OCEAN CITY – A recent beach stand auction resulted in several successful bidders and additional revenue for the town.
On Tuesday, the Mayor and Council voted to award contracts for mid-beach equipment stand parcels to seven successful bidders.
City Clerk Diana Chavis said that even though two parcels received no bids, the town reported a 3.8% revenue increase from the prior three-year contracts.
“I recommend that we award the parcels to the successful bidders, which are Pat McLaughlin and Adrian Nemet, Will Edmunds, Todd Burbage, Holly and Kyle Batz – they are new to the business – and Robert Malzone, who has some past experience with the business,” she said.
The Town of Ocean City currently franchises 70 beach equipment parcels spanning the entire Ocean City beach. Those 70 parcels are divided into three sections – south end, mid beach and north end.
Each year, one of the three sections is actioned off, with the highest qualified bidder receiving a three-year contract to rent umbrellas, chairs and cabanas on the beach. The town’s code also provides one option for first-term contract renewals at an annual fee 10% greater than the initial term.
This year, operators of eight stands in the mid-beach area exercised their option to renew their first-term contracts. The council this week voted to award the remaining parcels to the successful bidders.
“We held the mid-beach parcel auction on December 6,” Chavis said. “We had six participants in that auction. There are 18 parcels within that section. Ten were auctioned and eight first-term contracts were renewed for a second three-year term at 10% greater.”
Chavis noted, however, that four beach stand parcels received no bids, and the town proceeded with a sealed bid.
“We did receive two bids for two of the four …,” she said.
Chavis told officials she was recommending the council award the mid-beach parcels to the successful bidders. She noted the December auction resulted in revenues of more than $241,000 for all mid-beach parcels. To date, the beach stand rental franchise generates revenues of $1,474,357.
“All the successful bidders paid the deposit and submitted the documents that were required, and their credit report,” she said. “So they are all in good standing.”
Council Secretary Tony DeLuca made a motion that was seconded by Councilman Frank Knight to award the mid-beach parcels to the seven successful bidders.
The motion passed in a 5-0 vote, with Councilman Will Savage and Councilwoman Carol Proctor absent.
