OCEAN CITY, Md.- Ocean City leaders are exploring a new funding avenue for a proposed sports complex: a Business Investment District.
The concept, which will be introduced to the Town Council Monday night, could generate significant revenue to support the multi-million dollar project.
The proposal would allow Ocean City to levy a special tax on businesses within the district. Tom Perlozzo, the city’s Director of Tourism, explained that this tax would be similar to the room tax currently applied to hotels and rentals. However, it would also extend to other businesses, such as restaurants, making it a broader, more inclusive approach.
“It allows us to actually tax, in a way, specific businesses to direct those funds toward supporting the sports complex,” Perlozzo said.
The tax burden would ultimately fall on the customers, as businesses would pass the additional cost onto consumers.
Perlozzo said the business district could offer the town more control over its funding efforts. “We looked at the models across the country, they all seem to fit, and you know it is an opportunity where Ocean City can actually control its own destiny,” he explained. “We don’t need the county to approve an increase in the room tax like they usually do; we could do it on our own.”
Terry McGean, Ocean City's City Manager, emphasized that the BID would not impact the location of the sports complex. “It doesn’t have anything to do with the project itself,” McGean said. “It’s simply another tool to help fund it.”
Tonight’s meeting marks the first opportunity for Ocean City’s Mayor and Council to review the proposal. If approved, the Business Investment District would be established within the town limits, though the sports complex itself is expected to be located outside of the city’s corporate boundaries.
