Say No to Dinner Clubs, OC Council Told

OCEAN CITY – Several residents targeted a growing trend at local restaurants, arguing before Ocean City Council Feb. 13 that private dinner clubs are an attempt at an end-run around a local ban on bringing alcohol to restaurants.
Founded in the late 19th century, by Methodist ministers, as a Christian retreat, Ocean City banned alcohol sales since its inception. It is one of the few dry towns left in the county, along with Cape May Point and Wildwood Crest.
Public sentiment appears to oppose any change. In 2012, voters overwhelmingly rejected a proposal to allow BYOB (bring your own bottle) in the town, with a margin of close to 2-1.
Speakers cited that vote calls for the city to take action against the growing number of dinner clubs, under which patrons pay a yearly membership and can bring beer and wine to closed dinner events.
The practice has taken place for decades, in Ocean City, where alcohol has long been served at several private clubs, including at veteran’s organizations and other member-only gatherings. For decades, the Riverboat Club, on Eighth Street, was a well-known exception, where business people, city officials and the well-connected kept their bottles behind a bar.
That club shut its doors, in 2017, but restaurants have turned to the model in a resort town with many breakfast spots, but few options for fine dining. Business owners have said the private clubs help change that, allowing local restaurants to make money serving dinner.
That is not enough for the city to allow the practice, residents said.
Resident David Hayes said Ocean City voters rejected BYOB.
“We didn’t say you could do it if business wasn’t good. We didn’t say you could do it if you were business of the year,” he said. “We said no BYOB ever in Ocean City. This is all about money and greed.”
He suggested the increase in dinner clubs is a foot in the door in a move toward allowing liquor licenses.
“They call them dinner clubs, but that’s just a pig in lipstick,” Hayes said. “This is really BYOB on steroids for a price.”
Hayes said there are eight restaurants with dinner clubs in town. He, and other speakers, said a meeting for those who oppose the clubs is planned for 7 p.m. Feb. 25, at the Ocean City Library, 1735 Simpson Ave.
“Over the past two years, I’ve witnessed a significant increase in the number of BYOB dinner clubs legitimized by a purported loophole used to allow restaurants to operate as members-only dinner clubs,” said Susan Cracovaner. She said one restaurant advertised a one-night membership for Valentine’s Day.
Citing state code, she argued that state rules establish private clubs as not-for-profit, and that membership at the door or single-day memberships are not valid. She argued that the clubs were a means for restaurant owners to sneak BYOB into the city.
“Council members, are you willing to cast aside our city’s brand as the greatest family resort? Will you continue to condone alcohol on our boardwalk? Are you willing to sacrifice property values to drink beer or wine while dining in Ocean City,” she asked. “Residents stopped this once. Rest assured, we’ll do it again.”
Each of the speakers were members of the organization Fairness in Taxes. Marie Hayes (not the freeholder) said she was speaking as a private citizen, and not on behalf of any group or organization. She said change is inevitable, and can be good, “but there is one change that is totally wrong, and that is the end of the 100-year tradition of Ocean City being a dry town.”
According to city officials, there are few options for limiting the growing number of private dinner clubs.
Ocean City spokesman Doug Bergen said the city does not condone the private supper clubs, and has not changed the ordinances prohibiting the sale of alcohol in the city or its public consumption, but as the city has no say over whether someone has a beer with dinner at their summer rental, and champagne can be served at a wedding at an Ocean City venue, the city does not have a say in what happens at the clubs.
“Ocean City police are aware of the trend and have issued summonses to ‘private clubs’ in violation of these ordinances,” he wrote in an emailed response to a request for comment. “Under existing state and local law, the city has no jurisdiction over what takes place on private property.”
A single-night membership club would be a violation of city ordinance, he said.
Mayor Jay Gillian said he remains committed to keeping Ocean City’s character intact.
“Preserving Ocean City’s reputation as ‘America’s Greatest Family Resort’ is critical to every resident, property owner and business in town, and I share the concerns that are being raised,” Gillian said the day after the meeting. “I remain open to any suggestions for what the city can do, within the law, to make sure these clubs do not change the character of the city.”
Not all speakers opposed the dinner clubs. Longtime Ocean City resident Georgina Shanley, present to address a different topic, told council that she grew up across the street from a pub in Ireland.
“I didn’t become too psychotic,” she said. “I think that they’re missing the point. It’s not about big business in Ocean City. It’s about small, little restaurants in Ocean City trying to survive year-round. Unless they’re out being rowdy in the street, assaulting people or doing harm, it’s nobody’s business what’s done in the privacy of a restaurant.”
To contact Bill Barlow, email bbarlow@cmcherald.com.