Ocean City officials quash rumors of a liquor license for large hotel

Ocean City was founded by four Methodist ministers in 1879 as a “dry” town that bans the sale of alcohol – and 145 years later, some members of City Council are determined that it will remain that way.

Rumors have been swirling on social media that the city may “automatically” grant its very first liquor license if a large hotel is ever built.

Hoping to quash those rumors, Councilman Dave Winslow said they are “unfounded and clearly not supported by law.”

During a Council meeting Thursday night, Winslow brought up the speculative social media chatter while outlining the rigorous legal steps that would be needed for the city to issue a liquor license.

City Solicitor Dorothy McCrosson said City Council would have “exclusive jurisdiction” to decide whether to amend the law and approve a liquor license.

“To boil it down, there’s no automatic right for liquor licenses. There would be several hurdles someone would have to clear in order to get a liquor license for any purpose in Ocean City. It would be this body that would have exclusive jurisdiction to consider such an application,” McCrosson said at the Council meeting.

Winslow said he has been receiving many calls over the past several weeks from residents expressing concerns that a liquor license would “automatically” be issued if a hotel having at least 100 rooms is constructed on the Boardwalk.

He noted that local law has prohibited alcohol sales ever since Ocean City was founded. He said that would not necessarily change if a 100-room hotel or motel is built.

“Building a large hotel does not automatically entitle the owner of a hotel a license to sell alcohol in Ocean City,” he said.

    City Council holds "exclusive jurisdiction" to decide whether to approve a liquor license in town.
  

Winslow said City Council – not the mayor – would have to amend the law to approve a liquor license for a hotel owner. He made it clear he would be opposed to alcohol sales in town.

“I know I would never amend it. As long as I’m around, I would never vote to have alcohol in Ocean City,” he said.

Councilman Keith Hartzell joined with Winslow in expressing opposition to any alcohol sales.

“I am 100 percent against it – always have been, always will be. I don’t want it in a hundred years, 200 years,” Hartzell said.

Ocean City’s reputation as a dry town is a critical part of its image as a family-friendly vacation destination at the Jersey Shore. In 2012, voters overwhelmingly rejected a referendum that would have allowed restaurant patrons to bring their own wine or beer to enjoy with dinner.

McCrosson explained that most, if not all, of the properties in Ocean City have deed restrictions prohibiting alcohol sales, a further hindrance for the issuance of a liquor license.

“Another hurdle that I think would have to be addressed is that most, if not all, of the properties in Ocean City are deed-restricted against the sale of alcohol as well,” McCrosson told the Council members.

    The landmark Ferris wheel soars above Wonderland Pier.
  

There has been speculation on social media that a liquor license would be granted if a large hotel is built in place of Gillian’s Wonderland Pier after the Boardwalk amusement park closes down.

Mayor Jay Gillian, whose family had owned Wonderland Pier for decades, announced last month that the amusement park will shut down after the summer season because it is no longer a viable business. He has not yet announced the date.

Although Gillian operates Wonderland, the Boardwalk property at Sixth Street is now owned by Eustace Mita, the developer of the Icona brand of luxury resort hotels at the Cape May County shore. Mita invested in Wonderland in 2021 to save it from a sheriff’s sale after Gillian reportedly defaulted on $8 million in loans.

Last year, Mita unveiled plans for a $150 million boutique hotel on the Wonderland property. However, his plan fizzled out after failing to win support from the mayor and other elected officials.

Following Gillian’s announcement of Wonderland’s closing, Mita has stated that he will study his options for the property, but has not committed to any specific plans just yet.

Winslow, meanwhile, pointed out that a Boardwalk hotel would not be allowed under the city’s zoning laws – a further blow to the possibility of a liquor license being issued. The Boardwalk area between Sixth Street and 14th Street is zoned for retail stores, restaurants and amusements, not hotels, he said.

According to Winslow, any change in the Boardwalk zone to allow hotel development would have to be approved by City Council and the Zoning Board following a public hearing.

    Developer Eustace Mita addresses City Council in 2023 while unveiling his plans for a $150 million luxury hotel on the Ocean City Boardwalk.