Resort Council seeks middle ground on fees

By Mallory Panuska Managing Editor

(Aug. 18, 2023) Ocean City Council members want to find a happy medium between fairly charging promoters to host special events on resort property, and getting the best bang for their buck.

Council members got their first look Tuesday at a proposal to overhaul the city’s special event fee structure to cover equipment, manpower and other costs more adequately, while remaining competitive with surrounding venues.

And while more conversations are pending, several of the council members made it clear that they were not happy with some aspects of the proposal, but support making equitable changes.

Special Events Director Frank Miller presented the proposed numbers, which would noticeably raise application fees for all events. The proposal would also create a tiered system that aims to charge fees based on size, crowd, profits and other details.

Currently, the city’s special event fee structure, which Miller said has not been adjusted since about 2014, charges flat amounts for property rental, manpower and equipment regardless of the size or type of event.

“The fees have pretty much remained the same for almost 10 years,” Miller said.

Over time, more and larger events have been added to the calendar. And compared to other similar destinations, such as Virginia Beach, the city’s flat fees may be creating missed revenue opportunities, according to a staff evaluation.

Members of the Tourism Commission balked at a first draft of the changes when they were first presented in March, forcing staff to make adjustments. The original proposal would have bumped up costs for some smaller events by more than 100 percent, which members of the commission found unacceptable.

However, with a flat $570 application fee and other space use and review charges depending on various details, some promoters would still be charged much more than they currently pay with the latest proposed changes.

Councilman John Gehrig, who has voiced concerns about aspects of the plan during Tourism Commission meetings, was the first, and loudest, to speak out.

He began by asking if those who pushed for the new structure were happy with some event costs going up by thousands of dollars.

“What is the problem that we’re trying to solve?” Gehrig asked as he pointed out that public events, especially larger ones, bring in visitors and generate revenue throughout the