WILDWOOD CREST – The Mahalo Resort hotel project, approved by the Planning Board last year, is in the hands of Superior Court Judge Michael Blee, who has been asked to overturn the board’s decision.
The project, proposed by hotelier Eustace Mita, chairman of ICONA Resorts, involves a total renovation of the former Ocean Holiday Motor Inn. It was approved by the Planning Board on Feb. 13, 2024, by a 5-2 vote.
Two separate complaints were filed subsequently in Superior Court challenging the decision: One by G&I Properties LLC and George & I Inc., the other by Viper Corp., Forever Summer Inc., B.A.F. Corp., J.C. Crest Inc. and 11 separately named plaintiffs.
According to information obtained from the New Jersey judiciary, Blee is expected to rule on the matter on or before Friday, Feb. 14.
Both lawsuits include two counts. Count one in the Viper et al. case said Mita’s application filed with the Planning Board in 2023 and approved in 2024 was “substantially similar” to an application filed in 2023 and denied by the board that year. The plaintiff’s attorney, Brian Pelloni of Hornstine and Vanderslice LLC, invoked the doctrine of res judicata, meaning a board that ruled on a matter may not make another ruling on the same matter.
Count two of the complaint says the applicant did not meet the burden of proof for a required C variance, which essentially says the project applicant would suffer hardship if not granted relief from the zoning ordinance.
Count one in the G&I Properties/George & I filing argues that the applicant did not meet the positive and negative criteria needed to approve the application, with count two also invoking the res judicata principle.
The two lawsuits request that the Planning Board’s approval be considered invalid and be reversed.
William Kaufman, the attorney representing the Planning Board, said the 2024 application had substantial changes made.
“The issue of whether the board should have heard the 2024 application by reason of their denial of a previous application was one of several issues that were raised by plaintiffs,” Kaufman said. “Both Mr. (attorney Frank) Corrado, on behalf of the applicant, and I, on behalf of the board, argued that the 2024 application differed enough from the prior application that it was proper for the board to consider the 2024 application.”
Besides the lawsuits, the project has been vociferously opposed by members of the public. At the heart of the issue are plans for a new tower that include 12 additional rooms, bringing the structure 5 feet back off the property line and making it flush with the existing building’s dimensions to the west. The total number of rooms would be reduced from 66 to 64.
Wildwood Crest Mayor Don Cabrera, who is an ex officio member of the Planning Board, said the project has been hanging around for five or six years. He said he understands the complaints, but it is high time a decision is made on the project.
“I want to see a decision to move forward, or something,” Cabrera said. “We can’t have a property sitting there bare bones, but everything is on hold until it’s cleared by the judge.”
The mayor said Wildwood Crest residents take pride in the town, and the structure located at 6501 Ocean Ave. “doesn’t look good.”
“It doesn’t look good from a safety standpoint, from an aesthetics standpoint, it’s not what we want to see,” he said.
Contact the reporter, Christopher South, at csouth@cmcherald.com or 609-886-8600, ext. 128.
