Pictured during the signing of a measure to direct the proceeds from the poultry processing plant transaction to an existing are, standing from left, Berlin Council members Tony Weeg, Shaneka Nichols, Jay Knerr and Matt Stoehr; seated, Vice President Jack Orris and Mayor Zack Tyndall.
By Tara Fischer
Staff Writer
(Nov. 12, 2026) The Town of Berlin will apply nearly $1.2 million in proceeds from the sale of Heron Park Parcel 57 toward its outstanding bond debt, a move that will save the town approximately $562,000 in interest and shorten the repayment period by 11 years.
On Monday, the Town Council unanimously approved the prepayment, authorizing the application of the net proceeds from the property’s sale to the principal balance of the town’s taxable public improvement bond on Dec. 1.
In October, the town closed on the sale of Parcel 57 to Palmer and Sandy Gillis of Coastal Venture Properties. The site includes the former chicken processing building.
According to a report from Berlin Finance Director Natalie Saleh, the town received $1,180,985 after settlement charges.
The bond had an outstanding balance of approximately $2 million as of Monday’s meeting. Saleh said the proposed prepayment would bring that figure down to roughly $800,000.
The town originally purchased the former Tyson Foods property in February 2016 for $2.5 million, financing the acquisition through a $3 million taxable public improvement bond issued that January.
The bond currently carries a 3.5% interest rate, which is fixed through Dec. 1, 2030. Beginning in 2031, the rate will adjust to the prime rate.
During this week’s discussion, Councilman Jay Knerr asked about the town’s intention to pay off the remaining bond balance by 2030.
Saleh said the goal is to eliminate the remaining debt before the interest rate becomes adjustable to avoid additional interest expenses. Town staff plans to submit a separate request outlining a proposed payoff of the remaining balance.
The Gillises plan to develop the property in two phases. The first will include a professional office building and a retail building fronting Ocean City Boulevard.
Under the redevelopment agreement reached in April 2025, construction of the first phase must begin by the end of April 2027 and be completed by the end of October 2028. The developer has posted $50,000 in security, which the town may draw upon at a rate of $5,000 per month if the construction deadlines are missed.
The town previously received $500,000 from the Maryland Department of Housing and Community Development in 2021 to demolish unsafe portions of the former processing plant, creating a pathway for redevelopment.
While Parcel 57 has been sold, the town continues to own approximately 85% of the land acquired in 2016, including the walking path around the lagoons. Plans for those portions include a new skate park and Public Works facility.