No More Motels in North Wildwood?

No More Motels in North Wildwood?

The City of North Wildwood has taken a decisive step in reshaping its development landscape by introducing a new Ordinance, aimed at eliminating hotels and motels as permitted or conditional uses throughout the city.

This new measure, which passed on its first reading during a City Council meeting on October 1st, 2024, and its second on November 6th, marks a significant shift in the city’s approach to land use.

Why This Change?

In recent years, North Wildwood has observed a growing trend: a decline in the construction of new hotels and motels and a rise in the conversion of existing hotels into condominiums.

These conversions have raised enforcement concerns, particularly regarding properties that were supposed to remain transient lodging facilities but have instead transitioned to individually owned units.
Mayor Patrick T. Rosenello elaborated on the rationale behind the ordinance, stating:

“The elimination of Hotels & Motels as a permitted use under our Land Use Regulations is due to the ongoing conversion of hotels and motels to individually owned units. And, while these structures are still required to operate as hotels and motels, it was never the intent of the land use regulations that hotels and motels would not be a single business entity operating all of the units. We have found that when hotels and motels are split up into individually owned units, their effectiveness as a transient use facility rapidly declines.”

An example of this issue was discussed during the October Planning Board and Zoning meeting.
A case in point is Champagne Island, which was originally approved as a motel but later saw its units sold as condominiums. While the approval was strictly for transient use, many buyers assumed they could reside there permanently. Recently, the city received a long-term lease request from an individual claiming to live in one of these transient units.

Rosenello suggested that amending Chapter 276, which governs Land Development, to remove hotels and motels as permitted uses within the city could be an effective solution.
He emphasized the need to introduce such an ordinance as quickly as possible to better manage the situation.

What the Ordinance Entails
The Ordinance amends Chapter 276 of the North Wildwood City Code, which governs land development within the municipality. The key changes include:

Prohibiting hotels and motels as permitted and/or conditional uses across all zoning districts in North Wildwood.

Applying this regulation to both existing properties and potential new developments, effectively halting the establishment of new hotels and motels within city limits.

Addressing enforcement difficulties associated with hotels converted into condos, ensuring that these properties no longer function as traditional hotels.

Mayor Rosenello further clarified:

"Moving forward, if a developer wants to construct a new hotel or motel, they will need to prove to the Planning Board that the end use of that facility will be as a single business entity, transient use hotel/motel."

This stipulation aims to preserve the original purpose of transient lodging, ensuring that any future developments in the hospitality sector operate as cohesive, business-run entities rather than a collection of individually owned units.

One thing to add, this ordinance does not include the North Wildwood marina part of the city. It was approved several years ago that the Ocean Bay Spires would be coming. This is still in the works, though there hasn’t been an update on this in some time.

What do you think of the new Ordinance?

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