STATUS OF PROJECTS IN DOWNTOWN OCEAN CITY – as of May 2025
Following up on our past articles on new development and renovation going on in downtown Ocean City, we wish to provide an update on other new projects underway. Several site plans have been approved over the past couple of years with that said, we will highlight those projects that have been completed, underway and projects that have not started yet.
As many know, an approved site plan does not necessarily mean a project will be built. Many other factors come into play, particularly with market conditions and financing feasibility. These highlighted projects will have a variety of uses; including three public projects. This update does not include single family residential but you will note that several of the projects include new seasonal housing!
Completed projects
104 Worcester Street
The small weekly rental building on the north side of Worcester Street, just west of S. Baltimore Avenue has been demolished, and a new three-story structure has been permitted and constructed. These two residential units, four bedrooms each, have an appearance of a townhouse building with first floor parking. It will provide thirty-nine (39) beds of seasonal housing for Dumser’s Dairyland employees; owners of the property. It is located adjacent to Dumser’s Dairyland office and its ice cream manufacturing facility. The building has now received its Certificate of Occupancy. In April 2025, the Ocean City Development Corporation (OCDC), a nonprofit organization charged with revitalizing downtown Ocean City, provided an award for “Excellent Downtown Development Project” to this project.
100 Talbot Street
This newly constructed project contains two buildings with six bedrooms each. It was completed in April 2025 and will be used for short term rentals. It is located at the northwest corner of S. Baltimore Avenue and Talbot Street. This project received an “Excellent Downtown Development Project” award from the OCDC at its April 2025 annual meeting.
101 16th Street
Just completed and opened in early May 2025 is the Hyatt West Hotel project located on the west side of Baltimore Avenue along 16th Street. This new hotel consists of sixty-three (63) hotel units; about fifty percent are Queen Studios that have a kitchen. It also has an outdoor pool and lounge space.
Guests of this hotel will have access to all of the amenities at the main hotel (Hyatt Place Ocean City/Oceanfront) located directly east, on the boardwalk. Such amenities include meeting space, indoor and outdoor pools, bars, interior veranda and more.
217 S. Baltimore Avenue
This new addition to the Ocean City Lifesaving Station Museum officially opened to the public on May 1, 2025. It is located at the northeast corner of S. Baltimore Avenue and Dorchester Street. This circa 1910 building which was the former Bank of Ocean City, was fully restored to its original look including attractive porches. The Bank donated this building to the Town of Ocean City in 2019. New local historical exhibits and artifacts have been installed in this new Museum of Ocean City which is open to the public.
Nearly complete
400 S. Baltimore Avenue
This multiuse project, located on the southwest corner of S. Baltimore Avenue and Somerset Street, is being constructed by the Town of Ocean City for its new Ocean City Police Department facility. It is being referred to as OCPD Downtown Substation. The previous use was a public parking lot owned by the Town of Ocean City. This new facility will contain first-floor office and public lobby space for OCPD employees, as well as a garage storage and repair for the bicycle unit. With elevator access, the second floor will be for OCPD office, training, interview, and meeting space. The third floor will provide housing for sixteen (16) seasonal City employees.
The parking will be located in the rear of the building. The local nonprofit organization, OCDC, has partnered with the Town in acquiring grant funds and financing of this new facility. The OCDC will be responsible for managing the residential uses on the upper floor once completed.
The private buses that have historically used this Somerset Street location for drop off/pick up of its customers from area hotels and campgrounds will continue to utilize this location; including its bus shelter. Public restrooms will also be provided. This project is estimated to be completed for Summer 2025.
St. Louis Avenue and 3rd Street
As part of the next and final stage of redevelopment at the popular Bayside Park at 3rd Street, is construction of new administrative space and restrooms adjacent to the OC Skate Bowl. The other improvements were previously completed for the 2024 summer season; including new playground equipment, inclusive playground with a communication board, music hut, basketball courts, tennis/pickleball courts, and renovated skate bowl improvements. The newly improved park also provides access to the bayside boardwalk; an ideal location for fishing and crabbing. Bonus, a fishing permit is not required in this area of town. This park was once known as the Downtown Recreation Complex.
This new building will contain public restrooms on the first floor, along with a “skate-in” skater lounge area, which will provide shade for park skaters. On the second floor there will be offices that are accessible by stairs and an elevator. An observation deck will also be accessible for parents and other interested onlookers. Its construction is expected to be completed for Summer 2025.
Construction underway
1101 Baltimore Avenue
A four-unit residential project, located at the northwest corner of Baltimore Avenue and 11th Street, this three-story project will contain parking on the first floor and consistent with the upper downtown design standards. Construction of these units is expected to be completed in 2025.
204 N. Division Street
It appears downtown Ocean City will once again have a service station with fuel pumps. This project is located just north of the Route 50 Bridge along the west side of Philadelphia Avenue. The fuel storage tanks have been installed. The final site plan also includes a canopy over the fuel pumps.
Approved site plan
700 S. Philadelphia Avenue
The proposed KYMA Luxury Resort Hotel is located in the vicinity of the Inlet; just south of Sunset Park. The plans include sixty-two (62) guest rooms, seven (7) guest suites, a restaurant, banquet room and VIP lounge. The project is planned to have on-site parking, as well as dedicated off-site parking to meet mandated requirements. The Town of Ocean City has permitted use of Sunset Park as a fire lane for this new project. In exchange, the owners have agreed to allow public access to the bayside walkway, on the west side of the parcel. To date, the project site has been fenced and a foundation plan has been approved.
1301 Atlantic Avenue
Formerly known as the Phillips Beach Plaza, this building and adjacent Bo-Con Apartment building were demolished over this past winter; the site has been cleared. Plans were originally proposed as the site for a future Margaritaville branded project, with 265 hotel units, three (3) restaurants, convention space, and retail stores. However, this project is no longer being pursued.
In 2024, a revised site plan was approved for a more traditional hotel with less guest rooms and fewer amenities than the Margaritaville proposal included. Also, there may be other pending legal challenges to be resolved, before the project is permitted to move forward. Other than those for demolition, no other building permits have been issued for this project to date.
Substantial renovation to occur
312 Talbot Street
Recently approved in April 2025, is the second-floor use for the Angler Restaurant located directly south of the Route 50 Bridge on the bayside. The Angler is Ocean City’s oldest restaurant. These new improvements will consist of a rooftop bar and dining area. Construction on this expansion is expected to start after the 2025 summer season. In the interim, building permits will be pursued.
