Ocean City Mayor Faces $600K Lawsuit Over Amusement Park Debt

The mayor of Ocean City, Jay Gillian, is embroiled in a legal battle over a significant debt linked to the now-closed Wonderland Pier, an amusement park that is set for redevelopment into a hotel. The lawsuit, filed in August 2023, names Gillian, his wife Michele Gillian, and his company GILAMCO as defendants, along with Eustace Mita, the owner of ICONA Resorts.

Mita acquired Wonderland Pier in 2021, just before it was on the verge of foreclosure. He has proposed a redevelopment plan that includes a $170 million resort hotel on the site. The ongoing financial disputes stem from a complex history of loans and payments that have not been settled. Wonderland Pier was closed by Gillian in October 2024, and he has recently disclosed that he filed for personal bankruptcy, although he intends to run for reelection.

Court documents indicate that Gillian has failed to make any payments on a judgment of $595,619 that was imposed in March 2024. This judgment was meant to resolve a prior lawsuit involving a loan originally taken out in 2009 for $1.5 million. The loan underwent several modifications over the years, and by 2013, Gillian was obligated to pay $100,000 annually plus interest. Payments were deferred during the pandemic and then restructured in 2022, necessitating $160,000 in principal payments.

The bank claims Gillian defaulted on this agreement, resulting in a court order for repayment. As of now, over a year later, no payments have been made. Notably, Gillian’s stepmother, Patricia Gillian, holds the majority of this judgment through her irrevocable trust, which maintains an 80% interest, while the bank retains 20%.

The new lawsuit asserts that Mita and his company should redirect consulting payments owed to Gillian. According to a 2021 agreement, these payments total $200,000 annually after the lease for Wonderland Pier ended in December 2024. To date, those payments have not been transferred to satisfy the judgment. Mita has partially reopened Wonderland Pier for arcade games and food while advancing plans for his ICONA-branded hotel.

In a communication with NJ Advance Media, Mita described himself as a “safety net” regarding the outstanding debt, asserting that there is no liability on his end and seeking a dismissal of the lawsuit. Earlier this month, the Ocean City Council designated Wonderland Pier as “an area in need of redevelopment,” a crucial step that now awaits planning board approval.

As this situation unfolds, the legal implications for Gillian and the potential impact on Ocean City’s redevelopment plans remain to be seen. The community watches closely as the case progresses, particularly given its potential to influence the future of the amusement park site and the local economy.