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Rehoboth Beach’s mixed-use task force begins work

Group exploring best ways for city to encourage redevelopment and workforce housing
March 4, 2025

Story Location:
Rehoboth Beach City Hall
229 Rehoboth Avenue
Rehoboth Beach, DE 19971
United States

With an eye toward spurring revitalization, encouraging pedestrian travel and providing workforce housing, the Rehoboth Beach Mixed-Use Zoning Ordinance Task Force held its first meeting Feb. 27.

The convening of this 14-person group is years in the making, and developing this code is included in the city’s current comprehensive development plan.

Consultant Nick Walls led the discussion. He is a professional planner who works for Wallace Montgomery and has been helping the city since the comprehensive development plan was created a few years ago.

Although most of the city is built out, it’s aging, he said, which means it’s a target for redevelopment. How does that happen appropriately? he asked.

Walls said code currently allows for mixed-use development, but it doesn’t have specific language and it’s not addressed in the site-plan review process. The goal is to allow flexibility, but also to ensure the character of the city, he said.

According to information presented by Walls, the city is about 411 acres in size. Of that, about 14% – 57.8 acres – is commercial – 188 parcels in C1 on 42.9 acres; nine parcels in C2 on 2 acres; 83 parcels in C3 on 12.9 acres.

The mixed-use proposals are only being considered in the city’s three commercial districts, which are primarily found on Rehoboth, Baltimore and Wilmington avenues and the Boardwalk. However, Walls said, there are a few parcels on Route 1, and it will be important to account for those when developing the code.

Planning and Community Development Director Mary Ellen Gray said the plan would be to incorporate mixed-use into the allowed-uses section of the commercial districts, with specific recommendations for each district.

Task force member Rick Perry, former planning commission chair and current member of the city’s board of adjustment, said he’s interested in knowing what kind of incentives other communities provide to encourage mixed-use. For example, tax incentives, he said.

Walls said tax incentives are used, but fall outside the scope of the group’s concerns because that would be an issue for city commissioners. Walls said the idea isn’t to require anything, but to incentivize and give developers a good reason to go in that direction, he said.

Gray provided a couple of examples, saying there could be density bonuses or a reduction in parking requirements.

Commissioner Mark Saunders said he wants to address affordable workforce housing without increasing short-term rentals. How does the city get one without the other? he asked.

An example of flexibility, Walls said, would be the size of a unit; or there could be shared bathrooms or kitchens, something more akin to a dorm, he said.

There weren’t too many specific recommendations discussed, except building height.

Planning Commissioner Susan Gay said she would like to see the maximum building height stay at 42 feet. Walls asked the other task force members if they agreed, and there was unanimous consent.

Gay also pointed out that city code currently only allows one dwelling unit for every 5,000 square feet of lot area. That will have to be looked at, she said.

Walls presented a timeline for completing the task force’s recommendations to city commissioners by the end of the year. As proposed, there would be one more task force meeting to finalize high-level goals, which would then be presented to the planning commission and city commissioners. Following that, Wallace Montgomery will work through the spring months to draft specific code language, with the task force discussing that language throughout the summer and into the fall before presenting final recommendations by the end of the year.

The task force does not have its next meeting date set, but it’s expected to take place in the next month or so.

 

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