Dedicated funding for future Boardwalk reconstruction efforts is one of the key aspects of the Wicomico Street Pier franchise extension.
In talking individually about the 25-year extension of the pier franchise agreement, which will come before the council next week, both Mayor Rick Meehan and franchise holder Charles “Buddy” Jenkins were proud the deal established a funding source for the maintenance of Ocean City’s wooden Boardwalk.
Once the agreement is approved, the city is expected to receive an upfront $1 million early next year from Jenkins. Beginning in March 2020, until the new agreement takes effect on 2029, Jenkins will pay the city $100,000 every spring. Once the new agreement takes effect in 2029, the franchise fee climbs to $250,000 and will compound annually at 3%.
Meehan said this week all dollars generated by the pier franchise extension will be dedicated to preserving the wooden surface of the Boardwalk, reducing the town’s reliance on financing the projects. It has been reported a complete redecking of the Boardwalk would cost approximately $1.2 million. The hope is for the project to take place next fall.
Jenkins called the agreement a “win-win-win” this week for all stakeholders. We agree it’s a wise transaction for the city, the tourism industry and local property owners. The extension was needed for the pier franchise holder to ensure improvements and investments could continue to be made without concern of the current deal lapsing. The costs to maintain the pier and rebuild after weather events is immense. It’s reasonable for Jenkins and his team to want a long-term assurance from the city when considerable funds are spent each year on repairs and upkeep.
For the city, it ensures the amusements will remain on the pier under the supervision and operation of a reputable company with a stake in this community. That’s a critical aspect for tourism.
For the taxpayers, who also benefit from amusements being on the pier as well as fishing opportunities, funding being directed to Boardwalk maintenance will help the city’s budget outlook for decades. Assuming the Boardwalk will need to be overhauled every eight years with fresh wood, the city will be looking at approximately $9 million in future expenses. The proceeds from the pier agreement over the years will help considerably with funding this work.
