Rezoning proposed at Route 16-Route 1

Developer Ocean One Holdings LLC of Rehoboth Beach has filed an application to rezone a nearly 65-acre parcel at the Route 1-Route 16 intersection near Milton from AR-1, agricultural-residential, to C-3, heavy commercial district.

While no specific plans for the site have been disclosed, David Hutt, the developer's attorney, said the vision for the property is for a retail and entertainment complex for residents and tourists. Hutt appeared before the Sussex County Planning & Zoning Commission Jan. 3 to outline why commercial zoning was appropriate for the parcel.

A conceptual site plan was included in the project's traffic impact study required by Delaware Department of Transportation.

The study considered the highest and best use of the property with a conceptual plan including a 265,000-square-foot water park, hotel and convention center; 150,000-square-foot shopping center; and a 5,600-square-foot convenience store with gas pumps. The projected average daily traffic generated would be almost 18,000 vehicles.

The most recent traffic counts 19,457 vehicles per day on Route 1 and 9,700 vehicles daily on Route 16.

The study considered delays, levels of service and capacity at full build out of the property, The unbuilt portions of seven developments were also considered in future traffic projections.

The parcel is located adjacent to a major road construction project underway to place a grade-separated interchange at the Route 1-Route 16 intersection. The developer would be required to make road improvements to connect to the interchange. The $30 million project is expected to be completed in late 2025.

After the hearing, the commission voted to defer a decision to a future meeting.

County council has scheduled a public hearing on the application for 1:30 p.m., Tuesday, Feb. 20.

Hutt: Rezoning is appropriate

During the hearing, Hutt reminded the public that the meeting was not a site-plan review but a hearing for the commission to gather information on whether the requested zoning was appropriate for the property, and to make a recommendation to Sussex County Council.

If rezoning is approved by council, Hutt said, a site plan would be forthcoming for the commission to review. At site-plan reviews, the public cannot make comments.

Hutt outlined several reasons why the rezoning request was appropriate for the parcel. He said the property is listed as a developing, growth area on the county's future land-use map; it's served by two major roadways; central water and sewer are available; and the state is already making a major investment in infrastructure with the interchange project.

The entire parcel is 115 acres, with the other 50 acres remaining as AR-1 zoning.

Hutt said the rezoning was not considered for a Preliminary Land Use Service review by state agencies because the zoning is consistent with the county’s comprehensive plan. However, he added, PLUS would review the site plan for the parcel.

Hutt said one of the biggest complaints by the public is that it takes years for DelDOT to catch up with developments approved by the county. “This application is in opposite order. The grade-separated interchange is under construction and would be completed before any construction. Road improvements will precede any site plan,” the attorney said.

Proposed road improvements

Hutt said the developer and DelDOT staff have met several times over the past five years to discuss the traffic impact of potential uses, and a traffic-impact study has been conducted. “They want this to be a master planned corner incorporated into the design as much as possible with the grade-separated interchange,” he said.

He said the developer would be required to improve the frontage along Route 16 and also construct a service road from Route 16 to the southern edge of the property to connect to Route 1 as well as a dual-lane roundabout at the access point of the property along Route 16.

He said the developer would also be required to construct an off-on ramp from the service road to southbound Route 1, pay for two traffic signals and contribute $105,000 to DelDOT's traffic signal revolving fund for a future signal at the Route 16-Zion Road intersection west of the property.

Hutt said, in all, road improvements would add up to nearly 8 acres of land.

In support of rezoning

Hutt noted that five letters of support from organizations and a politician are in the public record, including letters from Rep. Stell Parker Selby, D-Milton; Milton Chamber of Commerce; Southern Delaware Tourism; Kent-Sussex Leadership Alliance; and Sussex Economic Development Action Committee.

Speaking at the hearing, Scott Thomas, director of Southern Delaware Tourism, said the proposal enhances tourism, which is one of the leading economic engines in the county.

Also at the hearing, Karen Falk, Milton Chamber executive director, said the proposal has great potential to enhance the economy of the area, and create new jobs and expand the tax base.

Concerns expressed

Monique Fitzhugh, who lives along Route 1 near the property, said the county should not approve the rezoning before a plan is in place. “It would be opening up Pandora’s box,” she said.

Donald McLamb, who owns property adjacent to the parcel, said his wife’s family owns more than 300 acres of preserved farmland next to the property. “There is a reason there are no homes there,” he said. The family also operates a 100-lot campground near the southern boundary of the property.

He said the family is concerned about water runoff from the property onto their property and the nearby Broadkill River, and increased traffic along Route 16.

Capacity question

Rich Borrasso, representing Sussex Alliance for Responsible Growth, said while the group is not opposed to developing the property, preserving traffic capacity should be considered, especially with the construction of the new grade-separated interchange. “This potential use could swallow up every bit of capacity. You should be mindful of the traffic impact and avoid coming back in five to seven years to rebuild the ramps,” he said. “If there is a capability issue, now is the time to address it.”

Assistant county attorney Vince Robertson said, “This parcel is appropriate for growth and DelDOT has not officially voiced any concerns.”