The Rehoboth Beach Planning Commission conducted its preliminary site-plan review of Oceanside Reserve June 26. While the major subdivision was met with general optimism, there were concerns raised about stormwater runoff, the definitions of street and alley, and truck traffic. 

Cape Communities LLC, the developer of the 7.75-acre lot located in the Forgotten Mile area off Route 1, has proposed subdividing the property into 31 single-family home lots. There are commercial lots to the left and right of the main entrance off Route 1 that are not part of the proposed redevelopment – Rehoboth Auto Repair, the building most recently housing Oceanside Furniture, Bin 66 and Gaia’s Organic Grocery.

This is the same property where a neighborhood called BeachWalk was proposed years ago. Those plans called for 58 single-family homes and one building with five units, but that project never came to fruition after a years-long battle that ended with the Delaware Supreme Court ruling in favor of the city.

Corey Shinko, interim director for the city's building and licensing department, began the discussion by reviewing code-related concerns.

As proposed, the width of the street past the commercial properties at the entrance to the community is 50 feet. Shinko said the city considers it a collector street, which needs to be 60 feet wide the entire length. He also has questions about an alley running along the northwestern edge of the lot behind about one-third of the homes, including if there should be a turnaround, issues about creating double frontage on lots and if it meets the definition of a street.

Shinko said the property should be rezoned to R-1 or R-2 prior to the approval of any subdivision or site plan. The plan may require review by the state’s Preliminary Land Use Service, he said.

Attorney David Hutt represented the developer at the meeting. He said the property is in obvious need of redevelopment. This is a different project and a different developer from before, he said.

Hutt said the entrance would remain 60 feet wide, but was narrowed in the residential portion in an effort to decrease unnecessary impervious pavement.

Hutt said there’s no plan to rezone the land because use of this land as single-family homes is permitted by right in the C-1 district, and there are homes on C-1 lots across the city. There would be restrictive covenants put in place to prevent any future homeowner from trying to turn their lot into a commercial enterprise, he said, adding he doesn’t think it will need PLUS review.

One of the significant benefits for the community is a large reduction in impervious areas on the property, said Hutt. Nearly 90% of the property is currently impervious, but that would be reduced to 40% as proposed in the plan, he said.

A residential neighborhood will also result in a significant reduction in traffic, said Hutt.

Currently, there’s service truck access to the property off Terrace Road. That access would be removed and turned into one of the single-family home lots.

A few members of the public made comments following the presentations by the city and the applicant.

Bin 66 Wine & Spirits co-owner Derrick Kelley said he’s in favor of the project but has concerns about how delivery trucks for his business will maneuver, especially since the access point off Terrace Road is being removed. It’s not safe for the trucks to deliver from Route 1, and if they turn down Terrace Road, they’ll have to continue through a residential neighborhood to get back to Route 1, he said.

The Newbold Square condominiums off Scarborough Avenue Extended are near the proposed project. Bruce Williams, the homeowners association board president, said they have questions about how the infrastructure for the new development will affect the existing infrastructure of the condominium complex.

Harvey Shulman, a former planning commission chair, said one of the things to consider is that the alley doesn’t just create lots with double frontage for Oceanside Reserve properties, it also creates double frontage for the neighboring properties on Scarborough Avenue Extended, he said.

Save Our Lakes Alliance 3 President Rick Hardy said the organization has concerns about the whole neighborhood draining into Silver Lake. There are water-quality issues related to fertilizer and insecticides coming off the lawns, he said.

No date was set for when Oceanside Reserve will be back before the planning commission for a more formal review.