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6 - CAPE GAZEq[E, Friday, April 14 - April 20, 2000
VIEWPOINTS
Editorial
University should issue full disclosure
Twenty years ago, development of a marine research park on lands
adjacent to University of Delaware's College of Marine Studies
(CMS) in Lewes seemed like a good idea. CMS Dean Bill Gaither,
an engineer who thought of projects in grand terms, envisioned
attracting industries that would profit by being in close proximity to
the steady flow of new information arising from research conducted
by the college's top-flight crew of marine scientists. Such industries
would provide high-paying jobs by tapping into a potentially posi-
tive synergy. Gaither convinced University officials to pursue the
project. His arguments also proved persuasive with federal, state and
county officials attracted by the prospect of stimulating the local
economy. Grants totaling more than $1 million were used to devel-
op a first class infrastructure of roads and utilities on lands acquired
by the University fronting on New Road. The park looked beautiful
and attractive but an early attempt to attract a Coast Guard facility
failed due to lack of major transportation facilities in the area. Then
Gaither left the College of Marine Studies and the marine research
park began to gather dust. Gaither had inflated the ball and carried
it for a while but after he left, the ball was kicked around a bit here
and there but was never really picked up again.
Meanwhile, the documents outlining the agreements that led to the
million dollars in grants were also collecting dust. Among those pro-
visions were requirements that University of Delaware notify the
federal Economic Development Administration if it planned to
change any of the plans including disposal of any or all portions of
the property involved. Now it appears that portions of the lands that
were used as in-kind match for the public grants were sold by the
University or contracted for sale without going through proper pro-
cedures. Involved are the 75 aces that were sold to Beebe Medical
Center and the 90-some acres contracted for sale to New Road
L.L.C. Lewes resident Jerry Lechliter, an opponent of the projects
proposed for the lands in question, has pursued full documentation
of how the sales have proceeded and has invoNed the state Attorney
General's office and a federal investigation agency in an attempt to
determine whether there has been a mishandling of government
funds. Rather than giving a simple disclosure of how it has handled
these matters, the University has been stonewalling the issue and
hiding behind the language of the state's Freedom of Information
language - and its privileged status as a semi-public, semi-private
state institution - to thwart Lechliter's efforts to gain a feel for how
the sales were handled. Phone calls by this newspaper to get the
University's viewpoint on this matter have not been returned.
Lechliter sees the University's stonewalling as "arrogance of power"
and others in state government agree. Given the situation at hand,
it's hard not to agree. Whether you agree or disagree with the pro-
jects proposed for the University land, there shou.ld be no disagree-
ment over the University's ethical and legal responsibility in fully
disclosing publicly how it handled a matter involving more than $1
million in taxpayers' dollars. The University should issue a full
statement immediately so the projects can be reviewed in the full
light of the sun rather than in the shadows of a cloud.
Letters
The Weather Picture
Michael Short photo
Everywhere spring, albeit a bit chilly, is in the air and peo.
pie are preparing for summer's onslaught of visitors, includ-
ing Cape Henlopen State Park's new entryway.
WEY
Way of Life"
Lechliter responds to
Beebe CEO on Cadbury
The attempt by Jeffrey Fried, Beebe
Medical Center's president and CEO,
in his letter to clarify the "facts" on
the Cadbury proposal and Beebe's
role in this "deal" fell far short of its
goal because it contained factual
errors, confused important points,
omitted essential facts, left many
questions unanswered, and only
raised more issues. He states that the
size of the parcel the University of
Delaware offered and Beebe subse-
quently bought was 77.8 acres, when,
• in fact, it is only 75.23 + acres. Some
readers might consider this error triv-
ial, but it is, in essence, symptomatic
of the entire letter and demonstrates a
lack of attention to detail. Mr. Fried
'could have avoided it with only a cur-
sory glance at a tax map, deed, or the
Cadbury contingent contract.
The letter then asserts that Beebe
bought the parcel with the intention to
build an assisted-living facility, and
implies its investment value was only
secondary to this primary purpose.
But Wally Hudson, vice president of
corporate affairs at Beebe, is already
on record and quoted in the
"Delaware State News" as saying that
Beebe bought the land as an invest-
ment; the assisted-living facility was
an afterthought. The question, there-
fore, remains: Was it bought primari-
ly as an investment or to build an
assisted-living facility? One cannot
have it both ways.
In any event, Mr. Fried failed to
point out that Beebe bought land
without an approved entrance-exit
road. Beebe must have known that it
could not use the university road
because it was built for the universi-
ty's research park with federal grant
funds: Beebe subsequently submitted
a request to the U.S. Army Corps of
Engineers to build just such a road
through the approximate 200-feet of
"wetlands" footage its parcel has on
New Road. Before any approval was
received, however, Beebe withdrew
the permit request. Why?
Interestingly, Beebe, I am sure,
also receives federal grants, and the
administrative control requirements
are the same as for the University of
Delaware; they are spelled out clearly
in Office of Management and Budget
Circular A 110, "Uniform
Administrative Requirements for
Grants and Agreements with
Institutions of Higher Education,
Hospitals, and Other Non-Profit
Organizations." Are we to believe
that neither Beebe nor the University
knew that 47.13 + acres of its parcel
was part of the Marine Research
Park's 166 acres and, therefore, sub-
ject to the requirements in Circular
All0 and the Combined Federal
Regulations? Did Beebe ever ask to
see the University's disposition
instructions from the granting federal
agency for this land to ensure the
University had the proper authoriza-
tion to sell it? Did Beebe ever inquire
if the University would repay the fed-
eral government money it would owe
for selling this land? Or was Beebe
just interested in its "investment" and,
therefore, connived at this conve-
nient, yet profitable, "oversight"? If
the University had added the money it
would have had to repay the federal
government, the selling price, natural-
ly, might have been much higher.
Another important issue is the sell-
ing price itself, approximately
$960,000.00 or about $12,800/acre.
What was the real market value of the
land? Seemingly, Beebe received a
"sweetheart deal." Was it struck
behind closed doors, in which Beebe
paid less than market value, in viola-
tion of the aforementioned Circular
All0, which requires the university
to use "proper sales procedures that
provide for competition to the extent
practicable and result in the highest
possible return." Was there any bid-
ding for this land? Was it ever open-
ly advertised and marketed? Who
determined that $960,000 was the
"highest possible return" or even the
Continued on page 7
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