Council OKs Convention Center Project as Economic Stimulus

BREAKING NEWS TUESDAY -- The Mayor and Council decided to go forward with improvements that will increase the appeal of the Ocean City Convention Center for existing conventions and trade shows, bring in new and different attractions, and support the viability of shoulder season and year-round businesses in the resort.

The Council voted to expand the Convention Center's existing bayfront deck and enclose it to create a new, high-end, 20,000-square-foot ballroom for large trade shows and conventions; and to convert existing space in the Convention Center to make a new 1,200-seat auditorium for shows and entertainment.

Economy at Center of Debate

The council action was not quick and easy, but in the end it was decisive. The council was hesitant to go forward with improvements during the present recession.The council requested clarification on costs of improvements several weeks ago, and City Engineer Terry McGean provided three detailed alternatives on Tuesday.

Councilman Jim Hall moved to postpone the decision for a year to give the economy time to improve. That motion sparked a spirited, but mostly one-sided discussion. Some of Ocean City's most prominent business owners turned the economic argument around. Business leaders and council members said the tough economic times make the Convention Center improvements an urgent priority. "I think this is our economic stimulus," Councilman Doug Cymek said.

"Option C (delay) is the psychology of being negative," said Councilwoman Mary Knight, who made the motion to go forward. "Option A (the ballroom and auditorium option) is the psychology of being positive."

In the end, the 5-2 vote to OK Convention Center improvements was framed as a vote of confidence in Ocean City's future. And it came with a surprise feature, a tax cut. The decision cuts the town's food tax in half, from 1 percent to one-half percent.

Mayor and Business Leaders Back Project

The Council's action was strongly endorsed by Mayor Rick Meehan, with enthusiastic support from business leaders and the Maryland State Firemen's Association, which hosts the resort's largest annual convention. The city engineer also recommended the improvement option.

"We are reinventing ourselves and we are trying to move forward," Mayor Meehan said. "I think Ocean City needs to be on the cutting edge."

Voting to OK the project were Council Members Mary Knight, Doug Cymek, Lloyd Martin, Council President Joseph Mitrecic, and Jim Hall, who withdrew his motion for delay. Jim Hall said the ability of the town to pay for the project and cut the food tax was the decisive factor for him.

Voting against were Council Members Joseph Hall and Margaret Pillas. Joseph Hall was the only voice in strong opposition during the discussion.

OC in Partnership with Maryland

The Convention Center improvements are also endorsed by the Maryland Stadium Authority, with a promise of $4.1 million in state funding for the project. The state money requires approval from the Board of Public Works. Total cost of the new ballroom and auditorium is estimated at $10.4 million, with Ocean City's $5.7 million share to be funded by the reduced food tax.

The positive economic impact of the improvements on Ocean City is projected at $23.6 million or more annually, according to Crossroads Consulting Services. The project will take 20 to 24 months to design and construct.