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Minority Businesses Seek “New Deal” at National Harbor
05/07/2008 - By William Reed - Washington Informer Contributing Writer
Washington Informer
As the massive $2.5 billion National Harbor development rises along the Potomac in southern Prince George’s Country, tensions have increased between the developer and a number of county-based minority business operators.
The complex is producing substantial jobs, mostly contracting and investment opportunities, as one of the largest development projects on the East Coast is being built and staffed. But a coalition of county residents and businesses is expressing concern that pledges made to them at the onset of the development are not being met.
“We are asking the developers to come back to the table and initiate more equitable business and contracting practices,” said Jerry Mathis, a country realtor, speaking to 150 residents and business owners at a recent meeting at Fort Washington’s Tantallion Country Club.
Many in the audience had unsuccessfully sought contracting and supplier opportunities with National Harbor. The meeting’s organizers’ and contract-seekers’ demands for “a new deal” was supported by several Prince George’s County elected officials.
Over the next 10 years, National Harbor’s development will generate multi-billions of dollars in contracting opportunities.
“How this major economic generator affects African Americans in the county, what’s happening behind-the-scenes that impacts us, and who’s on the ground floor building and buying National Harbor’s hotels, shops and restaurants is what we need,” businessman Doc Hayes told the Minority Business and Community Forum.
Hayes and several other speakers focused on the social and business responsibility of African Americans that have been involved at high levels with the project.
The forum’s speakers included State Senators David Harrington (47th District) and C. Anthony Muse (26th District). Each contended that the project’s liaison to local and minority businesses had been “ineffective.” They, and other speakers, stressed that the county’s “minority businesses have not been treated fairly” and were dismissive of a TAC Companies report to the County Council that “National Harbor developers have been hitting and sometimes exceeding marks set for local and minority business participation.”
TAC’s report said local and minority business participation in National Harbor was 36.1 percent.
TAC is a minority-owned consulting company hired to help handle the procurement process at National Harbor and the Gaylord Resort and Convention Center. Forum speakers pointed out that of the 361 contracts issued to build National Harbor, just 12 went to minority-owned businesses in Prince George’s County.
Mathis said “less than four percent of the contracts went to county-based minority firms” and that “the goal was met by turning to minority firms outside the county or White-owned businesses in the county.”
County Councilmember Ingrid Turner (D-Bowie) commented that “the numbers reported were dismal given the scale of National Harbor and its location.”
National Harbor developers had pledged to give 30 percent of the project’s work to local or minority-owned businesses. The contract deal was critical to the county agreeing to designate National Harbor a special tax district and issue $160 million in bonds to pay for roads, sewers and other infrastructure.
“The project has been meeting its commitments. We have been trying to increase local minority participation,” said Ron Adolph, TAC Companies’ president and CEO. He added that the problem is there are not many companies that have the size, bulk and experience to do this kind of development project.
“Most minority business applicants were often outmatched and outbid by larger firms,” Adolph said.
Adolph said National Harbor has funded educational and training programs with county agencies to help local businesses increase their qualifications.
Mathis believes that National Harbor’s developers want to live up to their pledges, but TAC is the problem.
“We are not asking National Harbor developers for more money, we are just asking for fair and equitable dialogue,” Mathis said. He accuses TAC of being “gatekeepers” and wants direct access.
“We want the developers to know who we are, what we can do, and more effective practices than we’re getting.”
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