Ocean City mayor explains why Wonderland Pier failed

Ocean City Mayor Jay Gillian told a community forum Saturday that he tried everything he could to save Wonderland Pier from closing, but ultimately was overwhelmed by the financial obligations for the iconic Boardwalk amusement park.

“I couldn’t pay the bills,” Gillian said of Wonderland’s struggles while addressing an audience of nearly 200 people gathered inside the Tabernacle Baptist Church.

Gillian’s remarks represented the first time he has spoken extensively in public about Wonderland since he announced on Facebook last month that the amusement park would close sometime after the summer season because it is “no longer a viable business.” He has not yet disclosed the date Wonderland will shut down.

The mayor was part of a ward meeting, organized by Councilman Keith Hartzell, that was intended to focus on a series of issues affecting the city, but was instead dominated by concerns over Wonderland’s closing and what may follow on the high-profile piece of Boardwalk property.

“We can’t allow this symbol of Ocean City to die without fully studying the impact,” said local resident Helen Struckmann, whose family has longtime ties to the town.

Struckmann and other members of the audience expressed fear that Wonderland’s closing would harm tourism and represent a serious blow to Ocean City’s family-friendly reputation.

“Our motto is ‘America’s Greatest Family Resort.’ What are we going to change it to when there’s nothing left for families?” Struckmann asked.

She added, “Ocean City is basically like an endangered species. And Wonderland is exactly what is stopping it from going extinct.”

    Mayor Jay Gillian addresses the audience while City Councilman Keith Hartzell listens.
  

Hartzell told the audience that he never intended his ward meeting to become “a forum on Wonderland,” but some residents grew impatient while waiting for the discussion to switch to Wonderland. Some of them began shouting questions from the audience, prompting Hartzell to respond, “Please be respectful.”

As Gillian stood next to him, Hartzell praised the mayor for his “courage” to discuss Wonderland’s plight in a public forum. The audience responded with applause in support of Gillian.

“This is a very emotional thing for him. It’s very personal. I have empathy for him. So I want everyone to be respectful. Let him speak,” Hartzell said of Gillian. “I believe you know what he’s going through. This is gut-wrenching for him.”

Taking the microphone, Gillian explained that Wonderland was never able to recover financially from the combined effects of Hurricane Sandy in 2012, the COVID pandemic starting in 2020 and the increase in New Jersey’s minimum wage.

“So, at the end of the day, we had Sandy, COVID came in and knocked me. I couldn’t pay the bills. When you talk about the governor and all the things that they do, they doubled the payroll. Everybody thinks that’s great. So my payroll went from $40,000 to $80,000,” Gillian said of the impact of the higher minimum wage on Wonderland’s expenses.

“I tried my hardest to keep Wonderland going,” he continued. “If anyone knows me, and you can believe all the stuff you hear on social media, but at the end of the day, my grandfather came here in 1930, and it's been a family thing that we've done. I tried everything.”

Gillian’s late grandfather, David Gillian, founded the family’s amusement business in Ocean City 94 years ago. His father, Roy Gillian, who died last month, started what became Wonderland Pier at Sixth Street and the Boardwalk in 1965. Jay Gillian was the third generation to own his family’s amusement business.

“Believe me, if I could do more, I would,” Gillian said of his efforts to save Wonderland.

    An audience of nearly 200 people packs the Tabernacle Baptist Church.
  

Despite Wonderland’s rich history and traditions, the amusement park struggled with financial troubles in recent years. In January 2021, Wonderland Pier was ordered to be put up for a sheriff's auction because Gillian defaulted on $8 million in mortgage debt.

However, Gillian secured the financing needed to prevent an auction through developer Eustace Mita, owner of the Icona luxury resorts in the Cape May County beach communities of Avalon, Cape May and Diamond Beach.

Gillian said the money that Mita invested in Wonderland went toward paying off debts. He noted that Mita gave him three years in 2021 to try to turn Wonderland around. Ultimately, he couldn’t overcome Wonderland’s financial struggles, Gillian said.

“This year, I tried again. Before I can wake up in the morning, I’m about $4 million in debt, between payroll and insurance, that’s what my insurance is like, and just the upkeep,” he said. 

Although Gillian operates Wonderland, Mita is the owner of the property now. Mita has told city officials that he needs six months to study the property before coming up with a plan for the site.

Last year, well before Wonderland’s closing was announced, Mita unveiled plans to build a $150 million luxury boutique hotel on the property. His plan fizzled out when Gillian and other elected officials did not support building a hotel on the Boardwalk.

Ocean City’s zoning law currently does not allow hotel development on the part of the Boardwalk where Wonderland is located. City Council would have to amend the law for hotel development to become possible on the Boardwalk.

    Councilman Keith Hartzell promises a transparent public process if the city gets involved with the fate of the privately owned Wonderland Pier.
  

Despite repeated questions from the audience about Wonderland’s future, Gillian and Hartzell said they have no idea at this time what Mita may do with the private property.

Hartzell repeatedly urged the audience to give Mita the time he needs to develop plans for Wonderland.

“He’s going to look at every possible thing he can do with that property,” Hartzell said.

At the same time, Mita has said he has “zero interest” in selling the property, Hartzell noted.

“He understands the historic significance of Wonderland. But he’s also a capitalist,” Hartzell said of Mita considering his options for the site.

Hartzell promised that any involvement that the city may have in deciding Wonderland’s fate will be a transparent process involving public input.

“Nothing’s going to be hidden on this,” he said.

Speculation is building that Mita may look to develop a luxury hotel on the property that could involve Ocean City’s first liquor license.

Since its founding in 1879 by four Methodist ministers, Ocean City has been a “dry” town prohibiting alcohol sales. City Council would have to amend the law to allow liquor sales.

Hartzell, though, expressed his opposition to alcohol sales and said he is confident that the seven-member Council would never issue a liquor license.

    Wonderland's sprawling decorative facade overlooks the Boardwalk at Sixth Street.
  

Some local groups believe that Wonderland is so critical to the local economy and tourism that the city’s government should give the public a say in deciding some or all aspects of the property’s future.

A newly formed preservation group called Friends of OCNJ History & Culture has asserted that no demolition should be allowed at Wonderland while Council deliberates the future of the sprawling Boardwalk property.

Bill Merritt, a founding member of Friends of OCNJ History & Culture, briefly spoke at Saturday’s ward meeting and called for an open and transparent public process for deciding what to do with Wonderland.

“Our view is, it is a critically important asset,” Merritt said of Wonderland.

Some preservationists want the city to step in to try to help save Wonderland’s landmark 140-foot-tall Ferris wheel as well as its historic carousel.

Hartzell said Mita understands the iconic nature of some of the amusement rides and will do “what he can” to save them if possible.