Developer wants zoning change to remarket Pelican Point subdivision

In a direct reflection of housing market demands, developers of Pelican Point are requesting a zoning change to downsize some lots and build attached units to provide more affordable homes.

Cannon Road Investments LLC has filed an application to rezone 134 acres of an already approved subdivision at the intersection of Route 5 and Cannon Road to AR-1-RPC, agricultural-residential planned community. And in the process, lots will be reduced from 20,000 square feet to around 13,500 square feet in the first three phases of construction. Lots in future phases could be 7,500 square feet.

The planning and zoning commissioners deferred action on the request at their June 25 meeting.

State planners strongly object to the rezoning and subdivision because it is proposed for construction in a Level 4 area, a district not designated as a growth zone under the strategies for state policies and spending initiatives.

Level 4 areas are composed of agricultural lands and environmentally sensitive wetlands and wildlife habitats, which should be preserved, said Bryan Hall, a planner with the Office of State Planning Coordination.

“From a fiscal responsibility perspective, development of this site is likewise inappropriate. The cost of providing services to development in rural areas is an inefficient and wasteful use of the state’s fiscal resources,” he wrote in a Preliminary Land Use Service (PLUS) report.

“Over the longer term, the unseen negative ramifications of this development will become even more evident as the community matures and the cost of maintaining infrastructure and providing services increases,” he wrote.

To meet market demand

“They need this reconfiguration to meet what little market demand there is at this time in Sussex County,” said attorney Dennis Schrader.

In addition, in the first three phases of the subdivision, homes will be attached or duplexes, which is allowed under the requested zoning. The zoning change would allow for 168 attached units instead of the previously planned 80 single-family units.

Schrader said density in the development would compute to 1.8 units per acre with 84 units in the existing cluster subdivision and 168 in the reconfigured section for a total of 252 units on 134 acres.

Lots in phases 4-7 would be 7,500 square feet in a cluster subdivision.

Holly Hearne, an engineer with McCrone Inc., said the new design would include sidewalks and 50 more acres of open space for a total of 70 acres of open space. “It’s a better design and better layout,” she said. “They want to diversify the development and offer a variety of options to the buyers.”

Developer Randy Mitchell said they are following market trends started across the road at another development his company owns, Stonewater Creek.

He said houses in the development are getting smaller and lots are being discounted to builders. Houses that were normally 2,600 square feet and above are now 1,800 square feet, and the cost of lots to builders is being discounted at least 40 percent.

He said it’s becoming harder to sell homes in the $400,000 to $500,000 price range, but the $200,000 to $300,000 market is growing.

He said attached homes are also what builders want.

“The market is being driven by price,” Mitchell said.

Residents express concerns

Some residents who live in Stonewater Creek spoke against the proposed rezoning and development during the planning and zoning public hearing. “We like the way it is zoned now,” said George Hudson. “We want it to stay that way. Home values are very important to us.”

Hudson said homes in an area should be built to match other homes. “They should not be clustered in groups because it brings down the value of our homes,” he said.

Gerald Brock and Russell Pierpont said there are ongoing drainage issues in the Stonewater Creek development and expressed concern that more homes in the area could worsen the problem.

Jason Palkewicz, an engineer with McCrone Inc., said he was aware of drainage issues in the development. He said most could be due to grading issues caused by construction.

Tiffany Derrickson of Rehoboth Beach expressed concerns about protecting the 240-acre N&M Burton Farm Agricultural Lands Preservation District, which is adjacent to the proposed development.

“I would only support this if traffic is rerouted from Stevenson Road to protect the area of this 140-year-old working farm,” she said.

She said traffic should be directed to Route 5, and she has been working with transportation officials to close Stevenson Road.

Mitchell said he is aware of Derrickson’s concerns. He met with her and transportation officials but said road decisions are up to the Delaware Department of Transportation. He said improvements would be made to Route 5, Cannon and Townsend roads.

Commissioner Mike Johnson said amenities in Pelican Point were planned for phases 4-7, and none were planned for the first three phases of construction.

“There are zip for amenities in this section of the development,” he said.

Mitchell said site plans never had amenities in that area. “They are centrally located for the entire community,” he said.

Another public hearing is pending at an upcoming county council meeting.