(Jan. 11, 2019) The Ocean City Council approved a $2.5 million revenue bond sale ordinance for the second phase of the Boardwalk barricade project on first reading this week.
The council will hold a second reading and final passage on Jan. 22. The city has solicited bids from 14 financial institutions with a submission deadline of Jan. 24.
Financial Advisors Kevin Quinn and Pam Kelly, with Annapolis-based Wye River Group, prepared a proposed finance plan for the second phase of the barricade project, which involved temporary measures last season, and includes 26 access points along the 2.9-mile Boardwalk and at the inlet parking lot.
The Boardwalk Access Control Project is estimated to cost $2,454,500, with construction slated for completion this May. The bond measure also includes $45,500 for the cost of issuance.
The bond terms are 10 years at a 3.4 percent interest rate, a closing date of March 14 and a first interest and principal payment due this September.
The final principal payment is scheduled for March 2029, with interest totaling more than $467,000, increasing the final bond cost to $2,967,125.
Bond principal and interest amounts are payable from general revenue funds and require annual council appropriations for the debt service. Exact costs will be determined on the actual bond bid accepted by council.
In late November, council voted 5-1 to accept a $1.95 million bid from Hercules Fence to install permanent vehicle barriers on the Boardwalk. Hercules’ bid, the lowest of four received, was nearly a $1 million under project budget.