world gym auction

Larry Cooper, left, with Baltimore-based Alex Cooper Auction, conducts a site foreclosure sale for the former World Gym building on 67th Street in September.

New water treatment plant would go on 67th Street lot

(Nov. 30, 2018) Ocean City is inching closer to a groundbreaking for a new water treatment plant, as the City Council agreed to a bid for more than $1.2 million to purchase the former World Gym building on 67th Street during a closed session meeting earlier this month.

Council President Lloyd Martin provided an update on potential property purchases at a council work session on Tuesday. 

Martin said the council voted unanimously during the Nov. 5 closed session to offer Wells Fargo Bank slightly more than $1.2 millon for the property at 107-109 67th Street.

In September, the council voted in closed session to condemn the property when it was in the midst of foreclosure proceedings. The city already had  completed property acquisitions between 65th and 67th streets for a proposed water treatment plant.

Zeke’s World LLC, which had operated the gym, filed for Chapter 11 bankruptcy protection in June 2016, with liabilities up to $10 million and no more than $500,000 in assets.

Wells Fargo Bank bought the property at a foreclosure auction for roughly $1.134 million in September.

The property has two standing buildings for the gym, along with  parking, and totals more than 12,000  square feet.

The proposal would be the city’s latest property acquisition in the vicinity, following its $795,000 purchase of the Veterans of Foreign Wars Post 8296 on 66th Street last October.

Martin said the city’s bid, if accepted by the bank, specifies the seller would facilitate and pay for any evictions.

In another possible purchase, Martin reported the city bid $160,000 for property near the Ocean City Municipal Airport on 12327 Sinepuxent Road at a closed session on Nov. 13.

“This is for a piece of property for FAA uses,” he said.

The city is responsible for 5 percent of the purchase price, with 90 percent provided by the Federal Aviation Administration, and the Maryland Aviation Administration kicking in 5 percent, Martin said.

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