Council OKs bond issue for half of mixed-use facility

By Mallory Panuska Managing Editor

(Aug. 18, 2023) With a new design and higher price tag, plans for a police substation and employee housing facility in the Somerset Street parking lot are finally advancing.

Ocean City Council members this week voted 6-1, with Council President Matt James opposed, to approve half the estimated total $4.26 million cost for the three-story, mixed-use project through a bond reimbursement resolution.

City Manager Terry McGean presented details of the project, which has undergone changes since introduction roughly two years ago, at a work session Tuesday.

He said the city’s projected debt service will be about $70,000 a year if the costs come out as expected.

The Ocean City Development Corporation will cover the other half of the construction costs with revenue derived from the inlet parking lot fund.

The first version of the project called for a three-story building with police bicycle storage and public restrooms on the first floor, and housing for seasonal police officers and public safety aides on the second and third. Council members initially signed off on that version and gave OCDC members the greenlight to work with city staff to develop the design.

Last year, development corporation members submitted drawings for the building and agreed to pay for the design if the city would cover preconstruction costs. At the time, OCDC’s architect estimated the building would cost $2.2 million, and council members authorized funding for pre-construction services.

Corporation and city staff members began developing the design and hired a construction manager to take the reins. After several meetings, the decision was made to change the design to incorporate a new police substation into the building.

The latest plans call for a police substation with a public lobby, offices, interview rooms, bicycle storage and public restrooms on the first floor; a roll call room, report-writing areas and offices on the second floor; and employee housing on the third. McGean said the building will accommodate a total of 16 beds in four suites.

The relocation of the roll call room and other activities from the Worcester Street substation will also free up the existing building to become a