Back in 2009, the Board of Education entered into an Agreement with Maryland Soccer Enterprises, LLC (Maryland Soccer).
The Agreement was that Maryland Soccer "agreed to contribute $300,000 toward the construction of an artificial turf athletic field at Richard Montgomery High School as part of the school’s modernization."
In exchange, the Maryland Soccer would get rent free preferred scheduled use of the stadium field during non-school hours for a period of five years as outlined in the Agreement.
The Parents' Coalition obtained a copy of the 2009 Agreement and posted it on this blog.
Now, Maryland Soccer doesn't want to use the field anymore. Maryland Soccer has 1 more year of free use of the field under the 5 year Agreement. Since they do not want to use the field for the 5th year, they want the Board of Education to pay them $60,000. That's right. Maryland Soccer wants $60,000 from taxpayers because they don't want to use the last year of their free time on the field.
How does that work? The $300,000 went toward the construction of the field. The field was built. Now the private "partner" wants $60,000 of taxpayer money because they don't want to use the public-private partnership field anymore.
And, guess what? Superintendent Joshua Starr is ready to hand them that $60,000. On Tuesday, March 12, 2013, the Board of Education will vote on Superintendent Starr's recommendation.
Md Soccer Enterprises LLC
ReplyDeleteRegistered Agent
Thaddeus C. Tatem
5706 English Court
Bethesda, MD 20817
starr - who wrote your memo? 60 k is not in accordance with agreement.
ReplyDeleteCounty council doesnt care. They dont think they have anu duty or right to exercise financial oversight of MCPS. So who are taxpayers supposed to go to if they are being ripped off?
ReplyDeleteMaybe I am reading this wrong, but the memo that Josh Starr sent out says that the remaining year on the lease will be taken over by another soccer club. Does this mean that the 60,000 will still be payed out? Or will the new team taking over the lease pay MCPS and/or Maryland Soccer for the last year of the lease?
ReplyDeleteThis was not a lease. No one can "take over" a lease because there isn't one.
DeleteThis was an Agreement to pay, upfront, for the installation of a plastic grass field. In return, the Maryland Soccer LLC got 5 years of free use. They don't want to use the 5th year. But, in an amazing move, they are demanding a payment of $60,000 from the BOE for the 5th year.
Superintendent Starr apparently has some of the worst legal counsel on the planet and is telling the BOE that Maryland Soccer deserves to be paid $60,000.
However, instead of having the BOE pay Maryland Soccer $60,000, Starr wants to turn over a year's use of the field to another party so that they can pay Maryland Soccer $60,000. (Well, that's what we are to assume. Bet Bethesda Soccer doesn't pay a dime.)
Let's do it this way:
BOE owes Maryland Soccer $0
Maryland Soccer wants $60,000
Starr says OK! If Maryland Soccer wants $60,000 the BOE should give them $60,000 by letting them lease the field out to Bethesda Soccer. Bethesda Soccer is then (in theory) going to pay Maryland Soccer the $60,000 they are demanding. Thus, in Starr's warped view, saving the BOE from having to pay Maryland Soccer the $60,000 (that they don't owe them).
Who loses? Taxpayers. We lose a year's use of a field that otherwise could be rented out through ICB and the rental fees would flow back to the County. We also lose because Starr has taken a public-private partnership that was supposed to benefit the public and turned it into a huge liability by pretending that somehow the BOE "owes" the private partner cash for leaving the deal early. It's a very, very bad precedent.
Ben and anonymii, doesn't matter. This is being done by the Board of Ed that you and your neighbors vote for over and over. Want to make sure this doesn't happen again? Elections are coming up. Run, or encourage someone responsible to run. Otherwise suck it up. And fork it over. Because your county council members and the folks you elected to "represent" you in Annapolis are busy raising your taxes right now. Look for higher property and gas taxes in the near future. Because you get the government you deserve.
ReplyDeleteJanis said skeptically, "If Maryland Soccer wants $60,000 the BOE should give them $60,000 by letting them lease the field out to Bethesda Soccer. Bethesda Soccer is then (in theory) going to pay Maryland Soccer the $60,000 they are demanding." This arrangement would actually be reasonable: allow MD Soccer to lease their remaining year to Bethesda Soccer for $60k. MCPS gets nothing out of it but good will, but that is worth something. *If* MD Soccer is on the hook for the $60k, it costs MCPS nothing. Is that the proposed arrangement?
ReplyDeleteMaryland Soccer is not on any hook for $60,000.
DeleteThis is not a lease.
