News - Warfield at Historic Sykesville

Developers of Warfield at Historic Sykesville file $20 million lawsuit against town

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.

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