Year-round Waterpark Plan Needs City Lots, Developer Pitches Project, Year-round Jobs

OCEAN CITY – A local man has big plans for a multimillion-dollar luxury hotel and indoor waterpark near the boardwalk. To move forward, he needs two city-owned parking lots. 
Justin Flood said he had spoken to Mayor Jay Gillian and to each of the seven members of City Council individually already, and to residents and business and community groups.
He brought his concept to the public comment portion of the Nov. 30 City Council meeting, saying it was time he brought the idea to the public.
So far, there’s no indication that the city will go for the proposal.
“The concept is to create a year-round, family-friendly indoor water park resort in Ocean City, New Jersey,” he said.
Similar projects have meant hundreds of jobs, and helped transform seasonal resorts into year-round destinations; he told the council. The proposal is in its infancy.
Flood does not yet have a design for the project, just a broad concept. He says he wants a lot more input and a feasibility study before homing in on a specific design. But in broad strokes, the idea would be a luxury hotel on one side of Eighth Street near the boardwalk, with an enclosed water park on the other side of the street, to be joined by a pedestrian walkway.
On the ground floor, and potentially on the second floor as well, would be parking.
But part of his plan would involve using two city parking lots. He said he has an agreement of sale for one large parcel in the boardwalk block of Eighth Street, but would need city property as well.
Flood declined to say how much he’s agreed to pay for the private lot. He suggested a land swap with the city, to include land his family owns at 16th Street and Haven Avenue. Flood’s family has deep roots in Ocean City.
His grandparents, Emil and Mary Louise Palmer, founded Palmer Chevrolet-Oldsmobile decades ago, and his relatives have owned numerous businesses in the city.
Flood’s father, John Flood, served on city council for many years and remains in business in town.
Justin Flood said he would be happy to answer any questions from the council after his presentation.
“Otherwise, let’s get to work. Let’s create some jobs and economic activity, and improve the community,” he said. 
Council members had no questions, and made no comment on his proposal.
Gillian did not immediately respond to a request for comment the morning after the meeting, and Ocean City spokesman Doug Bergen said plans were far too preliminary for the city to take a position.
Flood said after the meeting that the project could cost more than $250 million, but he shied away from getting too specific.
He said his father had always told him to do things in order, going from concept to design, to funding and then implementation.
“Right now I’m focused on getting the concept out there,” he said.
He reported that many people he’s met with are enthused about the proposal. It did not sound as if he got much of a commitment from the city, however.
In his meeting with Gillian, “he was kind of neutral,” Flood said, although he agreed it would be good to bring more people to town.
Flood believes he addressed the biggest potential sticking point – the potential loss of parking. While he called the two city lots underutilized, city officials have long considered parking near the boardwalk to be a vital part of keeping that area’s businesses healthy.
Flood suggested a deed restriction mandating a certain number of parking spaces remain available to the public.
In the summer, the city charges for parking on both the lots Flood wants, and the property he has under agreement is a private parking lot.
“On both sides of street would be parking for guests and for public parking,” he said.
Flood indicated he had gotten good feedback so far.
“I’m happy to report that after meeting with a diverse sampling of Ocean City residents and stakeholders, the response has been overwhelmingly positive,” he said. “The only real negative I’ve gotten has been fear of competition for hotels and motels. Personally, I view this as a positive, because increasing competition would force existing hotels to innovate, and find new ways of attracting even more people here to Ocean City.”
If the project moves forward, it would be close to the Ocean City Waterpark, a summer attraction on the boardwalk.
Bayfront Buy Dropped
Also at the meeting, City Administrator James Mallon announced that the city would drop a controversial plan to buy a bay front property near its boat ramp on Tennessee Avenue.
In October, City Council approved a $700,000 bond to fund the purchase of 50 Tennessee Ave., a vacant former industrial building near the municipal boat ramp. Some neighbors questioned the move, and other residents said the city did not have a clear plan for the building. At the time, Gillian indicated he wanted to prevent residential development at the site.
“We have completed our due diligence associated with the potential purchase of 50 Tennessee Ave. Based upon the findings, communications with various concerned parties, other priorities we are assessing island-wide, and the totality of all these circumstances, the mayor has elected not to move forward with the purchase of this property,” Mallon said.
Beach Project Update
Mallon also reported that a federal beach replenishment project underway in the north end is making fast progress.
As of this week, the contracted had pumped sand onto beaches up to Second Street, heading south along the beachfront.
“Crews are making great progress. If work continues at this same pace, the entire job will be completed before Christmas,” Mallon said.
The $11.5 million project is the latest Army Corps of Engineers replenishment of the city’s beaches since the first restoration project in 1994.
To contact Bill Barlow, email bbarlow@cmcherald.com.