Mayor Promises City Will "Painstakingly" Review Proposed Boardwalk Hotel

Mayor Jay Gillian gave assurances Thursday that the proposed “ICONA in Wonderland” luxury resort hotel on the Boardwalk will go through a rigorous and transparent review process involving the community every step of the way.

Speaking during a City Council meeting, Gillian stressed that it would be a serious mistake for anyone to think that the $135 million to $155 million project by hotel developer Eustace Mita will not be “painstakingly” scrutinized by the city.

“Don’t think this is a done deal. He’s got a long track ahead of him,” Gillian said of Mita. “He knows that, and he’s going to do a lot of studies. We’re going to get all of the information. Whatever happens, it will be a community agreement.”

While promising a long review process, Gillian bluntly said, “Nobody’s going to get away with anything.”

“Everything we do here, we do painstakingly. We take our time. Nobody’s going to take advantage of us,” he said, noting that City Council will also be closely involved with reviewing the project.

The proposed 250-room upscale hotel has been a flashpoint of controversy in the community ever since Mita unveiled his plans last month to redevelop the shuttered Wonderland Pier property overlooking the Boardwalk at Sixth Street.

Opponents have responded by arguing that the project would harm the surrounding residential neighborhoods and would do little to stimulate extra business along the Boardwalk. They also object to Mita’s request to have the city declare the property “in need of redevelopment” to allow the hotel to be built on the Boardwalk and speed up the zoning process.

Mita has made two public presentations on the project so far, including one attended by more than 100 residents on Wednesday night, to tout the hotel’s economic benefits for the city’s tourism market and tax base.

“People will come just to see the hotel,” he said of what he believes will be the project’s broad economic advantages for the city and Boardwalk.

    Mayor Jay Gillian vows that city officials will scrutinize the hotel project with the public's help before making any decisions.
  

Mita, the owner of the ICONA brand of luxury resorts at the Jersey Shore, invested in Wonderland Pier in 2021 to save it from a sheriff’s auction after Gillian defaulted on an $8 million mortgage for the amusement park. Gillian and his family had operated Wonderland for nearly 60 years, but the mayor closed the landmark amusement park for good on Oct. 13 following years of financial struggles.

Gillian apologized to the audience during the Council meeting for Wonderland’s failure. As painful as it was for him to close Wonderland, he said he believes it is time to move on and focus on the future of the property.

“To me, I’m looking forward. I know whatever happens in Ocean City is going to be spectacular. But we have a lot of challenges,” he said.

Gillian also strongly disputed suggestions by hotel opponents that he might benefit financially from the project because of his business ties to Mita during Wonderland’s operation.

“Am I going to benefit from this? I’m going to tell you right now, I’m not benefiting from anything.  I wish I was. If I was as smart as everybody thinks I am, I’d be a billionaire.  But that’s not what happened,” Gillian said at the Council meeting.

During Mita’s presentation Wednesday night, one opponent pointedly asked Mita whether Gillian would benefit financially if the hotel is approved by the city.

Clearly angered by the question, Mita paused for a few seconds to collect himself before giving an answer.

“The mayor has zero gain,” Mita said. “The mayor has gone through hell for this city.”

    Eustace Mita makes a presentation on his hotel project while standing in front of a rendering.
  

As he has done before, Mita said he would be willing to sell the property, if the right price came along, to let someone else assume the responsibility of redeveloping it.

“If someone wants to buy it, I would absolutely sell it tomorrow,” he said.

He didn’t disclose an exact price, but explained that the property has been appraised at $25 million and that he has spent more than $1 million annually to own it since 2021.

Some hotel opponents have suggested that the city should acquire the property through its power of eminent domain and allow it to be developed into a modern amusement park. Gillian, though, made it clear he wouldn’t be interested in using taxpayer money to pay Mita for the site.

“I just hope that we can all keep our cool and just understand that there’s a process,” Gillian said. “And again, it’s private property. That’s the one sucky part about this. People talk about the city coming in and taking it. Do you want to spend $20-$25 million of taxpayers’ money? Sometimes, the government can’t fix everything.”

Gillian said he appreciates the passion that residents have shown in response to the project, but urged the community to “just take a breath and not attack and not come up with just B.S. reasons” to cast doubt on the city’s review process.

“So, this is very transparent, and it will continue to be. The people that don’t think it is, they’re not listening, they’re not paying attention, and are really being disingenuous about the way the system works here in Ocean City,” he said.

Mita plans to call the hotel “ICONA in Wonderland” in honor of the amusement park’s rich history in Ocean City. He also wants to incorporate some of Wonderland’s most iconic rides, including the Ferris wheel and a historic carousel, in the hotel’s design to keep them on the property.

Gillian, though, said the shore’s salty air has taken a toll on the Ferris wheel over the years. He believes Mita should buy a new Ferris wheel instead of spending millions of dollars to refurbish the old one.

The carousel is working, but it is a century old and will need to be refurbished because of all the wear and tear, Gillian explained.

“It’s a hundred years old this year. You think of how many kids and families have been on that. I can tell you, it needs a lot of work,” he said.

    The historic Wonderland carousel will be incorporated in the hotel project to save it.