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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Ocean City Planning and Zoning Commission Regular Meeting – October 20, 2026

Mayor and City Council & Boards — Tuesday, October 20, 2026

BodyOcean City, Maryland

SessionMayor and City Council & Boards

DateTuesday, October 20, 2026

StatusFILED

Video Record

0:00 / 58:05

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

0:14

I'll call to order the October 20th meeting of the Planning Commission.

0:20

First item on the agenda is approval of the minutes from our last meeting.

0:26

Do I have a

Speaker 2

0:27

I make a motion to approve the minutes?

Speaker 1

0:31

Second.

0:32

Minutes are approved.

0:36

Next item of business.

0:38

Excuse me.

0:39

All in favor?

0:40

Sorry.

0:45

Next item of business is site plan extension for the Olympic One Apartments, Ocean Sands Hotel Site Plan Extension Request for two-year extension for approved site plan due to expire on December 14th, 2026.

1:00

Demolition of the existing structures for the construction of a new five-story hotel structure to have a total of 20 units with an owner/slash manager's unit and two accessory employee housing units.

1:13

Applicant Olympic One Apartments LLC Planning and Zoning File Number 24-181018.

Speaker 3

1:24

Good evening, everyone.

1:26

As Janet said, this is an extension request.

1:30

This was originally submitted, I believe, in 2021.

Unassigned speaker

1:36

Is

Speaker 3

1:36

that some right?

1:37

2021.

1:39

It has been extended over the last few years.

1:50

Outlined in your staff report.

2:03

The BZA applications, some of which have been extended or replaced from 2021 and 2023.

2:13

And then of course the Planning Commission site plan reviews from 2021 and the most recent one in 2025.

2:21

This obviously is a lengthy project.

2:27

They're also going to be in front of the Board of Zoning Appeals next month requesting an extension there.

2:34

So they did submit an official exhibit that was passed out to you.

2:43

This is just a summary from the applicant's team.

Speaker 4

3:10

Okay.

Speaker 5

3:13

I'm here with Mr.

3:14

Tello and Ms.

3:15

Tello and their son.

3:17

They are the owner operators of the hot uh existing apartment house at 608 Baltimore Avenue.

3:25

Um the project, and I did the original design

Unassigned speaker

3:30

work

Speaker 5

3:31

on the project, and I assisted them with the architect

Unassigned speaker

3:35

uh

Speaker 5

3:35

to get the preliminary approvals began in 2020.

3:41

At that time, um the mayor and count not the well, the planning commission held a meeting and others regarding the redevelopment of Baltimore Avenue in this room, and they laid out the timeline for the redevelopment of Baltimore Avenue.

3:58

One of the issues that was major was there's a 30-foot no man's land undeveloped area and they didn't know whether they would turn that over to the property owners or what have you.

4:09

They took all the public comments and then they left the record open for a couple weeks.

4:13

Then the mayor and council, after receiving all that, decided to move forward with the project.

4:19

When they put it out the bid, the first bid that came in was like 20 million.

4:24

That was shelf shot for them at that time.

4:28

I I think part of that was starting to evolve with COVID during 2020.

4:35

A lot of construction cost, a lot of costs, not just construction costs started going up, especially construction materials because of the availability and we were we were locked down, there were issues with employment.

4:50

There was all kinds of things happening during that early stage of it.

4:53

So they delayed the project on Baltimore Avenue.

Unassigned speaker

5:00

We came back for the extension because of the delay, and it was granted both by the Planning Commission and the Board of Zoning Appeal.

Speaker 5

5:04

So we're six years in the making, so it has it seems like a long time not get started.

5:10

When you look at your staff report, and you look at your especially the VZA approval, one of the conditions was that the power lines have to be dropped to meet the lay safety code for the EMS and the fire marshal's office.

5:26

We don't have proper access with those lines

Unassigned speaker

5:29

up.

Speaker 5

5:30

Our options were to get an easement from the southerly neighbor to the property.

5:35

It's a parking lot, the Ocean Miss Condominium.

5:38

And if we could gain a perpetual easement there, that would give adequate ingress egress for lay safety requirements to fight fires or emergencies.

5:49

That was not acquired.

5:51

However, the fire marshal's office does have an easement for firefighting purposes to cross that property during emergency for the ocean mist.

5:59

It doesn't extend to other properties, if you

Unassigned speaker

6:02

will.

Speaker 5

6:30

So without the lines being dropped, it's it's a very difficult site to develop.

Discussion Breakdown — Share of Meeting

Zoning And Land Use███████████████████████████████████35%

Parking Management█████████████████████21%

Licensing And Permits███████████████15%

Procedural███████████11%

Engineering And Infrastructure████████8%

Short Term Rentals█████5%

Nonconformity███3%

Environmental Protection██2%

Summary of Proceedings

Ocean City Planning and Zoning Commission Regular Meeting – October 20, 2026

The Ocean City Planning and Zoning Commission held its regular meeting on Tuesday, October 20, 2026, at 6:00 PM in the Council Chambers at City Hall, 301 Baltimore Avenue. The Commission considered a site plan extension, a new site plan for off-site parking improvements, a conditional use public hearing for an escape room, and an update on the Accessory Dwelling Unit (ADU) zoning amendment. Votes were taken on all major agenda items.

Consent Calendar

Approval of Minutes (October 6, 2026): The Commission unanimously approved the minutes from the October 6, 2026 meeting.

