The Dunes project, combining restaurant space and 13 luxury condos in a three-story building, opened over the summer in Sea Isle City's Townsends Inlet section.
By Donald Wittkowski
The developers of an upscale condominium and restaurant complex have won a legal battle with Sea Isle City over construction permits that were denied for the project by the town's zoning officer.
State Superior Court Judge Julio L. Mendez ruled that the zoning officer overstepped his authority when he refused to grant permits for the Dunes project in September 2015.
The developers, a group called 8600 Landis LLC, moved ahead with the project anyway under an interim order that allowed construction to continue while their lawsuit against the city was pending in the courts.
"The developers went forward and did the project at their own risk," said Michael Malinsky, an Atlantic City attorney representing 8600 Landis.
Malinsky said if Mendez had ruled against the developers, there was a chance they would have been forced to shut down operations.
The court ruling preserves the "status quo" and avoids any interruptions with the project, Malinsky explained. The Dunes opened over the summer, occupying the entire block of Landis Avenue between 86th and 87th streets in Sea Isle's Townsends Inlet section.
Mendez, in his decision, said the developers were entitled to all construction permits needed to build the project consistent with city Planning Board approvals.
The city, however, had withheld the construction permits after questioning whether the project was being built under the plans approved by the Planning Board.
"They wanted the city to issue permits for items we felt should go to the Planning Board," Sea Isle Business Administrator George Savastano said.
The developers sued the city to obtain the permits. Mendez found that the developers had obtained all necessary Planning Board approvals and should have been awarded the permits.
"It means they don't have to go back to the Planning Board," Savastano said of the impact of Mendez's ruling on the developers.
The Dunes project was built on a site formerly occupied by Busch's Seafood Restaurant, an iconic business that operated in Sea Isle for 132 years before shutting down to make room for redevelopment of the property.
Mayor Leonard Desiderio called the Dunes a new "showplace" for Townsends Inlet during a ribbon-cutting ceremony for the project over the summer.
The Dunes combines commercial development with residential construction in a three-story building. The complex features an upscale Doc Magrogan's Oyster House restaurant on the first floor and 13 luxury condos on the second and third levels.
The development group includes restaurateur Dave "Doc" Magrogan and local businessman Christopher Glancey, the president of the Sea Isle City Chamber of Commerce and Revitalization.
Although the litigation over the construction permits has concluded following Mendez's ruling, the city has issued a violation notice against the Dunes for having a walk-in beer cooler in its parking garage, Savastano said.
Savastano said the beer cooler was installed in an area of the garage that was supposed to be for parking spaces.
The dispute over the beer cooler was referred to the Cape May County Construction Board of Appeals, but has since been shifted to the Atlantic County Construction Board of Appeals, Malinsky said. He did not know when the case will be heard.
