The designation allows the city to begin crafting a formal redevelopment plan for the site, which has remained vacant since the amusement pier closed in 2024 after nearly a century in operation.
A proposal by developer Eustace Mita to build a large 252-room luxury hotel remains a possibility, though opponents say such a project could alter the character of the community.
Some residents and business owners voiced support for moving forward, citing the potential economic benefits tied to tourism.
READ MORE | 'It's bittersweet': Hundreds say goodbye to Gillian's Wonderland Pier on its last day
"Business is the livelihood of this town. The community would be nothing without the tourists that come in the summer," said Kylie Robb of Ocean City.
Others said they are not opposed to development but want to ensure it fits the surrounding neighborhood.
"We're not against a hotel, nor are the vast majority of people in this town," said John Cracovaner. "What we want is an appropriately sized hotel that respects the neighborhood behind it."
SEE ALSO | Ocean City developer hopes to turn shuttered Wonderland Pier into 252-room hotel
Ocean City developer hopes to turn shuttered Wonderland Pier into 252-room hotel
Some called to delay the vote until a new councilmember takes office, but that motion failed.
After months of debate, including split votes and a deadlocked planning board, council ultimately approved the designation in a 5-2 vote.
"I really truly feel that moving this process forward to a yes will allow us to negotiate and do what is best for Ocean City," said Councilman Tony Polcini.
It's unclear what the next concrete step is or when that happens, but again, this vote paves the way for some kind of development at the site.
In a statement, Mita told Action News that Thursday's vote "was a great win for the populous of Ocean City."