'Trying to squeeze me out': Keansburg Amusement Park owner sues town over parking lot

KEANSBURG - Hank Gehlhaus, the longtime legacy owner of Keansburg Amusement Park & Runaway Rapids, welcomes the massive redevelopment project that aims to transform a blighted stretch of the borough by building 700 luxury apartment units and 45,000 square feet of restaurant, entertainment and retail space.

But he’s drawing the line at losing a huge parking lot for it.

Earlier this week the amusement park’s parent company, Jersey Shore Beach and Boardwalk, filed a lawsuit against the state, the borough and borough manager Raymond O’Hare to halt the repurposing of the 300-plus-spot municipal lot into a spot for beachfront apartments.

“I am aghast at this,” Gehlhaus told the Asbury Park Press. “The endgame here is they’re trying to squeeze me out. They (borough officials) would love to see me out.”

What's planned: See the hundreds of new apartments and store space transforming Keansburg forever

‘He’s not being squeezed out’

The vast majority of the municipal lot, which abuts the amusement park to the west, is owned by the state under the management of the Department of Environmental Protection’s Tidelands Resource Council.

The lawsuit, filed in Mercer County Superior Court by attorney Ron Gasiorowski of the Red Bank firm Gasiorowski & Holobinko, says “Keansburg’s intention is to seek clear and unencumbered title to the subject property from the State of New Jersey … and to in turn sell the subject property to a developer … allowing the developer to build a high-density apartment complex” at the location.

The lawsuit contends that any sale of the lot is being illegally executed and “must include a permanent restrictive covenant prohibiting defendant Keansburg from permanently destroying the existing 300-plus public parking spaces and/or must also contain a restrictive covenant prohibiting the building on the Tidelands parcel of a private entity high-density apartment complex or any other structure not in compliance with the public trust.”

The suit also calls the lot’s current sale price of $1.59 million “arbitrary and well below fair-market value in that the subject property was obviously valued inadequately as merely vacant waterfront land.”

A full copy of the lawsuit can be seen at the bottom of this story.

More plans along the Bayshore: Middletown redevelopment project would transform ‘Port Belford’ into destination seaport

Sackman Enterprises, the Asbury Park-based developer, broke ground on the first phase of the redevelopment project in October 2021 and told the Asbury Park Press that the first buildings will open in mid-2024.

Keansburg Mayor George Hoff has declined to comment on pending litigation. As to Gehlhaus’ general concerns about his place amid the redevelopment plans, Hoff said, “He’s not being squeezed out. He’s been contacted by Sackman Group to partner with them and help redo his property and the area around the amusement park, to no avail. The opportunity is there for them to work with Sackman Group.”

Hoff added that the amusement park and water park are “still considered a vital part of this community.”

Why doesn't NJ build more homes? Eleven Jersey Shore towns that approved the most in 2023

‘I refuse to get out’

The Keansburg Amusement Park was founded by William Gehlhaus in 1904. Hank Gehlhaus, William’s grandson, took over in 1995. The park’s parent company already is involved with another lawsuit against the borough over the ownership of a different lot that is used for parking and the popular go-kart track.

Regarding the latest dispute, Hank Gehlhaus said, “I have tried my best to broker a deal with our borough manager and that has fallen flat on its face.”

O’Hare could not be reached for comment.

“They want year-round income,” Gehlhaus said. “I’m near $600,000 in taxes, I provide hundreds of jobs for the local community, I bring in parking revenue. I’m a good citizen. I’ve been doing this for 29 years and I produce for them a windfall of money. They don’t see it that way. I’m sure if I was out, all of this property would be developed.”

Bayshore history: Cliffwood Beach was a top Jersey Shore resort. Now see its remains hiding in the woods

Gehlhaus said he supports Sackman’s redevelopment project “as long as I’m not squeezed out” of his present location.

“I’ve got 25 acres on the waterfront here. It’s valuable property, I understand that,” he said. “But I am not getting out. I refuse to get out. My son is already training to take over. He’s 25 years old, he’ll be the fourth generation (of family ownership). We’ve been here for 119 years and I’m not going anywhere.”

Gehlhaus gets the same question every year, and his response never waivers.

“I get besieged by people every operating season with, ‘I heard you sold,’” he said. “I’m not selling. There is no price.”

Jerry Carino is community columnist for the Asbury Park Press, focusing on the Jersey Shore’s interesting people, inspiring stories and pressing issues. Contact him at jcarino@gannettnj.com.

Keansburg lawsuit by Dennis Carmody on Scribd

This article originally appeared on Asbury Park Press: Keansburg Amusement owner: Town would replace parking with apartments