OCEAN CITY – Ocean City shouldn’t change the character of its boardwalk, but must “update and elevate” what it offers to visitors to remain competitive as a tourist destination.
That was the finding by the Boardwalk Subcommittee, presented June 12 at the Ocean City Tabernacle.
While its conclusions on the former Wonderland Pier amusement park property was the most anticipated aspect of the subcommittee’s study (see related story), the more than seven months of work by the nine-member committee appointed by City Council President Terry Crowley Jr. culminated in 10 recommendations related to the On-Boardwalk zoning regulations.
Subcommittee spokesperson Jocelyn Palaganas and Chairman Dave Winslow, the Fourth Ward city councilman, went through an extensive array of research into changing tourism demographics, comparisons with similar tourism-based communities, a look at what the entire Ocean City Boardwalk currently offers and what it should offer.
The report found the Mid-Atlantic Region “is experiencing a resurgence in coastal resort trends with a strong emphasis on waterfront properties and luxury experiences” that offer easy access to the ocean and stunning views, and atmospheres that cater to families with family-friendly amenities such as spas, golf courses and activities for children and adults.
Right now, Ocean City doesn’t have the right mix.
There are 26 residential units and 168 businesses on the boardwalk – 92 focused on food, 51 retail and 25 entertainment. There are 27 hotels (of different varieties) with 1,216 rooms representing 11 percent of the hotel rooms in Cape May County, which has 271 hotels and 11,324 rooms.
Ocean City is facing structural challenges – a business mix imbalance that is the inverse of a healthy resort district, a weakened ecosystem because of the closure of Wonderland Pier, the fact food and retail establishments rely on strong attractions and the need for more entertainment.
Diminishing are the historical Saturday-to-Saturday stays. In their place are long weekends, multi-generational family trips and a demand for modern amenities and curated experiences related to local culture. Competitors in the region are investing heavily in upgrades.
Current zoning in the On-Boardwalk zone limits modern development, prevents mixed-use, resort-style concepts, inhibits reinvestment and innovation, lacks incentive for entertainment uses and needs forward-looking solutions, according to the report.
In short, the city needs to support its family-friendly brand but elevate the resident and visitor experience.
“Investments can offer exciting new facilities” and “enhance existing ones,” the report states. Updating the zoning ordinance can help address this.
“This is just one more tool that hopefully City Council can use to make sure the boardwalk stays viable going forward as a really important part of our economy here,” subcommittee member Sean Barnes said.
“I think they had some great recommendations around mixed use, around some limited residential above stores,” Crowley said. “There’s a way to kind of infuse cash into the boardwalk for improvements of maintenance structures and all that sort of thing, which is tough. You know, if you’re a business owner and you don’t have an influx of capital improvement, where do you get that money from to better your store and make the product better on the boardwalks?
“I think that’s a big win,” he said. “I think they spoke to ultimately what we’re going to get to on the boardwalk, which is compromise. I think when we look at what the modern guest wants, it is that mix of entertainment with a nicer upscale hotel experience where it’s not the traditional seven-day, Saturday-to-Saturday rental,” Crowley said.
The report has these 10 recommendations:
– BOARDWALK HOUSING: Allowing up to two stories of residential housing above existing one-story buildings, but with tiered setback.
– HOTELS: Allow hotels that don’t overwhelm boardwalk visitors or neighborhoods and allow light and air, that are set back to maintain the character of the boardwalk, have entertainment options open to the public, having dining, adequate parking and upscale retail.
– VISUAL: Enhance certain street ends to improve the aesthetic experience, add pedestrian amenities, and support “micro transit initiatives with bike parking, jitney stops and destination way find along the length of the boardwalk.
– HOLISTIC MODEL: Institute a holistic model for new development island-wide, including the On-Boardwalk Zone, and large-scale development should include traffic, air and light studies, neighborhood impact and the impact on city infrastructure.
– ECONOMICALLY VIABLE BUSINESSES: Reassess permitted On-Boardwalk uses to redefine or expand permitted entertainment and amusement uses and conduct a market study to see what future uses would be economically viable but keep within Ocean City’s culture.
– PARKING: Implement dynamic parking and smart apps to push traffic where desired (such as price breaks on underused lots like Fifth Street).
– TECHNOLOGY: Use more economic modeling and technical to track visitor trends and market to them and engage outside professional marketing to help align visitor expectations with future offerings on the boardwalk.
– MASTER PLAN: Implement recommendations from the Master Plan Re-examination in 2019 that weren’t implemented.
– ENVIRONMENTAL REGULATIONS: Engage an engineering firm to evaluation CAFRA (Coastal Area Facility Review Act) and REAL (Resilient Environments and Landscapes) to see how they factor in development along the boardwalk.
– GET MORE DATA: The report strongly suggests understanding visitors better and taking action, through city resolution, to do that. That includes learning about demographics, needs, wants, segmentation and spending; surveying merchants, property owners and visitors to the beach and boardwalk; learning more to improve the off-season and shoulder season.
“Thoughtfully designed integrated mixed-use development must become part of the community culture and change the spirit of the boardwalk,” the report concludes. This will fill unmet needs including modern-day entertainment, accommodations, family event space and “experiential experiences.”
That, the report states, will be the catalyst for upgrading the aging business on the boardwalk to create a “resilient” year-round economic business model.
Amusement park
won’t return
Winslow said the subcommittee made a point to explain why it isn’t feasible to replace the Wonderland Pier amusement park with another amusement park.
Wonderland closed in mid-October 2024 after owner Jay Gillian said it was no longer financially viable. Gillian had sold the park property to Eustace Mita in early 2021, but leased it back to run the amusement park for four more summers. The rides have been dormant since.
Winslow said subcommittee member Jody Levchuk, the Third Ward city councilman who serves on the board of amusement park operators, invited the board’s director to speak to the subcommittee.
She told members amusement park operators face more challenges than other businesses, including a short, eight- to 10-week season to cover 52 weeks of expense, a school calendar that makes it tough to hire young staff, a shortage of certified staff, an intense regulatory process for rides, the shore environment that destroys parts and equipment and guests wanted bigger attractions. She added that Ocean City doesn’t allow alcohol sales or games of chance on midways that attract guests and provide a big piece of revenue for operators.
Ocean City still has Playland’s Castaway Cove amusement park at 10th and Boardwalk.
“We need to think out of the box, but we need entertainment,” subcommittee member and Councilman-elect Jim Kelly said. “If we’re only focused on if an amusement park doesn’t go there, no entertainment goes there, that’s wrong. We’ve got to get out of that thinking.”
– By DAVID NAHAN/Sentinel staff