Ocean City Approves $7.4 Million Airport Terminal Contract, Exceeding Earlier $6 Million Cost Target

The project includes a rooftop restaurant and a $3 million private donation, but questions remain about the city's total financial commitment.

OCEAN CITY, N.J. — Ocean City is moving forward with construction of a new municipal airport terminal after City Council approved a contract that Mayor Jay Gillian says totals $7.4 million, approximately $1.4 million more than the city's previously stated $6 million construction target.

The approval came during the council's October 22 meeting and represents a major milestone for a project that has been discussed for years, redesigned several times and supported by a $3 million private donation from longtime Ocean City businessman Leon Grisbaum.

The new facility, to be named the Leon and Elizabeth Grisbaum Airport Terminal, will replace an aging building at the Ocean City Municipal Airport on Bay Avenue.

Plans call for modern airport operations facilities, a golf pro shop, locker rooms, offices and a full-service restaurant overlooking the runway, wetlands and bay.

But the newly announced construction price raises questions about how much the city will ultimately contribute and whether additional costs will increase the overall project budget.

Construction Cost Exceeds Earlier Target

In June 2025, Ocean City officials described the proposed terminal as a $6 million project, with Grisbaum's donation covering half the anticipated construction cost.

At the time, then-Business Administrator George Savastano told council members the city had revised its plans to bring the price down from earlier estimates that had reached $8 million or more.

"We've scaled it back to a $6 million project," Savastano said during the June 2025 council discussion, according to contemporaneous reporting by the Ocean City Sentinel.

Savastano said the city had worked through multiple design options to reach a construction estimate of approximately $5.5 million to $6 million.

The intention was for Grisbaum's $3 million contribution to be matched by $3 million in city funding.

That financial picture has now changed.

In his October 23 weekly update, Gillian confirmed that council had approved the construction contract the previous evening.

"The terminal building dates back to the 1960s and has reached the end of its useful life," Gillian wrote. "We have a $3 million donation from Mr. Grisbaum that will help offset the costs of the $7.4 million construction contract."

Using the mayor's announced figure, the construction contract is approximately 23 percent higher than the $6 million target discussed in 2025.

Subtracting the $3 million donation leaves approximately $4.4 million in construction costs to be covered through other funding sources.

That is $1.4 million more than the city's previously discussed $3 million share.

However, the city's complete funding plan and final project budget have not been independently confirmed.

The construction contract also should not be confused with the total project cost, which may include design, engineering, construction management and other related expenses.

Questions About the Exact Contract Amount

A government-contract tracking service lists an October 22 airport terminal construction award to Weatherby Construction & Renovation Corp. at $7,794,000.

That figure differs from the $7.4 million amount announced by Gillian.

The same service lists additional airport-related professional services awards, including construction management and program management.

South Jersey NewsBeat has not independently verified the precise construction award amount against the executed contract or determined whether the reported figures reflect different components or versions of the project.

The mayor's $7.4 million figure remains the city's publicly announced construction cost.

The discrepancy underscores the need for a detailed accounting of the project's total cost, including how much has already been spent on planning and design.

In June 2025, council approved a professional services contract of approximately $435,875 with William McLees Architecture for the terminal's design.

Whether all previously approved professional services expenses are included in the latest overall project budget remains unclear.

New Terminal Will Include Public Restaurant

The replacement terminal is designed to serve more than pilots and airport personnel.

According to the mayor, the new building will include an airport operations center, golf pro shop, locker rooms, lobby, flight-planning room for pilots, bathrooms and administrative offices.

The upper floor will feature a full-service restaurant with views of the runway, surrounding wetlands and Great Egg Harbor Bay.

The restaurant is intended to be open to the public, potentially making the airport a dining destination for residents and visitors who do not use the aviation facilities.

Gillian said the city plans to seek a restaurant operator through a competitive bidding process once construction is further along.

"We will go out to bid for a restaurant vendor once construction is further along, and this will be a source of annual revenue," the mayor wrote.

The city has not publicly established how much annual revenue the restaurant is expected to generate, what lease terms might apply or how those proceeds would compare with ongoing building operating and maintenance costs.

Those details will become important as Ocean City evaluates the project's long-term financial impact.

Years in the Making

The new terminal has been in development for several years.

In October 2024, city and county officials participated in a ceremonial groundbreaking honoring Grisbaum and his financial commitment to the airport.

Grisbaum, a longtime local real estate businessman and former pilot, pledged $3 million toward replacing the outdated terminal.

The project subsequently underwent additional design work as city officials attempted to balance the desired facilities with available funding.

At various points, officials discussed potential federal aviation funding to help reduce the city's share.

In June 2025, the administration said it had developed a plan intended to hold construction costs near $6 million.

The project was formally advertised for construction bids on August 31, 2026, under City Contract No. 26-09.

The bidding deadline was subsequently extended to October 15.

Council's October 22 approval now clears a significant hurdle toward beginning construction.

According to the city's capital project schedule, work is planned to run from fall 2026 through fall 2027.

The schedule remains subject to construction conditions and other factors.

What Will Taxpayers Pay?

The new terminal represents a substantial investment in a city-owned aviation facility, but the project also raises questions about priorities and municipal spending.

The airport serves private and recreational aviation, while the planned restaurant and golf facilities are intended to provide amenities accessible to a broader segment of the public.

Supporters have pointed to the aging condition of the existing terminal, the private donation and the potential for restaurant revenue as reasons to proceed.

The financial questions are significant, however.

The city previously discussed contributing approximately $3 million toward construction. Based on the mayor's latest figure and the unchanged $3 million donation, the remaining construction expense would be approximately $4.4 million before accounting for any additional grants or other funding.

The ultimate taxpayer contribution could differ depending on the city's financing arrangements and whether additional outside assistance is available.

The administration has not yet provided a complete public breakdown establishing the final municipal share, total project-related professional fees, financing costs or projected restaurant income.

Those details would help residents assess the project's full financial implications.

Construction Moves Forward

Despite the increase over the earlier cost target, the October 22 approval moves Ocean City closer to replacing a terminal that officials say has outlived its useful life.

The new facility is expected to combine airport operations with recreational amenities and a restaurant offering views of one of Cape May County's distinctive coastal landscapes.

The $3 million donation from Grisbaum remains a major contribution toward making the project possible.

For Ocean City taxpayers, the remaining question is how the higher construction cost will affect the city's final financial commitment.

With construction expected to begin before the end of the year, the project is entering a new phase in which the approved contract, funding sources and anticipated operating revenue will determine whether the long-planned airport improvement meets the city's financial expectations.