The Milton Special Review Committee unanimously recommended town council move forward with a proposed annexation application for the Carey Farm, a 192-acre tract near the intersection of Harbeson and Shingle Point roads.

The centerpiece of the committee’s Sept. 8 meeting was a cost-benefit analysis presentation by Mallory Richards of PFM Management and Budget Consulting. 

According to Richards’ presentation, the town would make $505,000 in revenues over the first five years, which would start in 2028 when the developer would start paying taxes on the land. On the expense side, the consultant estimated $473,000, for a net benefit to the town of $32,000. 

The main revenue from the development of land would be property tax and real estate transfer tax, while expenses are mainly personnel, such as police and maintenance.  

However, the committee had questions about those numbers and where they came from.

Committee member Michael O’Brien said Richards’ reliance on the developer’s projections on the home prices – around $700,000 – were extremely high considering the average home price in Milton is around $500,000, and that projection is years out into the future. With home prices closer to the average in Milton, O’Brien said the development was a break-even proposition for the town.

“It’s a large development,” he said. “I just think that we need a little bit more information. I think just relying on developer information on the pricing without taking into context actual sales in the town is going to be problematic for some people. Hard data versus wishful thinking.”

O’Brien said the numbers should be run to include a downside number with more context on where the numbers come from to allow a better-educated decision on whether council should move forward with the annexation.

The committee also questioned how Senate Bill 23, which mandates affordable housing units be part of developments, would come into play. However, much of that information isn’t within the scope of the annexation process, but will be addressed when the project is reviewed by town council and the planning and zoning commission. Part of that conversation with the committee came in reference to access from the development to Mariner Middle School across the street. O’Brien said something regarding compliance with SB 23 should be part of the annexation agreement. 

Still, despite some reservations, the committee agreed it was much more advantageous to annex the land into Milton, where the town has some control, versus letting the development be built within Sussex County.

“If it's not annexed to the town, it’s still going to be built. And if it's still going to be built, then the people that buy these properties are still going to be using the resources of the town without adding anything to the budget,” Vice Mayor and Chair Lee Revis-Plank said.

Councilman Scotty Edler said adding residents is prudent.

“When you bring in a development like this, yes, it’s a large amount of people coming in, but they are paying their way," he siad. "It may not be upfront, because it takes a while to get the tax base. But it's going to be built regardless. Do we annex and take control? Or do we allow it to be out in the county, and Sussex County gets all the rewards and benefits from it?”

The committee agreed to recommend annexation with the condition that the cost-benefit analysis is updated with additional information and corrections, and presented to the full town council at the next possible meeting. The annexation agreement would also include something regarding the crosswalk access to Mariner Middle School.  

The three-member committee began its review of the annexation in April before asking town council to authorize a cost-benefit analysis.

If annexed, plans call for 242 single-family home lots and 143 townhouse units. The land is currently in Sussex County, zoned AR-1, agricultural-residential, but if annexed, developer CD Carey Farms LLC is seeking an R-1 residential zoning with a large-parcel development overlay.