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DelDOT, Overbrook builder ink final deal

Developer will pay up to $3.55 million toward Route 1 interchange
July 30, 2019

Story Location:
Cave Neck Road
Coastal Highway
Milton, DE
United States

State transportation officials and the developer of Overbrook housing subdivisions along Route 1 have signed a final agreement detailing financial contributions the developer must pay for construction of a grade-separated interchange at the Route 1-Cave Neck Road intersection.

The deal allows the developer to build up to 175 homes before the interchange is built.

If all 236 proposed single-family lots are approved by Sussex County Planning and Zoning Commission, the developer will be required to pay $3.55 million in cash and land.

The commission has already approved 217 single-family lots on 114 acres in two subdivisions – Overbrook Meadows and Overbrook West. Another

The final site plan for Overbrook Meadows has been approved while the final plan for Overbrook West is pending.

Applications for an additional 19 single-family lots and possible commercial pad sites along Route 1 have not been filed.

 

From 20 homes to 175 homes

Because the parcel is subject to the state's Corridor Capacity Preservation Program limiting access to Route 1, state transportation officials originally said a maximum of 200 trips per day would be permitted from the parcel, which would support construction of 20 homes.

DelDOT spokesman Charles McLeod said 20 homes was a recommendation, but DelDOT cannot restrict the number of units once they have been approved. “As the county has approved 135 units [first phase of the project], DelDOT must work with the developer to accommodate the trips resulting from those units and does not have the authority to reduce that number,” he said.

During an April 11 meeting with DelDOT officials on the Overbrook West subdivision, planning and zoning commissioners and assistant county attorney questioned the increase in the number of units. Attorney Vince Robertson said the commission relied on 20 units when they cast votes in favor of the subdivision.

Chairman Bob Wheatley said the commission did not know the 20-unit limit could be changed.

 

An increase in units

Jeff Stone, speaking on behalf of Sussex Alliance for Responsible Growth, said the agreement contradicted what had been told to county government and citizens by DelDOT and the developers, and was negotiated with no county department or citizen representation at the table.

"The only people more surprised than SARG to find out about this agreement seemed to be the planning and zoning commission and other Sussex County officials,” he said. “That is outrageous. Even more outrageous, even with this knowledge, the planning and zoning commission voted unanimously to approve the subdivision with no condition regarding traffic improvements."

 

Temporary access before project

Before the interchange is built, DelDOT will allow temporary access to the site at the northern end of the property; all costs will be borne by the developer. The temporary access can be used for traffic up to 175 building permits with no additional construction permitted until access to the interchange is available from the parcel. At that point, the developer must pay to have the temporary access road removed.

The access will only allow a right turn onto the northbound lanes of Route 1. Motorists wanting to travel southbound will travel north and use a crossover to make a U-turn.

The interchange project is one of three planned along Route 1, including the Route 16 and Minos Conaway intersections. DelDOT officials said the developer's contribution could speed up the start of construction, which is slated to begin in fiscal year 2024.

DelDOT's three most recently completed interchanges along Route 1 ranged in cost from $11.5 million for Thompsonville Road to $12.5 million for North East Front Street in Milford and $18.3 million for South Frederica. DelDOT officials plan to have a public workshop on alternatives for the Cave Neck Road interchange later this year.

 

Payment in three phases

Under terms of the agreement, signed by Delaware Department of Transportation officials and the developer in June, Overbrook Real Estate Partners LLC will contribute funding in three phases. Phase 1 includes 135 single-family homes in the approved Overbrook Meadows subdivision; Phase 2 includes 82 single-family homes in Overbrook West; and Phase 3 includes the proposed 19 single-family homes and commercial pad sites.

If all three housing phases are completed with 236 lots, the developer will be required to pay the following: Phase 1 – $1.14 million; Phase 2 – $700,000; Phase 3 – $160,000. In addition, the developer is required to dedicate 6.2 acres of right-of-way land – based on the plans for Overbrook West – at a value of $1.55 million, or $250,000 per acre. DelDOT will use the land to build part of the interchange.

The original application for a rezoning of the parcel for an 850,000-square-foot shopping center was rejected by Sussex County Council in April 2016 but appealed by the developer to the Court of Chancery. The court ruled council must hold a rehearing on the application. After the April 10, 2018 rehearing, council denied the application again with a 3-2 vote on May 1.

 

Two applications pending across Route 1

Two applications filed by Hudson Management for 156 residential units and 45,000 square feet of retail space on the northwest side of the Route 1 and Cave Neck Road intersection have been introduced by Sussex County Council and will be placed on planning and zoning and council agendas in the near future. If approved, the developer would be required to contribute to road improvements including the grade-separated interchange.

 

 

 

 

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