Ocean City Engineer Terry McGean says the proposal is essentially a no-go.
It was up against strict laws prohibiting any sort of construction east of the boardwalk, as well as presumed backlash from property owners and visitors who might be upset with an eight-story high monorail obstructing their ocean view.
City officials say the aerial tram would be an unnecessary duplication of the existing tram service that runs on the Boardwalk.
McGean says the same developers are considering a tram that would stretch over the Sinepuxent Bay, running parallel to the Route 50 Bridge connecting the city's West Ocean City Park and Ride to the downtown bus station.
CORRECTION: The original text for this story stated that developers were considering a tram that would stretch over the Chesapeake Bay. The tram would actually go over the Sinepuxent Bay.