The redevelopment of the former chicken plant will be done in phases, beginning with the northern building on the parcel.

By Tara Fischer

Staff Writer

Local developers officially purchased a portion of the property at Berlin’s Heron Park, home to a former chicken processing building, following a 3-1 council vote this week.

At a regularly scheduled Berlin Town Council meeting on Monday, April 14, the town’s governing group authorized the contract for the sale of parcel 57, consisting of approximately 9.35 acres of land area, for $1,200,000 to developers Palmer and Sandy Gillis of Coastal Ventures Properties.

The buyers agreed to a deposit of $100,000, with $50,000 to be held as post-closing security to ensure the buyers’ development of the property.

Per the agreement, the purchase price includes the allocation of 15 sewer Equivalent Dwelling Units (EDUs) to the property.

Gillis also committed to constructing at least one office or retail building on parcel 57 within 24 months of closing as part of the redevelopment plans. The developers are responsible for the re-engineering costs associated with the space.

The agreement restricts potential uses of the property. Under the contract, parcel 57’s development prohibits pawn shops, gun shops, tanning salons, massage parlors, adult video and bookshops, adult entertainment facilities, check cashing facilities, gambling facilities, tattoo parlors, or liquor stores.

“It’s been a long process,” Berlin Mayor Zack Tyndall said. “… It’s been a long mission of ours to revitalize that property.”

Tyndall added that the hope was to prioritize mixed-use projects for parcel 57’s redevelopment. However, residential structures are prohibited on the site.

“I know some people have talked about wanting mixed-use on this site and other sites that make up Heron Park,” the mayor said. “The important takeaway is you can’t put residential there. It is deed restricted; no residences can go there from when the town purchased the property. The best we can do is maximize the commercial uses for this parcel that fronts Old Ocean City Boulevard.”

Additionally, the property requires rezoning, which the mayor maintained will now be a “key priority” of the town’s planning staff.

The purchase passed in a 3-1 vote by the Berlin Town Council, with Councilmembers Jack Orris, Steve Green and Jay Knerr approving the sale and Vice President Dean Burrell opposing it. Councilwoman Shaneka Nichols was absent from Monday night’s meeting.

The contract outlines the work to be completed on the site, including the stipulation that at least one office or retail building must be created within two years.

The document reads, “As an inducement to the Town’s entering into this agreement, the developer has agreed to activate the property upon its purchase of the property through the construction of at least one office or retail building on the property within 24 months of closing.”

The agreement also informs that Gillis plans to construct an office building on the rear end of the property, denoted as “Phase I,” and a retail space along Old Ocean City Boulevard, designated as “Phase II.”

The agreement continues, “It is understood that the developer intends, but is not obligated to, construct the buildings in two phases, with Phase I building (likely a professional office building) on rear area … and Phase II building (likely a retail, such as a restaurant) on the portion of the property directly adjacent to Ocean City Boulevard … If the developer elects to commence develop of only Phase I, the developer has agreed to visually enhance the Phase II area with landscaping, lighting, or other activating features pending the construction of a building on Phase II.”

The developers are also required to present and obtain the requisite approval of the structure’s designs and uses per the town code’s permitting process.

While supportive of the sale and excited the town will be putting the property back on the tax rolls, Green asked Gillis why the redevelopment efforts started with the property’s north end. The buyer maintained that it is because there is already a possible office space tenant.

“We have a serious prospect as an office for the north side,” he said.

The majority of the Berlin Town Council said that they were happy to see the sale proceed.

“I’m relieved we’re here,” Green said. “… This has been a long process.”

This recent stint of discussions with Coastal Ventures Properties, which finally resulted in a sale this week, is the second round of negotiations for both parties. In August 2023, conversations with the Gillis developers ended in a 3-2 council vote.

At that time, Knerr, Burrell, and Nichols cast their votes in opposition to a contract with the local developers, while Green and Orris favored continuing talks with CVP.

Negotiations were terminated due to concerns about EDUs being transferred with the sale as well as concerns from some council members it should become residential.

Re-consideration to sell parcel 57 once again began last summer, and the town agreed to enter into extended negotiations with Gillis in July.

Those conversations have since been realized, as the contract for sale was approved this week.

“It was 2021-2022 when this started; 2022 was the year I was elected, but these discussions were well underway at that point,” Green said, addressing the local developers.

“Then, in 2023, everything fell apart, but we’re back today. I think that’s a sign of how much you truly want to develop this property. That’s the one thing that stuck out to me. It was your desire to do it, not a need to do it. You clearly want to revitalize this property, and I support that.”

There was one public speaker at the meeting who criticized the council. Resident Nicholas Rigopoulos chastised the council, claiming the property should not be sold and using state funds to demolish the dilapidated sections of the buildings was inappropriate.