OCEAN PINES – Plans for the Ocean Pines Association’s yacht club and beach club were met with praise from homeowners at a town hall meeting this week, yet questions lingered on other association operations and activities.
Association members filled the room in a town hall meeting hosted by the Ocean Pines Association (OPA) Board of Directors Thursday to hear an overview of current and future operations and the beach and yacht clubs and to voice questions and concerns regarding various issues within the community.
First on the agenda was a presentation from Matt Ortt Companies, a restaurant development and management company set to take over operations at the yacht club and beach club. In recent weeks, the association approved a contract with the company in an effort to address mounting losses at the facilities.
Matt Ortt and Ralph DeAngelus, founders and managing partners of Matt Ortt Companies, assured the community they were committed to improving food and beverage operations at the beach and yacht clubs.
“We are invested in this community, we are invested in this project and we will succeed,” Ortt said.
DeAngelus explained the company is taking measures to sell off excess inventory, create quality menu items and improve upon the entertainment and atmosphere currently offered at both the beach and yacht clubs.
At the yacht club, DeAngelus said the company has already upgraded tables, chairs, lighting and other features at the facility. In addition, the company has plans to incorporate live entertainment on Friday and Saturday nights and offer a delivery service during the off-season.
At the beach club, DeAngelus said necessary upgrades, including a new sprinkler system, bar top and hot water heater and deck repairs, have been completed. He said the company has plans to convert the beach club back to a “grab-and-go” establishment and to offer entertainment, such as a DJ, on Saturday afternoons.
He said both facilities will reintroduce happy hours and will be open seven days a week from Memorial Day to Labor Day. Currently, the yacht club is slated to open to the public on May 17, while the beach club is expected to open May 25.
Despite the company’s plans for both facilities, DeAngelus informed the audience it would take some time to improve wedding and banquet bookings. While the autumn months are expected to bring in more clients, DeAngeles said the association currently has one banquet scheduled at the beach club and two weddings scheduled at the yacht club this summer.
“It’s going to take eight months to get banquets and weddings back to where they should be,” he said, adding that he was asking for the community’s support while they turn operations around. “It’s not going to be in a day, so I am asking for patience.”
While community members positively received the group’s plans, one resident questioned if the company would deliver on its promises.
“How many of your promises are written in your contract?” she asked.
DeAngelus assured the community his company was invested in both the beach and yacht clubs. In addition to a $100,000 fee, he said Matt Ortt Companies stands to make bonuses for operating within budget and generating profits at the facilities.
“Our future relies on the promises we make here tonight coming to fruition,” he said.
Following the presentation, community members were given the opportunity to ask questions and hear from the board of directors regarding various Ocean Pines issues.
Resident and former acting general manager Brett Hill, for example, asked why the board agreed to raise assessments. He noted the association had more than $1 million in reserves and more than $2.5 million in bulkhead maintenance reserves.
“How did the board justify raising their assessments by $30 next year?” he said.
Director Ted Moroney pointed out that money in reserves had decreased from the year prior. He said unbudgeted expenses, including capital costs, were taken out of reserves.
“Last year at this time it was $2.5 million, and today it’s a million,” he said. “Somewhere in that time the money has gone. There’s a lot more to it than simply looking at a single line item.”
Resident Marty Clarke asked why the association’s amenities were made available to the public.
“Our amenities are paid for by the association members,” he said. “We spent half a million dollars on a new boat ramp and everybody in the county thinks it’s beautiful. They don’t pay for it, we do. My question is why did this happen?”
Director Slobodan Trendic replied that the association made amenities available to the public to meet certain requirements for its tax-exempt status.
“Our future relies on the promises we make here tonight coming to fruition,” said Ralph DeAngelus
“In order to get a tax-exempt status for Ocean Pines, 501c4, we have to meet certain requirements imposed by the IRS, including that our community assets have to be accessible to the public,” he said.
Trendic, however, argued that the association could consider charging for the use of certain amenities.
“IRS tells us that our common assets have to be accessible to the public, but they don’t mandate that they have to be free,” he said.
Resident Esther Diller, chair of Stop Taxing Ocean Pines, asked why the board voted against Director Tom Herrick’s motion for a Request for Proposal (RFP) to outsource the association’s management and software in its last meeting.
Board President Doug Parks argued he was in favor of seeking out management problems before asking for outside help, but Herrick said he was still in favor of sending out the RFP. He said in recent years the association has dealt with mismanagement, criminal investigations and resignations.
“Employees are watching employees and it’s not working,” he said. “I think we need to bring in someone professional to look at the overall operation.”
Ultimately, the conversation came full circle when one resident questioned why the board entered into a three-year contract with the former food and beverage manager. He said the manager’s release came at a cost of more than $100,000 for the association.
“I want to know why that was approved by the board and why you would enter into a three-year contract with a food and beverage manager,” he said.
Trendic said the board was not aware of, nor had they approved, the contract. He said the contract was signed by the former acting general manager and that some of the terms stated in the contract went against the association’s employee handbook.
“It’s a lesson learned and it’s a costly lesson,” he said.
