04/08/2025 Planning Board Meeting

City of Cape May Planning Board Meeting Minutes Tuesday, April 8, 2025 Opening: The meeting of the City of Cape May Planning Board was called to order by Vice Chairperson Michael Jones at 6:30 PM in the City Hall Auditorium. In compliance with the Open Public Meetings Act, adequate notice was provided. Roll Call: Mr. Bezaire, Chairperson Absent Mr. Jones, Vice Chairperson Present Mr. Crowley Present Mr. Gorgone Present Mr. Lundholm Present Deputy Mayor McDade Present Mayor Mullock Present Mrs. Reed Absent Mr. Riggs Present Mr. Padussis Alt # 1 Present Mr. Crippen Alt # 2 Present Also Present: Rich King, Esquire, Board Solicitor Craig Hurless, Board Engineer and Planner Karen Keenan, Board Secretary Resolution(s): Motion made by Mr. Crippen to adopt Resolution number 04-08-2025: 1, 409 Elmira LLC, 409 Elmira Street, seconded by Mr. Padussis and carried 8-0. Those in favor: Mr. Gorgone, Mayor Mullock, Mr. Crowley, Mr. Lundholm, Mr. Riggs, Mr. Padussis, Mr. Crippen, Mr. Jones. Those opposing: None. Those abstaining: Deputy Mayor McDade. Minutes: Motion made by Mr. Gorgone to approve the meeting minutes of March 11, 2025, seconded by Mr. Gorgone and carried 6-0. Those in favor: Mr. Gorgone, Deputy Mayor McDade, Mr. Crowley, Mr. Lundholm, Mr. Padussis, Mr. Crippen. Those opposing: None. Those abstaining: Mayor Mullock, Mr. Riggs, Mr. Jones. Motion made by Mr. Gorgone to approve the meeting minutes of March 25, 2025, seconded by Mr. Gorgone and carried 6-0. Those in favor: Mr. Gorgone, Mayor Mullock, Mr. Crowley, Mr. Padussis, Mr. Crippen, Mr. Jones. Those opposing: None. Those abstaining: Deputy Mayor McDade, Mr. Lundholm, Mr. Riggs. Discussion: City of Cape May Planning Board Meeting Minutes, April 8, 2025 1 Payment of Bills Motion made by Mr. Padussis to approve the payment of bills, seconded by Mr. Crippen, and carried 9-0. Those in favor: Mr. Gorgone, Mayor Mullock, Deputy Mayor McDade, Mr. Crowley, Mr. Lundholm, Mr. Riggs, Mr. Padussis, Mr. Crippen, Mr. Jones. Those opposing: None. Those abstaining: None. Meeting Time Deputy Mayor McDade proposed the idea of changing the start time of meetings. Member Riggs suggested starting times of 5:30 PM or 6:00 PM. Members Crippen and Lundholm favored a 6:00 PM start time. Solicitor King added that the hearing cutoff time that is currently 10:00 PM should be clarified or changed to 9:30 PM if the start time is 6:00 PM. The board will discuss this possible change at the next meeting where Chairperson Bezaire is present. Application(s): Avue LLC 6 Second Avenue Block 1012 Lot(s) 15.01 Vice Chairperson Jones announced the meeting would conclude at or close to 10:00 PM. Attorney Peter Chacanias of Hyland Levine Shapiro LLP introduced the application for preliminary and final site plan approval and hardship and substantial benefit variance relief at the existing Jetty Motel site. Owner Manny DeMutis, Architect Stephen Fenwick, Traffic Engineer David Shopshire, Hotel Operations Manager Mike Marshall and Engineer and Professional Planner Andrew Schaeffer were present. Attorney Chacanias described the proposed hotel as an all-inclusive luxury resort with the hotel amenities to be no greater than 25% of hotel use. He said the parking number of spaces to be at 65 proposed and up to 79 double stacked/valet spaces, with no self-parking by hotel guests, where 135 spaces are required. The amenities will not be open to the public and the sleeping rooms total 56. He believed 65 spaces is adequate. He shared the applicant will comply with the sight triangle requirements, so no sight triangle variance will be needed. Attorney Chacanias said a hotel is a permitted use at the property and the permitted use cannot be denied due to the variances sought. He read from case law: “there was nothing inherently evil or misguided about the granting of a variance where it is supported by proper proofs; a variance is a legislatively mandated safety valve.” He went on to say that the proposed plan complies with the ordinance and the plan shows a decrease in impervious coverage. Attorney Chacanias explained that the Environmental Commission, Fire, Police and Public Works Departments and Shade Tree Commission recommended approval of the project, and they will comply with the Shade Tree Commission conditions. City of Cape May Planning Board Meeting Minutes, April 8, 2025 2 Architect Steve Fenwick presented his credentials and was accepted as an expert in architecture by Vice Chairperson Jones. Architect Fenwick and Engineer and Planner Hurless were sworn in by Solicitor King. The following exhibits were presented during the meeting: A-1 Existing Conditions Jetty Hotel – Fenwick Architects Sheet