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The Dispatch/Maryland Coast Dispatch
November 8, 2013
Petitioners, Council Continue Arts Center Debate
By JOANNE SHRINER
STAFF WRITER
OCEAN CITY – An intense battle, rooted in allegations of misconceptions, continues to play out in Ocean City over a petition opposing the bond to fund the new Performing Arts Center (PAC) addition at the Roland E. Powell Convention Center. Tony Christ, spokesperson for the Ocean City Taxpayers for Social Justice (OCTSJ), last month received approval for a petition singling out an $8.5 million bond to fund the new PAC. The PAC is part of a $12.7 bond ordinance. The remaining $4.23 million of the ordinance is dedicated to a roof for the Public Safety Building, a roof for the Service Center Building, a new beach patrol headquarters and an effluent disinfection system at the Wastewater Treatment Plant. All the projects will amortize over a period of 10 years. The PAC project is under contract between the Town of Ocean City and the Maryland Stadium Authority (MSA), which is paying $5.7 million of the auditorium’s costs. The two-story, 1,200-seat auditorium is currently under construction under the auspices of contractor Whiting Turner. The town is going to the bond market by the end of the year. In the meantime, Ocean City’s portion of
the PAC is being paid for out of fund balance that will be reimbursed by the bond, which will ultimately be paid off by the food and beverage tax. The local sales tax of .5 percent on food and beverage purchases in Ocean City is imposed for the purpose of paying the principal and interest on bonds issued to finance the construction, reconstruction, repair, renovation and equipment of the convention center. By charter, a petition for referendum has 40 days to circulate and must obtain at least 40 percent of the number of voters, who voted in the last election or 1,226 signatures in this case. The petition’s deadline is Nov. 20. If the required signatures are verified, the bond ordinance pertaining to the PAC can be placed on the next ballot. For the past couple of weeks, Christ has been up against city officials and PAC supporters as they have been out to clarify what they believe is misinformation being spread by Christ and petitioners. Last Thursday, Christ had submitted an email to City Solicitor Guy Ayres that he was considering announcing the retraction of the petition this week. However, Christ was not in attendance at Monday’s meeting. Despite Christ’s absence, OCTSJ supporters Herb Pawlukewicz and Ellie Diegelmann were present
to further interrogate the Mayor and City Council over the PAC and its funding. Pawlukewicz questioned the Mayor and City Council over who authorized the PAC construction to begin prior to the bond sale. City Engineer Terry McGean explained the floor-to-ceiling demising wall that separates the relatively new bay-front ballroom on the second floor from the construction work in the performing arts center was the first step in the project because it will prevent upcoming events at the convention center from being disrupted. On April 2, following several meetings with MSA, Whiting Turner and convention center staff decided on the window from Oct. 20 to Nov. 12 to begin construction. “It is always our number one goal when we work on the convention center not to disrupt or cancel any existing events, so very early on we had to establish a three-week window within the building where there were no events in the ballroom so that we could construct that wall,” McGean said. “We had to develop this schedule ahead of time for the contactor so that they could have their staff and subcontractors ready to go and for the sale staff knows not to put any new events into that room.” Diegelmann said it is not the PAC petitioners are against. They are a-
gainst the portion of the bond ordinance that states, “The City shall levy and collect ad valorem taxes upon all taxable property within the City ... to pay the principle of and interest on the Convention Center portion of the Bonds in any fiscal year." She said, “So, if it is not costing the taxpayers one red dime let’s just eliminate clauses like that and there will not be any controversy or divisiveness. You can build the center all you want, just don’t make us pay for it.” Mayor Rick Meehan explained in order for Ocean City to go to the bond market seeking a low-interest rate the language to pledge the full faith and credit of the Town of Ocean City should be included. “If, in fact, it was worded differently and became a revenue bond, and approved as a revenue bond the interest rate would be higher,” he said. “Since the money [food and beverage tax] is there and the money has proven it will be there, why would we pay a higher interest rate?” Next, Diegelmann brought up Christ’s alternative reasoning behind the petition that the PAC is causing the convention center to lose space and will no longer be able to hold its historically large events, such as the State of Maryland Fireman’s Association memorial service and the cheerSEE PAGE 20
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