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The Wrap: Blame the DEP, Short-term Rentals and Balance of Payments with Washington

Shown are Jersey barriers the DEP has allowed North Wildwood to place between the dune and the North Wildwood Beach Patrol headquarters at 15th Avenue. North Wildwood has not been waiting for authorization from the DEP to take other measures to protect its shoreline. 

By Herald Staff

Get ‘The Wrap,’ our take on the news of the week, in your inbox every Tuesday.Sign up athttps://bit.ly/3goVpVr. 

Oct. 17 – 23 

Blame the DEP

This month, some local officials have called the state Department of Environmental Protection (DEP) a “failed government agency” and “hopelessly incompetent.” Following the nor’easter that opened the month with several days of constant battering of the county shoreline, the mayor of North Wildwood said the DEP had failed in its mission to protect lives and property. He vowed that his city would take the actions necessary regarding its badly eroded beaches and dunes. If the DEP does not like what the city does, they can take legal action. 
In neighboring Stone Harbor, the DEP was characterized as “hopelessly incompetent” after the agency failed to see the urgent safety issues caused by the nor’easter. The DEP denied an emergency permit to allow the borough to open emergency access routes to the beaches Oct. 14. The next day, a water rescue could have been compromised by the damaged access routes but luckily did not end in tragedy. Two days after the water rescue, Oct. 17, the DEP reversed its decision and issued the permit. 
The DEP’s own damage evaluation report shows that all of Cape May County’s shore communities, from North Wildwood to Ocean City, suffered major erosion with high and potentially unstable cliffs where the dunes were impacted.  
In some towns, the damage from the storm was limited to specific areas of the beach. Sea Isle Citycharacterized most of its beaches as without serious damage, but also noted severe erosion in the center of town. 

Short-Term Rentals

Nationally, the short-term rental (STR) industry had a strong September, with 18.4 million night-stays. Rates were up over 5% from September 2021 and total revenues rose by 30%. Demand for STR properties reached a post-pandemic record. This analysis comes from AirDNA, a company that tracks data for this relatively new industry.   
All the numbers suggest that the properties rented through apps like Airbnb continue to grow in stays, rates, revenue and other measures of success. In Cape May County, a number of municipalities have been working to regulate the new industry both for safety reasons and because they want to obtain a cut of those revenues. Cape MayMiddle Township and Lower Township have all adopted ordinances that apply a 3% occupancy tax to STRs.
Understanding and regulating the industry as it broadens its reach in the county’s resorts may be a more important task than many of the municipal leaders realize. Another AirDNA report shows that high earnings, $14 billion in the U.S. alone in Q3 2021, have attracted the attention of major investors, meaning the industry may turn from helping a property owner earn some extra income to one driven by outside investors. That can mean a different set of buyers for property.
On Cape Island there are over 1,000 active rentals, 94% of which are entire homes, as opposed to apartments or condos. 35% of those are listed on Airbnb and 49% on Vrbo, another popular STR site. 

Balance of Payments with Washington

A common complaint in Cape May County is that we send much more in taxes north to Trenton than we get back in state investments in the county. Maybe Trenton engages in learned behavior. For years, the state has sent much more to Washington than it ever gets back in federal grants and spending. 
Even though federal pandemic relief funds have muddied the usual statistics, it has not changed how the Garden State fairs in terms of a return on the tax dollars sent to Washington. We are dead last, 50th out of 50 states, according to the annual report from the New York State Comptroller.
The five states with the best return on their tax dollars in terms of federal largess include New Mexico, Mississippi, West Virginia, Kentucky and Maine. The five at the bottom of the list, in order of worst to best, are New Jersey, Utah, Massachusetts, Minnesota and New Hampshire. 

Happenings

Cape May City is planning to raise the height of its sea wall to an elevation of 15 feet from its current 8.5 feet and extend that new sea wall 4,500 feet.
Middle Township announced appointments to its new Rio Grande Community Partnership, a coalition of residents, business owners, social services leaders and municipal officials with a mission to improve the quality of life in that area of the township.  
Three people were seriously injured during a pop-up unsanctioned car rally in Pennsylvania. Supporters of H2oi now say the name has been ruined by bad actors.
At least one Wildwood resident has persisted in his requests to have the restrooms on the boardwalk open longer into the shoulder season. 
A Mid-Atlantic Center for the Arts lecture series turned its attention to the county’s deep involvement in the underground railroad, a term for efforts to aid those escaping slavery in pre-Civil War America.
Mr. Monopoly visited Cape May County as part of an effort to determine what South Jersey properties should be part of a South Jersey Shore Monopoly game. The traditional board game has 22 property slots, so the competition may get fierce.
The New Jersey Department of Rate Counsel issued a report critical of the application from Ocean Wind LLC for its preferred route for high-voltage electrical cables coming from the wind farm to the grid connection point in Upper Township.
A Middle Township school bus driver not only gets kids safely to school, he then goes in himself and works to help them learn to read.
A proposed new Wawa planned for Route 47 in Dennisville has received court approval to move ahead. The court overruled a decision by the Dennis Township Land Use Board to deny the proposal. 
A professional pickleball tournament is going to make a stop in Avalon in September 2023. The borough has vowed to double the number of its pickleball courts by the time the tournament players arrive.

Spout Off of the Week

Cape May Court House – To the Spouter who asked: “So, how did you fare back in the Carter era?”  Quite well actually; I was young, my children were just born, I had a great job, everyone I loved was living, and life was good.  Now I’m old, my children have children, I don’t work anymore, I miss those that are no longer with us, but all in all, life is still good.  Hope yours is as well.  As to whether “…you are willing to return to it?”  If only I could.
Read more or submit your own at spoutoff.cmcherald.com.

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