SEASIDE HEIGHTS, N.J. — The developers behind a long-delayed 10-story mixed-use project in Seaside Heights have sued the borough, accusing local officials of sabotaging the redevelopment effort after years of approvals, negotiations and public backing tied to one of the Jersey Shore’s most notorious vacant properties.
The saga continues. After Club X/S, Baby’O and Yakkity Yak Cafe shut down, the corner has been cursed.
According to the Asbury Park Press at the time, “SSH Boulevard LLC includes Dan Matarese, owner of Danco General Contracting Inc. in Marlboro; Zach Rich, director of concrete promotion and sales for Silvi Group and a Republican who is a Hunterdon County commissioner; lawyer Douglas Steinhardt, a partner at the law firm of Florio Perrucci Steinhardt Cappelli Tipton & Taylor and former chairman of the New Jersey State Republican Committee; and Joanne Gilmore, a paralegal and local consultant who is the wife of Ocean County GOP Chairman and Seaside Heights native George R. Gilmore.”
The Gilmores are facing millions of dollars in federal tax liens due to Mr. Gilmore’s conviction on federal tax charges. Although he was pardoned by President Trump, he still owes the IRS and is currently involved in several questionable ventures.
The lawsuit claims Seaside Heights officials illegally attempted to strip the developers of their redevelopment rights for the property at 404 Boulevard while simultaneously delaying permits and approvals needed to finance and build the project. The dispute centers on the former “steel structure” site — a rusting unfinished building that dominated the borough skyline for years before being demolished.
Filed in Ocean County Superior Court, the complaint seeks specific performance forcing the borough to transfer the property to the developers, along with damages and injunctive relief. The plaintiffs include SSH Boulevard Urban Renewal LLC, Seaside Heights Boulevard Urban Renewal LLC and Danco General Contracting Inc.
The proposed project included a 10-story mixed-use tower with 77 residential units, a rooftop pool, retail space, a restaurant and a three-level parking garage with 153 spaces. According to the filing, the project complied fully with the borough’s redevelopment plan and received site plan approval without variances.
Developers Accuse Borough of Delays and Political Reversal
At the center of the lawsuit is the claim that borough officials reversed course after initially championing the redevelopment. The borough said they reversed course only after the project sat dormant for years with no progress.
The complaint alleges Seaside Heights repeatedly delayed processing key approvals, ignored applications for months and then attempted to terminate the redevelopment agreements by claiming the developers failed to meet deadlines.
“Defendants have materially delayed and frustrated SSH from obtaining all approvals required to finance and construct the redevelopment project,” the lawsuit states.
Developers argue many of the outstanding approvals required direct borough action, including utility approvals and signatures tied to environmental permits. The filing says those delays prevented the project from obtaining final financing.
The lawsuit also accuses the borough of conducting critical actions against the developers with little public notice.
According to the complaint, Seaside Heights officials voted Nov. 25, 2025, to de-designate SSH as the redeveloper and repeal the purchase agreement during a consent agenda session that allegedly included no public discussion. The filing claims the meeting agenda was posted online less than an hour before the meeting began and that the meeting was not livestreamed or recorded.
The plaintiffs contend the borough never issued the required 60-day default notice outlined in the redevelopment agreements before moving to terminate the deal.
Key Points
• Developers sued Seaside Heights over the failed 10-story “steel structure” redevelopment project
• The lawsuit claims borough officials delayed approvals and illegally terminated agreements
• The proposed project included 77 residential units, retail space, a restaurant and rooftop amenities
The Property at the Center of the Fight
The disputed property has long carried symbolic weight in Seaside Heights.
For years, the site contained the remains of a partially built entertainment complex abandoned after the 2008 financial crisis and Superstorm Sandy. The borough eventually condemned the property and sought redevelopment proposals.
According to the lawsuit, Seaside Heights conditionally designated SSH as redeveloper in May 2021 before formally approving redevelopment and purchase agreements in 2022.
The developers say they spent hundreds of thousands of dollars preparing the site before the dispute erupted.
The filing claims Danco General Contracting demolished the rusting steel structure in 2021 at a cost of roughly $300,000 and later spent another $125,000 removing foundation pilings. The lawsuit alleges the borough never reimbursed or credited those costs despite prior agreements.
The complaint further states the developers secured multiple approvals over the next two years, including:
- CAFRA approval from the New Jersey Department of Environmental Protection in May 2023
- Planning Board site plan approval in September 2023
- Ocean County Planning Board approval in July 2024
- Ocean County Utilities Authority approval in March 2025
- NJDEP Treatment Works Approval in June 2025
Borough Argued Project Faced Financing Problems
Correspondence included in the lawsuit shows borough officials had growing concerns over financing and repeated delays.
In a February 2024 letter included as an exhibit, redevelopment counsel for Seaside Heights warned the developers the borough was considering removing SSH as redeveloper unless it provided proof of financing, a project schedule and escrow funds.
The borough’s attorney wrote that construction costs had ballooned toward $100 million and questioned whether the project remained financially viable.
By late 2024 and 2025, borough officials repeatedly accused the developers of failing to finalize utility applications, financing commitments and tax incentive paperwork tied to the project.
Developers responded by blaming borough inaction for the delays and argued they could not finalize financing without the municipality completing pending approvals.
The lawsuit also reveals complications involving the original redevelopment entity. According to the filing, a former law firm allegedly dissolved SSH Boulevard Urban Renewal LLC without the developer’s knowledge in 2024, forcing organizers to create a replacement entity.
Borough Already Moving Toward New Redevelopment Plans
Even before the lawsuit was filed, Seaside Heights officials publicly discussed moving on from the project.
The complaint cites a Shorebeat article published April 2, 2026, in which borough officials said they planned to seek new redevelopment proposals for the property.
The article quoted Seaside Heights Administrator Anthony Vaz saying, “I don’t think we’ll ever see a ten story building proposed in Seaside ever again.”
Developers argue those public statements show the borough already decided to abandon the approved project despite contractual obligations.
The lawsuit remains pending in Ocean County Superior Court. Borough officials have not yet publicly filed a formal response to the complaint.
