A sign advertising redevelopment at the ‘steel structure’ site on the Boulevard in Seaside Heights, Sept. 2025. (Photo: Shorebeat)
The developer who promised to develop a 10-story mixed-use building in Seaside Heights for years – without action on the plan – has alleged in a lawsuit that it was the town, rather than his own finances, that held up the project. He is seeking reimbursements for some expenditures that he undertook already, as well as the invalidation of the resolution that ended his designation as redeveloper.
The litigation, filed three weeks ago, concerns what has become known as the “steel structure property” at Hamilton Avenue and the Boulevard in Seaside Heights. It earned the nickname from the hulking steel edifice of an unfinished building that lingered there, rusting in the elements, for a decade before the property was condemned by the borough. The plaintiff, SSH Boulevard Urban Renewal LLC, owned by Daniel Matarese of Danco Construction Inc., reached an agreement with the borough in 2021 to become its redeveloper. Borough officials, frustrated by inaction in the years to come, eventually demanded a thorough accounting of the company’s finances to ensure they would be able to construct the mixed-use complex, ultimately resulting in a determination that financial backing was insufficient. Soon after an extension was granted – and expired – the borough council de-certified Danco as the redeveloper, sparking the current lawsuit.
The complaint filed in Ocean County Superior Court tells a different story, and accuses the borough of holding up permits on the project and dismissing a financial document submitted as having been sufficient to prove the backing was in place for the building to actually be constructed. It is widely considered unlikely the redevelopment agreement would be re-instated by a court, especially since the property was never sold to Danco and the deed is still held by the borough, however the company has asked a court to reinstate the agreement, force the sale, and force permitting for the project to be issued. In the event that this does not occur, Danco has asked the court to order the company reimbursed for its expenses of demolishing the “steel structure” and removing a number of in-ground anchor at a six-figure cost. The demolition and clean-up costs were originally going to have been deducted from the sale price of the building upon closing.
Renderings and plans for the former ‘steel structure’ redevelopment effort, Seaside Heights, N.J. (Source: SSH Redevelopment Plan Deck)
Renderings and plans for the former ‘steel structure’ redevelopment effort, Seaside Heights, N.J. (Source: SSH Redevelopment Plan Deck)
The plaintiff say they obtained key approvals – including unanimous planning board site plan approval in 2023, additional approvals from Ocean County and a state Department of Environmental Protection treatment works approval — despite alleged delays by the borough in processing applications it was required to support. They allege the borough sat on submissions, including final sewer and water applications and a site plan revision for minor safety-related changes, while threatening default over the financial concerns. The developer claims it provided the borough with a pre-approval letter for an $80 million construction loan, though the redevelopment agreement required significantly more detailed information.
The developer did acknowledge dysfunction in its own camp, however, including a former law firm retained by the company that folded and, somehow, dissolved the LLC that had reached the original agreement without the developer’s knowledge. The parties behind the project also changed over time, with all of the original partners – including Joanne Gilmore, wife of Ocean County GOP chair George Gilmore, and state Sen. Doug Steinhardt – exiting the company, leaving Matarese as the sole remaining figure behind the newly-formed LLC.
The property that once housed the former ‘steel structure’ in Seaside Heights, now slated for redevelopment. (Photo: Shorebeat)
The ‘steel structure’ on the Boulevard in Seaside Heights is demolished, Aug. 16, 2021. (Photo: Daniel Nee)
The property that once housed the former ‘steel structure’ in Seaside Heights, now slated for redevelopment. (Photo: Shorebeat)
The property that once housed the former ‘steel structure’ in Seaside Heights, now slated for redevelopment. (Photo: Shorebeat)
In the complaint, attorneys for Danco detailed several specific expenditures and financial commitments they say they have made in pursuit of the project. Danco General Contracting Inc. spent approximately $300,000 to demolish the rusted steel structure on the property in August 2021 and another $125,000 to remove foundation pilings in July 2024. Both amounts were intended to be credited against the purchase price of the borough-owned land but have not been reimbursed, according to the filing. The developer also paid an $31,875 “off-tract traffic impact fee” to Ocean County along the way.
The borough has yet to file an answer to the complaint. The borough council discussed the matter in a closed session meeting on Wednesday, before their regular meeting.
Read the Complaint:
Seaside Heights & Seaside Park
Seaside Heights Bursts Onto Arts Scene With ‘Gallery 619’ In the Heart of Town
Boating & Fishing
Seastreak Ferry Service to Point Pleasant Beach Nixed After Council Vote
Shore Environment
Waves Wallop Ortley Beach, Ocean Roars As ‘Erin’ Remains Offshore
