OCEAN CITY – Officials say the formation of a task force could address concerns relating to a proposed sports complex.
On Thursday, the Mayor and Council hosted the Maryland Stadium Authority (MSA) at the Roland E. Powell Convention Center to review a market and economic analysis update for a proposed sports complex next to Stephen Decatur High School.
Prepared by Crossroads Consulting, the study included updated market research, as well as the potential fiscal activity associated with an outdoor complex and indoor fieldhouse. But with concerns voiced about the proposed location, among other things, officials pitched the idea for a task force.
“I commit to working personally with Berlin and Worcester County to find a location that is beneficial to all of us and continue this conversation,” Councilman John Gehrig said. “Maybe we form a task force to keep this conversation going. We all have common challenges, but there’s common opportunities too. That’s what was discussed here.”
In 2019, the Town of Ocean City commissioned the MSA to conduct a market and economic analysis for a proposed sports complex in the Ocean City area. After the pandemic hit, however, MSA officials were tasked with revising its study – which relied heavily on pre-COVID assumptions – and producing a site-specific assessment of the Route 50 property in Berlin.
The updated study, presented to community members and the area’s elected officials this week, evaluated the 95-acre property off Route 50 and its ability to accommodate 10 outdoor fields and a 125,000-square-foot indoor fieldhouse. Officials estimate both amenities to cost more than $153 million.
“Generally, the site was considered adequate to excellent based on these different factors, which are the physical site, vehicle and pedestrian access and potential design issues,” said Susan Sieger, president and CEO of Crossroads Consulting. “The only areas it really ranked poor were really pedestrian access from surrounding districts.”
Sieger told attendees the report also took into account annual event activity. She said the proposed facility could host 54 to 64 tournaments, between 125 and 160 total event days and a total attendance of 169,330 to 200,610 people.
The indoor fieldhouse, she added, could host 34 to 40 events each year, with 196,000 to 228,000 attendee days, while the outdoor fields could host 20 to 24 events each year, with 227,000 to 273,000 attendee days.
“This is really just looking at tournament activity,” Sieger said. “This isn’t looking at any leagues or camps or clinics.”
Sieger also highlighted estimated annual gross economic impacts. The study projected between $63 million and $75 million in direct spending, between $1.8 million and $2.2 million in local tax revenues, and between 900 and 1,060 total jobs.
“It’s important to understand that this is full-time, part-time, this is one person can have multiple jobs,” she said. “And this is obviously not people working at the complex. This is jobs that are created because of the spending directly attributable to that complex.”
Sieger said the study’s findings were based on various assumptions, including that no other similar facility would be built or expanded in the region. The report also highlighted funding opportunities for constructing the sports complex.
“Potentially the funding could be between $111 million to $132 million from the state,” said MSA’s Gary McGuigan. “But there’s no guarantees.”
Following Thursday’s presentation, state and local elected officials were given an opportunity to comment on the updated study.
Sen. Mary Beth Carozza noted the United States Specialty Sports Association recently announced its intentions to return the Eastern Nationals tournament to the Eastern Shore for the next three years. She questioned how that might impact the report’s findings.
“I think that does nothing but help this concept,” Sieger replied.
For his part, Berlin Councilman Jack Orris warned his Ocean City counterparts that their taxpayers could incur significant debt by purchasing the Berlin property. He also questioned the report’s site evaluation.
“Is there a trigger point where it becomes a site that may need further evaluation?” he asked.
Sieger said there wasn’t, so long as the complex fits within the property and can be expanded in future years.
“This is a strong site because you are looking at the need for a lot of acres,” she replied. “To find that many acres with that access that’s 10 miles from the beach is a strong package.”
Ocean City Mayor Rick Meehan said the report found similar facilities operated at a deficit. He questioned if the report considered sponsorships, advertising or naming rights.
“Were those types of things taken into consideration as far as revenues to offset expenses?” he asked.
Sieger said sponsorships and advertisements generated a limited amount of revenue, but naming rights were not considered.
“That will definitely mitigate the operating deficit, if you were able to sell naming rights,” she said.
Ocean City Councilman John Gehrig, a longtime proponent of the sports complex concept, noted the proposed site was in a desirable location, near Ocean City’s beach, Boardwalk and hotels. He said the development of a sports complex would generate revenues that could be used to address issues such as labor and seasonal housing shortages.
“Sometimes I get looked at as the sports complex guy,” he said. “But really what it is is that I want an idea that helps makes us money. The sports complex seems like it’s a good idea for us.”
Gehrig noted, however, he was not opposed to seeking other properties.
“There’s a lot of controversy on that location,” he said. “And I want everybody to know, my colleagues in Berlin, I am wide open to discussing alternative locations. To me the location is not a dealbreaker.”
He also encouraged the formation of a local task force.
“I don’t know if a task force is a sports complex task force or an idea task force, where a sports complex is one of the ideas,” he said. “But this conversation needs to continue together, that we discuss our challenges.”
Ocean City Councilman Frank Knight questioned if the 95-acre site was large enough to accommodate a sports complex. MSA’s Al Tyler said it depended on plans for development and expansion.
“It’s all site specific and what you want …,” he said. “That would be a personal decision.”
Berlin Councilman Steve Green agreed with the economic impact a sports complex would have but questioned the proposed site.
“From the Town of Berlin’s perspective, that’s not the site,” he said. “I don’t really see any positives except for the high school would have some extra fields, which they do desperately need. I don’t even think you can get Route 50 access off of that, according to a contact at State Highway.”
Green noted, however, that he supported the concept of a multi-jurisdictional task force.
“The task force concept is something that I would love to see as an action item moving forward,” he said.
When asked about next steps, Meehan said Thursday’s presentation was for informational purposes. But he said the formation of a task force was worth a discussion.
“I think that’s the next thing we should discuss, what that next step is moving forward,” he said. “But I think we’ve certainly gotten a good idea what that could be today.”
