![]() ![]() ![]() Section 5: OPA Board Subject: Fire Station Town Hall Msg# 1227238
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Given the above, will OPA add depreciation to the assessment for the book value (or whatever is appropriate) for the OPA's ownership of the structure paid for by assessment dollars, to the tune of around $4 million?
Let's assume for this discussion that the final price tag of the station is $6 million (around $4 million from OPA and $2 million from OPVFD). If OPA owns the station, OPA and OPA alone has the responsibility for depreciation on a $6 million building. |
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For reference, the above message is a reply to a message where: Thanks, Bruce. Still looking for some clarity. the Department shall pay all property taxes associated with the South Station Property and the improvements thereon. Volunteer Fire Departments pay property taxes? Has the department paid property taxes on that property in the past? Or is this just some protective legal language? The Department shall be responsible, at its expense (but supported in part by the funding provided by OPA to the Department under this MOU), for the maintenance and repair of the South Station and the South Station Property, including without limitation the interior and exterior of all firehouse facilities located thereon, parking facilities, landscaping, grounds, and other improvements. Such maintenance shall be sufficient to keep the property and facilities and improvements thereon in good condition, free of defects and/or unsightly conditions, and adequate for fire and emergency services conducted therefrom. Given the above, will OPA add depreciation to the assessment for the book value (or whatever is appropriate) for the OPA's ownership of the structure paid for by assessment dollars, to the tune of around $4 million? This, obviously, would increase the assessment. If the assessment is increased, would it be for the referendum amount, or the true value of the structure? Can the $1.5 million or so the OPVFD received from the State of Maryland be invested in a structure not owned by the OPVFD, or does the MOU language cover this? Has the State been asked? South Station property may not be sold, assigned, or leased by the Department without OPA’s consent. Suppose OPA, for some reason in 20 or so years, decides to hire another fire company or even to create an Ocean Pines Fire Department with all paid OPA employees. Is that possible, with or without OPVFD approval? And what are the ramifications of the land ownership in terms of any possible future OPA decisions in how to deal with the DR requirement to provide fire protection ? As an aside, I am not sure if OPA even has architectural/engineering drawings that are adequate for seeking bids or submitting to Worcester County for permit purposes. I only bring this up becaus the last time OPA took a chance and went to referendum without cosnstruction drawings and bids, the bids ended up more than the referendum approved amount by more than the referendum trigger amount. Today that amount would be $1 million. The proposed referendum allows for a 10% overage. Without solid bids based on complete construction drawings, there is a chance of an overage of $1 million more than the 10%. In that case, a current day "Marty Clarke" could stop the project as Marty did with the proposed Community Center at the Southgate Pond many years ago. |
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