Two FIT members who are part of the petition drive said on Tuesday that they support the city buying the property, but believe the price is too high.<\/p>\n
The petition drive is to initiate a public referendum on the bond ordinance, according to FIT board members David Hayes and David Breeden.<\/p><\/blockquote>\n<\/div>\n
\nBreeden said FIT believes if they get about 400 signatures on a properly done petition that is accepted by the city clerk, it will stop the purchase in its tracks. The signatures represent 10 percent of the number of residents who voted in the last election.<\/p>\n<\/div>\n
\nOn Sept. 13, council voted 7-0 to approve, on second reading, a bond ordinance for $8.5 million to complete a $9 million purchase of the property between 16th Street and 17th Street and between Simpson and Haven Avenues. It was formerly home to the Perry-Egan Chevrolet dealership.<\/p>\n<\/div>\n
\nBefore council took that vote, former FIT president Michael Hinchman opposed the purchase, saying the two appraisals the city requested for the property were done incorrectly and came in too high because they use comparable sales that weren\u2019t comparable. He said the appraisals overestimated the value of the property that is owned by the Klause family. He added there were other problems that added to overpricing the appraisal and he said city solicitor Dorothy McCrosson made two different appraisal requests \u2013 one that led to a higher appraisal, matching the number the family has sought for the parcel.<\/p>\n<\/div>\n
\nAt the Sept. 13 city council meeting, Councilman Keith Hartzell said, \u201cWhat this comes down to is whether this is a good value. I can tell you I wholeheartedly 100 percent believe that the Klauses have given us the price of $9 million. That\u2019s the price and they\u2019re not backing off.\u201d He added there\u2019s \u201ccompelling evidence\u2019 that the property is worth $9 million.<\/p>\n<\/div>\n
\nHayes and Breeden don\u2019t believe the price is right, which is why Fairness In Taxes has initiated the petition drive.<\/h3>\n<\/div>\n
\n\u201cThe state allows us to petition the government when they pass a bond ordinance,\u201d Breeden said. \u201cIf we get sufficient signatures, that will force that particular ordinance to go to public referendum and let the public decide whether $9 million is appropriate for the property.\u201d<\/p>\n<\/div>\n
\nHe added just getting an approved petition would stop the sale.<\/p>\n<\/div>\n
\n\u201cIf the petition is accepted by the city clerk and everything is proper, everything stops,\u201d Breeden said.<\/p>\n<\/div>\n
\n\u201cI don\u2019t know where they arrived at this $9 million number,\u201d Hayes said, adding FIT was using the Open Public Records Act to get more information.<\/p>\n<\/div>\n
\n\u201cIt\u2019s just way too much for this property,\u201d Hayes said. \u201cWe need about 400 signatures \u2026 and we\u2019ve got a good number right now. It\u2019s the public\u2019s right to do these petitions for a referendum. We had one (petition drive) in the past that was successful and we never went to the referendum so we got what we wanted by getting the city councilmen to change their votes.\u201d He said that was about stopping a redevelopment project on the property next to the Flanders Hotel.<\/p>\n<\/div>\n
\n\u201cPeople don\u2019t want to pay $3 million more than they have to,\u201d Hayes said. \u201cEveryone likes parks and all that, but we shouldn\u2019t be paying more for the property. This money could go for a lot of different things. And we\u2019d be taking a double hit tax-wise if this does go to green space because now we won\u2019t have the (tax) revenue from the property.<\/p>\n<\/div>\n
\n\u201cIt\u2019s a good opportunity for the city,\u201d he added, \u201cbut not at $9 million.\u201d<\/p>\n<\/div>\n
\nBreeden said Hinchman \u201craised a lot of good points that remain unanswered\u201d and that when McCrosson made her presentation at the Sept. 13 council meeting, the city was essentially giving the property owners the price they wanted.<\/p>\n<\/div>\n
\n\u201cThere was no attempt to negotiate,\u201d Breeden said. He noted the city also approved an ordinance Sept. 13 to purchase three smaller adjacent lots, but if they couldn\u2019t come to a price that is acceptable, they would consider going to court.<\/p>\n<\/div>\n
\nAt the Sept. 13 meeting, McCrosson said John Flood, owner of two of the adjacent parcels, \u201c indicated he does want to sell to the city. We do want to buy from him. We don\u2019t know if we\u2019ll come to an agreement on price. If we are unable to do so the next step would be to go to condemnation and allow the court at determine the fair and just compensation for the property and Mr. Flood is agreeable to the process.\u201d<\/p>\n<\/div>\n
\n\u201cIf the city felt $9 million was too much, why didn\u2019t it go through the process \u2026 of going to court to pay a fair market price for it?\u201d Breeden asked. \u201cThe city never explored that option.<\/p>\n<\/div>\n
\n\u201cWhy wasn\u2019t the process the city is using to get the three remaining properties not used to get the Klause property?\u201d Breeden asked.<\/p>\n<\/div>\n
\nBreeden said FIT is confident it can get the required signatures by the deadline, which is 20 days after the legal notice about the bond ordinance was published Sept. 19.<\/p>\n<\/div>\n
\n\u201cI fully agree with the acquisition of the property and all of the land,\u201d he said. \u201cIt\u2019s an extraordinary opportunity.\u201d However, he believes all the purchases should be at the right price.<\/p>\n<\/div>\n
\n\u201cI agree with what the mayor is doing improving the infrastructure of the town, enhancing the performing arts at the Music Pier, realizing tourism is a very competitive industry,\u201d Breeden said. \u201cHe has taken steps to take Ocean City to the next level, but there are processes, there are procedures you have to follow. And that\u2019s where I sometimes disagree with him.\u201d<\/p>\n