Boardwalk hotel looms large in Ocean City Council race

Four candidates are running for City Council in an election dominated by debate over a proposed luxury hotel on the Boardwalk in place of the former Wonderland Pier amusement park.

Incumbents Tony Polcini and Sean Barnes, current Board of Education member Jocelyn Palaganas and political newcomer Jim Kelly are seeking the three at-large Council seats in Tuesday’s municipal election.

The Council race has been overshadowed somewhat by the high-profile battle for mayor in the election, but is consequential in its own right. As the city’s legislative body, Council would make the critical zoning and planning decisions that would either allow the Boardwalk hotel to move forward or stop it altogether.

Developer Eustace Mita, the owner of the former Wonderland Pier property at Sixth Street and the Boardwalk, has proposed building a high-end, 252-room hotel. The estimated $150 million project remains in limbo amid disagreement over the hotel’s possible impacts – positive and negative – on the Boardwalk, the surrounding neighborhoods and the local economy.

OCNJDaily.com interviewed the Council candidates to get their views of the hotel project and what they regard as other key issues facing Ocean City leading up to the election. They appear in alphabetical order.

Sean Barnes:

Sean Barnes has served on Council since 2024. He won a special election in 2024 to fill the remaining four-year term of former Councilwoman Karen Bergman, who resigned from the governing body in 2024 to become a supervisor at the city’s Howard S. Stainton Senior Center.

Like the three other Council candidates in this election, Barnes is running an independent campaign instead of being part of a slate or team. Barnes announced that he is endorsing Mayor Jay Gillian for re-election over the other mayoral candidates, Keith Hartzell and Pete Madden.

In his role as Council’s liaison to the city’s planning board, Barnes voted against designating the former Wonderland site as an area “in need of rehabilitation” to help speed the hotel project along. The rehabilitation designation failed when the planning board was deadlocked in a 4-4 vote during a meeting in January.

Barnes said he believes the rehabilitation designation is really geared toward cities or towns that are struggling economically and need government assistance – not a well-to-do shore resort such as Ocean City

As part of his campaign, Barnes says he doesn’t oppose the idea of a hotel at the Wonderland site, but would prefer to see a smaller, boutique-style hotel built there instead of the large project Mita has proposed.

“I don’t have a problem with a hotel there. But what was proposed is not size-appropriate,” he said.

To revitalize the Wonderland site, Barnes favors having entertainment attractions and retail shops built on the Boardwalk frontage and a boutique hotel developed on the back side of the property.

“Ultimately, everybody wants to see that site developed, but we have to go through the process. In the long run, it’s going to have an impact on the Boardwalk,” Barnes said.

    City Council incumbent and candidate Sean Barnes
  

Barnes is part of a nine-member advisory committee, formed by Council President Terry Crowley Jr., that is studying the zoning requirements and development options for the Boardwalk’s commercial areas from Sixth to 14th streets, including the former Wonderland site. The subcommittee is expected to make its recommendations to City Council in June

“The Boardwalk needs to remain our crown jewel,” Barnes said of whatever is ultimately decided by Council for the Boardwalk’s zoning and future development.

Professionally, the 66-year-old Barnes is a director at Enterprise Community Asset Management Inc., a company that helps create affordable housing opportunities across the country.

He is also a Coast Guard-licensed boat captain and owner of Sail Atlantic LLC, a local sailing charter business.

As a major part of his campaign, Barnes has emphasized his commitment to preserving the environment by protecting the beaches, ocean, bay and wildlife.

“The quality of life we have here is second to none. I want to keep advocating for our shore way of life,” Barnes said.

Jim Kelly:

This is the first time Jim Kelly has run for elected office. He previously served as the president of the community group Ocean City 2050, but has stepped down from that role to maintain his independence as a Council candidate.

Kelly isn’t endorsing anyone for mayor as part of his campaign platform emphasizing his independence.

“I believe that’s it’s important as an independent Council candidate to maintain that status. I don’t think it would be right to publicly endorse a candidate. I’m going to work well with whoever the voters decide is our next mayor,” he said.

Ocean City 2050, the community group Kelly formerly led, has been among the most outspoken opponents of Mita’s proposed hotel. The group claims the high-rise hotel would overwhelm the surrounding neighborhoods and would not fit in with Ocean City’s family-friendly atmosphere.

Instead, Kelly hopes that the city and Mita will reach “common ground” for a mixed-use project that blends entertainment, dining and retail shops along the Boardwalk’s frontage with a smaller boutique hotel on the back of the property.

“I’ve talked to a lot of people about this. I’ve spent a great deal of time engaging with the community on this. The things that people agree on: The Boardwalk’s very important. Entertainment is critical to the success of the Boardwalk. And lodging supports the tourism,” Kelly said.

“If you start there with that common ground and you ask City Council to lead this process, I think you’ll find a durable solution that will preserve the Boardwalk’s future and allow for lodging behind the frontage of the Boardwalk,” he added.

Although he doesn’t hold political office, Kelly serves as a member of the Boardwalk subcommittee that includes Barnes, Palaganas and other city and community representatives.

    City Council candidate Jim Kelly
  

Kelly doesn’t support designating the former Wonderland site as an area in need of rehabilitation to help fast-track the hotel’s development.

