OCEAN CITY – A request to grant air rights over a downtown alleyway will advance to a public hearing.
In a work session Tuesday, the Mayor and Council agreed to move a request to grant air rights above Washington Lane to a public hearing. Attorney Hugh Cropper, representing the developer of the Margaritaville project, said the conveyance was needed as part of a new site plan that was submitted to the town.
“We are pursuing that concurrently, and that would require the conveyance of air rights above Washington Lane as it currently exists,” he said.
While the connections of the Margaritaville project continue to seek a planned overlay district (POD) designation for a much larger development between 13th and 14th streets, they have concurrently submitted a new site plan that includes fewer amenities, less square footage and a different configuration. To that end, they are seeking air rights above Washington Lane – which bisects the property – to allow for construction of a single building connecting structures to the east and west of the public alley.
“Concurrently, we have submitted a site plan that does not use the POD statute …,” Cropper explained this week. “It is a smaller hotel. It has less conference areas, it has less amenities, but it is still a very good development. It would be very much a positive for Ocean City.”
By advancing the request to a public hearing, the council will be able to determine if the request is in the public interest and if the air rights are no longer needed for public use. The conveyance of air rights have been previously approved for a handful of redevelopment projects, including the Bonita Beach Hotel, the Breakers Hotel, the Majestic Hotel, and a previous version of the Margaritaville Resort.
“This council did see fit to convey us the air rights and furtherance of the POD in [Ordinance] 2022-11 …,” he explained. “That was over a relocated Washington Lane. This would be over Washington Lane where it currently exists, 16 feet in width. We are just looking for a public hearing on that issue.”
With no further discussion this week, the council voted unanimously to move the developer’s request to a public hearing. Cropper, however, reiterated that the POD project currently working its way through the approval process continues to be the developer’s preferred project. As part of that plan, his client hopes to purchase Washington Lane to secure enough square footage for a POD designation.
“Margaritaville, at its inception back in August of 2021, was designed as a planned overlay district, or POD …,” he said. “The comprehensive plan encourages PODs like Margaritaville. That is our preferred approach. Further into that, we have asked you to convey the alley to us at fair market value, and that is set for a public hearing on September 5.”
