Taxpayers Question Additional Bond for Cape May Convention Hall

CAPE MAY — While the Taxpayers Association of Cape May is in favor of the city building a convention hall as soon as possible, it is questioning the size of the proposed hall, its financing, the operating cost, projected revenue and the pace of the project.
In a press release, the Taxpayers Association noted the voters of Cape May approved $10.5 million in bonding for the hall.
“Since February, city officials have known that figure to be insufficient to build the hall as presented prior to the referendum. After two rounds of bidding, all far above what was promised in February by a panel of officials, consultants and experts, we learned in June from that same panel of officials, consultants and experts that it will take minimum of another $3 million and change just to get it started,” said the release.
It notes a study by Johnson Consultants projected a cost of a like facility to be between $16 million and $21 million.
“Council needs to be reminded that the voters signed a $10.5 million check– not a blank check,” said the association.
“Shortly after the passage of the referendum, city officials retained a consultant – Temple University in Philadelphia – to prepare a business plan for the use of the hall to include what events the hall would be used for, how much revenue we can expect, and how much the operating costs would be,” it continued.
“To date, no such plan has been presented, although some sketchy details were discussed in a cursory manner at this past “informational forum” conducted city officials in June. A consultant suggested that full use of the building for 85% of the year would generate about $550,000:
•$135,000 for community recreation and Leisure use
•$17,250 for all MAC and Jazz Fest Activities, fairs and exhibits
•$215,000 for private rentals
•$188,000 for commercial space leases,” noted the press release.
“As to the operating cost, another consultant offered only one item, an estimated annual energy cost that far exceeded all of the revenue reported above. City officials may well know the details of this “Business Plan’ but have been unwilling or unable to share them with the public to this point,” said the Taxpayers Association.
“We’re all annoyed that it’s taking so long, our business are feeling the loss of revenue, our residents are tired of wondering what’s taking so long and we’re all tired of the jokes and snide comments about the “Eyesore on the Shore,” said the association.
The Taxpayers Association statement notes: “There is even now at this late date, simply too much that too many do not know about the project. After all this time, we are still being asked to act in haste.”
Council is scheduled to hold a public hearing and vote on the $3.1 million additional bond ordinance Tue, July 20 at 7 p.m.
In other news, a committee has been assembled by a group of residents to gather signatures on a petition to require the city to hold a voter referendum on the $3.1 million bond ordinance in the November general election.