OCEAN CITY — While the proposed Margaritaville Hotel and Resort complex planned for an entire ocean block does not appear to officially be dead, it is certainly on the back-burner.
Late last summer, the Ocean City Planning Commission reviewed the conceptual plans for the proposed Margaritaville Hotel and Resort, which, if approved, would encompass virtually an entire city block downtown on the oceanside facing the Boardwalk between 13th Street and 14th Street. The project would require approval of a planned overlay district (POD) for the entire site, meeting code requirements for parking, non-conformities, density and the like.
The proposed project over 12 different lots would include 265 hotel rooms, three restaurants, including the JWB Grill with high-end steaks and seafood, the Landshark Bar and Grill and a coffee shop and provisions store in the lobby. The project would also include three outdoor pools and one indoor pool, a wellness center and gym, 14,000 square-feet of flexible convention space, retail stores facing the Boardwalk and many other upscale amenities. The proposed location is the site of the historic Phillips Beach Plaza Hotel along the Boardwalk at 13th Street.
The lynchpin for the project appears to be the conveyance of a portion of Washington Lane between 13th and 14th streets to meet the requirements of the POD. The existing 16-foot alley bisects the proposed site and the developer had requested the town to abandon the portion of Washington Lane in order to build a consolidated POD project on the vast site.
As a condition of POD approval, and eventual site plan approval, the developer would widen the existing 16-foot public right-of-way in the alley to 23 feet, with five-foot sidewalks on both sides and a three-foot bicycle lane. The portion of Washington Lane would remain open to the public under the proposed plan.
Last month, the planning commission held a marathon public hearing on the proposed Margaritaville project, getting extensive details from the developers, architects and designers. The planning commission, while appearing to support the project in an informal straw poll, took no immediate action on the requested POD.
A Boardwalk view of the proposed Margaritaville hotel on the Boardwalk between 13th and 14th streets is shown. Rendering by Becker Morgan Group
The Mayor and Council ultimately hold sway over the decision to abandon the portion of Washington Lane, or convey it to the developer in exchange for public easement with the aforementioned improvements. The developer was scheduled to appear before the Mayor and Council at their Nov. 30 meeting, but the agenda item was abruptly pulled just hours before that meeting.
City Manager Doug Miller said this week there was no indication from the developer why the agenda item was asked to be pulled.
“This was a very large project, but also a project complicated by the fact they needed a town right-of-way to make it work,” he said. “We needed to have a public hearing, which is why it was on the agenda last week. On the day of the hearing, we were called by a representative of the company and told to pull the agenda item.”
Attorney Hugh Cropper this week explained the request to pull the item came from the developer. Cropper also said the developer’s POD application has been shelved, at least for now.
“On behalf of the developer, NOSC LLC, I withdrew the request for the Mayor and Council to abandon or convey the 16-foot alley to the landowner in exchange for a 23-foot-wide public easement,” he said. “I requested that the Department of Planning place the planned overlay district application on hold.”
After the public hearing on the project at the planning commission level, resort planners sent an unfavorable recommendation to the Mayor and Council regarding abandoning the alley. Instead, the commission suggested conveying the air rights over the alley to the developer, which would ostensibly allow the project to move forward while retaining town ownership of that portion of Washington Lane.
“Washington Lane should not be sold or given to the applicant,” the planning commission recommendation reads. “Ownership of Washington Lane shall remain with the town, and Washington Lane shall be improved as shown in the POD application, and in accordance with all codes, to include ensuring the approval of the Fire Marshal for access by Emergency Services. The owner of the hotel shall maintain Washington Lane as improved. Washington Lane shall continue to provide public access. The planning commission would be in favor of providing the applicant with air rights over Washington Lane.”
