Convention Center Improvements in Perspective

The Ocean City Convention Center project approved by the Mayor and Council this week sounds ambitious, but it is a relatively moderate step forward.

Ocean City officials had already decided earlier this year that a major 60,000-square-foot expansion of the Convention Center, including construction of a parking garage, is not feasible under present economic conditions. The action approved this week calls for significant improvements using the existing building footprint, but is not the major expansion that some people believe is needed to attract more and bigger conventions.

The new 20,000 square-foot ballroom will be added to the bay side of the building by enlarging the existing bayfront deck. The new ballroom, which would offer breathtaking views of the bay, is projected to increase attendee days at the Convention Center by 14 percent to 19 percent over the historical three-year average, according the Crossroads Consulting.

The west side of the existing ballroom will be converted to create the new 1,200-seat auditorium, which many believe is a much-needed venue for shows and entertainment. The last renovation of the Convention Center was in the mid-1990s. The current improvements to the rear and interior of the building would not preclude major expansion and a parking deck in the future.

The costs are estimated at $8.2 million for the bayfront ballroom, $1.6 million for the auditorium, and $600,000 to improve the heating system, for a total cost of $10.4 million.

Ocean City would fund the improvements in partnership with the Maryland Stadium Authority. Ocean City's share would be $5.7 million, financed with bonds to be paid off over a 10-year period using revenues from the food tax, which is to be cut from 1 percent to .5 percent. Officials noted that this is an opportune time for bond financing because interest rates are low.

The Maryland Stadium Authority would pay $4.1 million, pending approval of the state Board of Public Works. The other $600,000, to improve efficiency of the heating system, would come from a federal energy grant or an economic stimulus grant.