Sea Bright has unanimously approved a plan to redevelop the former site of the Mad Hatter Pub & Pizzeria, clearing the way for a four-story building with four residential units and 1,186 square feet of retail space on a lot that has sat unfinished since Superstorm Sandy. The vote marks the first real resolution for the beachfront property after more than a decade of flooding, demolition, failed financing and legal fights.
The Mad Hatter was once a go-to spot in town, known for thin-crust pizza, cold drinks, live music and its beachside location, according to NJ.com. Superstorm Sandy flooded the building with six feet of water, sand and debris in 2012, and the damaged structure was ultimately demolished in 2016, the outlet reports.
Years of Failed Attempts to Rebuild
The site's path back from Sandy has been anything but straightforward. The former owners failed to redevelop the property, and NJ.com notes the lot was reportedly sold in a sheriff's sale in 2016 for just $1,000 plus millions of dollars in assumed debt. An earlier push to rebuild the Mad Hatter as a restaurant and bar also stalled when, according to the Two River Times, the partially completed project ran dry of funding after a federal loan fell through in 2018.
Things got messier from there. The same outlet reports that in 2021 the borough moved to add the lot to its abandoned property list and filed a lawsuit against Kelly Management Group to try to take control of the site. Years earlier, in 2017, a proposal from Scott and Amy Kelly to rebuild and expand the Mad Hatter as a restaurant and bar had actually been approved again by the land use board — but even that approval still faced a legal challenge, the Two River Times reported at the time.
A Zoning Change Opens the Door to Housing
That 2017 plan called for a three-story restaurant and bar with outdoor decks, proposing just seven on-site parking spaces where existing regulations would have required 134, per the Two River Times. A residential neighbor appealed the approval, arguing it would create noise, traffic, parking and quality-of-life problems. The hearing itself only happened after a Superior Court order sent the application back for reconsideration when a judge found the borough's land use board had violated the Open Public Meetings Act.
The property changed hands again in 2024, sold at a foreclosure auction, according to the Asbury Park Press, which reported that the prior owners simply could not get the financing they needed to rebuild. Weeks later, Sea Bright changed the zoning for the property so it could be developed as residential or mixed use, the paper reported, setting the stage for the project the planning board has now approved.
What the New Building Will Look Like
With that zoning in place, the new owner submitted an application to Sea Bright's Planning Board in August seeking preliminary and final site plan approval along with seven variances, including ones for front yard setbacks, building height, lot coverage and parking spaces, per NJ.com's reporting. The approved four-story building will include four residential units and 1,186 square feet of retail space.
The first floor is planned to hold four garage spaces, seven parking spaces, bike storage, an elevator, a rinse-off area, a lobby and a package room. The second floor will have one two-bedroom unit with a large outdoor terrace, and residents there will share a gym, amenity room and balcony. The third floor is set for two more units — a two-bedroom and a three-bedroom, each with two bathrooms — while the fourth floor tops the building with a four-bedroom penthouse featuring three full bathrooms, one half-bathroom and two terraces.
Neighbors' Old Complaints, a New Direction
Some residential neighbors had opposed the former owners' plan to rebuild a bar and restaurant on the site, raising concerns about increased size, noise, excess traffic and public urination, NJ.com reports. The project that just won approval is residential and retail rather than nightlife-focused, a shift that traces back to that 2024 zoning change.
Sea Bright Councilman and planning board member Marc Leckstein posted on social media Wednesday that the application had been approved, writing that a new building will finally emerge after years of residents viewing the structure's unfinished skeleton, according to NJ.com's account of his remarks. Kenneth Shaw of K Shaw Construction said the project should contribute to the energy of downtown Sea Bright, support local businesses, and enhance the experience of everyone who lives in or visits the town.
The next step belongs to the developer, who must now apply for building permits. The partially constructed building that has sat on the lot for years will be demolished to make way for the newly approved structure, closing out one of the Jersey Shore's longer-running post-Sandy rebuilding sagas.
