Defends Wonderland owner, hears critics, supporters at Tabernacle presentation
OCEAN CITY — During a testy exchange with a resident who kept interrupting and challenging him during last week’s public presentation at the Ocean City Tabernacle, developer Eustace Mita said he would sell the Wonderland Pier amusement park site if his proposed hotel project were denied.
Mita also took pains to defend Mayor Jay Gillian, the former owner of the amusement park, fend off criticism his “Old Seashore”-style hotel proposal was a “monstrosity” and assert that critics may be the most vocal, but were in the tiny minority among the city’s taxpayers.
For the second week in a row Mita made a pitch to the public for his 252-room Icona at Wonderland hotel that would incorporate a number of rides, have 375 parking spaces and cost between $135 million and $150 million to build at Sixth Street and Boardwalk.
The presentation was hosted by Ocean City Councilman Tony Polcini. The week before, Mita made a similar public pitch during Second Ward Councilman Jody Levchuk’s ward meeting at the Ocean City Free Public Library.
In addition to the people in the Tabernacle’s auditorium, nearly 150 people tuned into the presentation via Zoom, but technical glitches gave the viewers a black screen for the first 30 minutes until video resumed when citizens at the venue were able to comment and ask questions.
There was a mixed response from the Tabernacle audience, who alternately applauded those who spoke in favor of the project and against.
Resident Jack McGinnis took up nearly 15 minutes of the 55-minute Q&A portion, pressing Mita again and again on why he opted for a redevelopment zone rather than going through the city’s regular zoning and planning process, asking how much he paid for the property and saying the public has a right to know if Gillian has a financial stake in the outcome.
On that last point, Gillian doesn’t have a financial interest, according to Mita, who bought the property in early 2021 by paying off about $8 million in loans to stave off foreclosure by the bank.
Mita rented the property back to Gillian, who continued operating the amusement park through his year before closing it permanently in mid-October, saying it was no longer financially viable.
Mita took umbrage at McGinnis’ suggestion about a financial interest for Gillian.
“I’m going to take a six-second pause here, Jack. You’re asking a personal question,” something better for a private conversation than a public meeting, he said.
After McGinnis briefly sparred with an audience member who told him it wasn’t his business, Mita added, “It’s not your business. In the essence of good will, which is not something I have received from you, I’m going to answer it. The mayor has zero financial gain.”
He added, “The mayor has gone through hell in this city.” Mita noted being a friend of the mayor has actually been a detriment for him business-wise, feeling pressured to drop out of buying the Crown Bank building, which he would have turned into a boutique hotel.
“If it wasn’t for me coming along and buying it, (Wonderland) would have been shuttered four years ago, Jack,” he said. “Hasn’t the mayor taken enough?”
Mita explained that he was going the redevelopment route because of “expediency.”
“If we go to planning and zoning, it could go on for years and years and years. If the council decides (on a redevelopment zone), it is a much speedier process. It’s going to take us three years to build,” he said.
“If the city decides not to do it, then you’re looking at years and I, as a developer, have to say, I don’t have 10 years. I’m 70 years old,” Mita said.
He noted the only other option to build on the property is stores over a parking garage, but he doesn’t believe the city or boardwalk needs that and he would instead put the property up for sale.
When McGinnis said the city could make it a redevelopment zone, condemn the property “and pay you off,” Mita responded, “Sold! I’m saying to the public, sold.”
He would not disclose what he paid for the property but noted it is appraised for $25 million and he spent a little more than $1.2 million a year to carry it over for four-plus years “so that is what I would sell it for.” (That would be about $30 million.)
He noted the Soleil property, where a hotel was proposed at 11th Street across from the Flanders but never built, was appraised for $25 million “and it is not as good a site as Wonderland.”
“It would be different if I didn’t live here. This is putting my family through some heartache, too. If someone came up … I’d be glad to sell it.”
“I don’t want to spend the 10 years. I don’t want to spend the five years. Redevelopment is expediency. I’m being up front, if somebody wants to buy it, I would absolutely sell it tomorrow.”
Slings, arrows,
plaudits and rides
Mita responded to a range of other topics during the Q&A.
Surfing beach — He said he would not seek to change the designation of the Seventh Street beach as a surfing beach and that the as many as 1,000 guests who would be staying at his hotel during the summer have eight miles of beaches from which to choose, along with the pools at the hotel.
