OCEAN CITY – Mayor Jay Gillian presented a five-year capital plan to the public Feb. 22 that calls for $67.6 million in capital spending over the next five years, 2025-2029, with $14.5 million in 2025 alone.
Flood mitigation infrastructure projects, beach and bay restoration and dredging, recreation and playground rejuvenation, and a series of new building construction head the list of an ambitious plan that will add $40 million in new debt to the city’s obligations.
Gillian’s slides show the city’s past prowess in gaining grant funds to offset debt. The slides show $57 million in grant funds from 2011 through 2024. Many of the projects listed in the capital plan will be seeking grant funding to supplement Ocean City’s capital debt.
Among the facilities to be developed in 2025 is a new airport terminal to serve as a new operations center for the city airport, along with being a home of a pro shop to service the nearby golf course and a restaurant. Here the mayor took time to use this project as an example of outside funds that reduce the burden on the taxpayer.
The new airport facility will be named after Leon and Elizabeth Grisbaum, longtime residents of the city. Leon Grisbaum, a former pilot, will contribute $3 million to the project and the city will match those funds with an additional $3 million.
Gillian touched on 2025 projects in the plan that include, along with the airport terminal, $2 million for street and drainage improvements and flood mitigation efforts at the Ocean City Homes development.
Other facilities included in the plan are the renovation of the public safety building, the construction of the police substation, along with work on the civic center, aquatic fitness center, City Hall and city fire stations. Some of these projects have already seen bonds issued and others will be part of the three bond sales that Chief Financial Officer Frank Donato said he had planned for the five-year period of the plan.
Donato said a goal was to avoid spikes in debt service by bringing the new debt on as older debt is retired. He said current bonded debt stood at $168 million. He referenced an additional $70 million in interest-only notes for unfunded debt. With the new plan under discussion at the town hall, there would be $40 million in new debt brought on over the three planned bond sales, with the first being in 2025.
The capital plan was not the sole focus of the town hall.
Gillian emphasized that the approaching Memorial Day holiday weekend could mean a reoccurrence of large groups of misbehaving juveniles. He said the city has a no-tolerance policy and the police would impose that policy right from the start of the summer season.
City Attorney Dorothy McCrosson gave the public a briefing on three legal issues impacting the city. She advised people to remain vigilant on the issue of offshore wind. McCrosson said the lease area vacated by Orsted is “still out there.” Despite the actions of the current Trump administration to pause permitting for offshore wind projects, McCrosson said the city’s litigation is still active in which the city seeks a reversal of the powers given to the New Jersey Board of Public Utilities to override local governing bodies on matters like the route of high-voltage transmission cables across Ocean City streets.
McCrosson also pointed to the imminent adoption of the state Department of Environmental Protection’s new stricter land use regulations under the name Resilient Environments and Landscapes or REAL. She indicated that the city would continue its struggle against these regulations.
Lastly she gave a briefing on the new affordable housing law and the city living unit obligations under that law. She described a plan to work with the Housing Authority on land devastated by Hurricane Sandy in order to satisfy the obligations.
The over two-hour meeting is available for public viewing, along with copies of the slides used, at https://www.ocnj.us/news/post/20770/.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
