City of Salisbury threatened with legal action on two fronts over stalled Mitchell Landing rehab

SALISBURY, Md. – The City of Salisbury could be facing legal action on two fronts.

State Threatens City

Friday, Maryland’s Department of Housing and Community Development (DHCD) sent an official notice of defaults and demand for immediate cure to the City of Salisbury.

This comes after local housing officials and DHCD officials accuse Mayor Randy Taylor of inaction on an agreement that would pave the way for rehabilitation at Mitchell Landing Apartments, an affordable housing project.

The first demand is to finalize the agreement on who will purchase Mitchell Landing Apartments in order to rehabilitate the problem property. DHCD also demanded that work begin on necessary repairs to bring all of the units up to occupiable and rentable conditions. If the City does not meet those demands within ten days, it will be on the hook for a nearly $1.5 million loan that it was given to make the project happen.

Salisbury City Council President D’Shawn Doughty is removing himself from participating in these matters, as he is an employee of Green Street Housing, LLC.

Council Vice President Angela Blake said of both demand letters that it was “regretful and shameful that the mayor is blocking the project, but saying he wants to bring affordable housing to the people who need it.” She added that she does not feel the mayor has been transparent in these matters.

Closing Date Missed

The other potential court challenge comes from the group that would have been responsible for all of that work.

“[Mayor] Randy Taylor cannot walk away from this deal on the day of closing,” said Dave Layfield of Green Street Housing, LLC.

Rivermitch, LLC—a partnership between Green Street and the Wicomico Housing Authority—is demanding that the City “cease efforts to delay and disrupt” the purchasing of Mitchell Landing Apartments.

“In real estate contracts, there’s a reason why there’s a seller and a buyer signature,” Layfield said, “Both are committed to the transaction.”

Curbing Commitment?

The demand letter comes after Rivermitch officials say Mayor Taylor failed to sign off on the acquisition by the requested closing date, August 30th. That plan was given the green light via a 2021 land disposition agreement, authorizing Rivermitch to purchase the property from the City.

On May 9th, an attorney representing Rivermitch sent a letter informing the City that it would sue if the project was not advanced by Mayor Taylor. On May 14th, the City sent a letter from its own attorney back, stating that officials were committed to pushing the deal over the finish line.

Problem Property

With that purchase, the plan was for Rivermitchto completely gut the complex, which is hampered by hazards.

“Out of the 24 units, only six are presently occupiable. The other remaining units are all condemned by the City. All of the upper-floor units have been condemned. You can’t even walk safely up to the upper floor because of the corrosion of the stair platforms,’ Layfield said.

Layfield added that many of the apartments that are condemned are also infested with mold. The mold, he says, was likely a result of standing water in building crawl spaces that was never properly dealt with.

Looking Ahead

Although there are still several financing milestones to reach before construction would begin in November, Layfield categorizes this most recent development as “friction [they] don’t need.”

“In the case of a specific performance lawsuit, if the plaintiff wins, an agent of the court signs the deed. So, we don’t need Randy Taylor’s signature. The court can sign if need be,” Layfield said.

There are currently six units that are occupied at Mitchell Landing. Those residents who qualify under federal guidelines would be temporarily relocated while construction is underway. Once builders are finished with their work, the residents would be permitted to move back in.

“As a result, I am having an independent legal opinion prepared on those topics for which should be forthcoming. Based on a preliminary review, it appears my concerns are warranted and will need to be addressed,” Mayor Taylor said in a statement.