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Council delays Atlantic Fields vote to get more information

Decision expected after traffic, environmental questions answered
October 23, 2025

After the public raised traffic, safety and environmental concerns Oct. 21 during a five-hour public hearing on a large proposed commercial project on Route 24, Sussex County Council delayed its decision.

More than 125 people attended the hearing on a request by Southside Investment Partners to change zoning for a 73.5-acre site near Rehoboth Beach from AR-1, agricultural-residential, to C-4, planned commercial district.

Council decided to seek information from the Sussex Conservation District, Delaware Department of Transportation and the Department of Natural Resources and Environmental Control.

Council members were given two weeks to formulate questions for submission to the agencies, which will be given two weeks to respond. Those replies will be posted on the county website, and the applicant and public will have two weeks to submit comments. The application will then be scheduled for consideration at a council meeting.

Among committed stores in the 665,000-square-foot retail center called Atlantic Fields are Costco, Target, Whole Foods, Nordstrom Rack, Dick’s Sporting Goods, Hobby Lobby and Ross Stores, said Ben Hoskins, president of Southside Investment Partners, at a Sept. 17 public hearing before the county planning & zoning commission.

One speaker at the Oct. 10 council hearing accused the developer of lying about having commitments from popular retailers to win approval.

In a public hearing format, developers cannot directly respond to questions from the public, but Hoskins said the following morning that he does have contractual commitments from the companies.

Nordstrom Inc. in an Oct. 10 news release posted on its website announced plans to open a Nordstrom Rack store in Atlantic Fields in 2028. The Cape Gazette has reached out to the other companies to confirm their commitments. 

The hearing on the $175 million Atlantic Fields project began with a more than hour-long presentation by Jim Fuqua, a local lawyer representing the Baltimore-D.C.-based developer, and consultants. 

“The most important consideration of any zoning application is the relationship of the proposed zoning change to the provisions of the county’s comprehensive plan,” Fuqua said.

While some people have questioned the selection of the site for Atlantic Fields at the northeast corner of Route 24 and Mulburry Knoll Road, he said county and state plans led the developer to that location.

“The plan states what it states, and shopping centers and primary shopping destinations have been very specifically and deliberately envisioned for the Atlantic Fields site since 2018,” Fuqua said.

Commercial development was expected at the site in the current county comprehensive land-use plan, adopted in 2018, and the 2020 Strategies for State Policies and Spending, he said.

Councilman Matt Lloyd said he liked the project, including the jobs it will create and shopping options it will offer. Lloyd said it appears to be located in an area that has been targeted for such developments.

“This is everything that we asked for, that’s spelled out in the code, in the comprehensive code land-use plan, and everything we’ve communicated to the business and developer community that we want to see before we consider a change in zoning,” Lloyd said.

While there are concerns about traffic, he said he believes an objective standard must be applied. 

“It is the council’s determination whether a zoning change is to be made,” said William Zach of Lewes, criticizing Fuqua for pressuring the council. “It is your authority to do so or to turn it down.”

Chris Haffer, who lives off Mulberry Knoll Road, said he strongly supports the project. It will attract desired businesses, it is consistent with county plans, it will help customers by creating competition among stores, and the developer has a good reputation, Haffer said.

He was followed by more than 20 speakers opposed to the plan and an apparently skeptical council.

The Sussex County Planning & Zoning Commission voted 4-1 to recommend council approve Atlantic Fields, with a list of conditions.

Among them, the developer will spend about $10 million to improve roads at and near the site to comply with DelDOT requirements. Also, a $100,000 donation will be divided evenly between the Lewes and Rehoboth Beach fire departments.

The public and council members questioned a traffic study commissioned by the developer and the state’s own analysis.

Some predicted the project will create traffic congestion and dangerous conditions in the area, including near Beacon Middle School and Love Creek Elementary School.

“Currently, there is enough traffic-related trouble at these two schools as it is today to seriously question the rationale of this approval,” said Dave Bower of Mulberry Knoll Road. 

“Our roads will not be able to handle it, and Sussex County will have a larger traffic crisis than it has now,” said Jill Hicks, president of Sussex Preservation Coalition. “This impact will be felt throughout the county. As Mr. Fuqua stated, these anchor stores are magnets because of their discount pricing and their tax-free shopping.”

Hicks also predicted nuisances for neighbors from truck deliveries, and lighting in the parking lot and headlights.

The project is expected to generate more than 26,800 vehicle trips daily, adding to existing traffic and more from thousands of homes planned or approved to be built in the area. Some opponents said they believe the effect on traffic will be far greater than predicted.

“Are we going to totally overwhelm this road with additional traffic?” asked Council Vice President John Rieley.

“Not based on our traffic analysis,” said Nicole Kline, an engineer for Bowman Consulting Group, which was hired by the developer. 

Councilwoman Jane Gruenebaum said the anticipated 1,750 employees at the retail center would add to traffic congestion because they would not be able to afford nearby housing and would have to drive to and from work.

Mulberry Knoll Road northeast of the site is narrow and in rough shape, and Route 24 a short distance to the southwest narrows to two lanes, neighbors said. The state is not expected to improve either road for several years.

Gruenebaum, Rieley and Councilman Steve McCarron said they were disappointed the plan does not include affordable housing.

A shopping center access road from Plantation Road would use an existing road that bisects a new and growing medical complex. A representative of Plantations Medical Group objected to the use of the road for that purpose, saying it would create an unsafe route for patients.

Hoskins said Oct. 22 that he believes this can be worked out. 

Rieley also said he worried about the long-term reliability of the stormwater system, and its effectiveness in filtering oil and other contaminants.

 

Kevin Conlon came to the Cape Gazette with nearly 40 years of newspaper experience since graduating from St. Bonaventure University in New York with a bachelor's degree in mass communication. He reports on Sussex County government and other assignments as needed.

His career spans working as a reporter and editor at daily newspapers in upstate New York, including The Daily Gazette in Schenectady. He comes to the Cape Gazette from the Cortland Standard, where he was an editor for more than 25 years, and in recent years also contributed as a columnist and opinion page writer. He and his staff won regional and state writing awards.

Conlon was relocating to Lewes when he came across an advertisement for a reporter job at the Cape Gazette, and the decision to pursue it paid off. His new position gives him an opportunity to stay in a career that he loves, covering local news for an independently owned newspaper. 

Conlon is the father of seven children and grandfather to two young boys. In his spare time, he trains for and competes in triathlons and other races. Now settling into the Cape Region, he is searching out hilly trails and roads with wide shoulders. He is a fan of St. Bonaventure sports, especially rugby and basketball, as well as following the Mets, Steelers and Celtics.