Latest call for development pause gets mixed reception

When a moratorium on considering new applications for large housing developments in rural areas was suggested in January, opponents packed Sussex County Council chambers to voice their concerns.

Dozens of builders, bankers, real estate agents and contractors – to name a few – lined up at a podium to object to new county Councilman Matt Lloyd’s proposal.

Lloyd’s idea did not gain support of other council members, but council created the Sussex County Land-Use Reform Working Group to propose changes to redirect growth, create more diverse housing options and protect the environment and agriculture.  

Nine months later, the working group agreed on 20 recommendations to send to county council. The next week, Councilwoman Jane Gruenebaum said the time is right to consider a targeted, time-limited pause on new large-scale developments.

Gruenebaum said she wants to prevent a rush of applications while council begins to implement changes suggested by the working group.

Details of a possible pause or moratorium were to be drafted, but they have not been released by council.

An Oct. 14 workshop for council and planning & zoning commission members was held to discuss the working group’s suggestions.

Afterward, Gruenebaum said she wants to see how the recommended changes progress before deciding if she still believes a pause is needed, but she is still leaning toward the move. It would require a public hearing and vote by council.

The latest prospect of a temporary halt to reviewing large housing development plans is again met with a range of reactions, from skepticism by some groups and individuals to support from others. 

Chris Schell, CEO of Rehoboth Beach-based homebuilder Schell Brothers, said in an Oct. 6 email that he sees a difference between the two moratorium proposals, but he still believes there are better alternatives. 

“The moratorium proposal in January was viewed by the development and real estate community to be purely anti-development focused,” Schell said.

“Currently, because the county appears to be diligently pursuing code changes and taking into account the needs/wants of all the relevant constituents, the proposed pause today is being viewed more favorably by the development community … The purpose appears to be more smart growth focused rather than no growth focused.”

Schell, however, said he thinks a moratorium may again face strong opposition that could delay adoption and waste time. The county might be better off acting quickly on working group recommendations, he said.

County officials said some proposals could be enacted in a matter of weeks. Others – including a county-wide zoning update – may take years and be addressed after the next comprehensive plan update is due by the end of 2028.

While some people warned a moratorium would be devastating to housing construction in the county, others are dubious.

Lloyd has said there are so many housing developments already approved by the county – typically with build out expected to take years – that a moratorium would not slow construction. Schell agreed.

It typically takes 15 months from the date an application is submitted to the county before it is heard by the county planning & zoning commission, Schell noted. A six-month moratorium would clear some backlog, shortening the approval process afterward, he said.

“We fully support this effort even though some of the proposed code changes will be detrimental to our business,” Schell said. “We care less about what the rules are and more about having confidence that P&Z and county council will adhere to the rules.”

Bill Davis, president of the Sussex County Association of Realtors, said he worries a moratorium would delay potential development of sorely needed affordable housing.

At some point, a pause on development would also take work from laborers, such as landscapers, electricians, cleaners, plumbers and others, Davis said.

“They say they would build what’s in the pipeline, but developers will stop planning for future projects,” he said.

Beebe Healthcare president and CEO Dr. David Tam expressed concern about the effects of a moratorium because more housing is needed to support the staff of the growing healthcare provider.

Growth of housing and healthcare services are interconnected, Tam said. The county needs continued smart growth to fill the housing needs of the community, including Beebe staff.

“So many people need to have desirable, convenient, affordable places to live to support healthcare growth in Sussex County,” Tam said.

Beebe should be part of countywide discussions about critical infrastructure, which needs to include healthcare, he said. 

As a practical matter, Tam worries a moratorium may discourage potential hires from accepting jobs with Beebe, if they fear they will have difficulty finding a home in the area.

Joe Pika, a board member of Sussex Preservation Coalition, attended all the working group meetings. He said the recommendations don’t go far enough to deal with some of the core issues, including the pace of development and linking growth to construction of roads to support it.

Pika supported both calls for a pause in development, saying it is needed to buy county council time to review working group recommendations and to go beyond those proposals to find solutions.

“I don’t think you can change the direction of an ocean liner on a dime,” he said.

Schell said the county needs to strike a balance between providing needed housing and reasonable limits on growth.

“I understand that most people who already have a home here would prefer that no more homes be built, but no growth is as unsustainable as unlimited growth,” he said. “We need to find that happy medium, and I think the proposals made by the land-use reform working group are a significant step in the right direction.”