A new campus project for the nonprofit Diakonia, pictured here in a rendering, would span 4.4 acres on a parcel on Route 611 in West Ocean City. Groundbreaking may happen as soon as next month.

By Brian Shane
Staff Writer
Worcester County officials pledged their unanimous support for a state grant that will help the West Ocean City nonprofit Diakonia fund its long-awaited expansion project.

The County Commissioners last Tuesday gave their blessing for Diakonia to pursue a Community Development Block Grant that will yield $860,000 in funding. Executive director Ken Argot said the grant will help Diakonia to secure more local matches toward its $10 million goal.

The commissioners agreed to a letter of guarantee for the grant, meaning the county ultimately would be held responsible for the project’s completion or else be charged back by the state.

Argot said affordable housing is “almost nonexistent” on the Eastern Shore, with scarcity tied to rising property values, seasonal workforce needs and limited rental availability.

That’s why this project will include 42 new affordable rental unit apartments, he said.

“Our shelter is full every day,” Argot said. “As soon as somebody leaves, somebody new comes in. And there’s people on the street. That’s why we started the mobile outreach team, because we knew we couldn’t get them in right away. This will help us sort of break the cycle of just everybody kind of staying in shelter because there is no place to go.”

The complex will offer not only housing, but support services, including a space for veterans’ services, case management, an expanded community food pantry, and thrift store.

In the works for a decade, Diakonia’s planned 9,000-square-foot campus on Route 611, next door to the Decatur Diner, will be built in two phases. Land for the project was donated in 2021 by West Ocean City-based Blue Water, a real estate development and hospitality business.

Phase 1 of the project, estimated to cost $3.4 million, will include a new 3,200-square-foot building for Diakonia’s relocated veterans service center and administrative offices. This phase includes $2.1 million for initial plans and site work, plus $2 million to build it.

Phase 2 will include three, two-story buildings with 14 units each of flexible housing. Ranging from studios to three-bedroom units, this housing would be managed by Diakonia and some would maintain a flexible sliding scale rental agreement as the renters’ income increases.

The second phase also would include building a new community thrift store and an expanded food pantry at an estimated cost of $6 million.

The food pantry, which is now physically inside Diakonia’s current headquarters on Old Bridge Road, would get its own space with a larger area to process donations. The thrift store generates about 10% of Diakonia’s revenue, and Argot said he hopes that figure will increase to 25-30% when the new store is completed.

Fundraising so far has included state and local grants, and gifts from foundations and the community. Additional efforts this year will include a $100,000 direct mail campaign, Diakonia said in a statement.

Other sponsorships would see donors not only purchasing legacy bricks but have the opportunity to lend their name to both individual rooms as well as the overall campus for a goal of $2.4 million.

Diakonia saw a $50,000 funding boost earlier this year when it was selected by Maryland’s Department of Housing and Community Development (DHCD) to participate in a Community Investment Tax Credit program.

People and businesses who donate at least $500 to a nonprofit get a tax credit in the amount of their gift. The recipient then gets back twice that amount as an award, which must go toward a specific project. It means Diakonia could see a $50,000 award if they can secure $25,000 in tax credits for this funding round.

A formal groundbreaking will be announced in the weeks to come, said Brian Roberts, chairman of Diakonia’s board of directors.

“We’re thankful for the county commissioners to approve this project. We can’t thank them enough. We’re looking forward to shovels in the ground soon,” he said.