Capital, The (Newspaper) - January 20, 1986, Annapolis, Maryland
leaves imprint on area By DEB1A VIADERO Basbess Writer In examiners for the Mary- land Division of Savings and Loans came across a loan from a service corporation of Sharon Savings and Loan Association to Duncan Family Campgrounds Ltd. Partnership. The money was to be used to build the campgrounds on 27.8 wooded acres near Waysons Corner. The project already was completed and operating. But there were two big problems. The loan was delinquent more than In unpaid interest. And Dun- can Family Campgrounds was a Joint venture that included members of the family that owned and operat- ed Sharon. Insider loans such as this some risky business and some dirty financial footwork were common among the savings and loans that were once part of- state's private insurance system. In his eight-month investigation into the state savings and loan cri- special counsel Wilbur D. Pres- ton Jr. concluded that savings and loan industry was on a collision course with Classifiec Circulatio HOWELL MICROFILMS P 0 BOX 1558 LAUREL MD 20707 He chronicled examples of unsafe or simply illegal business practices at no less than 12 savings and loans in his 457-page report an association with a branch in Glen was among them. The report also mentions First Maryland and Old Court Savings Loans and Gibraltar Building Loan all associations based or branched in Anne Arundel County. But the loan to Duncan Family Campgrounds is far from a worst case. State apparently con- vinced that the loan was sufficiently approved it long be- fore construction overruns caused it to go sour. And minutes of later meetings between state and Sharon officials indicated the interest eventually was paid. But it points to a pattern a pattern that hits home for the Anne Arundel County financial communi- ty. As far removed as the county sometimes seems to be from the high-flying finances of the Baltimore corruption and mismanagement in the savings and loan industry left their finger- prints here. One doesn't have to comb the pages of Preston's report for exam- ples. This case came out of land records in the county Old Court in 1983 lent to Old Solomons Joint Venture for an office building at Solomons Island Road and Forest Drive. The presi- dent of Old Solomons Joint Venture is Allen a man who also worked as vice president of Old Court. Another partner in the ven- ture was listed as Court Joint Contacted Friday at his home in IE Fdnberg said be couldn't recall the transaction. Under Maryland insider whether they are made direct- ly or in more convoluted are illegal. But the law makes some excep- tions. If the property is secured by the borrower's home or savings ac- if the savings and loan divi- sion director approves or if the association's board of directors on Page Col. IRS to rule on Page 4. Tomorrow's Fair 50 For see page 7. VOL. Cl NO. 16 JANUARY 25 Cents GOOD PONT FORGET Kym S. Rice of the New York Public Library will dis- cuss of Early Mary- at 8 p.m. tomorrow in Key Auditorium at St John's College. The free lecture is open to the public. AREA A guilty plea in a child sex abuse case canceled use of video testimony. Page 25. ACTION LINE Be careful about charities. Page 25. YOUTH Teens flock to martial arts classes. Page a. ENTERTAINMENT Naval Academy planetarium programs feature Halley's Comet. Page 22. AWAY WE GO Attractions plan Black Histo- ry Moafn. Page 23. CONTEST The Capital's that contest challenges read- ers to identify famous newspa- per carriers. See page 22. STATE A helicopter crash kills two state troopers. Page 4. The nation honors Martin Luther King Jr. Page 2. Congress faces budget cuts and a tax overhaul. Page 3. SPORTS Virginia embarrasses the Terps. Page 17. PEOPLE A 21-year-old man has been arrested and charged with bur- glarising Yoke Oaa's New York City apartment Omar of Manhat- was arrested last night for breaking in through a fire es- i cape window yesterday and leaving a note with his I address and i a photo- graph of I himself. Nothing 'was report- ed Brisstaf from the apartment 4aa rfWMiAviffttslJtlHi IB IBv VlWaWMi aw. Ms. widow of former Beatit John woke up whea ate heard a noise at 4 at yesterday aad fond the note aad a photograph For a took at other people in the aews seepage 1. LOTTERY Kuasen drawn Three-dHh am Pfck4-ttlt INDEX 4 tt pages 12 .a .J f T .1741 9-M Prime park lost Developer wants farm annexed By CHRISTINE NEUBERGER Staff Writer A Rockville development firm this month agreed to a contract to buy a prime waterfront tract next to dimming the county's hopes of purchasing the site for parkland. The developers' attorney also has ap- proached Annapolis Mayor Dennis Callahan about annexing the 340-acre known as Quiet Waters in return for sewer and other services. The contract Continental Invest- ment agreed Jan. 1 to pay an amount reportedly excew oi for the property on the South River next to Hiflsmere.' Up to 250 ranging in price from roughly to will be developed on the tract sotifeflf fewest The investors Continental Vice President Adrian Carpenter and real estate investor Robert Wiseman will form a Joint venture to improve the property and build utilities and community amenities such as piers. But Wiseman said they will probably sell lots to individuals or homebuflders for devel- opment while maintaining an