A-6 dated 04/09/19 A-2 Proposed Hotel – Artists Rendering Fenwick Architects Sheet A-5 dated 05/27/22 A-3 Ground & First Floor Plans – Fenwick Architects Sheet A-1 dated 5/27/22 A-4 Second & Third Floor Plans – Fenwick Architects Sheet A-2 dated 5/27/22 A-5 Beach Avenue & Second Avenue Elevations – Fenwick Architects Sheet A-3 dated 5/27/22 A-6 North & West Elevations -- Fenwick Architects Sheet A-4 dated 5/27/22 A-7 Seating Plans – Fenwick Architects Sheet A-6 dated 3/27/25 A-8 1st Floor Furniture Layout – Design Continuum Incorporated dated 3/18/25 A-9 3rd Floor Furniture Layout – Design Continuum Incorporated dated 3/18/25 A-10 Site Plan/Rendering – Schaeffer Nassar Scheidegg Consulting Engineers LLC dated 4/4/25 Architect Fenwick presented and described in detail Exhibits A-1 through Exhibit A-7. He said the hotel meets the bulk requirements and setbacks, and there will be 53 suites and 56 sleeping rooms with three different types of rooms planned: two-bedroom suites, one bedroom suites, and an efficiency suite. Member Crowley asked about the proof of HPC approval. Attorney Chacanias said conceptual approval was obtained some time ago and they will agree to HPC approval being a condition of approval. Solicitor King said if the HPC requires anything other than minor changes, the applicant will be required to return to the Planning Board for approval. It was determined that Exhibit A-7 was not included in the application packet; it is dated beyond the latest review memorandum issued by Engineer Hurless. A break was taken at 7:07 PM to allow the board members and the public to view Exhibit A-7. Solicitor King asked the board members not to discuss the application while off the record. The meeting resumed at 7:12 PM. Architect Fenwick clarified the plans that were in the packets and labeled Design Continuum Incorporated are correct as to the seating, but the plans are incorrect as to the units. The architectural plans govern the actual number and arrangement of the units. Solicitor King and Engineer Hurless agreed the Design Continuum plan dated March 18, 2025 is the same as Exhibit A-7 except the units are different. So, for the seating, the board is to rely upon the March 18, 2025 plan they reviewed. Board members were allotted time for questions of Architect Fenwick. Engineer Shropshire presented his credentials and was accepted as a professional traffic engineer by Vice Chairperson Jones. He was sworn in by Solicitor King for the record. He said a key component in his parking assessment is the amenities are restricted to hotel guest use only. The City of Cape May Planning Board Meeting Minutes, April 8, 2025 3 calculations for parking are: 56 sleeping rooms (50 single bedroom units and three two-bedroom units) plus 19 employees working the largest shift total 75 parking spaces required. He explained that spaces for the restaurant and bar would total an additional 60 spaces if those amenities were to be open to the public versus for hotel guests only. The total would then be 135 spaces per ordinance. Engineer Shropshire referred to the Institute of Transportation Engineers (ITE) parking generation manual to ascertain the projected parking demand for this kind of hotel. He read their definition of a hotel: “a place of lodging that accommodations and supporting facilities such as a full restaurant and concierge services, valet parking, cocktail lounge, meeting, banquet room, and convention facilities. A hotel typically provides a swimming pool or other recreational facility such as a fitness room.” He said the ITE looks at what the demand is for parking and the ITE does not include employee parking in their calculations. He agreed the Cape May ordinance requires employee parking. Engineer Shropshire said the ITE data indicates an 85th percentile parking demand for this facility, which is .98 spaces per room. He said his calculations on the per room basis based on ITE, the ratio provided on site is 1.23 spaces per room, exceeding the parking demand of ITE .98 spaces per room for the proposed hotel. Board members were allotted time for questions. Member Crowley asked why employees are not in the calculation. Engineer Shropshire said the ITE parking demand is based on everything associated with a hotel, including employees. Deputy Mayor McDade felt the ITE does not explicitly list the type of hotel amenities they propose and is like comparing apples to oranges. Engineer Shropshire said ride share (Uber, etc.) usage has reduced the demand rate in the latest version of ITE. Mayor Mullock said the analysis does not sound like a Cape May hotel; it is more like a New York City hotel. Engineer Shropshire shared other surveys at La Mer in