Maryland Soccer had the free use of the field for 5 years. They owe nothing for the 5th year. They want to not use the field, they are free to do so.
Taxpayers owe them nothing.
Alan,
DeleteRead the original Agreement. You will see there are NO annual payment terms in the original Agreement. The number $60,000 is never listed as an annual payment.
There is no annual payment.
Then, read Starr's memo for tomorrow where announces that Maryland Soccer has sent a demand letter to the BOE for $60,000. Starr doesn't attach the letter. He just tells the BOE they have to cough up the $60,000, as if that is required.
DeleteNow this takes nerve-
ReplyDeleteAt the same time as Maryland Soccer is asking the BOE for $60,000, they are STILL using the Richard Montgomery High School artificial turf field.
???
Tomorrow, this group tells the BOE they are not using the field anymore and want cash from the BOE.
But, the REALITY is that Maryland Soccer is STILL using the RMHS artificial turf field this month!
http://www.realmaryland.us/news416.html
I agree with Alan, except that it is Maryland Soccer that is held responsible currently. I don't know why they don't want to use the field in their final year...nor care. If they want to recoup what amounts to a years portion of their investment of that $300,000 that's fine. But they need to perhaps work a 3 party MOA between Maryland Soccer, Bethesda Soccer and the County. The cash between organizations is between them. But Bethesda Soccer has to take over the rules and responsibilities clauses as if they were the original investor.
ReplyDeleteResponsible? For what? They are not responsible for anything. They have 1 more year of free use of the field. It is their choice. Taxpayers have NO obligation to give them any money. They are owed nothing. But, I guess you also want to subsidize Lockheed Martin? That's your choice. Write them a check. But, for the rest of the Montgomery County taxpayers, we don't owe Maryland Soccer a dime.
DeleteAnd, if you are so interested in this matter, then you will be very interested to see that the Real Maryland group that Maryland Soccer claims "dissolved" (hence the reason for the $60K request) is actually STILL in business and STILL using the Richard Montgomery High School field for soccer tryouts.
http://www.realmaryland.us/news416.html
Real Maryland owners have now formed a NEW soccer club called Future Soccer. Future Soccer is holding tryouts with Real Maryland on the RMHS field on March 23rd and 24th.
So the $60,000 is what? Just to help launch the new soccer club? Same people involved in all of these groups, but now they want money from taxpayers.
Please explain how "fine" it is to pay $60,000 to an entity that is STILL using the free field?
And...the "cash" is not between them. RMHS is a public high school field. The original agreement prohibited any re-assignment of the field. That clause was agreed to by all parties.
DeleteIf the field is available for use, it is up to the ICB to rent it out to outside groups. The ICB collects the field use fees, not a private company.
By this logic Bethesda Soccer can immediately walk away from the $900,000 contribution to the Wootton High School artificial turf project. They can donate the money and then immediately demand it back. Taxpayers would then have to pay for the field! The "donation" can be used as a trick to get tax dollars for this project without a cumbersome public process.
ReplyDeletehttp://parentscoalitionmc.blogspot.com/2013/03/maryland-soccer-still-using-rmhs-field.html
ReplyDeleteMaybe I wasn't clear. I wasn't saying "yes MC should be paying them". Maryland Soccer has paid $300,000 towards building the field already. Their REWARD is 5 years free use. That's fair. My point is if Bethesda Soccer is looking for a place to play (or anyone else), and Maryland Soccer has no use for the field in their final year, then I don't see why Bethesda can't take that last year. Which of course Maryland Soccer could NOT use it if they pass that on to Bethesda. If Bethesda Soccer wants to pay Maryland Soccer for that transfer...who cares. They can pay them $1 or $80,000 to take over thatbfinal year that would have been Maryland Soccer. That's not tax payer funds. What I meant by Rules and Regulations is that the agreement is between Maryland Soccer and MCPS and Maryland soccer is responsible for the field under the CUPF rules when they use it. Bethesda Soccer, if they are to use it, must sign that they will be responsible when they do use it. I don't see the problem in that.
ReplyDeleteWho cares? Taxpayers. The original Agreement does not permit other groups to use the property. That is the Agreement that was signed by all of the parties.
DeleteThis is public property, not private. What you are advocating is allowing private entities to take over the use (and to profit from) public property. That was not the Agreement.
The RMHS field is a taxpayer ASSET. Taxpayers have the right to any profit from this asset.
You are incorrect about the use of the field per CUPF, Maryland Soccer had special rules for the use of the field, not standard CUPF rules. We have posted on that issue on this blog.
