Any project that is perceived to affect the Chesapeake Bay negatively is doomed. The project, like its predecessor some twenty-five years ago, never really had a chance. That area was part of my run when I ran at the Academy. It is a beautiful natural area.
Of course, it is possible to maintain a course without affecting the Bay. Pine Ridge GC north of Baltimore borders a reservoir. Conditions suffer a bit but it even hosted numerous LPGA events in the 70s.