SNOW HILL – Financial losses associated with the elimination of the Worcester County Department of Liquor Control are expected to be significantly less than originally projected.
On Tuesday county staff told the Worcester County Commissioners they expected the liquidation of the Department of Liquor Control (DLC) to result in a net loss of $168,465. Though early estimates projected as much as a $2 million loss, officials said the efforts of the DLC Management Committee reduced it significantly.
“The citizens of this county really owe this committee a debt of gratitude,” Commissioner Ted Elder said.
During the past year, the county transferred the DLC’s large warehouse to the general fund and sold three of its four retail liquor stores. Officials anticipate selling the fourth store, located in Pocomoke, for $950,000.
“It is very important to note this total estimated net loss (of $168,465) is contingent on the sale of the Pocomoke store,” said Jessica Wilson, the county’s enterprise fund controller.
Finance Officer Phil Thompson said the committee, made up primarily of county staff, had predicted that the county’s exit strategy could cost as much as $2 million because it was unclear at the time whether existing leases would be taken over and whether inventory could be sold. Because the leases were taken over and the county’s inventory was liquidated through aggressive sales, losses are below the anticipated level.
“I can’t say enough about the committee,” Thompson said.
The commissioners echoed his praise.
“You have done a great job,” Commissioner Diana Purnell said. “We appreciate that. It makes our job a little bit easier.”
Commissioner Joe Mitrecic said the elimination of the liquor control department had been on his agenda since he was elected to represent Ocean City.
“I’m very happy with the way this turned out,” he said. “This is a far cry from what we were losing a year.”
While the commissioners expressed their satisfaction with the way the shutdown of the department went as a whole, a lengthy discussion failed to result in a firm plan for the former DLC warehouse. Kelly Shannahan, the county’s assistant chief administrative officer, said the DLC Management Committee recommended the warehouse be converted to county storage space. Estimates developed by county staff put the cost at renovating the facility for that purpose at $2.4 million.
“You’re looking at a 57-year-old building,” said Ed Tudor, the county’s director of development review and permitting. “It shows its age … You can categorize it as being in fair condition but it has issues.”
He said the warehouse, which has an estimated value of $808,000, did not have a sprinkler system and did not meet the requirements of the Americans with Disabilities Act. There are also drainage issues around the building.
“Our biggest concern is the condition of the rear wall,” Tudor said. “There are a number of structural cracks.”
Though the possibility of turning a portion of the warehouse into office space was considered, Tudor said the proposal was deemed too costly because of issues with the building’s HVAC system, restrooms, lighting and ventilation. He pointed out that there was the possibility that the county could get a variance to aid in the renovation process.
“I have a real problem with trying to get variances normal people can’t get,” Mitrecic said. “I have a distinct trouble with that.”
Mitrecic said he was interested in exploring central purchasing. He suggested selling the building and erecting a facility designed for central purchasing elsewhere.
“We could build in a less flood-prone area,” he said.
While water has not infiltrated the building, it has entered its parking lot during past storms. Commissioner Jim Bunting said an elevation certificate would help officials determine the best future for the property. He pointed out even if the building was below base flood elevation the floor could potentially be raised.
Commissioner Merrill Lockfaw brought up the issue of accessibility. He pointed out that during storms there were times people couldn’t get across the river that separated the facility from the rest of Snow Hill.
Elder expressed concern about the $2.4 million price tag associated with a renovation of the building.
“I thought we were going to put this up for sale … and now we’re talking about spending all this money,” he said.
He pointed out that regardless of the storage needs county staff might have outlined, they had been making do with existing space previously.
“We’ve been surviving for the last several years …,” Elder said. “We need to look at ways of saving money instead of ways of spending money.”
Lockfaw made a motion, which was approved unanimously, to have staff form a committee to discuss the concept of central purchasing with the Worcester County Board of Education, explore the costs of building a new facility for that purpose and determine the exact elevation of the existing building.
