Redevelopment Moves Forward at the LBI Grade School Site

The future of the Long Beach Island Grade School property in Ship Bottom has taken a major step forward. After years of uncertainty, officials have finalized an agreement with a local developer that clears the way for residential redevelopment while preserving a portion of the land as open space.

At the March 25 council meeting, Ship Bottom Mayor William Huelsenbeck announced that a contract had been signed with developer Michael Pagnotta. The agreement allows Pagnotta to build 21 single-family homes on the roughly 4-acre property, located between Central Avenue and East Bay Terrace, just south of borough hall.

Notably, the plan includes a public benefit: 60,000 square feet of the property will be preserved as open space. Of that, 30,000 square feet is being donated by Pagnotta, while the remaining half will be purchased by the borough. To finance the acquisition, Ship Bottom has introduced a $3.5 million bond ordinance, with additional funding coming from the borough’s open space tax. The preserved land will front Central Avenue between 19th and 20th Streets.

Mayor Huelsenbeck described the outcome as the best available, given the circumstances. He noted that the borough had fought for decades to keep the school open and in use for educational purposes, but ultimately lacked the authority to prevent its closure or sale. The school district handled the sale independently and has not been involved with redevelopment discussions since announcing the building’s abandonment.

The school district agreed to sell the property to Pagnotta in 2022 for $14 million. In July 2024, the sale price was reduced by $800,000. Proceeds from the transaction are expected to help fund the expansion of the Ethel A. Jacobsen Elementary School in Surf City, where all district students and staff will be consolidated. That project received approval from the New Jersey Department of Education in 2021.

Although the loss of a local school represents a significant shift for the community, the borough’s actions ensure that not all of the property will be privately developed. The preserved open space will offer long-term value to residents by maintaining a measure of public land in a growing residential area.

The public will have an opportunity to comment on the bond ordinance during the borough council’s meeting on April 22.

Source: The Sandpaper. Gina G. Scala