Ocean City's Planning Board Hands Hotel Project a Major Blow by Rejecting Zoning Designation
In a vote that will likely put the future of a proposed luxury hotel in Ocean City on hold, the city's planning board rejected a measure to clear the way for the project at the former Gillian's Wonderland Pier site. The decision came after hours of public debate and consideration from residents, business owners, and developers.
The proposal had been championed by Icona Resorts CEO Eustace Mita, who purchased the debt-ridden property in 2021 with plans to build a 252-room hotel at Sixth Street on the north end of the boardwalk. The site is currently zoned for recreational use only, with no permit allowing new hotel construction.
Mita had lobbied for the property to be designated as an area in need of rehabilitation, a designation that would allow him to bypass traditional zoning processes and potentially pave the way for the project's approval. However, after hearing from experts and stakeholders on Wednesday night, the planning board voted 4-4 on whether the site met the necessary criteria.
The decision is a significant setback for Mita and his team, who had been racing against time to secure funding for the hotel project before the end of the year. The property's value was recently estimated to be in excess of $25 million, with bids from developers expected to come in during the next few months.
Despite the planning board's rejection, City Council Vice President Pete Madden expressed confidence that the designation would still ultimately be approved, citing the need for a more collaborative approach to redeveloping the property. "It allows the owner of the property, as well as the city, to negotiate something that's in everybody's best interest or come to an agreement that no, we don't agree with what you want to do," Madden said.
However, others in Ocean City are opposing the hotel project outright, citing concerns over its impact on the boardwalk and local residents. "The evidence wasn't there," said Bill Merritt of citizens group Ocean City 2050. "I think there was concern expressed by the planning board, and rightfully so, that some of the things (the developer was) claiming should be counting toward this rehabilitation calculation were not appropriate."
With the fate of the hotel project hanging in the balance, Ocean City's residents will have to wait and see what city council decides next. One thing is certain, however: the process has been far from straightforward, with multiple stakeholders weighing in on both sides of the debate.
In a vote that will likely put the future of a proposed luxury hotel in Ocean City on hold, the city's planning board rejected a measure to clear the way for the project at the former Gillian's Wonderland Pier site. The decision came after hours of public debate and consideration from residents, business owners, and developers.
The proposal had been championed by Icona Resorts CEO Eustace Mita, who purchased the debt-ridden property in 2021 with plans to build a 252-room hotel at Sixth Street on the north end of the boardwalk. The site is currently zoned for recreational use only, with no permit allowing new hotel construction.
Mita had lobbied for the property to be designated as an area in need of rehabilitation, a designation that would allow him to bypass traditional zoning processes and potentially pave the way for the project's approval. However, after hearing from experts and stakeholders on Wednesday night, the planning board voted 4-4 on whether the site met the necessary criteria.
The decision is a significant setback for Mita and his team, who had been racing against time to secure funding for the hotel project before the end of the year. The property's value was recently estimated to be in excess of $25 million, with bids from developers expected to come in during the next few months.
Despite the planning board's rejection, City Council Vice President Pete Madden expressed confidence that the designation would still ultimately be approved, citing the need for a more collaborative approach to redeveloping the property. "It allows the owner of the property, as well as the city, to negotiate something that's in everybody's best interest or come to an agreement that no, we don't agree with what you want to do," Madden said.
However, others in Ocean City are opposing the hotel project outright, citing concerns over its impact on the boardwalk and local residents. "The evidence wasn't there," said Bill Merritt of citizens group Ocean City 2050. "I think there was concern expressed by the planning board, and rightfully so, that some of the things (the developer was) claiming should be counting toward this rehabilitation calculation were not appropriate."
With the fate of the hotel project hanging in the balance, Ocean City's residents will have to wait and see what city council decides next. One thing is certain, however: the process has been far from straightforward, with multiple stakeholders weighing in on both sides of the debate.
I'm not surprised by this decision at all...I mean, it's Ocean City we're talking about 
. The planning board needs to make sure they're doing what's best for the community and not just lining some developer's pockets 
. Don't get me wrong, a luxury hotel could be nice and all, but we need to think about the bigger picture here 
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. I know he wants what's best for Ocean City, but the way he phrased it comes across as a bit too "let's just make an exception" 
. And Bill Merritt makes some valid points about not having enough evidence to back up those rehabilitation claims 
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. This is just another example of how complex things can get when you're trying to balance progress with preservation 
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. Like, can't they just make a decision already? The planning board's vote was super sketchy, and I don't think it's right that Mita is trying to bypass all these zoning rules. It's like, he wants to build his fancy hotel on the waterfront without even having a permit 
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. I mean, can't we just have a simple, straightforward process for these things?
it's like the city is just throwing a wrench into their plans... but at the same time i get why some ppl are concerned about the impact on the boardwalk and local residents 
maybe city council can find a way to make it work for everyone? 
. I mean, the developer's trying to swoop in and build a fancy hotel without having to deal with all the boring zoning regulations 
? It sounds like he's just trying to get out of paying his fair share of taxes 
. The city council needs to step up and make sure that this project is done right for everyone involved 
but i guess you can't just rush into something without considering all the implications... like, what about the impact on the boardwalk and local businesses? that's some important stuff. 
And I get where the concerns are about preserving the boardwalk vibe, but can't we just find ways to make it work? Maybe a hotel that's designed with sustainability and community involvement in mind would be a win-win? 
The fact that Pete Madden is saying it's about finding a "collaborative approach" seems like just code for "we'll let you do what you want, but we'll make sure the city gets some benefits too". 
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. While the hotel project could bring in some much-needed revenue, it's also clear that there are concerns about its impact on the boardwalk and local residents 
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. What do you think would be a better use of that $25 million property? Should it stay as is or find another developer who's willing to work with Ocean City residents? 
. I mean, you've got a developer who wants to build this luxury hotel and then suddenly it's a major blow to his plans because the planning board rejected the zoning designation 
. Can we just get to the bottom line already? 
. and now hes all stressed out cuz he needs funding for this thing by end of the year 
. its not like mita just went around telling everyone how great his hotel would be without listening to anyone else's concerns 
