Washington Street Mall Management Company Organizes

CAPE MAY — The organizational meeting to establish the Washington Street Mall Management Company Inc. and elect an initial Board of Trustees as part of the city’s Business Improvement District (BID) was held March 13.
City Solicitor Tony Monzo said the Washington Street Mall Management Company Inc. is a private corporation established as a part of a city ordinance to manage the BID. He said a certificate of incorporation was filed with the state.
State law requires three persons be named as the initial board of the management company to file articles of incorporation and organize the corporation.
To streamline the application process, Monzo, Councilwoman Terri Swain and City Manager Bruce MacLeod are the organizational board members. Swain will continue as a member representing City Council as will MacLeod but he will not have a vote.
Monzo resigned at the end of the meeting since his role in the process was completed.
He said members of the BID, mall property owners, would select a Board of Trustees.
The initial board passed resolutions which outlined the powers and duties of the board and adopted by-laws. They also passed resolutions for the collection and disbursement of funds, establishing a bank account, the negotiation and execution of contracts and receiving a federal tax number.
Monzo said while the management company was tax exempt, it was not a charity and offered no tax benefit to contributors. Mall property owners will pay dues in the form of an assessment which are a business expense that would provide tax benefits to BID members.
The board elected MacLeod as recording secretary and Swain as chairperson. Ballots have been distributed to mall property owners to select board members with a deadline to be returned by March 20.
During public comment, innkeeper Jay Schatz questioned the logic of having board members who did not own a business or property on the mall. Monzo said mall merchants decided how the board should be composed and included members who were not mall property owners.
MacLeod said money raised by the BID was “not meant to replace the city’s existing efforts.” Money raised by the BID would be used for advertising and promotion of the mall or for items such as extra cleanings of public restrooms.
MacLeod said four standing committees were proposed: operations, marketing and promotion, finance and economic development and planning.
Monzo said the management company would undertake such activities as seasonal decorations and flowers on the mall and cleaning beyond general maintenance. The company will promote the development of the district.
The BID is expected to operate on a yearly budget estimated to be $50,000. Monzo said it would “break even,” as a “cash in, cash out type operation.”
MacLeod said he forecast revenue to the BID on a conservative basis, which could possibly reach $65,000 per year.