Unlock Funding for Ocean City's Future with a Business Investment District

How the Tax Works

Director of Tourism Tom Perlozzo explains that the tax in a business investment district would be similar to room tax. This means the extra cost would be shouldered by the customer rather than the business. The key difference is that restaurants and similar companies would also be included in addition to hotels and rentals. It's a strategic move to expand the tax base and ensure a more diverse source of revenue.

By implementing this tax, Ocean City aims to create a sustainable funding mechanism for its sports complex. It provides a dedicated source of funds that can be used specifically for the development and maintenance of this important facility.

Location and Implications

If town officials decide to move forward with a business investment district, they won't have to search for a large plot of land. The complex is expected to be built outside corporate limits, but the district will be established within Ocean City. This allows for seamless integration with the existing town infrastructure while still providing a dedicated area for business activities.

City Manager Terry McGean emphasizes that this is not a necessity but an additional potential form of funding. It offers flexibility in case other sources of income fall short. In case of need, it can serve as a supplemental source to support the town's projects and initiatives.

Approval Process and Future Steps

This idea requires the approval of the mayor and council, as well as the Maryland Legislature. Perlozzo believes that by modeling Ocean City's business district after the Inner Harbor in Baltimore, the state will be more familiar with and likely to approve the area. It's a strategic approach that builds on existing success stories.

Monday night's meeting will be a crucial decision-making point for town officials. If they decide to entertain this concept, a more official presentation is tentatively scheduled for January 14th, 2025. This gives them time to thoroughly assess the implications and make an informed decision that will shape the future of Ocean City.