Questions Surrounding Ocean City Interest In Tennessee Avenue Property Linger

OCEAN CITY, NJ — The due diligence period related to the possible purchase of a property in the Ocean Reef Club Condominiums will likely be extended as Ocean City officials await documentation, City Solicitor Dorothy McCrosson said Tuesday night.

McCrosson said the city won’t have all the information it needs before the due diligence period is set to expire later this month as it relates to the city’s interest in purchasing 50 Tennessee Avenue. During the due diligence period, the property is examined for structural integrity and other factors.

If the city is satisfied with the results of the survey, it can move forward with the purchase of the property. If not, the process will end. The property is on the market for $950,000.

Earlier this month, council approved a proposed ordinance to set aside $700,000 and borrow $665,000 in bonds or notes for the acquisition of 50 Tennessee Avenue with a 5-2 vote. Councilmen Bob Barr and Keith Hartzell cast the dissenting votes.

No action on the project was taken during Tuesday night’s meeting, but there was plenty of discussion, as questions remain over what the city will use the property for should it be acquired.

At Tuesday night’s council meeting, Hartzell said he measured the property out and said it appeared that it could be converted into a single-family home or duplex, if so desired.

McCrosson said converting the property into a home would be difficult because it is part of the condominium and there is a lack of street frontage. She also said converting it would require variances from the planning board because of the way it is zoned.

She also said the Ocean Reef Condominium Association has opinions on what the building should be used for, and believes it would be best used for commercial purposes. Hartzell said he looked into it in an effort to see what the property could be used for.

“The reason we’re moving so fast on this is because we were concerned about someone else buying it, so I was just wondering what could actually be done there,” Hartzell said.

He said that from what he found, he believes the city would be the only one interested in purchasing the property, and that would also have an impact on what it should pay for it.

Mayor Jay Gillian previously said the city wants to move forward with the purchase of the property because he doesn't want to see it go to a developer or deteriorate the way the Ninth Street gas stations did.

On Tuesday night, Hartzell said he looked at three deeds for the property and couldn’t find any indication the the nearby dock is part of the property and would come with the sale.

City officials have touted the location as “strategic” and a “unique opportunity,” citing the nearby boat dock as giving the public access to the bay in that area if the city decides to purchase it. They have also mentioned the possibility of using one story of the two-story structure for office space.

One resident who spoke during the public comment portion pointed out that numerous questions about the project remain unanswered, including whether or not the city will pay the condominium association fees. If it doesn’t, the fees will go up for the over 180 condo residents.

The property was built in 1962. It 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.

Patch file photo