interest in and control over the property. Located near the southeastern corner of the property is one of the last large ROBERT WISEMAN stands at edge Qatot Water Farm on South River. shows location of the parcel south of An vacant tracts ea the rapidly developing Annap- olis Neck Peninsula. Since the mid-1970s the county has envi- sioned a county park at Quiet Waters Farm. Although Anne Arundel never made a formal offer to buy the land due to lack of the county planned to funnel money toward the acquisition in the next fiscal year. a premium piece of property and there's no question we've had our eye on it for a long County Executive 0. James said last week. Despite Continental's contract apparently baaa't abandoned the idea of a park facility at Quiet Waters. number of options that well be if said. Less than two weeks ago the developers began exploring their namely whether the city would be willing to annex the land. wanted to see if there is some sympathy from this administration and there Callahan said. Inclusion in the city would bring the proper- ty public sewer service. most of the tract within a stretch of the county not scheduled tor sewers under the 20-year county plan. Wkfle annexation often permits denser de- Continental's contract with owner Mary E. Parker imposes a construction ceiling of 250 homes a density lower than the current county zoning or comparable city said Harry C. attorney for the investors. oa Page CoL Police abuses cost taxpayers By KEVIN DRAWBAUGH Staff Writer City taxpayers have lost about hi the past five years on training expenses wasted on police officers who resigned shortly after being consultants found. The Annapolis Police Department is suffering under dozens of other examples of sloppy inadequate manage- low morale and poor they said. In a 120-page report released Fri- Carroll Burracker and Asso- ciates specialists in law enforcement recommend- ed a sweeping reorganization of the department The report was described as by city Police Chief John C. Schmitt this morning. the very outset I stated that I welcomed this study We had been seeking some of these actions before the study even came oat. With the new we're already undertaking some of these Schmitt said. Much of the blame for the depart- ment's severe morale problem is laid on Schmitt in the report. Other failures of oversight and leadership point to shortcoming's in the depart- ment's highest levels. Alderman John R. R- Ward of the informa- tion certainly was enlightening. be quite I think there are some things in there that make you scratch your head. question that has to be asked 'How responsible is the chief in this matter and is the chief capable of carrying out the recommendations in the Alderman Alfred A. D- Ward chairman of the City Council Public Safety should start implementing the rec- ommendations The Burracker study was commissioned by former Mayor Richard L. Hillman last year as the fifth In a series of departmental audits within the city government Launched during last year's elec- tion it followed the un- precedented imposition of unspecified disciplinary action by Hillman against Schmitt The chief was investigated by the Anne Arundel County State's Attor- ney's Office. The reasons for his reprimand were never fully re- although he was said to be largely exonerated of mismanage- ment charges. Dozens of problems similar to alle- gations that have been made by a few senior police officers for years oa Page CoL Innovation pnlgtd. 'NO COLOR' Racism is a mystery to today's students By JACQUELINE TENCZA Bastport Elemeatary School sixth- grader Vaughn Johnson is black. His best Erie is white. The boyi say they don't think much about the different colon of their skin. not any color to he's Just said sbrnffmf They said they've never eBcoutered any racial problems daring their six- year not from not from other students. For the reality of racial dis- crtiBUntion if a chapter in a textbook or a celebration for the Rev. Martta Lather Ktef. tucb as the oae add at their school Last Wedaesday. lastport itadaati know that Ktaf was dedicated to a eaase of aad know he was shot to death at Has. la They kaow that Jaa 15 is Us Birthday. tot they saM they dafat eater- hard to imagine It must have been pretty bad if you couldn't do something just because you were Erie Eastport student Erie agreed. aoat have beea pretty had if yoa eeahJa't do Jost because yon he Tht yeaafsters' eosameeU followed a UaVata to Kaag at Eastport School is for love that be had for Stodeats then narrated a short film- strip doetuoefltiaf Kiaf'i life. The program was the culmination of a week of classroom activities oa King. said third-frade teacher Evetya John- who coordinated the Eastport ef- fort Similar programi were held ia many comity schools last week. Today county schools aad aB federal afeaetos are closed tor the first aattaaal raishfiltoi of the stato dvfl rights leader's day The eouaty and cele- brated the holiday Wedkaeaday and are open today. AHhaajh this is the first year King's birthday Is beiag celebrated nationally. Eastport EkaMetary School hai beea H tor at least three thit to ate JUi Craw Ires- Asa. Uaftaf the freat of the held aa eeastmtiea paper fat KJaTs aaae. to aothtai new for Ivt deaag thai prograso here tor tht last three Mrs. Johasoa saM fcheete aea't watt for a aatioaul saM.