By Sherry Greenfield | sgreenfield@baltsun.com
PUBLISHED: Carroll County Times April 2, 2025 at 5:00 AM EDT
Developers of Warfield at Historic Sykesville, a mixed-use housing and commercial area on Route 32, are suing the town for $20.4 million in damages, claiming that they
have suffered a loss of “economic value” because of actions by the town that have left them unable to completely develop their property.
According to court documents, the five entities suing the town include Warfield Restorations, LLC, Warfield Properties, LLC, Warfield Historic Quad, LLC, Warfield Historic Properties, LLC, and Warfield Center, LLC. The lawsuit, filed in U.S. Bankruptcy Court in February, comes almost a year after the five entities filed a petition for Chapter 11 protection. Chapter 11 allows a company to continue operating while it restructures its finances.
Steven McCleaf, senior vice president of Warfield Companies, said in an interview Tuesday that the town’s attempt to reclaim ownership of the property after selling it to them in 2018 has left the developers no other option but to sue.
“Our goal here is to develop this property,” McCleaf said. “Our goal is not to stay in court and accrue damages. Our goal is to develop this thing, and our wish is that the whole thing will go away.”
Sykesville Mayor Stacy Link said Tuesday she has yet to delve into the 39-page lawsuit. “I’m not familiar with the details of this latest maneuver, but there is no question in the timing of this.
Link is referring to the town’s election in May. Link has filed to run for reelection and faces one opponent, Robert Whittaker, 53, a barber shop owner in Ellicott City and Sykesville. “There is no confusion about the timing,” she said.
Sykesville Town Manager Joe Cosentini agrees. “They filed this back in February and they are bringing this up now,” he said. “It’s interesting that you would bring up a $20 million lawsuit now.”
The back and forth between Warfield Companies and the town dates to May 2023, when the town decided to reclaim the 12 historic structures at Warfield. Cosentini said at the time that the town government wanted to reclaim the properties because Warfield was making “little or no progress” in restoring the buildings, which the developers agreed to do when they purchased the property for $8 million in 2018.
McCleaf said they were forced to file Chapter 11 last year in response to the town’s decision.
Currently, three of the historic buildings on the property have been developed for commercial use. The property also includes 145 townhouses in what is known as Parkside at Warfield. McCleaf said Warfield is also under contract to build an assisted living facility on part of the property that fronts Route 32, though he declined to say who that contract is with.
Meanwhile, McCleaf is counting on state legislation signed by Gov. Wes Moore on April 25, 2024, to help move his development forward. Moore signed House Bill 538, the Housing Expansion and Affordability Act of 2024, which took effect statewide on Jan. 1. The Board of Carroll County Commissioners in December grudgingly adopted the new state legislation, intended to address the lack of affordable housing. McCleaf said he would like to build affordable units at Warfield. Commissioners believe the legislation does not apply to Carroll County and will do little to bring down the cost of homes.
The Maryland Department of Housing and Community Development has said the bill is aimed at solving the state’s 96,000-unit housing shortage, and “the bill is designed to address the housing supply and affordability crisis in a manner that is sensitive to local zoning, incentivizes affordability, and targets unit construction where it is most needed.”
Sykesville Mayor Stacy Link points to the disrepair and lead paint on the porch of Building W, built in 1905, also known as Warfield Cottage. The Town of Sykesville took steps in 2023 to reclaim ownership of 12 historic buildings located in Warfield at Historic Sykesville, a mixed-use housing and commercial development on Route 32.
Sykesville Mayor Stacy Link points to the disrepair and lead paint on the porch of Building W, built in 1905, also known as Warfield Cottage. The Town of Sykesville took steps in 2023 to reclaim ownership of 12 historic buildings located in Warfield at Historic Sykesville, a mixed-use housing and commercial development on Route 32.
But the legislation’s criteria state the housing development must consist of new construction or substantial renovation and must be located on property formerly owned by the state. It must include at least one building built more than 50 years ago, and deemed appropriate for redevelopment by the secretary of Housing and Community Development.
The only development that applies in Carroll County is the Warfield Complex, which has a long history, and was once home to Springfield State Hospital, the second mental hospital in Maryland.
McCleaf said due to the new legislation Warfield will be updating the original site plan to include affordable housing.
“We will be filing an updated plan to reflect that additional density that we are allowed,” he said. “We have told [the town] that we will file an updated plan. Our goal right now is to be on the planning commission’s schedule in May.
The housing market in Carroll County has seen improvements, with an increase in home sales and a decrease in prices compared to the same period last year. Housing sales rose by 13.6% in September, with 159 homes sold, up from 140 the previous year. This indicates a positive shift in the market, as it was previously plagued by low sales, shrinking inventory, and climbing prices. The housing market landscape in the county appears to be heading in a more favorable direction, providing opportunities for both buyers and sellers. 
