Ocean City is out $14,000 after beach rental franchise is debarred for nonpayment

Ocean City has pulled the plug on one beach gear rental franchise after it failed to come forward with overdue payments.

Per the town code, Ocean City Town Council members voted unanimously on Oct. 11 to terminate Randy’s Rentals, debar proprietor Frank “Randy” Dougherty from doing business with the town, and turn to the city solicitor for collection of the money and possible litigation.

This comes after Dougherty met with council members back in August to ask for an extension on his payments to the resort town. He claimed economic challenges and bad weather hindered his ability to pay the missing fees. The council obliged, allowing Dougherty to continue operating his stand.

"I recall, specifically, Mr. Dougherty coming in and the council having a rather interesting discussion about this, and I truly, truly had hoped that he would've been able to come through on his end of the deal," Councilman Mark Paddack said. "But I concur with Councilman (Tony) Deluca that the precedence is the town can help out as best we can, but when you renege on that contract, it's time to move on."

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The beach is divided into three franchise sections, south end, midtown and north end. Each parcel is auctioned off every three years. Dougherty's franchise occupied 57th, 58th and 59th streets, or midtown, and was required to pay $30,000 in the span of three years, as stated in his contract.

He operated a successful 2021 summer season and made a full payment of $10,000 that year. This summer, however, Dougherty was unable to keep up with his monthly payments and made a partial payment of only $6,000. $14,000 — $4,000 from 2022 and $10,000 from 2023 — currently remains unpaid.

This parcel of land will now join 14 others, located from the Inlet to 27th Street, that are to be auctioned off in December. Council members voted to approve the auction that same Town Council session.

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Olivia Minzola covers communities on the Lower Shore. Contact her with tips and story ideas at ominzola@delmarvanow.com.

This article originally appeared on Salisbury Daily Times: Ocean City is out $14,000 after beach franchise fails to pay