Discussion Items

Site Plan Extension – Olympic 1 Apartments / Ocean Sands Hotel (PZ File #24-18100018): The applicant requested a two-year extension of the previously approved site plan, set to expire on December 14, 2026, to December 14, 2028. The project involves demolishing existing structures and constructing a new 5-story, 20-unit hotel with an owner’s/manager’s unit and two accessory employee housing units. The applicant’s representative explained that delays in the Baltimore Avenue redevelopment project have prevented overhead power lines from being buried, which is required for fire apparatus access and construction staging. The applicant stated the current buildings are nonconforming and the new hotel will improve safety, accessibility, and energy efficiency. Staff noted the timetable provided was informal and that the Baltimore Avenue project, directed by the state, could still face changes. The Commission voted 3-1 to approve the two-year extension, with Commissioner Gordon Kretser opposed.
Site Plan – de Lazy Lizard Lot D Off-Site Parking Improvements (PZ File #26-18100014): The applicant proposed demolishing existing structures on Lot 33 (17 St. Louis Avenue) and expanding the adjacent parking lot D from 39 to 51 spaces, for a total of 78 off-site parking spaces serving de Lazy Lizard restaurant and associated parasail and banana boat businesses. The project also removes from dedication two other parking lots no longer needed. Staff recommended approval subject to conditions, including a deed restriction ensuring the parking is used exclusively for the restaurant and marine activities. The Commission voted unanimously to approve the site plan with staff conditions.
Public Hearing – Conditional Use for ScapeX, LLC / Escapomania (Escape Room) (PZ File #26-12100002): A public hearing was held for a request to permit an interior tenant fit-out for an amusement use (escape room) at 13113 Coastal Highway in the LC-1 Local Commercial District. The applicant plans to create six escape rooms, a waiting area, employee area, and restrooms within an existing shopping center. Staff recommended approval with conditions (family-friendly themes, no locking doors per Fire Marshal, video monitoring, etc.). The applicant testified that he already operates two escape rooms in Ocean City and that parking is adequate (75 existing spaces). After closing the public hearing, the Commission discussed the use’s compatibility, finding no negative impacts on surrounding properties, traffic, or noise. The Commission voted 4-0 to forward a recommendation of approval to the Mayor and City Council.
Updated Accessory Dwelling Unit (ADU) Zoning Amendment (PZ File #26-14100001): The Commission reviewed the updated draft ordinance that incorporates a change from the October 6, 2026 public hearing: a prohibition on short-term rental use of ADUs. The Commission agreed to forward the favorable recommendation letter to the Mayor and City Council for first reading at the November 10, 2026 work session.

Key Outcomes

Site Plan Extension for Olympic 1 Apartments approved (3-1).
Site Plan for de Lazy Lizard Lot D parking improvements approved with staff conditions (unanimous).
Conditional Use for Escapomania escape room recommended for approval to Mayor and City Council (4-0).
Commission signed and forwarded ADU zoning amendment recommendation letter.
Election of Secretary postponed to the next meeting (November 3, 2026) due to absent members.

Meeting Transcript

I'll call to order the October 20th meeting of the Planning Commission. First item on the agenda is approval of the minutes from our last meeting. Do I have a I make a motion to approve the minutes? Second. Minutes are approved. Next item of business. Excuse me. All in favor? Sorry. Next item of business is site plan extension for the Olympic One Apartments, Ocean Sands Hotel Site Plan Extension Request for two-year extension for approved site plan due to expire on December 14th, 2026. Demolition of the existing structures for the construction of a new five-story hotel structure to have a total of 20 units with an owner/slash manager's unit and two accessory employee housing units. Applicant Olympic One Apartments LLC Planning and Zoning File Number 24-181018. Good evening, everyone. As Janet said, this is an extension request. This was originally submitted, I believe, in 2021. Is that some right? 2021. It has been extended over the last few years. Outlined in your staff report. The BZA applications, some of which have been extended or replaced from 2021 and 2023. And then of course the Planning Commission site plan reviews from 2021 and the most recent one in 2025. This obviously is a lengthy project. They're also going to be in front of the Board of Zoning Appeals next month requesting an extension there. So they did submit an official exhibit that was passed out to you. This is just a summary from the applicant's team. Okay. I'm here with Mr. Tello and Ms. Tello and their son. They are the owner operators of the hot uh existing apartment house at 608 Baltimore Avenue. Um the project, and I did the original design work on the project, and I assisted them with the architect uh to get the preliminary approvals began in 2020. At that time, um the mayor and count not the well, the planning commission held a meeting and others regarding the redevelopment of Baltimore Avenue in this room, and they laid out the timeline for the redevelopment of Baltimore Avenue. One of the issues that was major was there's a 30-foot no man's land undeveloped area and they didn't know whether they would turn that over to the property owners or what have you. They took all the public comments and then they left the record open for a couple weeks. Then the mayor and council, after receiving all that, decided to move forward with the project. When they put it out the bid, the first bid that came in was like 20 million. That was shelf shot for them at that time. I I think part of that was starting to evolve with COVID during 2020. A lot of construction cost, a lot of costs, not just construction costs started going up, especially construction materials because of the availability and we were we were locked down, there were issues with employment. There was all kinds of things happening during that early stage of it. So they delayed the project on Baltimore Avenue. We came back for the extension because of the delay, and it was granted both by the Planning Commission and the Board of Zoning Appeal. So we're six years in the making, so it has it seems like a long time not get started. When you look at your staff report, and you look at your especially the VZA approval, one of the conditions was that the power lines have to be dropped to meet the lay safety code for the EMS and the fire marshal's office.

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