Dewey buys Route 1 property

The town of Dewey Beach is the proud new owner of prime Route 1 property.

By a vote of 3-2, town commissioners agreed March 14 to spend $875,000 on two parcels of land at 1503 and 1505 Coastal Highway. The property abuts the northeast corner of town hall’s Rodney Avenue location.

The vote come after a nearly two-hour-long public hearing during which most residents who spoke were against the purchase.

Former Mayor Dell Tush said many questions have been left unanswered, and the town shouldn’t be in the business of speculating.

Resident Dave Davis said town officials were acting recklessly and not following their fiduciary responsibilities.

Former commissioner Dale Cooke said there’s was no doubt town hall needs to be expanded, but part of the problem was town officials didn’t give residents and property owners a chance to buy into the process.

“The positives probably outweigh the negatives, but I’m ticked about the process,” he said.

Mayor Diane Hanson said she voted in favor of the purchase because it represents a wonderful opportunity for the town.

Once in a while an elected official must do what’s best for the town and take the grief that comes with it, said Hanson, adding that the majority of people she’s spoken with and heard from are in favor of the purchase.

Commissioners Anna Legates and Cortney Riordan voted against the purchase.

Legates said she opposed the purchase because the due diligence needed for a purchase of this nature hadn’t been done and she had too many concerns.

Riordan agreed with Legates that the town hadn’t done enough homework and was rushing into the purchase.

“If you want it bad, you get it bad,” he said.

As a condition of the approval, the seller must make sure no tenants are living in the property.

Brittany Danahy, of DSM Commercial Real Estate Services, represented the seller and was at the meeting. Following the town’s favorable vote, she said the seller had already agreed through email that there would be no tenants when the town officially takes over ownership.

Town manager Marc Appelbaum said March 16 that he will recommend to council that a group is quickly set up and a firm hired to look into possible designs, costs and grant opportunities for the town.

Town budget approved

Town commissioners approved a fiscal year 2016 budget of $2.78 million by a 3-2 vote. The town’s fiscal year runs from April 1 to March 31.

The majority of the discussion centered around the police budget, approved at $1.06 million, and if it was large enough to give residents, property owners and visitors the level of service expected.

The proposed budget for police was $1.04 million, but Commissioner Gary Mauler voiced concern that the north end of town was not being properly policed during the summer months. He questioned whether Police Chief Sam Mackert was adequately funded.

Len Read, former chair of the town’s Public Safety Committee, said he would like to see more of a police presence for the north end and also called for a police budget increase.

The additional $20,000 comes from a town manager-proposed analytical review. Commissioners voted to move that money to the police department's miscellaneous income to be used at Mackert’s discretion.

Seasonal officers will receive a pay increase of 6 percent. Mackert explained it was necessary because it would keep Dewey’s salaries in line with neighboring towns.

Included in the townwide budget are three self-imposed saving measures.

To prepare for the future costs associated with the state-mandated comprehensive plan review and a decline in transfer tax revenue, Applebaum’s forecast amount of $460,000 in transfer tax for FY16 is 92 percent of what is expected to come in. The remaining 8 percent will be split two ways - 5 percent toward the comprehensive plan and 3 percent toward recouping the fund if projected transfer tax revenues don’t hit their mark.

Another saving measure comes from parking permits revenues. The approved budget revenue forecast of $525,000 represents 95 percent of the total revenue expected from seasonal, daily and parking machine parking permits. The remaining 5 percent will go toward the replacement of signs, parking spot striping and other costs associated with town parking.

The final savings measure is putting 20 percent of all building permit fees toward streets and infrastructure. The fee is expected to put in $225,000 toward the town’s operating budget.