After mulling over the possibility of purchasing a former bank building on Asbury Avenue instead of renovating the department’s current Central Avenue location, Ocean City decided not to move its police headquarters.
In a Sept. 30 press release, the city said that “although the building will serve adequately for a temporary home to the department, the apparent scope of known work and associated costs to properly renovate the building for the long term make this acquisition uneconomical. In addition, there remain further unknown concerns relative to the facility that make the acquisition impracticable.”
The decision came after the City Council introduced an ordinance authorizing the $12.6 million purchase of 801 Asbury Ave., a seven-story structure built in 1925 that once housed Crown Bank, at its Thursday, Sept. 25 meeting.
The city currently rents space for municipal courtrooms and police operations on the building’s upper floors, while the ground level contains Shoppes at the Asbury, a group of small retail businesses.
The proposed purchase would replace a June 2024 plan to spend $30 million upgrading the current police station, a repurposed school building at 835 Central Ave. If the acquisition went through, the current headquarters would’ve been demolished, Mayor Jay Gillian said.
In a Sept. 26 newsletter, the mayor voiced support for the switch, noting that officials are assessing the condition of the building before moving forward.
“This option could potentially save taxpayers millions of dollars, and I believe it is in our best interests to explore this alternative,” Gillian said.
The deal, had it been approved, was time-sensitive. Ocean City Solicitor Dorothy McCrosson explained that New Jersey will soon impose a 3.5% real estate transfer fee on property sales exceeding $3.5 million. To avoid paying roughly $400,000 in additional taxes, Ocean City would’ve had to close on the property before Nov. 15.
While city leaders emphasized cost savings and efficiency, the proposal stirred concern from local business owners and residents.
Gloria Baker, a resident and owner of two businesses within Shoppes at the Asbury, told council members the sale could put her out of business. She said she had always dreamed of living in Ocean City and owning a boutique on Asbury Avenue.
In 2022, Baker was able to achieve that goal and grew her business to reach sales of over six figures from her current 150-square-foot space. Baker said she doesn’t have a second location to move to and noted that there are more owners in similar situations as well.
“My livelihood would be gone. Opening a store on Asbury is not feasible for me, and as we all know, finding affordable retail space on Asbury Avenue is like finding a needle in a haystack,” Baker said.
Other residents raised broader questions about how the purchase might affect Ocean City’s downtown character. The avenue is well known as a shopping hub, drawing both visitors and locals away from the boardwalk. Critics worry that a large municipal presence could change the atmosphere.
Resident David Breeden urged the council to slow down and carefully consider long-term consequences.
“This is a long-term investment, and we need to make sure this is a wise investment, for both the business community, the community in general and for the Ocean City Police Department,” Breeden said.
Council members themselves expressed mixed feelings. Councilman Keith Hartzel doesn’t think the police presence will increase with the proposed move, but agreed with Baker that the Shoppes are vital to the city’s economy.
The building itself has a complicated history.
Following a bankruptcy filing in 2021, the property was nearly redeveloped into a hotel by the Icona resort chain in 2022 before that plan fell through.
However, brothers Raj and Yogi Khatiwala saved the century-old structure from being sold at auction when they purchased it and its surrounding parking areas for nearly $6.7 million.
The Khatiwalas, who are local investors, then transformed the space into Shoppes at the Asbury.
In 2024, the city invested $3.3 million to acquire two of the parking lots once tied to the former Crown Bank Building. Officials have been steadily buying land along Eighth Street and Central Avenue, just behind City Hall, with the goal of expanding parking options downtown, according to OCNJ Daily.
The ordinance was to return for the second reading and public hearing at the Oct. 9 City Council meeting, but now the next step for the headquarters remains uncertain.
Julia is a recent Rider University graduate, where she studied multiplatform journalism and social media strategies. In her spare time, she enjoys reading, trying new coffee shops, photography and the beach. She can be reached at juliatrainmedia@gmail.com or connect with her on Instagram @juliatrain
