N. Wildwood Clarifies ‘Condotel’ Ordinance

NORTH WILDWOOD – Owners of some condo units are concerned that the City of North Wildwood is placing an undue burden on them by requiring a condo building to have 24-hour onsite management from a central office, as well as other requirements associated with hotels and motels.
The ordinance addressing so-called “condotels” was finalized in May 2022, and, according to Mayor Patrick Rosenello, was “intended to clarify the zoning regulations of transient rental properties, regardless of the form of ownership.”
Rosenello said the hotels/motels identified in a master list are either hotels/motels or condominiums whose zoning approval is for transient rentals.
The ordinance states, “Hotels and Motels which are converted to and/or owned in the form of a Condominium Association, commonly referred to as ‘Condotels,’ consisting of individually owned units within a hotel or motel structure shall be subject to the forgoing and following regulations (Section 4.2.c)” and “the renting of units within Hotels and Motels which are converted to and/or owned in the form of a Condominium Association shall be handled exclusively through a central office maintained by the Condominium Association (Section 4.2.c[3]).”
A master list of hotels/motels and condotels shows only two designated as condotels – the Carideon Motel, on Atlantic Avenue, and Champagne Island, on Spruce Avenue.
A source in the real estate industry said some owners of condotel buildings have sold off their office space and owners rent on their own, using Airbnb, for example, or through realtors. The belief is that will no longer be permitted under Ordinance 1878.
In addition, the ordinance states, “The building must provide maid service and other room amenities, including linens and towel service, in a manner expected by the traveling public.”
Rosenello said several examples of buildings that had been provided had been removed from the master list of motels and condotels that are subject to this zoning enforcement because they are not currently used or approved as transient rental properties.
“The two structures in North Wildwood that are subject to the condominium form of ownership and whose zoning approval is for transient rentals are Champagne Island Resort and the Carideon Motel,” Rosenello said.
He noted that there was some confusion over some of the properties on the original list, but the new list has all the buildings that meet the criteria as motels and condotels.