The commercial real estate sector is showing signs of recovery, with industry optimism growing. However, the report cautions that the recovery will be slow and gradual, with interest rates expected to continue declining and tenant demand potentially falling. The pandemic has accelerated population migration patterns, with Sun Belt cities continuing to attract new arrivals, though at a slower pace. 
Demographic shifts are transforming U.S. housing demand, with the market projected to reach $5.85 trillion by 2030, largely due to a 47% increase in the senior population by 2050. Rising living costs are extending rental periods for young adults and increasing single-person households. Demand for single-family rentals (SFRs) and manufactured housing is growing, while student housing may struggle with a shrinking college-age demographic. 
The Biden administration announced a $100 million investment to combat barriers to affordable housing construction through a new grant program. The program will provide funding to state and local governments and other entities to develop and implement plans to facilitate affordable housing production.
The Maryland housing market continues to see rising home prices, with prices up 2.5% per quarter on average, despite a slight slowdown in the market. Inventory is declining, and homes are selling quickly, often within a week, driven by steady demand from government workers and military personnel. While some homes are still selling above list price, the state is working to make homeownership more affordable through various assistance programs. Analysts predict the Maryland housing market will remain strong, with low inventory and stable or rising prices, though potential buyers may face affordability challenges. Overall, the Maryland housing market favors sellers, but buyers have options to help offset the impact of high interest rates. 
The affordable housing crisis in the nation is well-known, and real estate developers and planners are eager to address the issue. However, one of the main challenges they face is not financing or construction but gaining community support for their projects. According to a survey conducted by coUrbanize, two-thirds of developers and planners stated that their most active projects in the next six months will be building affordable and supportive housing. Despite 94% of respondents attempting to gain community input and support through public meetings, many were frustrated by low attendance and lack of productivity. The greatest barrier to engagement, as identified by 60% of respondents, was the lack of staff time. 
The latest Realtor.com Rental Report reveals that renting a starter home has become more financially advantageous than buying in all 50 largest metropolitan areas in the United States, driven by elevated mortgage rates, high home prices, and a decline in rents. On average, renting a starter home is $1,067 per month, less expensive than buying, with cities like Austin, Texas, Seattle, Los Angeles, San Francisco, and New York seeing the most significant savings for renters. While renting remains more economical overall, the advantage is beginning to diminish in some areas as home prices and affordability improve, but certain markets like Memphis and Birmingham have become more rent-favoring due to increased investor activity. 
Carroll County’s unemployment rate is currently at a low of 2.7%, but officials are still working to attract new businesses and create more jobs for its residents. The Board of Carroll County Commissioners recently approved the allocation of $150,000 toward business expansion and new job creation. Denise Beaver, the director of the county’s Department of Economic Development, commented on the funding, indicating that the county is committed to ongoing efforts to support economic growth and job opportunities. This initiative reflects the county’s proactive approach to maintaining a thriving local economy and providing employment options for its community. 
Bipartisan bills in Congress would create a federal tax credit to convert underused commercial properties into affordable housing, addressing vacant spaces and the housing crisis. The $15 billion program would cover up to 20% of conversion costs, with extra incentives for economically distressed areas. The credit is designed to work with existing affordable and historic tax credits to make conversions viable. While the bill has broad support, historic tax credit stakeholders have some concerns. The legislation is unlikely to pass this year but has a good chance in 2025. 
Rental prices nationwide have cooled off, with smaller year-over-year increases, as new housing construction finally hits the market.
More young adults are finding themselves nestled back in the family home, with a whopping 17% of 25-35-year-olds now living with their parents – a drastic increase from just 7% in 1970. This phenomenon is driven by the skyrocketing costs of housing, forcing many to roost at home well into their thirties, despite stories of children eager to flee the nest.
Southern cities like Raleigh, Austin, and Atlanta are emerging as top destinations for 20-somethings seeking entry-level jobs with good salaries and affordable living, offering a combination of brisk hiring, cost-of-living-adjusted wages, and a concentration of industries like technology, healthcare, and finance.
Despite warnings of a looming commercial real estate (CRE) crisis, smaller banks have largely avoided major issues. They tend to focus on suburban office and local business properties that have held up better than the troubled big-city office market. While some banks are reducing CRE exposure, they are not lending as much, creating an opportunity for private credit providers to step in with more expensive financing. 
Lenders are tightening their grip on the commercial real estate (CRE) market as borrowers struggle to meet their obligations, leading to a surge in foreclosure activity. Analysts have been closely monitoring the status of CRE loans, including CMBS, bank loans, and properties in special servicing, revealing a concerning trend of delinquencies.