By Tara Fischer

Staff Writer

Touch of Italy will take over the Ocean Pines Association’s food and beverage services at the Yacht Club, the Beach Club in Ocean City, and the Clubhouse Bar and Grille earlier than originally planned.

Instead of assuming control of the operations on May 1, after the agreement with the previous vendor, Matt Ortt Companies, expires, Touch of Italy will take over at the beginning of next week.

News of the accelerated schedule came in a press release last week from Josh Davis, OPA’s director of public relations and marketing.

The restaurant group was named the association’s food and beverage operator in January. Founded in 2010 by Bob Ciprietti, the company owns and operates Italian restaurants in Ocean City, Rehoboth Beach and Lewes, Delaware, along with the Sunset Island Bar and Grille in Ocean City, and Royal Prime Steakhouse at Bally’s in Dover, Delaware.

Association officials later revealed at a town hall session that Ortt would remain in charge until its contract’s expiration on April 30.

As it stands now, Ortt and Touch of Italy will work together to create a smooth handoff of leadership, and the introduction of Touch of Italy’s yacht club menu, which will include chicken, fish, lobster rolls, burgers, fajitas, egg rolls, and Italian options.

Representatives of Touch of Italy were quoted in the press release thanking Matt Ortt for “this generous and gracious gesture of mutual respect to help Ocean Pines and Touch of Italy have extra time to prepare for a successful launch of operations.”

“We are excited to have the opportunity to serve the Ocean Pines community and continue offering great dining experiences,” the Touch of Italy representatives continued.

Touch of Italy and OPA officials inked their five-year operating agreement on Jan. 8. Later that month, residents, restaurant group officials and OPA representatives gathered at the neighborhood’s community center to discuss what to expect from the new operator.

“Ocean Pines will become our landlord,” Ciprietti said at the January town hall. “I have signed a personal guarantee on that lease, which means that if I don’t live up to my obligations, you have recourse to come after me for the rent. I believe right now, since we signed that, you will always be in the black at this point.”

Per the agreement, the restaurant group will pay OPA rent equal to the combined depreciation of the food and beverage facilities. This amount will increase by 3% annually. OPA General Manager John Viola said the association will also receive 6.5% of the operation’s gross, non-alcohol revenue.

“The depreciation of the food and beverage facilities is about $384,000 a year,” Rick Lawrence, the restaurant group’s financial manager said in January. “That is a minimum return that Ocean Pines is guaranteed now with the lease arrangement they made.

 “On top of that,” he continued, “so that the community actually is benefitting from the food and beverage operations, they get what is known as a rent-kicker, and they participate in a percentage of the adjusted gross.”

The contract confirms that Touch of Italy will be responsible for most replacement and maintenance expenses. The new food and beverage operator will bear the cost if equipment breaks in the first few years of its useful life. However, OPA may take on repair burdens if a device breaks down around when expected, per its lifespan. Furthermore, any potential facility changes by the new operators require approval from Ocean Pines leadership.

“If [the restaurant company] wants to make any changes, everything has to be approved by the Ocean Pines management and the board,” Viola said at the town hall. “If there is anything they want to do to the buildings, we own the buildings, and they are renting … they have to get approval from the Ocean Pines management team and the board depending on what they are going to do.”

The Ortt Companies, meanwhile, are expanding their offerings in Ocean City. They already operate Coastal Salt and the Ocean City Rum Shack on the 16th Street Boardwalk and are taking over the Tony’s Pizza property on the Boardwalk and North Division Street.

The arrival of Ortt in Ocean Pines in March 2018 had a significant impact on the association’s restaurants, which had been doing poorly. The Ortt operation turned the struggling venues around and made them profitable.

That success led the board and Ortt to agree to a five-year extension in 2020 with a $200,000 management fee per year plus 50% of the profits if goals were reached minus depreciation expenses for the buildings.

Although Ortt could have pushed through until the April 30 expiration of its agreement with the OPA, Ortt agreed to step aside early to allow Touch of Italy to establish itself in time for the spring and summer seasons.

“I would like to thank the association, including the general manager and management team, board of directors, and especially the residents who have supported us over the last seven years,” Ortt said in last week’s announcement.

Viola echoed Ortt’s sentiments: “Thank you to Matt Ortt for his service to Ocean Pines and his coordination during this process. We wish his company the best in their future endeavors.”

The switch to a new vendor has been received well by Ocean Pines citizens.

On Facebook, resident Mark Thomas wrote, “Great job getting the new guy in place before the summer starts. Going to miss MOC, but good things come to an end.”

Joe Reynolds, an OPA homeowner and the moderator of a neighborhood forum, also expressed a positive outlook on the decision to move up Touch of Italy’s start date.

“All in all, this looks like the best decision for all involved,” he said.