Baltimore City misses more than $127,000 in revenue after failing to sign lease agreements

BALTIMORE (WBFF) - A new report by the Office of the Inspector general revealed that Baltimore City missed out on $127,890 after failing to sign lease agreements with two nonprofits using space in the former Samuel F.B. Morse Elementary/Middle School building.

In a response by the city, the Director of the Department of General Services Chichi Nyagah-Nash said that the Comptrollers office and the Law Department are responsible for creating lease agreements.

The investigation was started after the OIG received a complaint about the eviction of one of two nonprofit organizations operating at the school. The OIG report says that the Right of Entry agreements with the two nonprofits expired on June 30, 2019.

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The city could have received $85, 260 in annual revenue had the nonprofits signed a lease agreement, according to the report. In the 18 months between July 1, 2019 and the end of 2020, the city of Baltimore could have received $127,890 in revenue.

Meanwhile, the city of Baltimore had to pay all of the expenses of maintaining the building without any kind of lease agreement in place. During those 18 months, the city spent $745, 979 maintaining the former school.

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According to the report:

The OIG learned that DGS and CORE raised concerns about the lack of valid ROEs or leases between the City and the nonprofits, but the former mayoral administration nonetheless allowed the entities to use the Morse building free of charge and without paying for any building expenses.