On Monday, officials in Ocean City approved a new ordinance that redefines the way the town can allocate hotel room tax revenue. This change provides leaders with the ability to use funds earmarked for tourism marketing to support a proposed regional sports complex, despite the absence of a finalized site for the project.
The measure, which received unanimous approval during its second reading, permits funds that were originally designated for advertising to be redirected toward covering debt service or operational expenses of the sports complex, should the project progress.
This development follows the previous fall’s decision by Worcester County to implement a 1% increase in the hotel room tax, which raised the rate from 5% to 6% as of January 1. This adjustment is anticipated to bring in millions of additional revenue for the resort town annually.
According to the staff summary presented on Monday, the new 1% hotel tax is projected to generate an extra $5 million per year, totaling $30 million. Of this amount, 43.3% (or $13 million) will be allocated for advertising and the sports complex, while the remaining 56.7% ($17 million) will contribute to the general fund.
During discussions about the tax increase last fall, county officials highlighted the need for greater funding to address rising public safety costs and infrastructure improvements. Meanwhile, Ocean City leaders contended that enhanced advertising resources were essential for competing with higher-tax beach destinations in Virginia and Delaware. The recent ordinance approval now broadens the potential applications for a portion of these tourism funds.
The ordinance preserves the previous funding formula for advertising but now offers officials the flexibility to utilize these tourism funds for the sports complex as well.
The idea of a sports complex has been under consideration for over ten years. Town leaders believe it could potentially draw youth and amateur tournaments to the area beyond the busy summer months.
Last month, Ocean City officials acknowledged that they were in a “holding pattern” following public objections to a proposed 100-acre site close to Stephen Decatur High School in Berlin, which is adjacent to the historically Black community of Briddletown.
At a Berlin meeting on February 7, local residents expressed worries about increased traffic, noise, and development pressures on an area where Black families have lived for generations. Shortly thereafter, Mayor Zack Tyndall and the Town Council formally requested the removal of the site, referred to as “Home Farm,” from consideration.
Mayor Rick Meehan of Ocean City noted, “Without support from the Town of Berlin, that really complicates the project or site’s future.”
City Council President Matt James voiced his support for the sports complex idea but has always favored a more extensive parcel—ideally over 100 acres—to allow for potential future growth.
“The Mayor and Council are committed to the development of a sports complex,” James mentioned in a previous interview. “However, in light of community feedback, we are exploring additional options.”
Town officials have stated they are looking at alternative sites that would provide adequate acreage, necessary infrastructure, and community backing.
At this point, a new location has yet to be identified; only a funding framework has been established. However, with the clarification of the hotel tax structure, the town has outlined how funding could be secured if the project advances.
