OCEAN CITY, Md. -- On Monday night, Ocean City leaders will be introduced to the idea of a business investment district. It's a pre-determined area with increased taxes that could help the town pay for its proposed multi-million dollar project.
"It allows us to actually tax, a form of tax, to those particular businesses to support or dedicate those fundings to a sports complex," said Director of Tourism Tom Perlozzo.
Perlozzo says the tax would be similar to room tax, meaning the extra cost would fall on the customer, not the business. The difference is instead of that tax only coming from hotels or rentals, restaurants and similar companies would be included.
If town officials decide to move forward with a business investment district, they would not have to scramble to find a gigantic plot of land. The complex is expected to be built outside corporate limits, but the district would be established in the townOcean City.
"It doesn't have anything to do with the project itself, it's just another potential tool to fund it," said City Manager Terry McGean.
McGean said at the moment, officials don't expect a business investment district to be the main source of income.Still, it could be a supplemental form of funding if needed.
"It's not a necessity at all," said McGean. "It's another potential method for funding either in place of, or potentially in addition to room tax."
This idea requires approval from the mayor and council and, likely, from the Maryland Legislature. Perlozzo said the plan would be to model Ocean City's business district after the Inner Harbor in Baltimore because the state is familiar with and has already approved this area.
Monday night's meeting will allow town officials to decide whether to entertain this concept. If they do, McGean said a more official presentation is tentatively scheduled for January 14th, 2025.
