Historic Keansburg Amusement Park Faces Growing Threat from Luxury Development

A century-old Jersey Shore landmark, Keansburg Amusement Park, is in a heated dispute with local authorities over plans to demolish parts of it for luxury housing. Since the early 1900s, the Gelhaus (also spelled Gehlhaus) family has owned the park. But now, developers may buy its land unless a lawsuit stops them.
Recent season was another turning point. The third-generation park manager, Hank Gelhaus, announced the seasonal closure and vowed to fight the borough’s decision in court. The main dispute involves municipal intentions to sell a public parking space near the park’s go-kart track to a real estate company. That plot is key to building over 200 luxury apartments. The Gelhaus family believes such construction would violate the park’s legacy and alter their functioning.
Historic records suggest Keansburg was not always a real estate battleground. After buying marshland overlooking Raritan Bay, German immigrant William Al. Gelhaus created a working-class family entertainment park. After evolving, the site kept some of its antique charm: rides from the 1920s and 1930s are still maintained. After a 1944 hurricane, the boardwalk was rebuilt, and many attractions withstood economic downturns. The Gelhaus family emphasize that grandparents take grandchildren to the same attractions.
The development’s supporters say the borough must consider long-term for additional revenue, modern housing, and urban rejuvenation. Many neighbors and park advocates fear that losing even a small site may erase decades of legacy. They worry that once construction begins, pressure will increase to expand into remaining properties, choking the park.
Gelhaus family stakes are personal and existential. This is their identity and their tradition, not just a business. Hank Gelhaus says you can’t stop the park. His lawsuit attempts to stop the sale and protect a community institution and rides.
Similar conflicts have arisen in Jersey Shore municipalities between conservation and affluent rebuilding. Historic boardwalks and amusement parks on prime coastal estates make them attractive for luxury buildings. Advocates warn Keansburg that once the deal is approved, reversal may be impossible.
The outcome of this lawsuit may affect Keansburg’s shoreline. The Gelhaus family may keep the park open to locals and tourists, preserving a rare Jersey Shore legacy. If not, their victory may be a footnote in the development-tradition story.
Although neither side has bowed out, the court’s ruling will determine whether one of the region’s last iconic boardwalk amusement parks survives or is lost to coastal real estate.
Sources
Historical Keansburg site details
Gelhaus family lawsuit coverage in local media
Municipal redevelopment and developer proposals