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Owners of Ruddertowne and Venus on the Half Shell in Dewey Beach have acquired building permits to tear down the restaurants and storefronts and replace them with townhouses. But Dewey Beach building officials also gave them a list of conditions that must be completed before construction begins.
Highway One LLC member Jim Baeurle obtained permits for phase one of the project, which includes building four townhouses on the corner of VanDyke Street and Route 1, Monday, Dec. 11. During a Saturday, Dec. 9 town meeting, Baeurle announced plans to go through with the demolitions, but he also said his company is willing to compromise with town officials. The meeting agenda listed a discussion and vote on the plans, but Baeurle said, “There’s nothing to vote about. As a convenience to the town, I’m telling council I’m going in Monday morning to pull the permits.”
“The only thing remaining would be the lighthouse, and that wouldn’t be commercial,” Baeurle said of the plans. He said Highway One filed its plans before town council’s decision, in April, to approve a moratorium on converting commercial property to residences.
“They have the right, legally, to go ahead with the plans, and it’s a total teardown so any discussion we can engage in is fortunate,” said Mayor Dell Tush. She asked if Highway One planned to immediately begin plans to demolish Ruddertowne and Venus on the Half Shell.
Tired of waiting
“We’ll start phase one by building four or six units in Ruddertowne and wait for the Venus plans,” Baeurle said. He said the company bought the Venus on the Half Shell property about four years ago with intentions to eventually build homes on it. He said it’s likely those plans would be acted on within the year. “The ground it sits on is so valuable, the entity that is on it can’t support it,” he said. Baeurle said Venus on the Half Shell did poorly this year.
“We’ve waited six months and now the moratorium has been extended, and as a company we need to make our next move, but we will discuss amendments to the site plans,” Baeurle said. Highway One is re-establishing its rights as property owners, he said. When the company bought the land, it was very valuable because of its flexible zoning, Baeurle said. If planners restricted the land use by changing zoning laws, the property value would decrease, he said.
Although town council has agreed Highway One has the legal right to convert the businesses to homes, many people at the town meeting were upset about the plans.
Angry residents
“It’s an emotional fear of loss of what we came into in the ‘70s,” said resident Anna Legates. She and other residents said they aren’t planning to sell their property just because its value has increased and they could make a few dollars, and Highway One shouldn’t either.
Speaking to Baeurle during the meeting, Commissioner Bob Fitzgerald said, “A lot of this makes the comprehensive plan moot, and you attended those meetings.”
Planner David King said he would rather the property go to someone else than see it torn down. “I don’t believe any compromise will bring this closer to the comprehensive plan. It’s clear Highway One wants to divest themselves of this property. I would ask Jim what its value is and the town could acquire it,” he said. Baeurle said he wasn’t prepared to discuss the property value at that time.
“I’m sure Jim is not alone in seeing tourist dollars go down in the last few years, so using commercial property as residential just makes sense financially,” said Charlie Pollard, who is on the budget and finance committee and owns several local businesses.
Baeurle also said business is slowing down in Dewey. “We lose money hand over fist from Oct. 15 to May 15. We’re worse off than we were 15 years ago and there’s nothing to show it will improve,” he said.
Opportunity for compromise
Other commissioners and residents were optimistic. “They have told us they would participate in discussions to see if we could get parking and restrooms and changing rooms as part of their program. We have an opportunity for give and take,” Commissioner Mike Eisenhauer said. He said town officials have time to work with the property owners because getting permits from all necessary agencies will take about one year. “I don’t see ground-breaking for a while,” Eisenhauer said.
Resident Graham Smith said, “The town has a unique opportunity here. The fact that Highway One has reached out could have an end result of a property that is an enhancement to the town that is a more attractive space that’s better for the town.”
“This is not something that will happen next week,” Tush said. She thanked Baeurle for his willingness to compromise on future plans for Ruddertowne. “No one wants to see a total teardown and with discussions hopefully we will be able to work something out we all want,” she said.
Town council voted unanimously to form a committee of residents and business owners to discuss altering the site plans. “I’ll appear whenever, but we need to pursue the plans,” Baeurle said. Although he said the best and highest use of the ground is to level it and build homes, Baeurle said Highway One is considering leaving some commercial areas. The first meeting of the design group is at 6 p.m., Thursday, Dec. 28, at the Lifesaving Station.
Contact Molly Albertson at malbertson@capegazette.com
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