224 apartments proposed for Route 24 parcel

A 224-unit apartment complex, aimed at providing workforce housing, is proposed along Route 24 near Rehoboth Beach on land that was originally scheduled for a large shopping center.

OA-Rehoboth LLC has filed a conditional-use application for apartments on 15 acres of a 19-acre parcel zoned CR-1, commercial-residential, on the south side of Route 24 between Route 1 and the Warrington Road-Plantation Road intersection behind Rehoboth Mall.

The proposed project would include seven, four-story, 3,600-square-foot buildings with one-, two- and three-bedroom apartments and 403 parking spaces. The maximum height would be 42 feet. Apartments are allowed in CR-1 zoning districts with an approved conditional-use application. The density would be 12 units per acre.

At the Dec. 12 Sussex County Planning and Zoning Commission meeting, residents of Sterling Crossing, adjacent to the property, gave their blessing to the proposed project.

“We endorse the Ocean Atlantic multifamily housing plan and thank Preston Schell for his vision and the Townsend family for donation of land,” said Sterling Crossing resident Kathleen Baker.

The main access to the parcel, a new connector road linking Route 24 and Old Landing Road, was originally expected to pass through Sterling Crossing, a development adjacent to the proposed complex. Now, land has been dedicated by the developer and a neighboring property owner to allow the road to be built east of Sterling Crossing.

“This may be the most appropriate site for high-density development in the Lewes-Rehoboth area,” said Jim Fuqua, the developer’s attorney, adding the parcel is surrounded by commercial zoning.

He based that statement on criteria in the county comprehensive plan that supports high-density development on coastal-area land. He said the proposed project would have central water and sewer, and the property is located near two major highways, near commercial areas with employment opportunities and near three bus stops.

Fuqua said the Delaware State Housing Authority supports the proposed complex because affordable rental units are needed in eastern Sussex County. The parcel is also located in an area of opportunity as designated by the authority, he said.

“There is a need for apartments with a lack of affordable housing, which is particularly severe in eastern Sussex County,” Fuqua said. “The need for workforce housing has been documented by the county.”

The complex would have a community building, pool, playground and dog park.

A 4.7-acre parcel section of the 19 acres would be set aside for future commercial development.

Developer Preston Schell said a mixture of residential and commercial development is the best use of the commercially zoned property. “There are multiple examples of this type of smart use of this type of land,” he said, listing The Vineyards at Nassau Valley along Route 9 near Lewes as an example of mixed development.

Access to the parcel would be from an expanded connector road linking Route 24 and Old Landing Road and from an extended road from the Rehoboth Mall rear parking lot behind Delaware Eye Institute.

Fuqua said the applicant would provide funding and dedicate right of way for the Old Landing/Route 24 connector road. In addition, he said, the Townsend family would dedicate a section of land they own for the road.

Fuqua said Delaware Department of Transportation will not need an easement for a street in Sterling Crossing as part of the connector road. “It's a much better option with much less impact on Sterling Crossing,” he said. “The dedication of the right of way will speed up the project.”

DelDOT also has plans to widen Route 24 from Mulberry Knoll Road to Route 1 with construction to begin in spring 2020.

Fuqua said the commercially zoned parcel was the site of a proposed 141,700-foot-shopping center with 900 parking spaces generating more than 8,000 vehicle trips each weekday.

He said the shopping center project did not materialize, but a large shopping center is still a permitted use under CR-1 zoning. “Apartments would have much less intensive use and much less impact,” Fuqua said.

He said the proposed apartments would generate about 1,600 vehicle trips per day.

No one spoke in opposition to the application. The commission deferred for further consideration. Sussex County Council's public hearing is scheduled for 1:30 p.m., Tuesday, Jan. 28, 2020, in the county administration building, 2 The Circle, Georgetown.