And, you are missing that Maryland Soccer is STILL using the RMHS field. We posted about that on this blog yesterday. So, the reality looks like Maryland Soccer is trying to simultaneously use the field and profit from the field by charging other users. That was not the Agreement.
Ok, so the agreement reads on Page 8, Section 17, under Termination "...in its sole and subjective discretion, still believes that it is in the public’s interest to terminatethe Agreement early, then MCPS shall, within one hundred twenty (120) days,reimburse the Organization’s contribution on a pro-rata basis for the timeremaining on the Agreement." Does this fit "In the Public Interest"? Probably not. Why is Maryland Soccer wanting to get out this? Maybe they moving their HQ? Or they are cash strapped. Why is Starr compelled to give them $60,000? Beats me. I do see the section you are referring to Page 10, section 23, that says, "Organization may not assign its rights or sublease any portion of the premises forwhich it has the right of use under this Agreement." But right above that under dispute it also says: "The parties understand that unforeseen events may occurduring the term of this Agreement which may require analysis, discussion, andnegotiation on the part of the parties. In this event, the parties agree that they shall enter into and conduct such discussions and negotiations in a good faitheffort designed to resolve any such disputes." So the bottom line is, they could do a new deal transferring (although it wouldn't be calling it that) use of the field for one year under the EXACT same responsibilities that are in the original agreement to another group. And if Maryland Soccer has already paid $300,000 toward that end, and for whatever reason can get another party to take the last year for what is equal to one year's cost of the investment...I have no problem with that. Having said all that, I don't know any more than what you have reported so is Starr going about it that way...it doesn't sound like it. But I think a new deal could be reached where MC doesn't pay a dime, and someone other than Maryland Soccer can use it under the same restrictions.
ReplyDeletePlus if Starr hasn't given them any money back YET, and the agreement is still in place, why wouldn't they use it? If I were them, I'd keep using it until the agreement was broken off too. I'd stop using it once the issue was resolved.
Chris,
Delete1: The termination applies to MCPS terminating, not the private company.
2: Mediation refers to the existing Agreement. What is being proposed is a brand new Agreement with the ability to rent out field.
3: The Agreement says that the first payment is to be made no later than May 2008. 2009, 2010, 2011, 2012, 2013 - Agreement expires May 2013. There is no year left.
Ms. Sartucci, I think Chris is correct. You are pointing out that there are legally binding agreements in this case, and he is making it clear that "laws" and "agreements" don't matter in Montgomery County.
ReplyDeleteThe BOE tabled this matter today. They did not vote on it. Apparently, Phil Kauffman brought up some legal issues that they want answered.
ReplyDeleteOk, this will be my last piece and then I surrender.
ReplyDelete1.) Yes I realize the termination is for MCPS. That was my point. That section does allow MCPS to get out of the agreement and work a new one if that is the road they wish to go down.
2.) Let me make it clear I am not advocating MCPS take $60,000 on the chin. Lets assume, for the sake of argument, that the reason they want out is because they miscalculated in 2008 they'd have more money 5 years down the road. Afterall, in 2008 the bad economy was just kicking in. So you can play hardball and say, "tough crap" but in the end they may default anyway and now you are in court spending money to get money. OR - You can do a new agreement bringing in a new party to take over the final year. Now maybe that isn't Maryland Soccer's reasoning...but I don't jump to the assumption that they are just giving MCPS the bird and simply want to walk away...just becasue they want to.
3.) Maybe I read the agreement too fast but I don't see anything about a payment schedule/installments. Although that would make more sense from Maryland Soccer's standpoint. In fact I am kind of surprised that an organization like that would have that kind of cash laying around to make that kind of investment. In the beginning of the agreement, it says, "The Organization has agreed to pay to MCPS in advance a fee of $300,000 towards the use of an artificial turf field...". I have been working on the premise that the $300,000 has ALREADY been paid. Not that $60,000 is actually still due.
I quit. I now yield the balance of my time to Ms Sartucci!
I lied (maybe I can also work for MCPS). One last item. The very last paragraph states, "Upon official execution of this agreement, the Organization will pay THE BOARD OF EDUCATION OF MONTGOMERY COUNTY $300,000 as a fee for reserved scheduling and use of the field. Such payment shall be made available no later than the last day of MAY 2008." I know the eyes are the first to go, but I looked it over again and didn't see anything about paying in portions. It reads as if it is one lump payment before they broke ground.
ReplyDelete