Groups Sue Ocean City Over Wonderland Redevelopment Designation

OCEAN CITY, NJ — Several Ocean City groups filed a lawsuit Monday arguing that the designation of the former Gillian's Wonderland Pier site as an area in need of rehabilitation should be voided.

The lawsuit, filed by Plaza Place Civic Association, Beach Watch Motel Condominium Association, Ocean City 2050 and Fairness in Taxes, argues that the decision to name Wonderland an area in need of rehabilitation was tainted due to multiple conflicts of interest and did not satisfy the legal requirements.

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"The City's actions under review herein have severed the public's trust in the City's government," the lawsuit reads.

The property was officially named an area in need of rehabilitation on June 25.

That designation was sought as local developer Eustace Mita hopes to build a 252-room luxury hotel on the property called ICONA in Wonderland.

However, the lawsuit argues that the city did not give evidence as to why the rehabilitation designation was needed.

Additionally, Mayor Jay Gillian, the former owner of Wonderland, has multiple conflicts of interest and should have recused himself from Wonderland discussions, the lawsuit claims.

City Council recently voted to delay adopting a report that outlines the next steps of redeveloping the Boardwalk, including Wonderland. Read more: Boardwalk Redevelopment Report Delayed By Ocean City Council

"Council's Wonderland rehabilitation designation is deeply flawed and seeks to improperly strip away important planning protections that residents have long relied upon, including safeguards against spot zoning, requirements for consistency with the City's Master Plan, and the ability to formally protest certain zoning changes," said Jack Gutenkunst of Plaza Place Civic Association. "Without these protections, the City could authorize a hotel of any size or shape, and citizens would have little or no ability to stop it, despite the adverse impact it may have on their neighborhoods."

"Public officials have a duty to act solely in the public interest," said Bill Merritt of Ocean City 2050. "Residents have every right to expect that major land use decisions are driven by sound planning and the public good, not by financial relationships or predetermined outcomes. By asking to have the rehabilitation determination voided, this lawsuit seeks to safeguard lawful rights and protections, while ensuring that the government operates transparently and free from financial and ethical conflicts."