Turner takes control of disputed ADM site

8.29.2003

Baltimore Business Journal

Patrick Turner, principal of Baltimore's Henrietta Corp., and his financial backers have taken control of a Locust Point grain terminal they hope to convert into a mixed-use development.

The deal with Decatur, Ill.-based Archer Daniels Midland Co. for its 7.5-acre Beason Street property was settled on Aug. 13, the local developer said this week. Financial terms of the agreement were not detailed in state records.

The land sale puts Turner in a stronger negotiating position to move forward with his project, which hinges on a zoning change from industrial to commercial/residential use that is opposed by the Maryland Port Administration.

"At least we've closed on it,'' Turner said. "That's one hurdle. Now, we go to the big battles.''

But the developer said he will not take on the zoning fight first. He plans to spend the next several months meeting with the Locust Point community, in an effort to build consensus about his project.

"We don't have to rush this,'' Turner said. "We'd like to work with the community.''

Although initially proposed as a condominium plan, the project will likely be a mix of residential and office components.

"It could be a combination of anything,'' said Turner, adding he is open to suggestions from neighbors.

Once the developer is able to come to an agreement with the community, he plans to shift his attention to the zoning issues surrounding the site.

Meantime, members of a state task force met again this week to study the feasibility of using taxpayer money to build either a grain pier or a modern multipurpose cargo facility at the site.

Archer Daniels Midland had phased out its agricultural processing operations at the site when the grain elevator's 89-foot-tall concrete control tower collapsed into the harbor two years ago, damaging the connecting pier, which is owned by the Maryland Port Administration.

A consultant hired by the administration told task force members that, while Baltimore's port has an advantage over competing facilities because of deeper channels that can accommodate bigger ships, grain and soybean exporting has declined over the past 10 years as overseas competition has increased. Lancaster, Pa.-based Martin Associates, the consulting firm hired by the port, will deliver cost estimates for rebuilding the facility in about six weeks.

Tom Koch, one of the port's six commissioners, believes a case can be made to rebuild the facility and protect industrially zoned land along the waterfront.

"We're in a situation right now with the port where we are chock a block" with activity and space constraints, Koch said.

But James J. White, the port's top administrator, has said he is not convinced a sound financial case can be made for allocating state funding for the ADM grain facility even as he has urged officials to block any development of the site.