Sale of Wildwood Parking Lot Means Increased Revenue

WILDWOOD — No matter how you look at it, the potential sale of a parking lot now generating $35,000 in annual revenue as a rental property will mean one thing – increased cash flow. In order to increase that flow, the City of Wildwood has placed a 2.2 acre parcel of land, currently used as a parking lot, up for bid. The property, located at 202 E. Schellenger Avenue, has an assessed value of over $3 million.
During their Aug. 14 meeting, City Commissioners voted to approve a resolution that will place the property up for sale with a minimum bid of $750,000.
The lot is currently used as a city parking lot with meters, as well as spaces being leased to six local businesses. Each business pays the City an annual fee of $150 per space leased.
According to Commissioner Pete Byron, who oversees the City’s departments of Revenue and Finance, the property has generated approximately $35,000 annually in revenue. That number includes $34,000 through leasing spaces, in addition to $1,000 a year in meter fees. By owning and leasing the property, the city is required to maintain it.
If sold, in addition to revenue generated by the sale, based on its current assessment the City will collect $60,000 a year in taxes.
“It’s not worth it for the City to continue to maintain it and to generate such a small amount on a property that has a current assessment of $3 million, when just on taxes alone we could be collecting $60,000,” said Byron.
By putting the property out to bid, the City continues to look at its bottom line, said City Administrator Christopher Fox. “We want to get the best possible revenue this property can generate.”
The property is not being sold to offset any budget shortfalls, noted Byron. “There is no shortfall for 2013. We’re on solid ground. There was no anticipated revenue used in the 2013 budget.”
Zoned tourism and entertainment, the property allows multiple uses. “Someone could put up a parking lot, hotel or restaurant,” said Fox.
Byron added City officials remain committed to the revitalization of Wildwood’s downtown. “When Wildwood was at its best, there was a balance of Boardwalk and downtown. One complements the other. We continue to work toward that balance.”
By putting the property out to bid, City officials hope to give the downtown area a development shot in the arm, while also giving the city an infusion of cash on an annual basis. “The city is continually looking for ways to generate new sources of income. We feel that by putting this property out to bid, we want to see what opportunities this lot may present with moving forward with some sort of development and also as getting it on the tax record,” said Commissioner Byron.