CAPE MAY — Mayor Zack Mullock issued a stern warning for owner of short-term rentals who do not have a mercantile license.
“We will not hesitate in fining you if we find that you’re operating a weekly rental property without a mercantile license,” Mullock said. “We will not feel bad about sending you a fine.”
City Manager Paul Dietrich said the Municipal Taxation and Revenue Advisory Committee (MTRAC) completed an analysis on short-term rentals and their effect on the community. The analysis, completed during the winter, showed that 15 percent to 20 percent of the current listings do not have a mercantile license.
“We look at AirBNB, VRBO, and upwards of 40 percent don’t have mercantile licenses,” Dietrich said. “We were fortunate to be able to find a company that does the backend of research and tracking of online short-term rentals. They scour the internet and search thousands of websites nationally for this data.”
Dietrich added the data identified goes back through at least 2020 and details the weeks rented, occupancy rate and vacancy rate, among other information.
“We’ve issued a purchase order for that service and will be utilizing it,” Dietrich said. “The clerk’s office is moments away from sending out mercantile renewals and we will be utilizing this service as we start getting renewals in. We will have a verification method to verify all short-term rentals more accurately than we’ve done before.”
Mullock said the system is expensive but he believes it will pay for itself. He added that the city is not sending fines to make money but stressed the importance of having a fire safety inspection for rentals.
“It’s not within the budget as a revenue source and we don’t want it to be,” Mullock said. “The fact is the numbers that we’re getting in, and percentages are a bit staggering. If you don’t have your mercantile license, please get it.”
Clerk Erin Burke said she would have an update on sending out mercantile renewals at the next meeting.
Atlantic City Electric
In other news, Mullock thanked City Council for passing a resolution opposing Atlantic City Electric’s (ACE) 17.23 percent electricity rate increase and calling on ACE to withdraw its application to the New Jersey Board of Public Utilities (BPU) for an additional 8 percent increase up for consideration in April. He noted the resolution came from Cape May County.
“Obviously we don’t write state law, and we are not the NJBPU, but obviously these laws do affect us and certainly affect our citizens, especially those on fixed incomes,” he said. “One of the biggest increases in electric bills is the delivery cost, and I’ve gotten questions about it from residents in the city.”
Mullock said he has researched the topic and one area of concern is the delivery method.
“A lot of the biggest electrical users are newer buildings within our service area, out there around Route 40, and a lot of warehouse buildings and distribution centers,” he said. “This is completely my opinion, but a lot of electrical use is going to these new buildings, and I personally feel those buildings should be forced to provide their own energy and shouldn’t be put first before the residents of little towns like the city of Cape May.”
City Council plans to send the resolution to Gov. Phil Murphy, the NJBPU, U.S. Rep. Jeff Van Drew and First District legislators state Sen. Michael Testa and Assemblymen Antwan McClellan and Erik Simonsen.
East Lynne Theater
The city passed a resolution to endorse East Lynne Theatre Company’s (ELTC) application for the Historic Site Management grant for the Allen A.M.E. Church.
Dietrich noted it was to authorize the co-signing of the grant proposal since the city owns the church. He said the project does not require any funds from the city and ELTC will still have to go before the Historic Preservation Commission for any renovations.
The president of ELTC, Susan Tischler, thanked the council for all their work, patience, and accessibility for the renovations.
“The resolution allows [us] to apply for a grant that would help us defray the costs of architectural fees, stage design fees and expenses which we’ll incur to repurpose the former church into a performance space,” she said.
Tischler also thanked solicitor Chris Gillin-Schwartz for fast-tracking the resolution.
“The support of City Council has been invaluable, and we would not be here without you, and we owe you a debt of gratitude,” Tischler said. “We are anxious to get into the church to offer programing which honors the Black community, entertaining productions which delight, films for family, all [of which is] designed to draw traffic to this revitalized neighborhood that was once the heart of the Black community.”
Pedestrian bicycle bridge
In other news, Dietrich told City Council that a topic that has come out of the Bicycle and Pedestrian Safety Committee (BPSC) is the First Avenue Pedestrian Bicycle Bridge, which would connect Cape May with West Cape May.
“One of the commissioners over in West Cape May has taken the lead on that and is really trying to champion that project,” Dietrich said. “They are having their engineer working on permit plans and conceptual plans and have come to the city to ask if we would be OK signing the Department of Environmental Protection application.”
Dietrich added that the bridge would likely be a longstanding steel structure that would span the entire wetlands, avoid wetlands impact and include improvements to be made on either side to tie the roadway and sidewalks up to the bridge.
Benches and possible amenities would also be added. He said he would share a conceptual plan for council to review once it is available.
Deputy Mayor Maureen McDade asked if the city would be responsible for improvements on the city side. Dietrich said it would likely be a cost shared between both communities. Mullock said the project sounded great.
“Once we have a design, we’re probably going to approach Cape May County first to try to get open space funding,” Dietrich said. “Bike and pedestrian paths are one of their priority projects. As we develop it, we will look at what the cost shares are and what other grants might be available.”
Councilman Shaine Meier said the goal of the project is to get pedestrians and bicyclists off Broadway. Mullock thanked Dietrich and the committee.
Tree of Heaven removal
Meier said the Shade Tree Commission will be sending a flier out with the next water bill to help residents identify if they have tree of heaven on their property. The commission received a $20,000 grant in 2024 to help eradicate lantern flies and their habitat.
“We want citizens to identify if you have these trees in your yard and contact the Shade Tree office with how many you have and where they’re located,” Meier said. “We’ll help the residents with the expense of removing these trees.”
Meier explained the invasive species must be cut down, poisoned and then after several months the stumps can be removed. The process is long and expensive. He said the commission hopes to have a list of the trees by summer or early fall.
Other business
After a closed session for a special meeting March 4 meeting, City Council authorized a resolution for the lease of the city-owned property at 702 Beach Ave., which would amend the list of items eligible for tenant improvement credit.
“For Mermaids Restaurant, we had a set list of items and adding a roof is one of those projects,” Dietrich said. “They’ve already received Historic Preservation Commission approval for that process, and we are in the process of reviewing quotes.”
Council also tabled two resolutions for awarding bids, one that would open bids for tree trimming, maintenance and stump grinding services and another that would award a bid for lighting replacement at Cape May Convention Hall.
McDade updated council on the community center renovations. The painting and flooring are complete, and she hopes classes will resume after March 12.
“I think when people come back in to see the space and the way it’s been upgraded, they’re going to be really pleased,” she said. “There is more news to come and it’s a really exciting opportunity for the community.”
By RACHEL SHUBIN/Special to the Star and Wave