Ocean City Won't Pursue Purchase Of Tennessee Avenue Property

OCEAN CITY, NJ — Ocean City will no longer pursue purchase of a property in the Ocean Reef Club Condominiums.

The city has decided not to purchase the property at 50 Tennessee Avenue following a due diligence period, Ocean City Business Administrator confirmed Friday morning. He made the announcement during his Manager's Report at Thursday night's council meeting.

"We have completed our due diligence associated with the potential purchase of 50 Tennessee Avenue," Mallon said. "Based upon the findings, communications with various concerned parties, the number of priorities we are assessing island-wide, and the totality of all of these circumstances, the mayor has elected not to move forward with the purchase of this property. We have notified the seller and the president of the condo association of this decision."

"We are balancing a lot of other priorities, and trying to redevelop this property at this time would not be the most effective use of taxpayer dollars," Mayor Jay Gillian said in his weekly update on Friday. "As always, we will continue to keep an eye out for good opportunities to acquire land for public use or open space."

During the due diligence period, the city examined the property for structural integrity and other factors.
Last month, Ocean City Council approved a proposed ordinance to set aside $700,000 and borrow $665,000 in bonds or notes for the acquisition of the property. Councilmen Keith Hartzell and Bob Barr voted against the proposal.

The ordinance put the funding in place for the project, but the city never said publicly what the intended use was. Gillian previously said the city didn’t want to say it was going to be used for something prematurely. The city would’ve had public meetings on the purchase if it had decided to move forward. Members of council also said they would hold a meeting at the condominium, where there were questions as to whether the city would pay the association fees.

The two-story building is located next to city property and the bay, in a location described by city officials as "strategic" and a "unique opportunity." There is a boat ramp that would give the public access to the bay in that area if the city decides to purchase it.

It was built in 1962, and is currently owned by Kathleen Hendrickson, of Vero Beach, Florida. Her parents owned the property, but her father died in 2008 and her mother died in 2012, according to Ocean City Solicitor Dorothy McCrosson.

See related: Questions Surrounding Ocean City Interest In Tennessee Avenue Property Linger

Patch file photo