OCEAN CITY — Fox Chase Bank of Hatboro, Pa., gave notice this week of foreclosure proceedings on a historic city hotel that has been closed since last year.
The Hotel Bellevue, a 99-room building on Eighth Street, had served guests since 1908.
The hotel, owned by Ocean City Plaza, based in Brook Haven, Pa., has been closed since September.
Bader-Collins Associates is listing the property for sale for $2.4 million. The city assessed the hotel at $2.2 million. Property taxes are current on the hotel, according to the tax office.
“It’s one of the last old hotels standing in Ocean City,” city historian John Loeper said. “It’s in the Historic District. There are investment tax credits available for restoration, but it would take a ton of money to do that.”
Ocean City solicited proposals from developers this year to turn the hotel into age-restricted affordable housing. The city is considering proposals from three developers, all of which proposed converting the hotel into rental units, Community Development Director Georgia Arnold said.
“Three developers responded. All three came back with rentals,” she said. “The developers would bring back some of the hotel’s historic charm.”
Ocean City has raised $2.6 million in developer fees to create new affordable housing. The money could be used to help a developer convert the hotel into apartments, Arnold said.
The state had set a July 17 deadline for towns to commit affordable-housing money they have accrued. But the state Legislature passed a bill Friday that gives towns more time.
“The sooner we make a decision, the better,” Arnold said.
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