A housing development planned for a rural stretch of Patuxent Road has sparked accusations that the leadership of the Greater Odenton Improvement Association improperly handled a possible conflict of interest.
Nancy Morton and her husband, Robert Morton, said during a public meeting on Aug. 6 that fellow board member Ray Hodgson acted improperly by voting to have the association write a letter supporting the rezoning of land for the development.
Mr. Morton said Mr. Hodgson, who used to own part of the land but sold it to the developer, would benefit by receiving a final payment in the sale if the property was rezoned.
Mr. Hodgson disagrees. At a special board meeting Friday evening, he said he had nothing to gain and that he acted properly, transparently and revealed his ties to the developer months before the civic group's vote.
The association bylaws do not have rules for conflicts of interest issues.
The association board had earlier voted to support the rezoning of land that developer Narragansett Homes wants to use for the new, unnamed, 31-home neighborhood off of Patuxent Road. Some of that land used to belong to Mr. Hodgson, who moved two years ago from his house there.
And Mr. Hodgson stands to gain through that rezoning, Mr. Morton and others said.
Mr. Hodgson agreed to sell his 1.13 acres of land to the developer for $2.5 million. But people familiar with the deal said only $1.5 million was paid up front. The remaining $1 million would be paid only if the land was rezoned from R2 to R5 zoning, a change that would allow the builder to put in more houses.
But Mr. Hodgson denied that his land was sold this way. He said his final payment for the property is not contingent on any rezoning, he gets paid the final $1 million when the project is finished, no matter what is eventually built.
And e-mails between the association board members show that Mr. Hodgson disclosed his relationship with the developer about six months ago.
"I don't get any more money from a rezoning. . . . I could care less if he builds townhouses, mansions or three story (out)houses," Mr. Hodgson said Friday night.
The rezoning is important because it would determine what can and cannot be built on the land.
Some of the land is designated R2, a type of zoning that allows two units per acre. But David Lund, project developer for developer Narragansett Homes, has been trying to have it rezoned to R5, allowing more homes to be built per acre.
Mr. Lund would need approval for the county to make it happen. And he got a bit of help from the improvement association.
After a close vote by the Odenton group's board, the developer received a letter of support for the zoning change, and Mr. Lund urged some of the group's members, particularly association President David Tibbetts, to back the zoning change at a hearing before a county administrative hearing officer.
"Please let me know if you will be able to attend. As you know in cases like this, the more the better on 'for' side," Mr. Lund wrote to the board shortly before the zoning hearing.
But so far, Mr. Lund hasn't had much success in rezoning the land. After arguing before county Administrative Hearing Officer Steven LeGendre, and favorable testimony from Mr. Tibbetts, the rezoning was denied in a March 5 decision. Mr. Lund has since filed an appeal.
And the association's support for the rezoning has in itself become controversial. Patricia Laird, who lives near the proposed development, said she is concerned that if the land is rezoned the builder would put in townhouses which would in turn lower her property values. Additionally, new homes would mean more traffic on an otherwise quiet road.
She criticized the group for endorsing the rezoning without getting the opinion of people who live near the development.
"It's your responsibility to know both sides to get the whole story," Ms. Laird said.
Later in the meting, Mr. Tibbetts gave the opportunity for motions that would rescind the association's support for the rezoning, but none were made.
While there are no rules addressing conflicts of interest in the association bylaws, Mr. Morton drew attention to a letter by Mr. Tibbetts to the group's general membership.
In the letter, Mr. Tibbetts urged the group's 300 or so members to take on more leadership roles. But they were warned that "(W)e have not had formal conflict of interest rules, but if you are elected, you have a fiduciary duty to the organization."
Bruce McPherson, the group's treasurer, expressed doubts that there was a genuine conflict of interest.
"I don't believe that allegations should be made without proof," he said.
The association then later passed a resolution affirming Mr. Hodgson as a valuable member of the board in good standing.
It passed unanimously, except for the Mortons, who did not vote.