Ocean City Approves Zoning for Marina and Restaurant on the Bay

A proposed new marina, fuel dock and restaurant on the bay at 10th Street in Ocean City moved a step closer to reality Thursday as City Council gave final approval to a redevelopment plan for the site.

City Council unanimously passed an ordinance that creates a new Marine Village Harbor Redevelopment Zone tailored to allow the uses outlined in the plan: a marina, a marine fueling station, a restaurant and retail space, and a parking lot. 

The property is the site of the former Dan's Dockside Marina and Restaurant, which has been abandoned and decaying for several years. A bank now owns the property.

But the local Gill family — neighbors of the property and owners of a successful fishing tackle supply business — hope to redevelop the property and restore some of the glory of a bygone era that saw thriving businesses including Hogate's and Chris' restaurants on the 900 block of Palen Avenue.

The biggest obstacle to the project is potential contamination from underground fuel tanks on the site — a liability that could prevent any investor from obtaining traditional financing.

Mayor Jay Gillian has said his administration would consider providing financing for the project in a public-private partnership "that guarantees repayment of any city financing within a reasonable time frame." Any such potential agreement would have to be approved by City Council at a future date.

In public comment, Ocean City resident Michael Hinchman urged the city to obtain its own environmental survey of the property before it considers an agreement. He criticized the administration for remaining silent on the details and process of what could be an issue of serious financial impact to Ocean City taxpayers.

Ocean City resident Al Kelleher, who has experience with school district environmental inspections, also asked the city to get an environmental report before investing.

City Solicitor Dorothy McCrosson said the first draft of a potential agreement does address both environmental assessments and financial guarantees.

The ordinance passed on Thursday is just one step in a process that could lead to the development of the marina project.

The developers would next have to take a site plan to the Ocean City Planning Board for approval. Any development agreement would have to then be approved by City Council. And any financial partnership with the city would likely come before City Council as a bond ordinance.