Cape May over the years indicate one space per room onsite parking demand. Engineer Shropshire said they propose a valet operation with 14 spaces stacked and the restaurant/bar seating for hotel guests only totaling 79 parking spaces. He said the design will create six parking spaces on Beach Avenue and some on Second Avenue when they eliminate backout parking, which creates a benefit from a safety standpoint. Deputy Mayor McDade opined the study from 2020 was done during an odd time and that La Mer and Cape Jetty are in very different neighborhoods. Attorney Chacanias said they could provide an additional parking study as a condition of approval. Member Crowley said the usage at the cove is different than five years ago and expressed concern about the backup of cars when valet on the street. Attorney Chacanias said the difference between the current application and the 2021 application is that the current plan does not include the hotel to be open to the public where the 2021 application did indicate the hotel being open to the public. City of Cape May Planning Board Meeting Minutes, April 8, 2025 4 Engineer Hurless said the ITE accepted engineering manual is used to estimate parking demand and may not capture the localized summer beach peak hotel rates. He said the justification for the parking variance hinges on whether their operational plan functions. He felt the board is uncomfortable with a 240-seat restaurant. Operations Manager Mike Marshall, Chief Executive Officer of TPG Hotels and Resorts, presented his credentials on hotel operations and management. He sold his business to TPG, and TPG manages 140 hotels in 30 states. He said a handful of the hotels are all-inclusive. TPG manages the Inn of Cape May. Vice Chairperson Jones accepted him as an expert in hotel operations and management. He likened the cruise ship experience to the proposed operation at this site. Guests must be registered hotel guests to use the pool and other amenities. Lunch is not included to encourage town exploration. Deputy Mayor McDade asked about the price point analysis given that Cape May is known for restaurants and expressed concerned about success the business model. Manager Marshall said he will give credit to guests, so they can go offsite for breakfast and dinner. Attorney Chacanias said the applicant would have to return to the board if a business model change is contemplated. Solicitor King asked if a condition imposed, or a concept approved by the board that it believes may not be possible to be met, could make the property turn into an eyesore. Manager Marshall said it is a trend that is happening in the industry by companies such as Hyatt, Marriott and Hilton that have all-inclusive resorts selling experiences. The Inn of Cape May is not an all-inclusive resort. Member Crowley said there is too much amenity space that he fears is for a later transition. Mayor Mullock said the board is to decide if this concept is good for the town. There was a discussion on the amount of restaurant seating versus the number of sleeping rooms and how many people will occupy each room. Member Riggs wanted to hear how the concept would work in this section of Cape May. Manager Marshall said the trend in hotel business to all-inclusive resorts is shifting from resorts in the Caribbean and Mexico, like Sandals, to the states. A break was taken at 8:21 PM at the request of the applicant. The meeting resumed at 8:34 PM. Attorney Chacanias proposed to refine the application to change the size of amenity space and seating without sacrificing the business model. Solicitor King said it is for the board to decide. Board members were allotted time for questions. Solicitor King asked Attorney John Amenhauser representing objectors, who also hired engineer Brian Murphy to represent them, for comment. Attorney Amenhauser objected to the adjournment, as several people traveled to attend the meeting and paid professionals to represent them at the meeting. Solicitor King explained the vote for the board. Motion made by Mr. Crippen to adjourn the application, seconded by Deputy Mayor McDade, and did not carry 4-5. Those in favor: Mr. Gorgone, Mr. Lundholm, Mr. Crippen, Mr. Jones. Those opposing: Mayor Mullock, Deputy Mayor McDade, Mr. Crowley, Mr. Riggs, Mr. Padussis. Those abstaining: None. City of Cape May Planning Board Meeting Minutes, April 8, 2025 5 The presentation of the application continued. Manager Marshall explained the business operation is not a new concept; it is being presented to a new set of guests. Members asked if a liquor license has been secured and if the operation be year round. Attorney Chacanias said they are investigating a liquor license, and