The City of Ocean City is expected to close a $1.75 million deal within two weeks on the purchase of vacant land along the Ocean City Boardwalk at 19th Street.
The acquisition will block construction of a 5,740-square-foot luxury home that had been planned for the property, and the open space will be protected from development in perpetuity.
The city will facilitate the deal but be responsible for only $200,000 of the cost. About eight neighbors of the property will pool together to pay $1,250,000 of the $1,750,000 purchase price. Another $300,000 would come from an anticipated state Green Acres grant. The balance will come from the city’s capital improvement funds.
In a deal approved in August 2014, City Council approved measures that appropriated the money to complete the deal and approved the borrowing of $500,000. The neighbors will reimburse the city, and the Green Acres funding is not anticipated until after settlement of the deal.
The agreement centers on a unique stretch of undeveloped land along the Ocean City Boardwalk between 19th and 20th streets. The three lots are on the west side of the boardwalk, but the properties also include riparian right on the east (ocean) side.
Helen and Charles Schilling bought the three beachfront lots there in 1953 for $14,000 and never made any effort to develop them. The Schillings owned Shriver’s Salt Water Taffy, the Strand and Moorlyn theaters, parking lots and other properties on and off the Boardwalk.
Charles Schilling died in 1980 and Helen passed away in 1998. The couple had no children and no heirs, and the beneficiaries of her estate include Shore Memorial Hospital, Abington Hospital and the Ocean City Tabernacle.
Most of the Schilling estate was sold within two or three years with the proceeds going to the charities. But the beachfront properties remained.
The city offered $15,000 apiece for the lots in 2001. A group of neighbors later offered the estate $700,000 (and reportedly later an even higher price). But the offers were turned down. The representatives of the estate instead wanted to build a luxury home on the land and sell it for a higher price.
The state Department of Environmental Protection initially denied permission for the proposed project but later changed its mind after the estate sued.
The state approved a Coastal Area Facilities Review Act (CAFRA) application that authorizes a two-story single family home of 5,740 square feet with a footprint of 2,870 square feet and a pool and detached garage.
The city joined the neighbors in a legal appeal of the state’s decision.
“The state pulled a fast one and dumped it in our laps,” Councilman Keith Hartzell said last summer. “If we fought it, our legal bills would have been $200,000.”
The deal would end a controversy that has been going on since 2008.
“This is a good deal for everybody,” said Richard Hluchan, attorney for the Schilling estate.
He said the purchase is “definitely on track” to settle next week after some work since the summer to “dot some I’s and cross some T’s.”
“It’s a win for everybody,” said Pat Juliano, whose family owns one of the neighboring properties. “It puts the whole thing to rest. It’s open space, so everybody can enjoy it.”
Juliano credited other neighbors, including Alex Maggitti, with spearheading the effort to preserve the property.
Mike Dattilo, assistant to Mayor Jay Gillian and former business administrator, had reported to City Council last Thursday that the settlement would come within a few weeks.
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