City of Cambridge files lawsuit against CWDI for alleged violations of transfer agreement

CAMBRIDGE, Md. – The City of Cambridge has filed a lawsuit against Cambridge Waterfront Development, Inc. (CWDI), CWDI Holdings, and Yacht Maintenance.

We’re told the lawsuit is seeking $75,000 in damages and is requesting that the Court issue a temporary, preliminary, and permanent injunctive relief enjoining the Defendants from transferring any portion of property in violation of a 2022 Transfer Agreement.

According to City officials, the lawsuit was filed because CWDI has violated covenants included in a 2022 transfer of roughly ten acres of land from the City of Cambridge to CWDI. CWDI was reportedly supposed to subdivide the property the City conveyed in 2022 and try to sell approximately 2.6 acre4s of property the City had given to CWDI to Yacht Maintenance, which further violates the covenants from the legally binding transfer agreement.

City Manager Tom Carroll says he regrets that the City had the file the lawsuit, adding, ““More than six months after the City voiced our concerns publicly, CWDI remains in clear breach of the transfer agreement and is attempting to further breach the covenants we agreed to only two years ago. It is unfortunate that the CWDI board and its executive director have forced the City to take legal action. But the City has no choice other than to protect the interests of the Cambridge community and our taxpayers from CWDI.”

Carroll also adds that CWDI has the ability to end the lawsuit by fulfilling the commitments it made in 2022 when it accepted the transfer of roughly ten acres for $5.

In October 2023, the City expressed concerns with the project through a letter to CWDI.