Michael Hirsch 

Part 1 of The Housing Dilemma in Wildwood

[Editor’s Note: This is part two of Michael Lorin Hirsch’s award-winning masters’ thesis on housing issues facing Wildwood, originally published in September 2006. Due to space considerations, we are printing an excerpt of the final chapter of his thesis.

The full text of the thesis including footnotes is available here.] 

There are constraints to Wildwood’s buildable land, primarily because it is in an island community. There is concern of overdevelopment and the negative impacts that go with it. The natural resources are protected by state and county regulations. 

The provision of affordable housing conflicts with municipal priority to maximize ratables. The Master plan recommendations of 2002 include; developing a Land Use Plan to generate ratables and maximize long-term tax stability, balance economic development with the need to preserve environmental resources, and to ensure decent, safe and sanitary housing for all residents. On March 23, 2005 a zoning ordinance was passed allowing for 25-story buildings in the hotel/motel zone. The city hopes to lure a big hotel chain like Marriot or Hilton. Ratables are the reason. The Mayor said high-rises could be the “ticket to tax relief and to (Wildwood) being a first-class tourist destination.” 

The proposed projects will be “condotels”, where a portion of the units will be sold to individual owners, but they will be rented as typical hotel rooms when not in use by the owner. In December, 2005, the commissioners in Wildwood passed an ordinance limiting motel stays to 30 days. Low-income residents live in motels year-round, many of which don’t have full kitchens or adequate heat. The Mayor says that much of the affordable housing in the City is substandard. In a recent article he says, “The county needs to do something.” The Mayor goes on to say that they have hired an expert to investigate requiring developers to construct some low-income housing in addition to high-end residential. This is a wise decision. 

Town master plans and housing policy generally emphasize owner-occupied over rental housing. Recently, neighboring Wildwood Crest revised its Land Use Plan. Affordable housing for seasonal workers is identified on a list created by the public outreach process. This housing would have to be created in the Multi-Family zone which is primarily in the Hotel/Motel zone. I think there has to be incentives for this; in the fierce luxury condominium market I haven’t seen any advertisements for new seasonal workforce housing. 

“Racial and ethnic minorities are much less likely than the rest of the population to be homeowners. As of the fourth quarter of 2000, the white (non-hispanic) homeownership rate in the United States was 73.9 percent—much higher than the 47.8 percent rate for black households and the 47.5 percent rate for Hispanic households (U.S. Bureau of the Census 2001) (Listoken 465).” 

According to the 2000 census, 15.1% of Wildwood residents are living below poverty level, compared to 12.4%, which is the U.S. average. Approximately 15% of the residents of Wildwood are black or Hispanic. By driving affordable housing off Wildwood’s barrier island community, it forces the workforce to commute approximately three miles to the mainland. 

The concept of balance in community by requiring a majority of residents to be homeowners may not be pertinent to a community with a seasonal economy. In Banff 50% of the housing is rental. According to the 2000 Census, 43% of the housing units in Wildwood are renter-occupied. Until Wildwood has a year-round economy, it cannot be expected to achieve the 70:30 ratio proposed by Remington. 

One definition of affordable housing is housing in which a person is spending no more than a third of his income on rent. Based on the survey I conducted over the summer of 2005, the average seasonal worker in Wildwood, New Jersey, spends more than $80/week on housing and earns approximately $240 a week, a maximum based on minimum wage. ($6.15 is the minimum wage in 2006). Talking about affordable housing, low-income housing, and seasonal housing are not exactly the same thing. I am surprised that most planning data that is collected is based on the Census. The Census does not explain why there are 14,161 vacant housing units in Wildwood with a household population of 15,252. 

In 1999, Cape Cod had approximately 5 million visitors a year to the National Seashore. Banff, Alberta has approximately 4.2 million annual visitors to the Banff townsite. These are interesting numbers for comparison to the 3.5 million visitors to The Wildwoods, NJ in 2002. Perhaps Cape Cod and Banff are places we should look to for reference as a community rather than Atlantic City, NJ or Ocean City, MD. 

By allowing The Morey’s Piers Organization (TMO) to build housing for approximately 500 seasonal employees is a benefit to the community, which relies on tourism for its economy. There will be no increased transportation demands since seasonal workers walk and bike to work. Having residents in under-populated areas like downtown; land where my client proposes to build housing, will give a sense of community and quality-of-life benefits that made these areas attractive in the first place. High-density construction in the town center will provide vitality to Pacific Avenue and the shops, restaurants and internet cafes will be filled with paying customers. With more people living downtown it will become a more vital, active place than it currently is. 

