Ocean City Hotel Opponents Call it a “Big Mistake”

Boardwalk hotel developer Eustace Mita has been methodically lining up support for his proposed luxury resort from Ocean City’s business community, but is also facing intense opposition from community groups at the same time.

A coalition of community groups has created the website Big Mistake as part of a grassroots campaign against the $150 million hotel project that would be built in place of the defunct Wonderland Pier amusement park on the Boardwalk at Sixth Street.

Up to this point, Mita has been portraying opposition to his project as being very limited. He has pointed to the endorsements he has received recently from the Ocean City Regional Chamber of Commerce, the Boardwalk Merchants Association and the Downtown Merchants Association as proof of the hotel’s widespread community support.

However, opponents insist Mita has grossly understated the backlash against the hotel. They released a statement Monday claiming that opposition has been swelling in the community and on social media.

“Representing thousands of citizens, residents, and regular vacationers, these groups argue that the project threatens the historic character, zoning integrity, and family-friendly culture that define Ocean City,” the statement said.

Jim Kelly, a local resident and one of the founders of the community-led advocacy group Ocean City 2050, said in the statement it is important “to recognize just how many Ocean City residents and organizations are firmly against the idea of a high-rise hotel on our historic Boardwalk.”

“While the developer Eustace Mita claims to have received endorsements from a few merchant associations, he offered these groups a false binary choice: his hotel or nothing. We submit that there are better alternatives that should be explored, which would more successfully serve our community and still be highly profitable. Even groups that Mita claims have ‘endorsed’ his resort have concerns,” Kelly said.

Kelly alluded to the conditions that the Chamber of Commerce attached to its endorsement of Mita’s project. The Chamber wants Mita to seek local input and build consensus for the project while acting as “a responsible neighbor and community partner.”

The Chamber also wants Mita to conduct a comprehensive traffic study to evaluate and address potential congestion and infrastructure impacts caused by a project of this magnitude.

"Following careful review and discussion, the Chamber's Board of Directors feels this project aligns with our mission and voted to support the project, contingent upon several key recommendations aimed at ensuring alignment with the character and values of the community," the Chamber said in a statement after endorsing the hotel project on May 22.

Perhaps the most intriguing recommendation is the Chamber's desire for Mita to donate Wonderland Pier's landmark 140-foot-tall Ferris wheel to the city "as a symbol of goodwill and legacy."

    The iconic 140-foot-tall Ferris wheel and other Wonderland rides sit silently behind a locked gate now.
  

In a nod to Wonderland, Mita has announced plans to incorporate the former amusement park's most iconic rides in the hotel project, including the Ferris wheel that towers over the Boardwalk, the historic carousel and the Wet Boats kiddie ride. The hotel would be called “ICONA in Wonderland,” using the name of Mita’s company of ICONA luxury resorts at the Jersey Shore.

Mita is the owner of the Wonderland property. He invested in Wonderland Pier in 2021 to save the financially troubled amusement park from a sheriff's auction after Mayor Jay Gillian defaulted on an $8 million mortgage.

The Gillian family had operated Wonderland for nearly 60 years. Despite Wonderland's rich history and traditions, Jay Gillian closed the park on Oct. 13 amid its financial struggles.

Mita is planning to ask City Council in July to declare the former Wonderland Pier site "in need of redevelopment" – a move that would bypass local zoning laws and allow the hotel to be built in an area of the Boardwalk that currently allows only retail shops, restaurants and amusements.

Bill Merritt, president of Friends of OCNJ History & Culture, another hotel opposition group, warned that a zoning change to allow hotel construction could lead to widespread redevelopment of the Boardwalk.

“Changing this zoning risks the remainder of the Boardwalk following suit, and we could lose a huge part of the charm and draw that makes our city so special,” Merritt said in the statement Monday. “The redevelopment of Wonderland should be shaped by a process that is respectful, inclusive, and rooted in the values that make this town special.”

Helen Struckmann, a member of the organization Save Wonderland, characterized it as a fight for Ocean City’s “soul.” She is worried that the Boardwalk’s rezoning for Mita’s project would open the door for high-rise condo development.

“This hotel proposal could easily be the Trojan horse that replaces our family-focused attractions with high-priced condos. With the changing landscape, we could no longer legitimately hold the title ‘America’s Greatest Family Resort,’” Struckmann said.

    Bill Merritt, president of the community group Friends of OCNJ History & Culture, has been addressing City Council for months about the future of the Wonderland Pier property.
  

In addition to Ocean City 2050, Friends of OCNJ History & Culture and Save Wonderland, other members of the coalition opposing the hotel are the Ocean City Old Home Lovers Group, the Plaza Place Civic Association, the Beach Watch Association and the Glen Cove Concerned Citizens.

“The host of community voices behind the discussion all agree that the former Wonderland property is too important for rushed decisions and private deals. Together, they call on city officials, planners, and developers to pursue a path that reflects the shared values of the Ocean City community: transparency, tradition, and thoughtful planning,” the statement said.

Mita said he hopes to begin construction on the hotel in September or October, if he is able to win city approvals. His proposed 252-room hotel would take about 24 months to build. Amenities would include 10 to 12 retail shops clustered within a stylish promenade overlooking the Boardwalk. There would also be 375 parking spaces tucked underneath the building.

Richard Barth, of the Ocean City Old Home Lovers Group, believes that a large hotel could overwhelm the surrounding historic neighborhoods.

“The project as proposed will not only negatively impact the Boardwalk but will have an adverse impact on the neighboring historic communities,” Barth said in the statement. “With a positive dialogue, we can do better as a community.”