OCEAN CITY — Resort officials this week approved on first-reading an ordinance allowing the sale of $28 million in general obligation bonds to fund a handful of significant projects in town.
The Mayor and Council on Monday approved an ordinance allowing for the sale of $28 million in general obligation bonds. Among the major projects to be funded in part through the bond sale is phase 3 of the Roland E. Powell Convention Center, a major renovation and upgrade project of the town’s vast Public Works campus in midtown from 65th Street to 67th Street, and the development of a new south-end Public Works campus at 2nd Street, which will host the Boardwalk trams along with other uses.
In terms of the third phase of the convention center expansion, the total estimated cost of the project is $28 million, which will be split evenly between the town and the state through its agreement with the Maryland Stadium Authority (MSA). The MSA contribution is $14 million and the town’s contribution is $14 million, which will be funded through the proposed bond sale.
However, it’s important to note the town’s $14 million share will be paid for through a portion of the special food and beverage tax collected in the resort. The convention center expansion will add about 30,000 square feet in exhibit space on the north side of the facility that would tie into existing Exhibit Halls A and B.
The expanded space could be used alone for a single event, or opened up with the other adjacent exhibit halls to create a larger space. Also included in the proposed expansion are new restrooms on the west side of the existing convention center along with expanded meeting rooms and a business center.
An additional $11 million of the proposed $28 million bond sale approved on first reading on Monday will pay the town’s share of a vast $25 million upgrade and expansion of the town’s vast public works campus and transit facilities along the bayside at 65th Street. The town’s sole contribution to the project is $11 million, which would be funded through the bond sale. The additional $14 million will be funded by the federal government with pass-through funds from various state transportation agencies.
The town’s Public Works Department has been working with the Maryland Transit Administration for a decade on a plan to substantially upgrade and expand Ocean City’s public works campus along the bay roughly from 64th Street to 67th Street. The public works complex, which includes administrative offices, bus and transit equipment storage and fueling, solid waste, maintenance and a myriad of other services, was last upgraded over three decades ago in 1983 and the department has outgrown the aging facilities.
Another significant project expected to be funded through the $28 million bond sale approved on first reading on Monday is a new public works facility on property recently purchased by the town at 2nd Street and St. Louis Avenue. The town’s share of the project is roughly $3 million, which is included in the proposed bond sale.
The new facility will replace the town’s existing public works yard known as the Whiteside facility at South 1st Street. The new facility at 2nd Street will, among other things, serve as a staging and maintenance area for the Boardwalk trams. The Whiteside facility has reached the end of its useful life and will be replaced with the new Public Works facility at 2nd Street.
Each of the projects funded in part by the proposed $28 million bond sale approved on Monday were considered priorities on the town’s capital improvement project list.
