The Sussex County Planning & Zoning Commission voted unanimously Jan. 8, to approve the preliminary plan for Seaside, a subdivision east of Route 1 at the Cave Neck Road intersection near Milton. But there’s one major caveat.

No building permits can be issued until the planned grade-separated interchange is completed with connection to the housing project.

Work is not expected to begin on the interchange until the spring of 2026 and be completed in the summer of 2028.

Seaside is a 359-lot single-family home cluster subdivision on a 241-acre parcel. The property has 61 acres of wetlands in the Great Marsh not far from the Broadkill River and Delaware Bay.

The plan includes protection and buffers for the wetlands and 37 acres of undisturbed woodlands, which is 86% of the total of 43 acres of woodlands on the property and 148 acres of open space.

The property, which is zoned AR-1, agricultural-residential, permits up to 2 units per acre. Density of the subdivision is 1.49 units per acre.

The motion, read by Commissioner Gregory Scott Collins, noted the subdivision could be done in phases.

As a cluster subdivision, Collins said, the developer must comply with the county’s superior-design standards, which include central water and sewer, construction on land with the least environmental impact, and a perimeter buffer of at least 30 feet using existing trees and vegetation. All construction would take place in the western section of the parcel.

Also included in the plans is an 81-acre wildlife management/community area with a viewing platform overlooking the wetlands. All preserved land must be designated by signs every 200 feet.

Amenities include a clubhouse, walking trails, sidewalks on one side of all streets, a pool, sports courts, bocce court, fire pit and tot lot.

Residents must be made aware there is hunting and farming on adjacent properties.

During previous testimony, Jake Booth, president and managing partner of developer Capstone Homes, said homes would be offered in the $700,000 price range.

A previous project known as Overbrook Town Center was proposed for the site with a mix of retail and housing. Those plans were shelved.

The revised preliminary site plan must be amended to reflect conditions on the final site plan to be reviewed by the commission.

Road work

The property will tie into a service road and roundabout at the proposed Route 1-Cave Neck Road grade-separated interchange. The interchange is one of three intersection improvement projects along Route 1 in the area including Route 16 (under construction) and Minos Conaway Road.

In previous testimony, state transportation officials said the developer could contribute as much as $8 million for road improvements.