If the $13.3 million check and financial records aren’t in Washington by April 10, Flannagan said he’ll turn the affair over to the Office of Inspector General for an investigation. The FAA has also threatened to cut off maintenance and upkeep grants for the airport, which the Dispatch says run between $100,000 and $500,000 a year. City officials said they were shocked at the ultimatum because they thought they had already reached a compromise with the FAA. Mathias, the city mayor, remains curiously optimistic that some sort of compromise can be reached before April 10. “There’s got to be a reasonable place here,” he told the Dispatch. But the FAA doesn’t seem in a conciliatory mood and its rancor could hurt a couple of nonprofit groups. It’s accusing Ocean City of subsidizing the Lions Club and Humane Society by allowing them to lease parcels of the federally purchased land for below fair market value.
…City Seeks Compromise
Key Takeaways:
- The FAA has issued an ultimatum to Ocean City, demanding a $13.3 million payment and financial records by April 10, threatening an investigation and the cutoff of annual airport grants.
- City officials expressed shock, believing a compromise had already been reached, with the mayor remaining optimistic despite the FAA's seemingly unconciliatory stance.
- The FAA also accuses Ocean City of illegally subsidizing two non-profit groups, the Lions Club and Humane Society, by allowing them to lease federally purchased land below fair market value.
See a mistake? Contact us.