Manager Marshall said the operation will be twelve months a year. Member Padussis expressed concern that an example of an all-inclusive hotel that functions in a town like Cape May could not be pinpointed. Owner Emmanuel C. DeMutis was sworn in by Solicitor King. Owner DeMutis shared he listened to the neighbors. He believes the business model is a good one. He plans to charge $800 a night to bring in four times the revenue as the existing Jetty Motel. He has been trying to get the project approved for 21 years, is taking the risk and plans to keep the hotel open year round to keep the employees working. He described the process of getting funding to build the hotel and said there are examples of successful all-inclusive boutique hotels, mostly in New England. He went on to say that the project is a small one and should take twelve to fifteen months to build. Board members were allotted time for questions. Engineer and Planner Andrew Schaeffer of Schaeffer Nassar Scheidegg Consulting Engineers LLC presented his credentials and was accepted as an expert in planning by Vice Chairperson Jones. Planner Schaeffer was sworn in by Solicitor King. He described Exhibit A-10 Site Plan/Rendering, which was not part of the application packet. He said the sight triangle variance is not needed; they will move the sign. He testified that the project improves public safety, and aesthetics. The driveways on Beach Avenue will be removed and six parking spaces added there and the possibility of up to three spaces on Second Avenue, depending on city requirements. He said there is no substantial negative impact on the zoning ordinance nor the zone plan and ample light, air and open space on the lot that changes from existing non-compliant to compliant for lot coverage. There was a short discussion on the special protection and use of a Victorian hotel, but it was determined that the property does not fit the definition. Planner Schaeffer addressed the easement with neighboring lot 15.02 where a house is situated, and now that easement is used as a drive aisle to seven or eight parking spaces and a trash dumpster. He said the dumpster is to move inside the building near Second Avenue and this limits the hotel’s use of the easement. The easement is used as a loading zone for the hotel. Planner Schaeffer said the employees will be valet parked and there is one way in and one way out of the parking area in response to a question by Deputy Mayor McDade. Member Crowley asked about the stacked parking. Planner Schaeffer said there is a wall that should not be on the plan. There was a counting of the stacked parking; there are 21 stacked spaces not the 14 stacked spaces listed. There are two electric vehicle parking spaces, one of which is a handicap space. Engineer Hurless asked whether it is appropriate to propose the loading space of 12 by 55 feet in the easement. Solicitor King explained this non-exclusive easement means that each party of the easement can use the easement and if there is a dispute about the loading zone in the easement, that is a matter for the parties and the courts. Engineer Hurless said the requirement of the loading City of Cape May Planning Board Meeting Minutes, April 8, 2025 6 zone is part of site plan approval. Attorney Chacanias read the easement wording, which indicates the easement is a non-exclusive easement, and said the easement is not being changed. Planner Schaeffer confirmed there is no self-parking at the property. Owner DeMutis reported the trash is collected three times a week and agreed to restrict the collection of trash and recycling to between nine o’clock in the morning and five o’clock in the afternoon. Board members were allotted additional time for questions of Planner Schaeffer. Attorney Chacanias reserved the right to respond to objectors, their counsel, and public comment whether by cross-examination or by bringing witnesses back to respond. Member Riggs asked the applicant to seek HPC conceptual approval prior to the June 10th meeting. Owner DeMutis said he would provide information on HPC approval received, and he will return to the HPC for review if the approval was received before the newer adopted HPC Design Standards. Solicitor King announced the application continued to the June 10th, 2025 meeting at 6:30 PM with no further notice required, unless the board changes the meeting time between now and then. Attorney Chacanias will re-notice for the new time if the board changes the time, so the public is informed. Motion made to adjourn by Deputy Mayor McDade at 10:03 PM with all in favor. Respectfully submitted: Karen Keenan, Board Secretary City of Cape May Planning Board Meeting Minutes, April 8, 2025 7