City Council to consider key vote for proposed Boardwalk hotel site

City Council will consider a critical first step in the development of a proposed $150 million luxury resort hotel on the Ocean City Boardwalk in place of the former Wonderland Pier amusement park.

During its Aug. 21 meeting, Council may vote on a resolution that would ask the city’s planning board to consider declaring the former Wonderland site as “an area in need of rehabilitation.”

The meeting is open to the public and is scheduled to begin at 6 p.m. in Council Chambers on the third floor of City Hall.

Hotel developer Eustace Mita wants the city to designate the Wonderland property, which he owns, in need of rehabilitation to fast track the zoning and planning approvals for his proposed 252-room project.

Mita had previously said that he planned to make a presentation to Council at the Aug. 21 meeting, but it turns out that will not happen, the city emphasized in a statement Thursday.

“City Council will not discuss or consider approval of any development for this site at this meeting. No presentation is planned for this meeting,” the statement said.

If Council approves the resolution, it would be the first step in a process that could ultimately lead to Mita developing his luxury resort in an area of the Boardwalk that currently allows only retail shops, restaurants and amusements – not hotels.

The resolution would ask the planning board for its recommendation on whether the former Wonderland site should be designated as an area in need of rehabilitation.

The planning board would have 45 days in which to make its recommendation.

City Council, in turn, may accept or deny the planning board’s recommendation or modify it, according to City Solicitor Dorothy McCrosson.

“Designation as an Area in Need of Rehabilitation would not change the zoning standards for the property, or result in any development approvals for the site, or be based upon any specific project proposed to be constructed in the future. Any project to be developed on this site would still require Planning Board or Zoning Board approval; and the designation would be based upon the current condition of the property,” the city said in its statement.

Designation of the former Wonderland site as an area in need of rehabilitation, if granted, would allow Ocean City to negotiate directly with Mita for a redevelopment agreement. Council would have to approve an ordinance for a formal redevelopment plan and an agreement with Mita to move the project along.

    A chain-link fence blocks access to the Seaspray condos while they remain closed.
  

At its Aug. 7 meeting, Council began the same process for possibly designating the blighted Seaspray Condominiums as an area in need of rehabilitation. The condo complex, at the corner of Bay Avenue and 34th Street, has been shut down for more than a year after being declared structurally unsafe.

The HOW Group, a property management and real estate company based in Conshohocken, Pa., is under contract to buy the Seaspray site for an undisclosed price. The HOW Group has asked the city to declare the property in need of rehabilitation so that it can begin planning for a new 43-unit condo complex in place of the Seaspray.

Mita, meanwhile, has been methodically lining up support for his proposed hotel from Ocean City’s business community, including the Ocean City Regional Chamber of Commerce, the Boardwalk Merchants Association and the Downtown Business Association.

At the same time, the project has faced serious opposition from community groups that believe the hotel would be too big, would overwhelm the surrounding neighborhoods and would not fit in with the Boardwalk’s family-friendly atmosphere.

One group, called Ocean City 2050, has proposed a competing plan, called “Wonderland Commons,” that would feature a smaller, more compact amusement park, a digital entertainment center, public attractions such as a band shell for live music, and a low-rise boutique hotel.

Mita owns the ICONA brand of upscale resort hotels at the Jersey Shore, including Avalon, Cape May and the Diamond Beach section of Lower Township. He plans to call the Ocean City hotel “ICONA in Wonderland” in a nod to the former amusement park.

Amenities for the hotel would include 10 to 12 retail shops clustered within a stylish promenade overlooking the Boardwalk. There would also be 375 parking spaces tucked underneath the building.

ICONA Resorts recently launched an online petition drive to build public support for the hotel project – just as City Council prepares to consider the resolution that would ask the planning board’s recommendation on whether the Wonderland property should be designated in need of rehabilitation.

“At ICONA, our dream has always been to create spaces that bring beauty, community, and cherished memories to the shore. Today, we’re inviting you to help us shape the next chapter: ICONA Ocean City. We believe this project will enhance the charm and vibrancy of Ocean City, offering a place where families can gather, friendships can grow, and life’s simple joys can be celebrated,” the petition says.

Mita bought the Wonderland Pier property in 2021 after the former owner, Mayor Jay Gillian, defaulted on an $8 million mortgage and was facing a sheriff’s sale.

Gillian continued to operate the iconic amusement park, but finally closed it down for good in October 2024 after struggling for years with financial difficulties.

    The former Wonderland Pier facade overlooks the Boardwalk at Sixth Street.