OCEAN CITY – At one point, Ocean City officials said they would not support taking the site of a former Exxon station at the foot of the Ninth Street Bridge if someone moved to fix up the high-profile eyesore.
Now, the lot’s owner has plans for a building set to go before the Planning Board in November. Just the same, Ocean City is moving to condemn the property for use as a tiny bit of green space.
City Council introduced a $650,000 bond ordinance Oct. 24 to fund the purchase of the property, “by negotiation or condemnation.” Two council members recused themselves from the matter, while one, 4th Ward Councilman Robert Barr, spoke of how much he hated eminent domain, the process by which a public body can take private land over the objection of the owner.
Still, he and four others voted to move the ordinance to the next step. A public hearing and final vote on the bond ordinance is planned for 7 p.m. Nov. 16 at City Hall, 861 Asbury Ave.
Still at the Table
The city is still in negotiations to buy the land, reported city Solicitor Dorothy F. McCrosson, at the meeting, but she described those talks as at an impasse.
The city has begun moving to condemn the land, which will require the city to compensate the owner at fair market value.
It is that value, not whether the city has the right to take the land, that could eventually end up in court, McCrosson said. The city’s right to take private property for public use is indisputable, she said.
Years Contemplating
It’s been years since the city began looking at ways to buy up former gas stations along Ninth Street, which has long been the busiest way into the city.
Locals and city officials saw the vacant and deteriorating gas stations as a blight.
Public ownership would allow for more green space along the busy road. Last year, the city bought the former BP station for $475,000 and approved spending close to $350,000 to create a park there.
McCrosson said there is an agreement on another former station, the Riggins gas station at the corner of Ninth Street and Bay Avenue. That land has been cleared.
Lone Remaining Site
That leaves one former station, the Exxon station at 903 Bay Ave., cattycorner from the former Riggins site. The site was part of the city’s discussion from the start, but unlike the other parcels, this one had the interest of a private buyer.
Paul Chiolo of Keller Williams made clear early in the city’s discussions that he wanted the land as the site of a new headquarters for his real estate office.
Avery Teitler, an attorney representing Chiolo, spoke at the beginning of the Oct. 24 council meeting, saying his client had assurances that if he bought the property, the city would not try to take it from him.
One-time Pledge
“On video, council made it very clear that they would not approve any eminent domain or condemnation,” Teitler said. He added that Mayor Jay Gillian had said both in public meetings and to local media that he would not seek to take the property if someone else bought it.
“He (Chiolo) has purchased the property, and made an application before the Planning Board,” he said.
Last January, the planning board rejected Chiolo’s first plan, a two-story office building with parking underneath. That came after a lengthy hearing, in which issues of parking and traffic were raised. Teitler said his client had appealed that decision, but in the meantime, has a new plan set to be heard in November, one that would not require any variances and is a permitted use for the property.
Teitler described it as a “by-right” application.
Reportedly Paid $500,000
Chiolo bought the property from the Allentown, Pa. company that owned the parcel in October 2016, reportedly for $500,000. He has said that he planned to put a total of $2 million into the project, according to published reports.
At the Oct. 24 city council meeting, McCrosson acknowledged that Gillian had gone back and forth on whether or not to proceed with condemnation, but said he was swayed by the outpouring of public support for the city to acquire the land.
Public Supports Buying
“Ultimately, the mayor decided there was so much support for acquiring this key corner of the Ninth Street gateway that he’s moving forward and recommending to you the acquisition of this property,” she said. “Where the mayor has come down is to keep that corner open and green space for the entire city and all of our visitors to enjoy.”
Gillian was not at the meeting. Jim Mallon, the city business administrator, declined to comment on the matter.
“Jim, do you want to touch on comments from citizen comment?” asked Council President Peter Madden.
“No,” said Mallon.
Owner Notified
McCrosson said the owner had been notified that the city intends to take the land.
She said council had already approved acquiring the land through condemnation or negotiation, along with other properties, in a vote in October 2016, and that in April, the city gave Chiolo formal notification of plans to acquire the property.
Negotiations have been ongoing since then. She described them as “good faith negotiations” and as very intense and detailed. They continued until very recently “when it became very clear that we would not be able to negotiate an acceptable price for the property.”
Plans to File Papers
The city will file court motions to take the property in November, she said.
There were reservations on the part of council members on condemnation.
First Ward Councilman Michael DeVleiger said he was disappointed in the path the city had taken, but that he would vote to move the ordinance forward. He, too, said the public support for the move is overwhelming.
Seek Negotiation
Both DeVleiger and Barr still want to see a negotiated agreement. A settlement is possible, said McCrosson, and she hopes to reach one “once there is an acceptance that the city will take the property.”
Barr expressed his disdain for condemnation but voted yes just the same.
“I hate eminent domain. I hate the concept of it. I think it’s bad. I understand the public will for this,” he said. “We all sat up here, and we made a commitment that if somebody put in an offer and bought it, we wouldn’t support eminent domain.”
“To me, there’s a lot of public support for this. I have not heard from anyone that wants to see this land be developed,” said Councilwoman Karen Bergen.
She also said it seems like such a small lot for such a large building. She also asked whether Chiolo could fight the city.
What’s Fair Compensation?
“The city has an unqualified right to take private property for public use, upon payment of fair compensation,” said McCrosson. “So the legal action is not whether the city can take the property. The city can take the property. The litigation will be what is fair and just compensation? What is the number, and how is the property owner to be fairly compensated?”
Council members Keith Hartzell and Tony Wilson recused themselves from the bond ordinance discussion and the vote. Each said that they own property close to the former Exxon site.
To contact Bill Barlow, email bbarlow@cmcherald.com.
Villas – Things I am thankful to have had: The freedom to wander with my dog until dinnertime when I was kid, walking to school, innocent overnights, skinny dipping, sneaking out the window to meet my beau.