OCEAN CITY – The final reading of an ordinance authorizing a $625,000 grant to the Ocean City Development Corporation (OCDC) passed unanimously this week.
On Tuesday, the council voted to approve the second reading of an ordinance authorizing a $625,000 grant to OCDC to satisfy a bank note for the organization’s model block properties. Officials say the grant will come from Inlet parking lot revenues dedicated to OCDC.
Last month, OCDC Executive Director Zach Bankert and OCDC Board President Kevin Gibbs came before the Mayor and Council with a request to use $625,000 in Inlet parking lot revenues to pay off its existing bank note. Representatives told officials that eliminating the debt would put the organization in a better financial position to further develop the model block in the future.
“To date, we still carry a debt of about $625,000 associated with the model block property,” Bankert told the council. “The debt on that is an adjustable bank note, and that is soon to adjust with the interest rates where they are. We would like to use the Inlet parking funds to pay off that debt because we aren’t quite for sure what that new rate is going to be, other than high.”
Since 2003, the OCDC has received a portion of Inlet lot revenues as a reserve fund of sorts for projects in the downtown area.
Bankert told officials in April the organization’s largest project has been its model block project, located between Dorchester and Somerset streets.
Over the years, the organization has purchased and demolished properties in the model block with a goal of attracting a sizeable development. Currently, it sits as a popular parking lot.
But officials say they are seeking $625,000 to pay off debt associated with the project. City Manager Terry McGean reported the Inlet parking lot fund had nearly $1.2 million dedicated to OCDC.
Back on the agenda for a second reading this week, Council President Matt James asked City Solicitor Heather Stansbury if the town was following the correct process and providing the correct dollar amount.
“Yes, this is the correct process,” Stansbury replied. “In working with the city manager, as well as [Finance Director] Chuck Bireley, we have confirmed that this is the approximate amount. When we were given the exact payoff, it was slightly higher than that, by a couple of dollars. But this ordinance is to pay $625,000, and that payment will go directly from the town to the bank.”
With no further discussion, the council voted to approve the ordinance on second reading.
