Lawsuit challenges Wonderland Pier rehabilitation designation in Ocean City, NJ

OCEAN CITY, N.J. (WPVI) -- There may be a legal battle brewing over the future of the former Gillian's Wonderland Pier property in Ocean City.

Several community groups have filed a lawsuit to reverse the city council's decision to designate the site as "in need of rehabilitation."

The designation, approved in June, allows for negotiations that could change the current zoning, which does not allow hotels.

Developer Icona Resorts, which owns the property, wants to build a luxury seven-story hotel there.