Pr. George's Firms Get Tiny Piece of Harbor Pie

Local Minority Contracts Make Up Less Than 4%

Of the 361 contracts issued to build the massive National Harbor development, only 12 went to minority-owned businesses in Prince George's County, despite an agreement aimed at bringing more business to county firms.

Developer Milton V. Peterson pledged to give 30 percent of the work at his multibillion-dollar development along the Potomac River in Prince George's to local or minority-owned businesses. He met the goal by turning to minority firms outside the county or white-owned businesses in the county, according to a recent report to the County Council. But less than 4 percent went to minority-owned firms based in the county.

County Council members said the numbers were dismal given the scale of National Harbor and its location. The 300-acre development will include luxury hotels, upscale restaurants, condominiums, offices and retail space. Prince George's is the wealthiest black-majority jurisdiction in the nation.

"We always say 'We can't find people; people aren't available,' " council member Ingrid Turner (D-Bowie) said. "It's just that they haven't gotten the bids."

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 at the site. Council members debated whether a county oversight committee could impose fines on the developer.

Ron Adolph, a consultant hired by the Peterson Cos. to help meet its agreement with the county, said it has been frustrating trying to increase local minority participation.

"You think we're happy with the numbers?" Adolph said.

"The problem is there aren't many companies that have the size, bulk and experience to do this kind of mixed-use development project," he said. Those that applied were often outmatched and outbid by larger firms, he said.

Gaylord Hotels, which separately built the large hotel and convention center anchoring National Harbor, reported similar results: It met its minority participation goal of 15 percent but used minority contractors from Prince George's in only nine of the 122 contracts, according to the report.

Gaylord National Resort Hotel and Convention Center will open for its first convention Monday, and some of the shops and restaurants at the development will open within weeks. The first few condominiums will be ready in the fall.

Similar hiring issues arose in the construction of the new ballpark in Southeast Washington, during which contractors failed to meet the majority of hiring goals aimed at providing construction jobs to city residents. Under an agreement with the city, half the journeyman construction hours at the ballpark were to be performed by D.C. residents. Little more than a quarter of the hours were.

At National Harbor, $10 million of the $290 million in contracts issued has gone to minority firms based in Prince George's, including general contractors, masonry companies and businesses that work on sewer systems. According to the report, local minority business participation dropped from about 4 percent in November 2006 to 2.6 percent in May 2007, the most recent numbers available.