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Plan for downtown fee alarms O.C. merchants
OCEAN CITY — The mayor's proposal to improve the downtown through zoning changes is stirring controversy among some merchants.
In a 20-page ordinance, Mayor Sal Perillo proposed ways to protect downtown shops from the tremendous pressure of rental condo construction the island is seeing.
“The downtown is out of balance,” Perillo said. “The existing zoning in my judgment promotes residential development at the expense of commercial development.”
More than two dozen business owners attended a public meeting Tuesday to make their own recommendations.
Perhaps the biggest change is a parking requirement, the first in the city's Central Business Zone since 1996. Developers would have to provide two parking spaces per new residential unit. But only one parking space per unit would be permitted on site. The others would be provided through a city fee of $25,000 per space. Ultimately, this money would pay for a new public parking lot or garage downtown.
Business owners balked at the steep figure.
Councilman Keith Hartzell owns three mixed-use buildings on Asbury Avenue, including the one in which he lives. Hartzell said the parking fee seemed exorbitant to him.
“It will benefit everyone, but the burden is on us,” he said.
“I think $3,000 to $5,000 is more reasonable,” said Paul Schaeffer, owner of Denovum. “Merchants already pay a Special Improvement District fee. That money is going into a fund, and not one dime of parking revenue has come downtown. All of the (public) lots are on the Boardwalk.”
Schaeffer is one of several Asbury Avenue property owners who plan to rebuild soon. He hired a Washington, D.C., architect to replace his familiar purple store with a three-story steel, glass and copper building. This would include two retail stores on the ground floor and eight condos on the second and third stories.
Schaeffer said both he and his parents eventually plan to live in his new building. Under the ordinance, he would have to pay $200,000 in parking fees alone.
Schaeffer also questioned whether some of the design rules imposed by the ordinance were too restrictive.
Much of the ordinance addresses display windows, store signs and canopies geared to making Asbury Avenue a welcoming place for pedestrians, said planner Michelle M. Taylor of the Taylor Design Group.
The ordinance also would outlaw the use of vinyl siding on building facades in the Central Business District.
“As you walk, there's a feeling of continuity, like on the Boardwalk,” she said.
Former Councilman Ron Denney and Donald Johnson of Johnson's Electric also plan to build on Asbury Avenue. Their applications before the Planning Board are on hold until the mayor's proposed zoning changes are approved by City Council.
“I like the fact that the mayor is thinking about the future of our downtown. He wants to make it attractive and improve it,” said Cheryl Huber, who leases space to Hoy's Five and Dime on Asbury Avenue.
Huber said she has no immediate plans to rebuild. But the parking fee is a concern, she said.
Tuesday was the first public meeting on the proposal. Perillo is hosting six such meetings to solicit comments from the public, City Council and professionals such as architects and planners.
To e-mail Michael Miller at The Press:MMiller@pressofac.com
New O.C. mayor offers truce to opponents at inauguration
OCEAN CITY — Sal Perillo was sworn into office Saturday to become the first new mayor in this resort in 14 years.
Superior Court Judge Kyran Connor administered the oath of office to Perillo in front of Perillo's wife, Mary Ellen, and a nearly packed house at the Music Pier.
Perillo easily won election in May over three competitors. In doing so, he spent a city-record $120,301, much of which went to defending political attacks and engaging in a few of his own.
Perillo offered an olive branch of sorts to his opponents' supporters.
“To those of you who did not know me well enough to vote for me, I promise to work diligently to earn your respect and confidence,” he said.
He said he would put the campaign behind him with City Council, including the three at-large councilmen sworn in Saturday: Keith Hartzell, Scott Ping and Michael Allegretto.
“They recognize, as do I, the deep desire to bring the divisiveness and contentiousness to an end,” he said.
Perillo, who has a private law practice, said the death of his father, Gennaro, last November made him take stock of his own life.
“I decided to devote some balance of the rest of my life to public service,” Perillo said.
As mayor, he said he will make better use of the city's Web site and public-access television channel. He said he will create a task force composed of local residents to improve city operations. And he vowed to support development “compatible with the city's residential neighborhoods.”
