Ocean City OKs Purchase of Vacant Schilling Lots at 19th Street and Boarwalk

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Courtesy Madrax

The Schilling estate property lies between the Boardwalk and Wesley Avenue homes near 19th Street in Ocean City, NJ. City Council voted unanimously Thursday night to contribute $200,000 to an effort to block construction of a 5,740-square-foot luxury home on vacant land adjacent to the Ocean City Boardwalk at 19th Street. Council approved a resolution authorizing the purchase of the Schilling Estate’s property at 19th Street and the boardwalk. The purchase price of the property will be $1,750,000. Eight neighbors of the property will pool together to pay $1,250,000. Another $300,000 would come from an anticipated state Green Acres grant. The balance of $200,000 will come from the city’s capital improvement funds. When the deal is complete, the City of Ocean City will own the property and it will be protected from development in perpetuity. City Council also approved the first reading of a related ordinance that appropriates $1.75 million to complete the deal and approves the borrowing of $500,000. The neighbors would reimburse the city, and the Green Acres funding is not anticipated until after settlement of the deal. A public hearing and second reading of the ordinance is scheduled for Aug. 28. The resolution focuses 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. 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. "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. "It saves us from another six years of litigation," Councilman Pete Madden said.

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