WEST OCEAN CITY — Following a federal court ruling this week, the long-shuttered O.C. Jamboree property in West Ocean City will be auctioned later this month while the former owner awaits trial for sexual solicitation of a minor and possessing child pornography.
In December, the U.S. Bank filed a complaint in federal court seeking emergency injunctive relief against West Ocean City business owner David Weatherholtz and other named defendants in an attempt to take control of the property that most recently hosted the O.C. Jamboree on Route 611 in West Ocean City. Last March, Weatherholtz was indicted in federal court on several felony charges including producing and possession child pornography and attempting to entice minors to engage in sex, among others.
With Weatherholtz awaiting trial in a federal medical facility in Massachusetts and the O.C. Jamboree long-since shuttered, the U.S. Bank filed the emergency complaint seeking to take control of the property through a third-party receiver. The U.S. Bank holds a promissory note on the O.C. Jamboree property in amount over $400,000 and sought to protect its interest in the property, which is in danger of falling into disrepair.
In early January, a federal judge issued a preliminary injunction, allowing the U.S. Bank to seize control of the West Ocean City property. The U.S. Bank then turned over control of the property to a third-party receiver, Gray and Associates.
In addition to other powers and responsibilities granted to the receiver, Gray and Associates has been authorized to engage the services of a real estate broker or auctioneer to market the real estate and the personal property for sale. As a result, Gray and Associates has entered into an agreement with Atlantic Auctioneers to auction the old Ocean City Jamboree property. The property is being offered “as is,” and the auction is tentatively set for Feb. 26 at 11 a.m. on the premises.
Since Weatherholtz was indicted and been incarcerated, the OC Jamboree has remained shuttered and padlocked and no payments to the bank have been made for the loan. In addition, Weatherholtz and the other named defendants missed a $10,000-plus property tax payment to Worcester County, putting the property at risk for liens or ultimately seizure. Perhaps most urgent, however, is the need to restore utility service to the property, which has sat vacant for several months.