The reorganization was a nonpartisan civic celebration unlike anything else in Ocean City. Family and friends of competing candidates attended along with local lawmakers and former mayors Roy Gillian and Bud Knight, who has been a former mayor for just a day.
Many City Hall regulars also attended, including a group of residents whom the city is suing. They have a court date next week over the group's efforts to tie city spending to the federal cost-of-living adjustment. But on Saturday, the group applauded the plaintiffs.
To e-mail Michael Miller at The Press:MMiller@pressofac.com
Alan J Heavens
The Philadelphia Inquirer; 6/26/2006
Stories abound of overnight fortunes made by investors, like the one who flipped an Ocean City property in one day last year and made a $540,000 profit on a $4.1 million house.
An Inquirer analysis of 27,709 home sales last year in Atlantic, Cape May and Ocean Counties showed that about 1,000 houses sold for $1 million or more.
And five towns -- Stone Harbor and Avalon in Cape May County and Bay Head, Harvey Cedars and Mantoloking in Ocean County -- had median home prices of $1 million or more, the analysis showed. (The median is the middle value; half the houses sold for more, half sold for less. In any town, a drop in median price does not mean prices fell for all houses there.)
But this picture of sunny times is turning partly cloudy, observers of the Shore market say, as higher interest rates are beginning to dampen sales, and condo construction, mostly involving investors, adds to a growing surplus of properties.
"Whenever interest rates rise, the second-home market is the first one to take the hit," said Fred Glick, president of US Loans Mortgage L.L.C. in Philadelphia.
Long-term rates climbed to 6.71 percent Thursday, Freddie Mac reported, the highest since May 31, 2002. Adjustable-rate mortgages are at 6.4 percent.
"It's the condo and lower end of the Shore market that's taking a hit," said Paul Leiser, a broker at Avalon Real Estate. "These are the buyers who depend on lower interest rates to balance two mortgages, and with rising interest rates, they can't do it.
"We've sold fewer units, but our dollar volume in the first quarter was higher than it was in the first quarter of 2005, which was a record year," Leiser said. "It's the million-dollar-house purchases that push up the medians, and those are usually cash. And when you are talking about million-dollar houses, consider that an older rancher three blocks from the beach in Stone Harbor is $1.4 million."
The Inquirer's analysis showed the median price of homes in the three counties grew at a slower pace in 2005, to $274,000, a 16 percent increase over 2004 compared to a 21 percent jump the year before.
Only Atlantic County was able to maintain the same rate of growth from 2004 to 2005; its median home price rose 24 percent, to $223,357.
In Cape May County, the year-over-year median gain was less than half the increase experienced a year earlier. The median was up 11 percent in 2005, to $391,000, compared to a 26 percent gain in 2004.
Ocean County's median grew 15 percent in 2005 compared to 20 percent in 2004.
Fewer than 200 more houses were sold in 2005 than in 2004, an indication of declining demand. Another sign: Thirty-one municipalities had median increases of more than 20 percent in 2005, compared with 44 in 2004.
Although sales comparisons for the first quarters of 2006 and 2005 from the New Jersey Division of Taxation were incomplete, indications are that the market appears to be slowing further this year.
Sales in Cape May and Ocean Counties in the first quarter of 2006 were lower by a couple hundred sales each than in the first quarter of 2005. Atlantic County sales were a bit higher.
Market observers said Atlantic County, which for the last several years has been evolving into a bedroom community for Atlantic City, also is fast becoming a suburb of Philadelphia.
Major developers such as D.R. Horton, K. Hovnanian, and Ryan Homes have been building single-family developments and active-adult communities -- not necessarily with ocean views.
"We call them 'off-shore vs. on-shore,' " said Jerome DiPentino, broker at Premier Properties Real Estate in Longport. "More and more people are choosing to live here year-round, and that is stabilizing the market, although high-end sales in Margate and Longport also have been skewing the median upward."
Things don't seem as rosy in Ocean City, the scene of numerous teardowns and massive development since the mid-1990s. As of mid-June, there were more than 1,700 listings on the Ocean City Multiple Listing Service (MLS).
"They're saying that Ocean City is overbuilt by two years," DiPentino said. "That may be conservative."
