Ocean City is preparing to move ahead with a major redevelopment proposal for the long-vacant Seaspray condominium complex near the south end of town. The project, introduced for first reading on November 20, moves the city closer to replacing the condemned 32-unit structure with a new 43-unit, four-story condominium development. The redevelopment ordinance will receive its public hearing and final vote on December 4, according to the City Council agenda referenced in recent local reporting

.The Seaspray property, built in the 1950s as a hotel before converting to condominiums in 1999, has been shuttered since 2024 after concrete from the structure fell and the building was declared unsafe. Its position near 43rd Street places it within a quiet residential stretch of Ocean City that has seen limited redevelopment in recent years. With this ordinance advancing, the property may soon transition from a lingering safety concern into a modern residential complex.

Why the Seaspray Redevelopment Matters

The proposal from The Hyland Group outlines 43 new units, rooftop amenities, private pool access, and a first-floor parking level. While Ocean City has continued to attract buyers who prefer newer construction and modern features, this project is also tied to a complicated procedural track. The redevelopment ordinance must be approved by City Council before the proposal is sent to the Planning Board for variance review, including the project’s height and density.

For homeowners in the south end—particularly those along West Avenue and the numbered cross streets from 40th to 46th—the redevelopment plan marks a significant shift from a long-dormant property. The Seaspray building has been a visible reminder of stalled progress, and its replacement has the potential to influence neighborhood cohesion, property values, and streetscape character.

How We Got Here

The Seaspray’s decline became unavoidable when debris from the building fell last year, prompting officials to condemn the structure and require all units to remain vacant. The building’s deterioration sparked safety complaints and placed pressure on the city to address the future of the property.

According to recent reports, The Hyland Group’s plan includes:

• 43 residential units

• A rooftop recreation area

• Private pool and outdoor showers

• Structured parking at the ground level

These features reflect what many newer southern-end developments already incorporate: on-site amenities, modern materials, and elevated design to comply with flood standards.

A Closer Look at the Zoning Component

Because the project includes a higher unit count and a multi-story design, it will require Planning Board review after the December 4 vote. The Planning Board must consider:

• Variances related to height

• Variances related to building size

• Density considerations

• Compliance with Ocean City’s redevelopment criteria

Ocean City has consistently maintained strong oversight over projects in residential districts, especially when redevelopment involves larger structures near established neighborhoods. That process is designed to keep the character of streets like 43rd Street consistent with homeowners’ expectations.

This stretch of the island is known for its mix of single-family homes, duplexes, and smaller condo buildings. The Seaspray site occupies a prominent location just a few blocks off Asbury Avenue, giving the redevelopment added visibility in a quieter corridor.

Local Voices and Public Perspective

Recent reporting highlighted that city officials believe the project will revitalize a long-neglected property. With the building sitting unused since 2024, several residents have expressed concerns over safety, aesthetics, and potential blight.

A paraphrase from the council meeting context reflects this sentiment:
According to public discussion at recent Ocean City Council sessions, officials noted that the redevelopment proposal is intended to replace a deteriorating structure that has remained idle since its 2024 condemnation.

This aligns with what many Ocean City residents have expressed in neighborhood forums—specifically, relief that a solution is advancing after years of uncertainty.

What Comes Next for the Seaspray Site?

If City Council approves the redevelopment ordinance on December 4, the next steps include:

• Formal Planning Board application

• Variance review

• Design evaluation

• Public comment during Board proceedings

Given the building’s location between Central Avenue and Asbury Avenue near 43rd Street, residents in the surrounding blocks may see intermittent activity as the site transitions from abandonment to construction staging. Full construction would begin only after Planning Board approvals, permitting, and demolition.

How This Redevelopment Fits Into Ocean City’s Housing Pattern

Ocean City has seen a steady increase in newer, amenity-rich condominium construction, especially in the south end and boardwalk-adjacent neighborhoods. While most of the city is already built-out, redevelopment continues where older buildings no longer meet structural standards or economic feasibility.

A project of this size introduces:

• New inventory within a desirable neighborhood

• Updated building standards that align with flood resilience

• Potential ripple effects on nearby duplex redevelopment patterns

As a local agent, I’ve often seen that buyers looking in the southern avenues—40th Street through 55th Street—tend to favor modern construction, especially when it includes parking and private outdoor space. The Seaspray redevelopment aligns with that buyer preference, and its progress will be closely watched.— Mike Sutley, Team Leader at Lexy Realty Group

Why It Matters

This redevelopment carries several implications for Ocean City homeowners:

• It removes a long-vacant blighted building.

• It may elevate surrounding property appeal once completed.

• It increases modern housing supply in a neighborhood where tear-downs and rebuilds have been more incremental than large-scale.

• It may influence future redevelopment proposals along nearby corridors such as Asbury Avenue and Central Avenue.

Changes like this tend to have gradual but noticeable effects on buyer expectations for the surrounding area.

Micro-FAQ

Will construction start immediately after December 4?
No. Planning Board review and permitting must occur before demolition and construction begin.

Will the project definitely be approved?
Approval is not guaranteed; variances for height and density must meet criteria set by the Planning Board.

Will neighbors receive notice?
For Planning Board hearings involving variances, statutory notice is typically required for property owners within a certain radius.