Atlantic Crowne plan moves to public hearing in Rehoboth

A plan to build a 55-room hotel on Baltimore Avenue in Rehoboth Beach is set to go to public hearing later this month. 

The Rehoboth Beach Planning Commission voted to move to public hearing the site plan for the Atlantic Crowne Hotel project. Located at 17, 19, 21 and 23 Baltimore Ave., the proposed hotel would stand four stories tall and have a ground-level restaurant and bar. In some form or fashion, a hotel has been proposed at this site since 2018, when it was going to be a 40-room, French-style boutique called the Atlantic Crown Hotel and Retreat. Those plans fell through for legal reasons.

The current plans were introduced in June 2023. More recently, the board of adjustment approved a variance allowing the hotel’s required loading area to be on the property immediately to the east. Local hotelier and property owner Gene Lankford also owns the neighboring Atlantic Sands immediately east of the four lots. As part of its approval, in case of a sale of the hotel after construction, the board requires an easement to be recorded that would be in effect into perpetuity.

In addition to the loading space, the city has allowed the new hotel and the existing hotel to share the Sands’ entrance to underground parking.

Even with the variance, most of the discussion about the hotel’s site plan at the June 27 meeting was about the loading zone.

Carlton Savage, project engineer, said he thought only smaller delivery trucks would be able to use it. There’s another option that puts a 48-foot loading zone on the street and moves some parking spaces around, but there wouldn’t be a loss in the total number of street parking spots, he said, adding they’d keep the board of adjustment-approved loading zone for the smaller trucks.

Planning Commissioner Michael Strange said he likes the idea of a street loading zone because it makes long-term sense for the benefit of the city in many different ways. It’s dysfunctional right now, he said, and this would dramatically increase the functionality.

The planning commission took public comments on the project after moving the project to public hearing. Two residential property owners who abut the hotel property to the north spoke.

First was Cameron Mactavish, whose family owns 10, 12 and 14 Maryland Ave. He reminded the planning commission the city’s comprehensive development plan calls for eliminating adverse impacts of commercial activity on residential properties that are next to commercial.

“We’re experiencing that currently with the Atlantic Sands, with the noise of loading, bright lights in the parking lot, the noise of the HVAC,” said Mactavish. “I only see that getting worse with the Atlantic Crowne.”

Larry Carroll, who owns 16 and 20 Maryland Ave., has concerns about trash removal and the ventilation system for the hotel’s restaurant. The location of the trash and the vent means the smell is going to blow into his backyard, which is already the case, he said.

“I’m just trying to throw out some common-sense thoughts here and working with the neighbors. Working with the residential people next door on Maryland Avenue,” said Carroll.

A public hearing is scheduled for Thursday, July 24.