Jay Lamont, the host of "All About Real Estate" on WPEN-AM (950), who has studied and owned real estate in Ocean City for about 40 years, said, "I have never seen anything even close to this debacle. Many legitimate and qualified buyers are waiting for fall, for the lender REO [real-estate-owned] listings and foreclosure sales on failed developer loans."
Weekly sales reported to the Ocean City MLS are 80 percent to 90 percent lower than they were in spring 2005, with seven or eight sales a week, he said.
What's going on?
"The short-term investors at the Shore were in the condo market primarily, and they're the ones pulling out," said Mark Zandi, chief economist at Moody's Economy.com in West Chester. "They don't buy multimillion-dollar homes."
(In Ocean City, condos made up a little more than half the 1,314 sales in 2005, The Inquirer analysis showed. The median condo price: $529,950, up 14 percent from 2004.)
Oversupply also seems to be a problem elsewhere in Cape May County.
Paul Schlimme, vice president of MLS Realty in Cherry Hill, said that between Jan. 1 and May 31 there were 189 listings on the Avalon MLS, with about nine houses selling per month.
"That means there is a 21-month supply in Avalon, and it is getting worse," Schlimme said. By mid-June, 29 new single-family houses were listed, and just 13 sold, "which means there are 16 more properties competing..."
Over the course of the 1998-2005 Shore boom, Wildwood, West Wildwood, and North Wildwood registered a more than 250 percent increase in median prices, The Inquirer analysis showed. (So did Stone Harbor, Longport, Avalon and Harvey Cedars.)
The Wildwoods, too, were a draw for investors, who razed motels and filled empty tracts with condos. But with for-sale signs sprouting and interest apparently tailing off, that boom could be over, local market experts say.
With summer here, the Shore market could get even slower.
In Ocean City, Lamont said, "open houses are held each weekend, sometimes as many as eight per block on Asbury Avenue, with almost no legitimate buyer traffic showing up even to use the bathrooms."
How This Analysis Was Conducted
The Inquirer's home-price analysis was based on nearly 250,000 residential sales in 2004 and 2005. Home-sale information was obtained from the five Pennsylvania counties and the New Jersey Division of Taxation.
Only sales at fair-market prices of $10,000 or greater were included in the analysis of single-family homes, condominiums, townhouses, and twins, or duplexes.
The median home price is the amount at which half the sale prices are more and half are less. The percentage change reflects the difference in the median price from 2004 to 2005.
A town with fewer than 10 sales is marked "N.C." because the median and percentage change were not calculated. Towns with no sales are marked "N.S."
All numbers are rounded to the closest whole number.
Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.
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Copyright (c) 2006, The Philadelphia Inquirer
O.C. lifeguards to extend hours on three beaches
OCEAN CITY — Lifeguards on three downtown beaches will be on duty later in the day starting this weekend.
The Beach Patrol will guard beaches at Eighth, Ninth and 12th streets until 7 p.m. on Fridays and Saturdays this summer.
The extended-hours program usually begins over the busy July 4 holiday weekend. But the city decided to launch its after-hours lifeguard program a week early this year because of unusually strong rip currents, Business Administrator Richard Deaney said.
A 7-year-old boy from Philadelphia drowned Sunday while swimming on an unguarded Seventh Street beach about an hour after lifeguards left for the day. Police said the child and his younger brother were caught in a rip current. The younger boy was pulled to safety.
On Tuesday, police and firefighters rescued a swimmer in distress on an unguarded 10th Street beach after lifeguards left for the day.
“The ocean has been rough this week. We decided to start them a week early,” Deaney said.
Beach Patrol Lt. John McShane said the department always planned to extend beach hours this weekend. He said the after-hours rescues this week had nothing to do with the extended hours.
“We always wanted to do the weekend before the Fourth of July as a dry run to make sure our procedures and policies are in place,” he said.
Meanwhile, police on all-terrain vehicles will patrol downtown beaches in the evenings this summer, in part to watch for swimmers in distress.
“We'll notify the police if there has been a troublesome area during the day so they can keep their eye on it,” McShane said.
