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Commissioners authorize disposition resolution for 1.49‑acre rail spur parcel; contract execution to be delayed pending improvements

June 04, 2026 | Allegany County, Maryland


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Commissioners authorize disposition resolution for 1.49‑acre rail spur parcel; contract execution to be delayed pending improvements
County staff told commissioners the board received both an authorizing resolution to dispose of county‑owned property to Penmar Recycling LLC and a proposed real‑estate contract for the sale of a 1.49‑acre sliver that includes a rail spur. Staff said the purchase price in the proposed contract is $50,000 and that the contract would include a three‑year right of reversion if Penmar does not complete required improvements to the rail spur.

Staff recommended the board take action on the authorizing resolution (item g) while tabling execution of the contract (item h) because Penmar has paused on finalizing the agreement and does not yet have a steady tenant to justify investment. Commissioners and staff discussed options including tabling both items or adopting the authorization now to avoid having to re‑advertise the disposition.

Commissioners asked for a time limit so the authorization would not remain open indefinitely. Staff said they would amend resolution 26‑13 to add a 180‑day sunset provision (effective through 12/01/2026), so that if Penmar Recycling LLC had not executed a sales contract under the material terms and the board had not approved it by that date all authorization to dispose of the property would cease.

The board also authorized staff to advertise and accept bids for site work for the Kingspan Rail project, a separate rail spur to serve a manufacturing facility. Staff said Kingspan has hired a plant manager and is training staff at its Stillwater, Oklahoma plant; construction delays may push the start of production several months later than initially planned, but Kingspan is still hiring.

Staff framed the dual approach — preserving the county’s advertised authorization while tabling contract execution and adding a time limit — as a way to keep the disposition option available without committing to immediate sale execution.

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