst of a state-by-state battle over fire safety requirements, a panel in Virginia on Monday adopted interim language that essentially continues to makes installation of sprinkler systems optional, rather than mandatory, in all new single-family homes. The panel vote was 9-2 in favor of the status quo. However, the panel will continue the public hearing process before it formally votes on the matter some time next year.

Virginia

Builders fight proposed home sprinkler requirement

By Dusty Smith

Firefighters and sprinkler manufacturers are locked in a fierce national battle against home builders over a proposed requirement for sprinklers in all new homes and townhouses, with a crucial vote scheduled in Virginia early next week.

National

Rebuked appraisers reborn as real estate agents

By Joe Eaton

In 2007, a mortgage lender flagged the work of veteran Florida home appraiser Jerome Woolf for review, a process that often leads to an appraiser losing a lender’s business — a potentially disastrous financial hit for a small businessman like Woolf.

Maryland

'Smart growth' goals frustrated by local authorities

By Dick Cooper

In a pasture, along a tree-lined road, a small herd of hefty black-and-white striped “Oreo cows” — more formally known as Belted Galloways — graze near the entrance to a housing development widely regarded as one of the few examples of “smart growth” on Maryland’s Eastern Shore.

Virginia

Dealing 'New Jersey style'

Salvatore J. Cangiano enjoys a reputation as a shrewd land speculator and developer, one who isn’t shy about pressing his ownership rights through litigation — “I’m very competitive” — or, perhaps, just by sheer force of will. And pretty much all those descriptors were on display in the rough-and-tumble struggle that ended with him in possession of Wheatland Farms in Loudoun County, Virginia.

Consider this: As Cangiano prepared to go to settlement on the purchase of the spectacular 549-acre property in spring 2005, according to court records, he was unknowingly recorded in a conversation discussing his concerns about contractual obligations the sellers had made, including an obligation to host weddings at the Wheatland Manor House.

“Hey, anybody gives me a hard time, I go there and lock the buildings. I’ll put everybody off the property. I deal New Jersey style. I’ll just lock everybody out. Nobody is allowed here. Go sue me.”

When the Wheatland deal crumbled and dissolved into litigation, Cangiano was asked about the conversation under oath: “I don’t know what ‘New Jersey style’ means. I really don’t know what that means. I deal honestly, morally, and ethically. That’s how I deal. I hope everybody else would.”

Recently, in an interview, Cangiano laughed when asked about the conversation saying: “That was a levity.” Just two guys joking around, he explained.

However, when Cangiano’s attorney asked Ava Abramowitz, the former co-owner of Wheatland Farms, what she understood “New Jersey style” to mean, she testified: “Ask Jimmy Hoffa what ‘New Jersey style’ means. We were petrified. We did not know how to handle this situation.”

“Are you saying you thought Mr. Cangiano was threatening to kill you or your husband?” Cangiano’s attorney asked.

“No,” she replied. “I am not saying that at all. I’m just saying I don’t even think of New Jersey style. He’s a man who does.”

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