The Town’s Pier Plan, summarized here, is to restore the building and pier to a safe operating condition without any significant upgrades, and to continue to operate it as a fishing pier, restaurant, and retail establishment by leasing it to business providers.  Total capital cost is estimated at $4.3 million, financed by  $3.3 million in public debt with the remainder to be paid from BPART. 

The Plan the Commissioners approved last month was found to have errors and a new Pier Plan is in this month’s Meeting Packet, beginning on page 123.  The Town’s expectation is the property can be repaired, maintained, and operated without an increase in property taxes or special assessments.  

The HBPOA’s assessment of this plan concludes the pier will cost about $300,000 per year in excess of reasonably projected net revenues, representing an average cost of about $130 per household per year.  The deficit is expected to be made up from BPART funds.

The HBPOA assessment also concluded:

1. Rental of the pier building as a restaurant is simply not likely. Click here for the analysis.
2. The Town will be taking on significant insurance and replacement risks since they would be obligated to rebuild the building to current codes if it was destroyed by fire or flood, which would cost significantly more than the replacement value insurance proceeds for the existing structure.
3. The pier structure will not be insured for flood/major storm damage, but the loan documents require it to be rebuilt. There is no estimate of what it would cost to rebuild the pier, but the plan suggests the Town might be eligible for FEMA grant relief.
4. The Town’s Plan carves off the expenses of purchasing the 50′ parcel that will be used for access.
5. The Town is taking on an environmental abatement risk due to the unlined grease pit on the property.
6. The Town’s plan for the Pier is very limited and may not be attractive to many homeowners and renters since it merely restores the derelict building and the derelict pier to minimum code without any significant upgrades, additions, or cosmetic improvements, making the pier more-or-less as it was 10 years ago.

There will be a required Public Hearing on the $3,300,000 financing contract on Tuesday, January 18, at 5:00 PM.  During the Commissioner’s Meeting immediately following the Public Hearing the Board will vote to adopt their revised plan.  Comments for the meeting or Public Hearing should be sent to [email protected].