August 11, 2026
Michael Tanenbaum/PhillyVoice
A lawsuit seeks to void Ocean City's decision to designate the former Wonderland Pier property as an area in need of rehabilitation. Civic groups allege the city lacked legal justification for the vote and overlooked conflicts of interest connected to the boardwalk property.
Civic groups in Ocean City are suing to reverse the designation of the former Gillian's Wonderland Pier property as a site in need of rehabilitation.
The lawsuit filed this week in Cape May County Superior Court is the latest move in a prolonged public process to determine the future of the former amusement park site at 600 Boardwalk. Developer Icona Resorts, the owner of the property, seeks to build a luxury seven-story hotel where local zoning laws prohibit their construction.
City Council voted in June to designate the site as a property in need of rehabilitation, a status defined by state law to aid redevelopment in places that are deteriorated or underutilized. The designation opened a direct channel for negotiations between the city and Icona Resorts on the scope of the hotel project, but critics and opponents of the proposal contend the arrangement restricts public participation in land use decisions.
The suit was filed by Plaza Place Civic Association, Beach Watch Motel Condominium, Fairness in Taxes and Ocean City 2050.
"Over the past several years, we have watched a troubling pattern emerge in Ocean City," the groups said in a joint letter on Monday. "Whether it's the Wonderland property, the Glen Cove Marina, the proposed 125-foot cell tower at 33rd Street and Bay Avenue, or other major projects, the approach has been increasingly the same: The City sides with developers and attempts to bypass long-standing planning protections and reduce the public's rights in decisions that fundamentally reshape our community."
The lawsuit alleges the rehabilitation designation was influenced by conflicts of interest, including Mayor Jay Gillian's former ownership of the Wonderland property before it was sold in 2021. Gillian continued operating the amusement park until 2024 under a lease with Icona Resorts owner Eustace Mita. The suit alleges Gillian's financial relationships with Mita warrant more scrutiny and that the mayor, who was reelected to a fifth term in May, should be more insulated from involvement in the site's redevelopment. Gillian filed for personal bankruptcy months before his reelection.
The suit also claims the city did not provide a factual basis for the rehabilitation designation based on the terms under state law.
The coalition is asking the court to void the designation.
"At its core, this case is about making sure major decisions are made fairly, lawfully, transparently, and with meaningful community participation," the letter states.
Mita has argued Ocean City needs to create more hotel rooms after declined proposals over the past few decades have left limited options for weekend travelers. He's said a new hotel on the boardwalk would be an anchor for the north end that has lost foot traffic since the amusement park closed. Icona Resorts' earlier proposals for the project have included retaining Wonderland's Ferris wheel, carousel and a few other rides.
Mita is expected to submit a revised proposal that takes into account the requirements of the rehabilitation designation. Mita could not immediately be reached for comment.
The groups suing the city said they're not objecting to the redevelopment of the site.
"The coalition believes Ocean City can welcome investment and redevelopment while also respecting residents' rights, following established planning laws, and maintaining public trust in local government," the letter said.