More rides — He said in addition to the iconic rides he would carry over from Wonderland Pier — the century-old carousel, 140-foot-tall Ferris wheel and the wet boats — he recently bought two rides at auction — Batman helicopters and Batman jets.
Ocean City, Md. — One speaker argued that although so many hotels have disappeared in Ocean City over the years — a visual point made in Mita’s presentation — the resort has not suffered and that building Icona at Wonderland would lead to more hotels along the boardwalk, turning it into Ocean City, Md.
Mita said the Maryland counterpart is much larger and was conceived as a city, has alcohol and year-round conventions, and that Ocean City could never become that.
He also said no new hotels have been built for so long because they’re not financially viable and the Soleil project next to the Flanders never got off the ground.
Monstrosity vs. better neighbor — Two property owners close to Wonderland offered opposite viewpoints.
A Plaza Place resident said, “You’re going to put a monstrosity of cement and steel on my corner. It doesn’t fit with anything here.” He said the hotel would leave him and his neighbors in shadow until 2 in the afternoon, and it would be like dropping a battleship into the neighborhood. He added the amusement park was never a noise issue. (Mita said he would do a shade study and that his hotel is not cement and steel but “Old Seashore” style.)
A woman who spoke next said she lives right next door at the corner and spent the last 20 years looking at the Ferris wheel from her dining room table. “I’m 100 percent for the hotel. I’m very aware of the noise, teens, police there all night. It’s not as quiet as people think it is …. I believe it will be good for the city.”
Poconos water park — A woman who said she has never had any objection to the quality projects Mita has built before (including high-end hotels in Avalon, Stone Harbor, Cape May and Wildwood Crest) asked if he could do something along the lines of the Poconos family resorts and have more rides.
Mita said those are spectacular, but strictly indoor water parks and are on far larger pieces of land. He noted developer Bart Blatstein’s indoor water park in Atlantic City is not doing well there.
“Gamblers don’t come to swim,” he said. “Atlantic City missed a great opportunity. It’s not a place you want to take your kids.” Mita noted how he has purchased more rides.
Helping business community — Robin Shaffer noted how many businesses have been closing in Ocean City and said he is all for the project because it would help bring more visitors to support the business community. He asked if Ocean City hadn’t lost so many hotel rooms whether Wonderland would have survived.
“Wonderland failed partly because we failed Wonderland,” Mita said.
He added the resort doesn’t have enough of a transient population, the kind that stay for shorter periods and are eager to shop and dine out and take their kids on rides.
“I’m for this project because you need to bring in more people who are spending money,” Shaffer said.
Strong support — Sheila Hartranft, who also noted the number of businesses closed in the downtown, said she was in support of the hotel project because it is important for the business community.
“It is a sign that something needs to be done. If this is it, more power to you,” she said.
Joe Croce, who said he is the brother of Pat Croce (former owner of the Philadelphia 76ers), noted the Croce and Mita families have been friends for a long time. He turned around at the podium to talk to the audience at the Tabernacle.
He talked about Mita’s passion for Ocean City.
“You won’t find a better … human being than Eustace Mita. He’s not a private equity guy, he’s not an out-of-state developer. He’s not going to flip it. He wants to build it as a legacy. I’m so thrilled that he wants to do this and is capable.”
J1 workers — A speaker questioned the use of J1 (foreign) workers as part of Mita’s proposed summer workforce at the hotel. “I am against your project. … The reason I jumped out of my seat was mentioning J1 workers. There’s no place in Ocean City for them to get affordable housing. Do you have a housing suggestion?”
Mita said there are already J1 workers in Ocean City “so they must be living somewhere.” He said 35 percent of his peak workforce of 100 to 125 employees (compared to Wonderland Pier’s 100) would be J1 and another 25 percent local high school and college students. He said the local students and J1 workers would mostly ride bikes or walk to work and would not take up parking spots at the hotel.
Message to Ocean City Council — Mita said after a lifetime in business, most of the people who come to speak out at meetings like this “are the ones who are upset.
“We have 20,000 taxpayers. And if we have 50 people against it, that tells me there are 19,950 who are for it, and I would tell you I think council has to be sure they are listening to the whole of Ocean City.”
Editor’s note: Jack McGinnis identified himself only by first name. His last name was reported in another media outlet.
– By DAVID NAHAN/Sentinel staff