4/26/2005
OPA draws nearer to decision on space referendum
By Bob Adair
Ocean Pines Association (OPA) Board President Dan Stachurski opened the third in a series of special meetings dedicated to the review of available options to solve the activity space shortfall in Ocean Pines.
The agenda for the April 22 meeting, among other items, called for: 1) Information concerning the value of certain OPA property; 2) A review of the financing concept to fund the projects that are involved in solving the shortage of space; and a review of the time lines involved if the board makes the decision to go to a referendum this year. Other topics included examples of a potential referendum document and board plans for the Ocean Pines Town Meeting to be held at the Yacht Club the evening of April 27, 2005.
The properties under discussion are the interior lots owned by OPA as well as three commercial properties along Route 589, in front of the Post Office building. The 19 interior lots are those that have the most sales potential. OPA General Manager Dave Ferguson was asked to secure the assistance of professional real estate experts in verifying the board's estimates of the value of these properties.
Although the estimates on the interior lots are not complete, it appears the value assigned to these properties by the OPA staff is close to the mark, which would come to $1.6 million on the low side. With reference to the commercial properties there is no written appraisal at this time, however, indications are that the sale of these lots would bring in a total above $2.5 million. The property sold to the Post Office in 1996-1997 was valued at $300,000. The current estimate indicates each lot belonging to OPA is worth three times that amount for a total of $2.7 million.
The financing concept consists of using the funds from the sale of the properties mentioned above, plus drawing $1 million from OPA reserve funds intended for the purpose of expansion and refurbishment of facilities. The plan is to erect a 22,000 square-foot building, known as the
Some concerns about the financing concept were voiced. Board member Tom Sandusky indicated he was not comfortable with entering contractual agreements before all the funds from the sale of the properties were in hand. Mr. Stachurski said there were enough funds available in the reserves to maintain the project while the lots continued to be sold.
Board member George Coleburn asked that a tax expert, familiar with such transactions, review the finance concept as OPA converts assets into cash and then back into assets. All agreed this would be a good idea, however, other board members said the funds from the sale of the OPA property to the Post Office were placed into the building reserve fund and it did not affect the tax picture.
Board member Heather Cook presented the time lines that would have to be followed if the board decides to go forward this year with a referendum. Basing the time lines on a required mailing date of July 14, 2005 (date when ballots are mailed to property owners), the required public hearing on the referendum should be held June 29/ 30 or July 1 at the latest. This means notification of the public hearing must go out on June 14 or earlier. A meeting will be held on May 2 to decide if a referendum will be held this year.
The board approved the time lines.
Three draft referendum proposals were presented to the board. These appeared to be more conceptual in nature than a draft of an actual referendum. From discussions lasting almost an hour decisions were made and motions passed to present the space requirements as one, single package, not two different projects requiring two separate referendums. Furthermore, it was decided the referendum would provide one question to the property owners, not a list of several items to be voted on separately.
Based on the decisions made, Mr. Stachurski appointed a committee of board members to write a draft referendum, which the board will review on May 2. The board members assigned to complete the draft are Mr. Sandusky, Mr. Coleburn and Glen Duffy.
The board members passed a motion to have the board president appoint a chairman to head a marketing committee for the space requirements project and to task that individual to select four additional committee members and have an agenda for the board to review on May 2.
The remainder of the meeting dealt with the approach to be taken at the Town Meeting to inform the public about all the board has achieved on the subject of meeting space needs in the community.
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Uploaded: 4/26/2005
