OCEAN CITY — City Council moved forward with approval of a redevelopment plan for the Seaspray condominiums, introducing an ordinance to adopt the plan.
“This is the ordinance that takes the Seaspray property to the next step in redevelopment,” solicitor Dorothy McCrosson said Nov. 20.
Now surrounded by a chain-link fence and marked unsafe for habitation, the 32-unit complex at 3313 Bay Ave. has stood vacant since May 2023, when residents were forced out by the Department of Community Affairs.
The building was constructed circa 1955 as a hotel and has been operated as a condominium since about 1981, according to city documents.
Following the initial declaration of unsafe conditions, the city received an engineering report deeming it safe for occupancy, but the building was again declared to be an unsafe April 17, 2024, after concrete from a stair landing fell off the building and it was discovered that repair work had not been undertaken.
“It’s an existing non-conforming use in the 34th Street Gateway Zone in which residential uses are conditionally permitted,” McCrosson said in August, when City Council found the property may be an area in need of rehabilitation and recommended the Planning Board investigate the matter.
McCrosson said there had been an internal legal fight among owners, some who wanted the place sold and demolished and others who wanted it rehabilitated.
Litigation resulted in the appointment of a receiver who was given authority to sell the property to a developer.
McCrosson said the developer has presented a concept that features 43 condominium units in three stories above one level of parking with no commercial component.
City Council finally declared the property an area in need of rehabilitation Oct. 9 and is moving ahead with a redevelopment agreement.
“This will create the land use controls for that site, or the zoning ordinance for that site regardless of who wants to build and when they do it,” McCrosson said, noting the zoning chart details current zoning and the extent to which the proposal departs from the standard.
For instance, she said, current zoning would require commercial development on the first floor.
“Would you prefer to have that or does it make sense to change the zoning to what is proposed there? That’s what you’re going to be asked to consider,” McCrosson said.
The matter now will go before the city Planning Board to determine whether it is consistent with the Master Plan, then return to City Council with a recommendation.
Councilman Keith Hartzell said issues with the property have been ongoing since 2006, involving various owners and ownership groups.
“When I look at this in its sum total … the overall reason why we should move forward is because it’s really the first time in all that time, which is basically going to be 20 years, that something came along that could be done,” he said. “I think this was well thought out for this corner.”
Hartzell said the developers’ first proposal was more in fitting with Philadelphia but they have since decided to try to match the beach aesthetic.
“They took this so serious that they vacationed down here with their families. They rode around, they looked at stuff, and when I had suggestions on how it should look, before I ever said anything and they showed us, every one of my suggestions was already there,” he said. “They caught the essence of what this is — it’s a prolific corner in our town that deserves the best, and I believe this is the best solution.”
“It’s time to put a 20-year nightmare to bed and move forward.”
Councilman Sean Barnes noted owners of the condominiums in the building are paying a mortgage for a property in which they cannot live.
“Imagine paying the mortgage for something you’re not allowed to live in because it’s condemned,” Barnes said. “I think the city is stepping in the right direction and I look forward to working with the developer further.”
Council President Terry Crowley Jr. said the proposal “makes a lot of sense.”
“This developer has worked with us from the beginning of the process, has been very responsive and does want to do what’s best for Ocean City,” he said.
Councilman Dave Winslow has scheduled a ward meeting for 10 a.m. Nov. 29 at the Ocean City Free Public Library, where all of the drawings and other information will be presented. The developers will be in attendance.
McCrosson said a second reading of the ordinance would have to be held Dec. 18, following a meeting of the Planning Board
– By CRAIG D. SCHENCK/Sentinel staff