OCEAN CITY, Md. -- On Monday, for the first time in nearly a year, Ocean City's Sports Complex Task Force convened for a project update. Officials learned they are inching closer to settling on a location and figuring out how they'll pay to keep the facility up and running if and when it gets built.
As for the location, three sites are being analyzed.
Option one is a location many people are already familiar with: an open field next to Stephen Decatur High School.
According to the Maryland Stadium Authority, the second option is a bit west of the Decatur site, somewhere off Route 50, and the third and final is near the intersection of Route 113 and Race Track Road.
Gary McGuigan, Executive Vice President for the MSA, told the task force that the state agency had hired an architectural firm to assess each location.
"It will begin work early next year and the work will probably take until the end of next year, forthemto look at up to three sites to do an evaluation on how the sites look for this potential sports complex," said McGuigan.
While the location is sorted out, officials may have to watch the state of Maryland. The plan is for the state to pay for 80% of the construction costs for this proposed complex.
However, the state's budget is at a point where Governor Wes Moore is considering cutting $2 billion in spending next year.
Ocean City Councilmember John Gehrig hopes Maryland lawmakers keep an open mind while reviewing the sports complex project.
"Yes, you can cut your way out of it, but the other option is to look at investment ideas into how to make some more money too," said Gehrig. "So I feel very confident that this will make the state money."
A report from the proposed complex operator, Sports Facilities Companies, backs up Gehrig's belief.
"The market offers an incredible opportunity to drive significant amounts of sports tourism,people into the community," said Jim Arnold, a partner of Sports Facilities Companies."Then ultimately, from a long-term standpoint we see a great opportunity to break even in terms of operations too, which isn't often seen in this industry."
A financial analysis Arnold shared at Monday's meeting highlighted yearly operational costs and compared projected revenues.
SFC predicts the complex will be able to host events ranging from basketball and volleyball tournaments to birthday parties and youth programs. With all of that in mind, the yearly revenue projections break down as follows:
Revenue Projects(According to SFC)
- Year One: $4,154,834
- Year Two: $4,465,064
- Year Three: $5,524,163
- Year Four: $6,095,465
- Year Five: $6,608,828
However, keeping the lights on in the proposed facility will be expensive, and the operational costs will offset a significant portion of the revenue this facility could generate.
Operational Costs(According to SFC)
- Year One: $2,782,070
- Year Two: $2,827,366
- Year Three: $3,061,240
- Year Four: $3,262,666
- Year Five: $3,383,622
The town has ideas on how to fund the operations of this facility. One idea is to increase Worcester County's room tax.
Lawmakers in Annapolis recently passed legislation enabling the county to increase its room tax from 5% to 6%. This move would require a unanimous vote from Worcester County Commissioners.
Another idea discussed on Monday was the creation of a business investment district.
"We'll have to go to the state legislature and get them to approve our ability to have a business investment district," said Gehrig. "And then we can create funding mechanisms that don't involve the room tax necessarily and local businesses will contribute to that project.
The mayor and city council will discuss a potential business investment district at an upcoming meeting. That date is yet to be determined.
