By Stephen Appezzato
SEA BRIGHT – A legal dispute over who has the right to develop the former Mad Hatter site remains at a standstill.
The lengthy lawsuit over control of the iconic property was to be decided in state Superior Court Oct. 20 after being postponed numerous times. However, according to borough attorney Roger McLaughlin, the case was not heard.
A motion filed by lot owner Kelly Management Group was withdrawn before the court date “and is no longer pending,” McLaughlin wrote in an email to The Two River Times.
According to McLaughlin, Sea Bright will now be able to move forward and evaluate outside bids from companies interested in developing the semi-constructed building at 10 East Ocean Ave.
However, current owner Kelly Management Group informed The Two River Times it plans to move forward with the three-story beachfront restaurant project originally proposed at borough planning meetings, and will refile the motion.
How Did We Get Here?
Opened in the early 2000s, the Mad Hatter was a popular local spot, famous for its thin crust pizza. In 2006 Sea Bright residents Scott and Amy Kelly purchased the bar and restaurant. However, just six years later, the Mad Hatter was destroyed by Super Storm Sandy.
In the aftermath, the establishment faced financial woes. The Kellys secured a loan from the state Economic Development Authority to rebuild after Sandy. In 2016 they demolished the old building and began to rebuild, envisioning a three-story bar and restaurant with the same name. However, as reported in the media, the partially completed project ran dry of funding when a federal loan fell through in 2018. The dream of a brand-new Mad Hatter was on hold while Kelly Management Group searched for more financial support.
Since then the building has remained unchanged and the Sea Bright Borough Council is concerned about code violations.
In 2021, the borough moved to add the lot to its abandoned property list, filing a lawsuit against Kelly Management Group to take control of the property. Initially, the court sided with Sea Bright however, Kelly Management Group later argued the borough’s move lacked a rehabilitation plan, reaffirming its ownership. The company moved to secure more capital but Sea Bright officials remained skeptical of the development plan.
What Happens now?
In the meantime, the borough received multiple bids from outside companies to develop the lot.
According to McLaughlin, the issue with Kelly Management’s proposal for the building is that it is not “viable.”
“They do not have financing and have been unable to obtain financing for years. The Borough has always been willing to allow Kelly Management to complete the project, but they have been and remain unable to do that. The Borough is not willing to wait any longer,” he wrote.
With the motion no longer pending, McLaughlin confirmed the borough can evaluate outside development plans and “will do so now.”
But as the building owners plan on moving forward with their original plan, the future of the 10 East Ocean Ave. remains uncertain.
The article originally appeared in the November 2 – November 8, 2023 print edition of The Two River Times.
