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May 10, 2024

Ocean City: $146 million capital projects plan

Two-thirds proposed for 2023-24: police station, stadium, recreation

OCEAN CITY — Continuing its aggressive, decade-long approach to improving Ocean City’s infrastructure, Mayor Jay Gillian’s administration is proposing $146 million in capital improvements over the next five years, two-thirds of which would be completed in 2023 and 2024.

Among the big plans are replacing the aging Ocean City Police Department/Municipal Court where it is on Central Avenue between Eighth and Ninth streets, $32 million for flood mitigation projects and revamping Carey Stadium with a new entranceway from the Fifth Street parking lot.

Among the things that may not be happening is acquiring the former Crown Bank building at Eighth Street and Asbury Avenue. Installation of a big $2 million multiple-use scoreboard by the football field won’t be included.

Chief Financial Officer Frank Donato and Vince Bekier, director of Operations and Engineering, detailed the proposal during the Ocean City Council meeting Dec. 1. They went through a long list of projects and equipment purchases and explained how the city is financially healthy enough to take on millions in bonding while increasing the tax rate by less than a penny in each of the five years.

Gillian prefaced the presentation and commented throughout, saying the city is taking this type of approach for needed repairs and maintenance, and that in the 12 years he has been mayor the city has secured $39 million in grants, not including support for beach replenishment projects. He noted the plan is front-loaded, with $54.5 million in capital spending next year and $46.8 million in 2024.

Gillian said the experts on the city team are keeping spending and borrowing balanced and although no one knows what will happen in the future, the “responsible” approach will mean there aren’t spikes.

Donato said the city has a bonding capacity of $180 million and plans bond sales: $38 million in 2024, $50 million in 2026 and $95 million in 2028, which come into play as the city pays down the $160 million in bonds currently outstanding.

The city’s budgets will remain “smooth” over the next decade and the impact on the budget would be about $1 million a year. 

Taking an average of the next 10 years, the impact to the tax rate would be seventh-tenths of a penny each year, Donato said. That’s assuming the city does $180 million in bonds and receives no grants.

“This is aggressive but the ability to afford it is there,” Donato said.

“We’re not putting the city in any kind of danger,” Gillian said. “This isn’t bankrupting us. We’re fixing our infrastructure. We’re taking care of our community.”

The mayor and Donato emphasized that the capital plan is a proposal they hope council will approve in December so the city can plan for borrowing beginning in January, and that council will be voting on each of the capital items as they arise.

Public Safety Building, Crown Bank building

Calling it “the elephant in the room,” Donato said there has been more than a decade of debate over how to replace the aging and outdated police station, they have combed over every area of town, and that council decided they did not want to go with the most recent plan for a combined police/fire building between Asbury and West avenues at the site of the Ocean City Fire Department headquarters.

The city has decided it is best to spend $25.5 million to put the new police station where the old one is, spending $500,000 on design in 2023 and the rest for building the station in 2024. The challenge, Donato said, is where to temporary house police operations as the old building is demolished and new one built.

Gillian noted the city has been looking at the former Crown Bank building at the corner of Asbury Avenue and Eighth Street, which has parking lots across Central Avenue from the police station.

He said the city has been conducting engineering reports and is still considering whether to acquire it. Developer Eustace Mita has put in a $6.5 million bid on the property, which is in bankruptcy. 

Gillian said the city was planning to offer much less for the building, but since Mita made his offer “we have to think of other options” if buying the building doesn’t happen. He added that the downtown can’t lose the parking.

A hearing is planned Dec. 13 in U.S. Bankruptcy Court District of New Jersey over disposition of the building and Mita’s offer.

Shuffling around at Carey Stadium

The capital plan sets aside $2.1 million for bleachers and improvements to Carey Stadium, including $100,000 for a new scoreboard, and $2 million for a new entranceway from the ocean side of the stadium, a new building and covering for the shuffleboard courts and a playground in between the courts and entrance.

Earlier this fall the city talked to council about spending $2 million for a new hi-tech scoreboard at Carey Stadium that could have multiple uses, including big screens on both sides — facing the stadium and facing the parking lot.

Bekier said the playground would be in the dirt area now between the stadium entrance and shuffleboard courts, which would be redone and have bocce courts added.

Gillian said it would have taken eight to 10 years to have advertising and sponsorships pay for a hi-tech scoreboard to replace the current outdated and glitching one, but they couldn’t come up with the right information to make that $2 million project happen in a timely manner. Instead, the city proposes spending $100,000 for a regular scoreboard replacement.

“The current one is obsolete,” he said. “We didn’t feel the expensive one prudent right now.”

The new shuffleboard court building would also have bathrooms on the back side facing the stadium that could be used for spectators in the building rather than having them use the bathroom at the high school.

Pickleball, tennis courts, lots at 16th, 17th streets

Bekier and Donato said the capital plan proposes work on all of the racket facilities in Ocean City.

The plan is to completely redo the tennis courts at Fifth Street and put in some additional lighting — “not a lot,” Bekier said.

At 18th Street, the city would rehab the existing courts and bring on line an additional five or six pickleball courts.

This is a proposed plan in Ocean City’s five-year capital plan for “a complete facelift” of the recreation area between 34th and 35th streets and Central and West avenues. In this view, West Avenue is at the top and 35th Street at left. The rendering was included in the presentation given Thursday to Ocean City Council by Ocean City Chief Financial Officer Frank Donato and Vince Bekier, director of Operations and Engineering. The entire plan is available on the ocnj.us website.

Donato said the plan is to spend $4.7 million to completely redo what will become the 3400 Block West/Asbury Recreation Facility. The plan is to redo the basketball and tennis courts, put in a dunk court, add five pickle ball courts, a new office for the tennis courts, a sitting area for people, new bathrooms and storage — “basically give the whole block a facelift.”

Gillian noted the playground is at the end of its useful life and it would be moved to get it away from the busy West Avenue corner. The city will seek Open Space grants for the work.

At the former Chevrolet dealership lots between Simpson and Haven avenues north of the Ocean City Free Public Library, the city proposes spending $1 million in 2023, adding some additional parking for the library on the south end of the lots and making the north side open space similar to what the city did at Ninth Street and Bay Avenue. A defunct gas station is now an open grassy area.

There also would be curbs put in where the old driveway to the car dealership was to provide more parking for the residents there.

Seeking grants

Donato and Gillian said they aren’t figuring in grants the city could get to offset the spending, but the city’s consultant will be working with the city on multiple fronts and agencies for grants, with sources including the American Rescue Plan and stimulus funds.

By DAVID NAHAN/Sentinel staff

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