Deaney stressed that the police officers are not lifeguards. The Beach Patrol warned that swimmers should swim only off guarded beaches.
Lifeguards are counting visitors several times a day this year to monitor beach activity. The city is trying to see if beachgoers are staying later in the day as some people suspect. The city plans to use this information to modify lifeguard hours next year.
The city has options, Deaney said. It could guard a few downtown beaches later in the evening or have lifeguards start and finish an hour later to cover all beaches into the late afternoon.
The city's after-hours program on Fridays and Saturdays and post Labor Day will cost between $15,000 and $20,000 this year, he said.
McShane said the extended hours will give late-arriving visitors a chance to enjoy the ocean safely on their first day of vacation.
“The check-in time is 4 p.m. They can run down and get wet before nightfall,” he said.
To e-mail Michael Miller at The Press:MMiller@pressofac.com
OCEAN CITY CAMPAIGNS
Curb the cost
Press of Atlantic City
Published: Wednesday, June 21, 2006
Updated: Wednesday, June 21, 2006
Ocean City has a refreshing and exciting idea — to be the first town in the
state to adopt its own public-finance law for local political campaigns.
The town is ripe for such a law. Mayoral elections in Ocean City have become
increasingly expensive, reaching a record $250,000 in spending this spring.
There is momentum in the city for public financing, which is aimed at lowering
the cost of elections and cutting the ties between politicians and wealthy
special interests.
Under the plan, the city would set up a public-financing fund; candidates who
qualify by collecting enough signatures and enough small contributions of $5
could opt for public financing. They would then be restricted as to how much
they could spend and would not be able to raise any additional money.
It's a worthy, welcome concept that's being tried as well on the state level.
The only problem is that city Solicitor Gerald Corcoran says it's illegal on a
municipal level. State law does not allow municipalities to dedicate money in
their budgets for that purpose, he said.
Well, lawyers can and do disagree. Two lawyers at an Ocean City Council meeting
last week — a local attorney and an out-of-state lawyer who helped draw up the
ordinance — maintained that such a law is, indeed, legal.
The ordinance failed by a 3-3 vote during a sometimes-testy meeting.
Corcoran's opinion may be right. But the city could find out. Surely it would
not cost much, if anything, to seek an opinion from the courts or from the state
attorney general's office.
Even better, state lawmakers should simply change the law now to specifically
allow towns to dedicate funds to public financing of local elections, clearing
up any ambiguity on the issue. Assemblyman Jeff Van Drew, D-Cape May,
Cumberland, is hardly shy about introducing legislation to solve problems in his
district. We're sure he or another lawmaker could put this bill together pretty
easily.
Public financing is a great idea — but it's important the city do it correctly,
so it isn't open to a court challenge. State lawmakers should support the idea
of offering this option to towns. After all, they're already trying it
themselves.
Beach access in N.J. is
extensive, but obstacles remain
Posted by the Asbury Park Press on 06/9/06
BY LEANN FOSTER
With another summer upon us, residents across the Garden State
are preparing for the annual pilgrimage to the Jersey Shore. But before you
settle into that beach chair, you ought to reflect on how lucky you are to
access the beach.
In New Jersey, you don't have to be a member of a private beach club or a
full-time resident of a quaint Shore town to be able to get to the beach in the
summer, to park, to walk through dunes or cross a boardwalk in order to get to
this year's favorite spot for fishing, surfing or just plain relaxing.
No, the public has a protected right to enjoy the best the summer has to offer.
You'll pay a badge fee, and sometimes you might have to walk a little farther
than you'd like in order to get to the restroom or to find those cheese fries.
But in general, New Jersey's beaches are available to you for your use and
enjoyment.
It's been a year since the New Jersey Supreme Court's decision in the Atlantis
Beach Club case, where the Public Trust Doctrine was employed to order public
access to a private beach from which the public was being forcibly excluded. The
decision also recognizes that beach access consists not just of access points —
places along the shoreline where you and your family can get to and from the
beach — but something of a package of opportunities that includes meaningful use
and enjoyment of the water, the wet sand and a reasonable amount of the dry sand
area.
