Government

Seaside Heights to Seek New Developer After Plans For 10-Story Building Canceled

by
Daniel Nee
April 2, 2026

Renderings and plans for the former ‘steel structure’ redevelopment effort, Seaside Heights, N.J. (Source: SSH Redevelopment Plan Deck)

Seaside Heights officials will soon begin a new search for a partner to develop a prime piece of real estate along the Boulevard that has been plagued with litigation and unkept promises by past developers.

Known in local lore as the “steel structure” lot after the gigantic edifice that stood there, rusting, for more than a decade, the property at 404 Boulevard is once again up for grabs. Located in the center of an otherwise booming real estate market between Hamilton and Webster avenues, the site remains under borough ownership after a redeveloper was unable to prove he had sufficient financing the undertake the project by the town’s Jan. 31, 2026 deadline. Seaside Heights officials have formally terminated what had initially been an agreement for a group of partners to build a ten story mixed use building at the site. While the original group of investors broke up, the remaining partner, Dan Matarese – owner of Danco Construction – continued an effort to move the project forward on his own, but was unable to secure financing after what was reportedly a failure on the part of a bank.

The borough took ownership of the property in 2020 after more than a decade of watching the hulking skeleton of a building rust in the elements, and condemned it. It was originally acquired in the early 2000s by local businessman Vincent Craparotta, who had planned to build an entertainment megacomplex there that would have consisted of nightclubs, a pool club similar to that of The Pool at Harrah’s in Atlantic City, and multiple restaurants. Craparotta took advantage of extensions allowing him to leave the premises half-built due to state legislation passed in the wake of the 2008 financial crisis and, four years later, Superstorm Sandy. After more than a decade and frustration – and amidst the deterioration of the steel girders and rainwater-filled pool molds – the borough condemned it. That led to a group of investors, including the wife of Ocean County Republican Chairman George Gilmore and other New Jersey political luminaries, proposing the mixed use complex.

While the steel structure was eventually torn down and the 10-story tower was approved by the planning board, little to no concrete action toward a genuine construction effort ever got off the ground, leading the borough to spend the better part of the last three years sending repeated correspondence to the group. It was later learned that the LLC which included the initial group of investors had been dissolved, leaving Matarese in charge. The borough council voted to terminate the agreement in December 2025 before providing Matarese one more chance to prove he had sufficient financial backing after he threatened litigation. That proof was never produced, officials said, leading to the termination moving forward.

Renderings and plans for the former ‘steel structure’ redevelopment effort, Seaside Heights, N.J. (Source: SSH Redevelopment Plan Deck)

Borough officials this week floated a renewed effort to redevelop the property, as well as several others that remain vacant along the Boulevard. The specifications will be reviewed by the council and planning board, and the borough will again seek redevelopers for the plot. Mayor Anthony Vaz said the new specifications will include a mandate for any redeveloper to provide extensive guarantees that their financing is solid.

“We have to make sure that when there are projects, the financing is there,” said Vaz. “This was one of the first redevelopment projects we started with, and we’ve learned a valuable lesson along the way. We want to know about finances right away this time.”

What will ultimately be proposed by a future redeveloper will be required to meet specifications set by the council. Vaz said he and his colleagues are currently looking at various options including the maximum number of floors, building height, and how to best fit in a retail component on the ground floor as part of a larger effort to create a vibrant business district off the boardwalk. It is unlikely that future specifications will allow a building as tall as ten stories to be proposed.

The property that once housed the former ‘steel structure’ in Seaside Heights, now slated for redevelopment. (Photo: Shorebeat)

A sign advertising redevelopment at the ‘steel structure’ site on the Boulevard in Seaside Heights, Sept. 2025. (Photo: Shorebeat)

“I heard feedback after from the public,” said Vaz. “They want something to go up, but they weren’t crazy about ten stories. I don’t think we’ll ever see a ten story building proposed in Seaside ever again.”

Vaz said the borough was more than willing to allow the building as proposed, since the council had set the specifications, but will most likely limit the height of the building when the council embarks on a new solicitation for developers. The process of choosing new specifications will not be rushed, he said, but will be promulgated sooner rather than later given the site’s anchor position on the Boulevard.

“I don’t think we can wait a great deal of time, because we have to move forward,” said Vaz. “This affects ratables, redevelopment, and the Boulevard project as a whole.”

The property that once housed the former ‘steel structure’ in Seaside Heights, now slated for redevelopment. (Photo: Shorebeat)

The borough has not been sued by Matarese, however the question as to whether litigation – or simple negotiations on money spent by the developer while the site remained under borough ownership – remains open. Matarese, if he desires, will be able to submit a proposal under the new specifications like any other developer, but will be required to meet the stringent financing requirements that will be mandated. Vaz said he does not hear a great deal of complaints about the site in its current form, but the patience of residents may wear thin as the clock ticks.

“It’s been out there for three years, almost four, and it’s not a great sight to see,” the mayor said. “It’s better than the steel that was up there, but it’s not good. I do hear concerns because people do want to see something built there.”