'Coastal Cottages' Back on City Council Agenda for a Vote Thursday

OCNJ Daily

By Donald Wittkowski City Council will take another stab at a long-delayed ordinance that would remove a controversial type of housing called "coastal cottages" from a redevelopment zone in the center of town. Since introducing the measure in February, Council has debated whether to give it final approval, modify it or scrap it entirely and replace it with a new version. The ordinance was up for a vote two weeks ago, but Council tabled it instead for further discussion. Barring another last-minute delay, the measure will come before Council for a public hearing and final vote at its meeting 7 p.m. Thursday. Councilwoman Karen Bergman hinted at a possible compromise at the last meeting by suggesting that the extra two weeks could be used to craft a revised ordinance that would "make sense." The proposed ordinance has prompted a lawsuit by a former councilman-turned-builder who wants to develop two coastal cottage projects on property he owns. John Flood, an Ocean City councilman from 1988 to 1996, has filed litigation alleging that the ordinance constitutes what he calls "illegal spot zoning." Flood appeared at Council’s last meeting to urge the governing body to kill the measure. In addition to his suit, Flood has filed a petition with the City Clerk's Office that also opposes the ordinance. Flood owns the property where the Ocean City Chevrolet dealership is located at Haven Avenue and 16th Street. He wants to build a coastal cottage project there when the dealership's lease expires in four and a half years. He also owns an adjacent piece of property that he hopes to transform into a coastal cottage development. Flood has called on Council members Keith Hartzell and Tony Wilson to recuse themselves from voting on the ordinance because of alleged conflicts of interest. Hartzell said he owns two small pieces of property in the redevelopment zone, while Wilson's plumbing and heating company is located there. At Council's last meeting, Wilson recused himself during the vote to table the ordinance. Hartzell, Council's president, voted but told reporters after the meeting that he has consulted with an attorney to determine if he has a conflict of interest. The ordinance would revoke coastal cottages from a redevelopment zone concentrated along Haven Avenue roughly between Sixth and 14th streets in the center of town. Known as the Drive-in Business Zone, it is need of revitalization. The ordinance would grandfather in cottage projects that are underway or have already received city approval. Costeria Cottages, an 18-home development on Haven Avenue between 12th and 13th streets, is currently the only project under construction. Council approved the concept of coastal cottages in 2013 as a way to attract more year-round residents to town. The cottages were conceived then as smaller, more affordable housing that would appeal to young families looking to buy their first home. However, Costeria Cottages went on the market in late 2014 with sales prices ranging from $499,900 to $649,900. The average home assessment in Ocean City is about $500,000. Council members and Mayor Jay Gillian have called for "a pause" on coastal cottages to study their potential impact on surrounding neighborhoods and whether their construction requirements should be tweaked. Some members of the public appeared before Council two weeks ago to complain that the Costeria Cottages are too large and expensive and are out of character with the neighborhood. A local contractor who is building Costeria Cottages argued, though, that the project blends in with the neighborhood and accomplishes the goal of providing attractive, affordable housing. "I thought it was such a great idea to bring this town back with single-family homes," builder Carmen Costanza told Council. Coastal cottages originally were envisioned as a new housing option in a town that has seen its year-round population fall as high-priced duplexes get purchased by investors and wealthy summer residents.