There are three properties where I propose The Morey Organization build housing for seasonal employees. [Editor’s Note: Due to space limitations, only the third property recommendation is printed below.]

The C.G. Murphy Company building has been vacant for years. Pacific Avenue in Wildwood in the summer looks like the seasonal employee zone. It has the look of a college town commercial strip. Some may see this as negative, but it is enlivened and vital. The seasonal workers use the internet cafes, laundromats, and one-of-the-few bookstores in town.

The Murphy building opened on April 4, 1929 as part of a chain of 5 &10 cent stores operating in twelve states. The building is across Wildwood Avenue from the Crest Savings Bank which is a National landmark. From an urban design point of view, these two prominent and historic buildings provide an attractive portal. An excellent way to view this intersection and both buildings have a story to tell. Whatever the tenant, it should be something active. A family sports-related or branded restaurant would be excellent and yet another opportunity for spreading the Morey’s Piers Organization identity. A destination-dining experience like a beach location for Chickie + Pete’s sports themed restaurants from Philadelphia is my recommendation.

There is approximately 7,500 square feet available for a restaurant. According to Wildwood zoning one parking space is required for every four seats or 150 sq. ft. of floor area, whichever is greater. Without having a layout of the restaurant, a rough total would require 50 parking spaces. (using the 150 sq. ft. total). By demolishing the rear portion of the building, the Stokes Architecture proposal has 22 spaces. Perhaps this is why this property remains vacant?

I asked Jack Morey if parking was his hesitation for developing the site and he said, “The Murphy building is not yet feasible for commercial as the cost for rehabilitation will not support what a tenant will pay.” Does there have to be condominiums built as part of this development to make it feasible? 

There is no parking requirement for housing over commercial space in Wildwood. In this space it is beneficial, since most of the seasonal employees walk/bike to work. The City should encourage development of this site. The increase in residents in the downtown area will cause greater demand for commercial activities. More restaurants and shops that are entertainment oriented. By spreading out the seasonal housing, it will encourage pedestrian traffic flow. This traffic will enliven the Cedar Avenue connector. Friends will walk to meet friends this way. Wildwood needs an east-west thoroughfare to entice pedestrian traffic further into town. Ideally the central parking will be located here.

Encouraging buildings that are in use should be a priority; rather than requiring fulfillment of parking regulations by the City of Wildwood. A central parking deck will entice commercial development in Wildwood. The 2004 Periodic Master Plan Reexamination recommends the creation of municipally-owned surface parking, as well as a multi-story public parking structure and the creation of a Parking Authority. 

The Murphy Building’s location on Pacific Avenue (a successful Main Street program) but also the Urban Enterprise Zone would allow it to qualify for incentives to rehabilitation. Also the G.C. Murphy Company Foundation currently is an independent, non-profit corporation that makes annual grants to civic, educational and charitable organizations. Perhaps they would be interested in supporting the preservation of this building? 

I set out to identify the need for seasonal housing in Wildwood, New Jersey. In August 2005 I surveyed twenty-five summer employees. Research for my thesis revealed that local planning data is derived from the U.S. Census, which does not include information on the seasonal population. 

Many of the workers I spoke with in Five Mile Beach pay $100 a week for housing. Paying more than 1/3 of their income in rent makes the definition of their housing less than “affordable.” 84% of the workers I spoke to lived in Wildwood, and 36% had two jobs. 

Many of the seasonal workers live with multiple roommates and often had trouble giving me an exact number for their rent because it changed over the summer, or the weekly total wasn’t consistent. Of the workers who gave me numbers, 40% spent more than $80 weekly. 

Dorney Park and Wildwater Kingdom and Cedar Point offer affordable housing to seasonal employees at discounted rates, and provide transportation to workers who can’t walk to their jobs. The service industry hasn’t replaced the industrial jobs that were plentiful in the past, and does not pay as well.

In “Communing with Nature” an article on Banff stressed that “cost and availability of affordable housing is…the biggest threat to the social health…for the community.” If the seasonal staff, who often earn minimum wage are forced to live in overcrowded and less than desirable living conditions, how will Wildwood be perceived by the visitors who support and sustain our economy?

It is my recommendation that by building seasonal housing, TMO will make Wildwood convenient and attractive for seasonal employees. Building housing in downtown locations will benefit Wildwood by enlivening the area. There will be no increase in traffic because most of the workers can walk or bike to work. Affordable housing for the seasonal workforce is needed for the City of Wildwood to maintain its competitive edge with other first-class resort destinations.

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