Will Convention Hall Still Receive CRDA Money?

CAPE MAY – Mayor Edward J. Mahaney Jr. said he feels confident the city will receive a $1.5 million grant from the Casino Reinvestment Development Authority (CRDA) towards construction costs of the new Convention Hall.
At a Tue., Nov. 1 City Council meeting, Jerry Gaffney, a former Cape May mayor and councilman, asked Mahaney if he was certain the city would still receive the grant. Gaffney noted CRDA had a new executive director who was receiving a higher salary than his predecessor.
City Manager Bruce MacLeod said CRDA would provide $1 for every $7 the city spends building the new Convention Hall. Earlier, when the project was forecast to cost $21 million, CRDA had promised to provide up to $3 million, he said.
“What is this status of that money, have you seen it, is it in the bank?” asked Gaffney.
MacLeod said the money was not in the bank because the project was still ongoing.
“We remain in contact with CRDA , we provide certain information to them based on contracts awarded and yes, we will see the money, we’re still in the pipeline,” he said.
MacLeod said the city would receive a CRDA grant of $1.5 million if all expenses are accepted upon review. He said the $1.5 million is considered part of the financing of the $10.5 million project.
CRDA’s original promise of funding dates back four years.
The mayor said he shared Gaffney’s concern but Cape May has a contract with CRDA, not an award.
“An award they can take back, a contract is a different type of document, so the money for us cannot be touched,” said Mahaney.
He said the city was putting together bills from the project since the CRDA grant was in the form of reimbursements.
Of the $7.5 million Convention Hall construction project, about $2 million has been billed by the contractors so far, said Mahaney. Payments are only made on work that has been completed, he said.
Cape May’s Convention Hall may be the last project CRDA provides as a grant outside of Atlantic City, said Mahaney.
City Solicitor Tony Monzo said he was preparing leases for the two retail spaces available in the new Convention Hall. He said council would approve a minimum bid for the stores and after advertising for bids, an award could be made in early December.
Mahaney said that would allow the tenants to work with the city in early 2012 to assure the stores either open with or just before Convention Hall opens Memorial Day weekend.
MacLeod reported the city was rejecting all bids for a barrier fence around the roller skating rink inside the new Convention Hall after the bids came in significantly higher than budgeted. Mahaney said the city discovered a bidder did not read the bid specifications of the barrier fence and the bid reflected more work than was necessary.
Bid specifications will be reissued in two weeks with an award for the fence by the end of the year, he said.
MacLeod said the city will put out a request for proposals for Convention Hall’s rooftop solar panels and for bids for audio-visual, stage lighting and security equipment.
Council awarded a $27,643 contract for food services equipment for the new hall’s catering kitchen to Stein’s Food Service Equipment of Pleasantville.