Strife Sinks National Harbor Bill

Showdown Engulfs Liquor Licenses

A bill to create new liquor licenses for the massive National Harbor development in Prince George's County died in the waning hours of Maryland's legislative session Monday night, torpedoed amid heated arguments about minority contracting at the project that escalated into a showdown between Gov. Martin O'Malley and a state senator.

As negotiations broke down, National Harbor representatives requested that the bill be killed, preferring to let the projects' hotels and restaurants take their chances on navigating the standard liquor licensing process in front of the county's liquor board.

The bill's failure came as its sponsor, Sen. C. Anthony Muse (D-Prince George's), pushed amendments opposed by the developer. One confrontation between Muse and Senate President Thomas V. Mike Miller Jr. (D-Calvert) became so animated that their raised voices briefly attracted the attention of a state trooper, an observer said.

Then, late Monday afternoon, O'Malley (D) summoned county senators and County Executive Jack B. Johnson (D) to a closed-door meeting at the State House to try reach a compromise. According to numerous participants, O'Malley told Muse that his demands of the developer might be perceived as a "shakedown."

According to Sen. Ulysses Currie (D-Prince George's), Muse shot back, "Are you calling me a crook?"

"It was pretty rare and pretty uncomfortable," said Sen. Paul G. Pinsky (D-Prince George's), who was also present.

The bill would have allowed for 40 liquor licenses at National Harbor's entertainment complex on the Potomac riverfront, 20 of them to be issued by the county's liquor board in the next year. The bill also would have allowed liquor licenses at nightclubs that do not serve food, otherwise banned in the county, and alcohol at outdoor festivals for 120 days each year.

It failed after Muse, who represents the southern Prince George's district that includes the project, tried to wrest new commitments on minority contracting from developer Milton V. Peterson. The development, which includes condominiums, office and retail space, hotels and restaurants, is under construction and is scheduled to open in a couple of months.

As negotiations foundered, Muse proposed amending his bill to cap at seven the number of liquor licenses issued at the 300-acre development. He said the 40 sought by National Harbor were unnecessary and unprecedented.

In a letter to Muse, Peterson wrote that construction is underway on 18 restaurants and groundwork has begun on six others, including Ruth's Chris Steak House, McCormick & Schmick's Seafood and Rosa Mexicano. The cap would mean the project could not attract more high-quality restaurants, the letter said.

A compromise worked out at the tense meeting Monday afternoon among O'Malley and senators would have capped licenses at 13. Soon after, National Harbor representatives requested that the bill be killed.

The alternative licensing process available to restaurants and hotels might mute the impact of the bill's failure on the $4 billion project. But the experience left county politicians bruised, as some expressed concern about Peterson's commitment to minority contracting while Johnson and others fretted that the events could tarnish the county's business reputation.