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Developer proposes $150 million hotel for Ocean City Boardwalk

Developer proposes $150 million hotel for Ocean City Boardwalk
Developer proposes $150 million hotel for Ocean City Boardwalk 02:06

NEW: Ocean City's mayor says he cannot support the proposal.
OCEAN CITY, N.J. (CBS) -- A developer is proposing a $150 million hotel for the Ocean City Boardwalk. 

But some residents say the boardwalk is not the right place for a resort-style hotel and could change the character of the city. 

It's a seven-story luxury hotel with 325 rooms that would change the skyline of Ocean City. 

Eustace Mita is the chairman of the company that wants to build the boardwalk hotel, called Icona Ocean City. 

"We're very excited about it," Mita said. "We're excited about the prospects." 

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Mita unveiled the proposal during a city council meeting Thursday night. 

In order to build the hotel, the city would have to sell him the land, which is currently a large public parking lot between 5th and 6th Streets, near Gillian's Wonderland Amusement Park. 

The city would also have to change zoning laws because hotel development is banned on the boardwalk. 

"There hasn't been a new hotel in Ocean City in over half a century," Mita said. "So to me, this is a one in a lifetime, once in 100 year opportunity." 

Mita says the hotel would boost tourism, create hundreds of jobs and bring tax revenue to the city. 

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But many residents and visitors CBS Philadelphia talked to have concerns. 

"Ocean City is a family-oriented destination seashore for New Jersey and I think they would lose the quaintness and quietness of what this town has been for many, many years," said Bill Dougherty, who visits Ocean City from Audubon.  

Some are concerned about about whether the hotel would block the ocean view of people who live nearby. 

"I'd be very concerned about the roads," Brooke Vitale, who visits from Egg Harbor Township, said. "I don't think the roads could handle all the traffic because it's already pretty crowded in the summer." 

People are also worried about losing parking spots, which they used to when they go to the boardwalk, Gillian's and football games at Ocean City High school. 

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Mita says the project would actually create up to 400 new parking spots. 

"I've never seen any project where everybody's in favor," Mita said. "I think people are always afraid of change." 

If all goes well for the developer, the hotel could open in four years.

Residents say it's a proposal the city has to consider carefully.  

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