Similarly reinforced is the necessary relationship between your badge fee and
the costs of maintaining the beach for public access and use. You'll still think
the price increase for this year's badge is outrageous, but it must by law be
justified by the municipality and related back to the cost of lifeguards, trash
pickup, beach security, badge checkers and other people whose job it is to make
your summer at the Shore pleasant and safe.
Of course, public access in New Jersey isn't perfect.
There remain beaches from Monmouth County to Cape May that are not as
public-friendly as they should be. Here, private clubs or private residences
dominate waterfront property, and "Keep Out" signs signal the message that the
public is not at all welcome. In these communities, the public must search,
sometimes to no avail, for select and often overcrowded spots where a family can
settle in for a day.
With New Jersey's rapidly privatizing shoreline, this exclusivity is not only a
current problem, from a legal and a sheer convenience perspective, but something
that, unless the public is vigilant, is likely to get worse. Many of these
exclusive communities are located on beaches that have been built up with public
taxpayer dollars to secure the homes of the very residents whose "No
Trespassing" signs make a simple trip to the beach a challenge for
out-of-towners and inland residents alike.
Limitations on parking and the availability of restroom and concession services
also continue to make life difficult for the public in some beach towns. And
let's not forget the "redeveloping" towns where many longtime residents are
finding themselves denied physical and even visual access to beaches they grew
up on.
Also problematic are our bayside beaches and waterfront areas, where access is
very limited, signage to indicate public access areas is scarce and public
marinas are every year becoming fewer and farther between as they give way to
private, once again exclusive, condominium developments.
Despite these shortcomings, the future is bright in New Jersey for public access
and the public trust. This year, we find the New Jersey Department of
Environmental Protection refusing beach nourishment dollars for towns that deny
adequate public access, holding to a standard that's not only fair but
consistent with the DEP's historic practices and the guidelines of the U.S. Army
Corps of Engineers for the nourishment program.
With news of shorefront communities from northern Ocean County to Long Beach
Island losing beaches to erosion, and related stories raising concerns about the
safety of people and property during this year's hurricane season, the DEP's
efforts to prioritize access sets an important precedent for the implementation
of a program that will no doubt play a significant role in New Jersey's coastal
future.
The DEP is also working to improve outreach tools so the public can more readily
know where access points are located and where support facilities like restrooms
and parking are available. They may not be able to guarantee you water
temperature in the 70s, but the state is working to secure our public trust
legacy. Coastal grass-roots groups are also doing their part to pry open the
doors to the public in communities where access, parking and other necessary
support services are difficult, uncomfortable or impossible to come by.
So whether you choose Belmar, Lavallette, Island Beach State Park, Surf City or
Wildwood, get out there and enjoy. Make it a point this summer to make the most
of your right to access the beaches and waterfront areas across New Jersey.
Leann Foster is policy director of the American Littoral Society, a coastal
conservation organization headquartered on Sandy Hook.
Beach property owners should
pay a bigger share for insurance
The News Journal - Wilmington,DE,USA
Published June 7, 2006
Payouts in the aftermath of Hurricane Katrina were overwhelming. The only thing
that will save the program is congressional authorization to impose large
premium increases, bigger deductibles and other limitations. Unless, of course,
Congress can be talked into pushing the country further into debt to save some
exclusive beachfront property.
Congress should take a hint from private insurers. The price of insurance is
going up near Delaware's beaches -- as it is up and down the Atlantic and Gulf
coasts.
For private insurers, last year's hurricane damage was a costly lesson. Premiums
to protect coastal homes from hurricane-force winds are rising, as are
deductibles. In many cases, insurers are canceling policies. They don't want to
subsidize risk.
However, some people want the federal government to help pay for a relative
handful to live near the beach.
But that is getting too expensive. According to a Brookings Institution report,
seven of the 12 most costly natural disasters in American history happened in
the last two hurricane seasons.
Global warming or not, the region is in another decades-long cycle of powerful
hurricanes. Unlike the last such cycle more than 25 years ago, the beaches along
the Atlantic and Gulf of Mexico are thoroughly built up. A hurricane that might
have just kicked up sand decades ago now means widespread death and destruction.
The only sensible thing for Congress to do is to raise those rates.