“It doesn’t need a rehabilitation zone. The statute is intended to rehabilitate areas that are economically distressed. Surely, Ocean City is not economically distressed. Our real estate is some of the most sought after real estate in the country. It doesn’t fit the statute’s intention,” he said.

Professionally, the 62-year-old Kelly serves as vice president of business strategy and administration for Erickson Senior Living, a major developer of retirement communities.

Kelly said his experience at Erickson in building large projects would be of immense help in the city’s oversight of the proposed Boardwalk hotel.

“I’ve got 43 years of experience in building successful communities across the country. I’ve got executive-level experience in finance, in operations and in long-term strategic planning. I’m really the only candidate who’s got practical experience in complex land use, planning and decisions,” he said.

As another part of his campaign, Kelly is proposing more oversight of the city’s finances and taxes. He said that the city’s budget spending has increased by 32 percent in the last four years and the tax rate has climbed by 22 percent during the same period.

He wants to form a standing finance committee for City Council that would scrutinize the city’s spending and taxes and issue periodic reports for the public to see.

“People are always interested in their financial circumstance. I think what people are looking for is more openness in the budget process. I think people want to see City Council take a more active role. City Council’s oversight should be 12 months a year, not once a year,” he said.

Jocelyn Palaganas:

Jocelyn Palaganas currently serves as a member of Ocean City’s Board of Education. She said she is running for Council to play a bigger role in the city’s government and in shaping the future of Ocean City.

“I have a can-do attitude. I think I can do pretty well. I think I work hard, and I think this community is worth every bit of that effort. I’m excited. I’m motivated,” she said.

Palaganas is running as an independent candidate, but also supports Polcini’s run for Council. She is also endorsing Gillian for mayor “due to his genuine commitment to our town.”

“He understands the importance of preserving what Ocean City really is,” she said of Gillian.

Palaganas is also part of the advisory subcommittee that is studying the Boardwalk’s zoning and future development.

She said she wants to see the former Wonderland site redeveloped into a mixed-use project that would combine a resort-style hotel with family-friendly attractions and some type of entertainment that could possibly operate year-round.

“Instead of reacting, we can be intentional. I guess that’s the right word. We want to plan a smart, well-designed, resort-style, mixed-use space of some sort that fits the character of our community,” she said.

“I do want entertainment because I think that will be a good draw. If this is done right, this could become a destination that supports our local businesses and creates jobs and attracts consistent year-round visitors, not just the seasonal crowd,” she added.

    City Council candidate Jocelyn Palaganas
  

Palaganas is in her third year as a Board of Education member. She has also been closely involved with the local Parent-Teacher Organization and the Ocean City Education Foundation.

As a school board member she remains concerned about the school district’s declining enrollment. She said a demographic study performed for the board in 2025 projected that the high school’s enrollment would drop by 150 students over a five-year trend.

If she is elected to Council, she wants to see the city government help the school district develop strategies to increase student enrollment.

“I think it’s time the city starts getting involved in trying to figure out how to bring enrollment back in somewhat creative ways,” she said.

Professionally, the 51-year-old Palaganas is the vice president of inside sales for Advanced Hospitality Systems, a company that develops point of sales computer systems for restaurants in the tri-state area.

She believes her business background would be invaluable in overseeing the city’s municipal budgets as a Council member.

Tony Polcini:

Last October, Tony Polcini made the surprising announcement at a Council meeting that he would not run for re-election in 2026 because he wanted to do what was best for his family.

He indicated then he had grown frustrated with the level of disrespect and personal attacks directed at members of City Council stemming from the ongoing debate over the redevelopment of the former Wonderland Pier property.

“We can disagree on the issues, but it’s how we disagree,” he said of wanting a more civil tone in the hotel debate.

Polcini later changed his mind about ending his political career after Council President Crowley publicly encouraged him to run for re-election. He also spoke with his family members to make sure they approved of him staying in office.

“I wanted to do what’s right,” he said.

Polcini won his first term on Council in 2022. With four years of experience already under his belt, he wants to stay on Council for another four years to finish the things he started, he said.

“I think I can give a lot more with four more years,” he explained.

    City Council incumbent and candidate Tony Polcini
  

Polcini is running as an independent candidate, although he and Palaganas are supporting each other’s campaigns.

“I just wanted to align myself with myself,” he said. “I really feel it’s up to the taxpayers to choose who’s best.”

He believes Gillian has done a “tremendous job” as mayor and he is endorsing him over Hartzell and Madden.

One issue Polcini wants to see up to the very end is the redevelopment of the former Wonderland property. He hopes that the city and Mita can agree on a project that would be embraced by the entire community.

“I would love to see something that Mr. Mita would put his name on. I would also love to see Council and Mr. Mita compromise to reach an agreement.”

In addition to Wonderland’s redevelopment, Polcini considers the city’s tax rate as a critical issue in the election.

“I think my biggest concern is taxes. But I believe that the mayor and Council are always looking to control taxes,” he said.

Professionally, the 55-year-old Polcini works as a salesman for BradyPLUS, a company that supplies paper products and restaurant and janitorial equipment.

Early in his working career, he spent 28 years at Ocean City’s Mack & Manco pizza franchise, now known as Manco & Manco. He was the manager for 27 of his 28 years there.

Later, he was an owner of the former Tony P’s House of Pie pizzeria on the Boardwalk from 2015 to 2019.

Before joining BradyPLUS, he worked for two years as a patient advocate at Shore Medical Center in Somers Point.