This property is the Ocean Plaza Mall. It has had multiple redevelopment plans over the past several years. Each one, including the latest, reached different levels of maturity and approval, but ultimately stalled. The latest one stalled when the real estate market declined dramatically a few years ago. I found this site (
http://www.showcase.com/property/9701-Coastal-Highway/Ocean-City/Maryland/1165562) which indicates redevelopment is still planned. It has contact information if you need more details.
This parcel and a few others are among a small number of properties in OC with enough land for a major redevelopment effort (The Cropper Concrete factory site, Misty Harbor Motel site, and parcel between 67th adn 68th Streets are a few of the others). I believe Sunset Island on 67th was the last major parcel in OC that had not been previously developed. I suspect it will be a few years before another plan comes forward for this property or any other major development project. However, there has been some recent movement related to redeveloping the 45th Street Village property.