Congress is also considering limiting subsidized flood insurance to
owner-occupied housing in the affected areas. Vacation homes and rental
properties would not be subsidized.
Congress should recognize reality and increase the payments.
N.J. shore a scary place,
preparedness official warns
By MARTIN DeANGELIS Staff Writer, (609) 272-7237
Press of Atlantic City
Published: Wednesday, June 7, 2006
Updated: Wednesday, June 7, 2006
EGG HARBOR TOWNSHIP — He came to learn, and he came to warn.
And Richard Canas, the new state director of Homeland Security and Prepar-edness,
learned on a fly-over tour of the shore Tuesday that from the air, the view of
life on New Jersey's coastline is “very impressive, and probably scary.”
The frightening part for someone new to New Jersey included “the congestion, the
narrowness of the strip (of land) and the fact that there's only one way in and
one way out,” Canas said, after he and a dozen or so other state officials
stepped off a National Guard helicopter at the Tony Canale Training Center, on
Egg Harbor Township's mainland.
And that difficulty of getting away from the crowded coast led to the most
ominous warning of the visit, which Canas and his colleagues tied to the start
of this year's hurricane season: If a major hurricane is headed for New Jersey,
and emergency officials order evacuations of the coast, “We're looking at a lot
of deaths if people don't leave those areas,” Canas said.
The good news is that there will be warnings for days in advance. And those
warnings will come in several different forms, including possibly some very
personal ones.
“If we have to personally go out and knock on every one of those doors, we will
do that,” Canas said. “And we will not be crying wolf. ... You have to go.
That's not an option.”
Vince Jones, Atlantic County's emergency management director, said later that
police in Atlantic City and Ventnor have made door-to-door checks on residents
in past evacuations. And Freeholder Frank Sutton, a former Egg Harbor Township
committeeman, added that police in his hometown will do the same if needed.
But evacuations cause their own sets of problems, officials acknowledged.
Mariana Leckner of the State Police emergency management section said a traffic
consultant is working on new estimates of how long it would take to clear out
specific areas of New Jersey. But the current figure is that an evacuation of
Cape May County would take 30 to 34 hours, she said. Atlantic County would take
another 24 hours.
Emergency officials know they can speed up that process if they have to, for
example by shutting down all eastbound traffic on the Atlantic City Expressway
and opening those lanes to a westbound exodus. But Leckner added that's not a
decision anyone wants to make lightly, because an all-westbound expressway slows
emergency responders and supply trucks from getting to the sites of the expected
worst disasters, along the coastline.
Another way state officials try to facilitate fast getaways will be by
announcing them as early in the day as possible — ideally at 5 or 6 o'clock in
the morning — to give people as much daylight as possible to leave in, Leckner
said.
State Police Major John Hunt, who visited New Orleans and the Gulf Coast after
Hurricane Katrina devastated that area, talked about another evacuation-produced
problem — gasoline shortages for all those people trying to drive away at once.
Hunt said state officials have plans for making sure people have enough gas to
follow orders and get far enough inland to get out of danger, but he noted he
has a personal rule for not getting caught short on fuel:
“I tell my wife and my daughter to always have at least a quarter-tank of gas,”
in case the order comes to evacuate, said Hunt, the commander of the
special-operations section in the State Police homeland security branch.
He also made a pitch for residents to consider joining or starting Community
Emergency Response Teams in their towns. CERT volunteers are trained in basic
first aid, disaster preparedness and other skills that help them help police and
firefighters and other officials deal with emergencies.
But several officials stressed that no matter how many concerned volunteers and
trained professionals there are, residents have to take responsibility for their
own safety and preparations for storms.
“All emergencies, like politics, are local,” Canas said. “So it's really up to
you to prepare locally for this.”
He warned that state, county and local officials have to be prepared for their
areas to survive for at least three days before the federal government can start
getting help to New Jersey.
And individual residents have to get ready the same way: Officials advised that
that if a hurricane or other major emergency strikes New Jersey, you should have
at least three days worth of water and food on hand — because that's how long
you should expect to be on your own before help can get there.
To e-mail Martin DeAngelis at The
Press:MDeangelis@pressofac.com
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