Lawsuit filed in Osprey Point amenities dispute

Home builder NVR is suing the developer of the Osprey Point community on Old Landing Road near Rehoboth Beach, demanding it build promised amenities, including a marina, bulkhead community beach and kayak launch.

The dispute has been brewing for years, with some residents arguing they bought in the community based solely on an artist rendering that showed the resort-style amenities.

In the lawsuit filed in Delaware Chancery Court in May, NVR said the developer, Osprey Point Preserve LLC, is violating an agreement to build the amenities and turn the land over to the homeowners’ association.

The suit names Kathleen Horsey, Michael Horsey, Marna Whittington and Thomas D. Whittington, Esq., as the developers.

At a hearing with both parties June 11, the court granted NVR’s motion to expedite the case, according to Scott Wilcox, NVR’s attorney. He said they are in the process of scheduling further dates with the court.

NVR claims the revised final site plan submitted to the Sussex County Planning & Zoning Commission in January contains new features it never agreed to, including:

• Reduction and repositioning of four lots

• Configuration and repositioning of the marina on lands that are owned by the developer

• Nine parking spaces owned by the developer

• A marina/harbormaster building.

The suit contends the developer has offered to sell the 1.1-acre marina open space to NVR for $9 million, which the company called exorbitant.

NVR claims, in the lawsuit, that a group of Osprey Point residents has joined with the developer to attempt to force it to pay the $9 million. The lawsuit calls it extortion.

The company said that land has no independent market value, as the developer is required to build the marina and other amenities on that parcel, per the revised site plan.

NVR is also demanding the residents take down a banner, which it claims disparages NVR. The residents said they have permission from the developer, which owns the land where it was placed.

The original site plan for Osprey Point was approved in November 2016. It contained 217 single-family home lots on 127 acres. It is the site of the former Old Landing Golf Course.

The original plan proposed a restaurant and public-use marina.

In November 2023, county council approved a site plan that did not include a restaurant, but it did include a residential use-only marina.

This past February, the Sussex County Planning & Zoning Commission determined enough changes had been made to the original site plan that another public hearing should be scheduled.

A public hearing has not been scheduled as of June 16.