A large project mixing commercial and residential uses at the intersection of Route 1 and Route 16 near Milton went before a panel of state agencies for review March 4.
Ocean One Holdings LLC is proposing to build a 560,000-square-foot shopping center with an estimated 500 multifamily housing units behind it. The shopping center would run along Route 1.
The current preliminary plan shows a 150,000-square-foot anchor store along with a pair of 100,000-square-foot sites, a 75,000-square-foot store, a 50,000-square-foot grocery store and a 22,500-square-foot area for a block of retail stores. The plan also includes a 26,000-square-foot hotel, six 5,000-square-foot pad sites intended for restaurants and a 6,372-square-foot convenience store with an area for 12 gas pumps.
An access road from Route 16 would split the commercial and residential areas.
In terms of housing, the developer’s preliminary plans call for 68 larger villa-style townhouses, 141 smaller economic-style townhouses and 238 one-over-one townhouses with one unit on the ground level and another above it.
Steven Fortunato, an engineer with Bohler, said the developer’s plan is to mix the residential area with both rental and ownership units.
At the Preliminary Land Use Service meeting, Karen Horton of the Delaware State Housing Authority pushed for more information regarding rental opportunities. She said rental units better meet the need for workforce housing in the area. She also noted condo-style homeownership can be more expensive.
David Hutt, attorney for the developer, said the exact product hasn’t been determined yet, but the C-4, planned commercial, zoning the developer seeks for the property requires a site plan when an application is filed with Sussex County.
After some back-and-forth with state officials, agency representatives commented only on the proposed zoning for the property and not the specifics in the plan. Dorothy Morris, the Office of State Planning Coordination’s circuit rider planner for Sussex County, said the developer may have to return to PLUS at a future meeting with a more detailed site plan for review.
Sussex County Council approved a zoning change from AR-1, agricultural-residential, to C-3, heavy commercial, for the 65-acre commercial area in March 2024. The developer is now seeking C-4 zoning for the entire 115-acre site.
As part of the initial application, the developer already completed a traffic-impact study. Fortunato said they’re in the process of updating the study for the new application.
Roadway improvements will be determined at a later time, but the current plan shows roundabouts on Route 16 on either side of the new overpass under construction at Route 1. The southwestern roundabout would align the southbound off-ramp with the entrance to Ocean One. The plan also includes two other roundabouts on the Ocean One property.
Knight Crossing
State agencies also reviewed Knight Crossing at the March 4 PLUS meeting.
Milford Marina Enterprises, with a Milton address, is proposing to build a 422-unit mixed-use community along Cedar Beach Road and Beaver Dam Road in Milford. The 60-acre property runs along Route 1 at the southern end of town.
The application calls for 344 entry-level, market-rate condominiums and 78 market-rate rental units. It would also include nearly 20,000 square feet of commercial space.
Jim Eriksen, a professional licensed civil engineer for Solutions IPEM, said parts of the parcel were previously approved by Milford City Council. He said that’s still a valid application, but the new plan changes single-family condos to townhome condos.
Horton said the Delaware State Housing Authority generally supports the project, noting the variety of housing types with the mix of rentals and ownership. She noted the project’s proximity to the Cedar Beach Road interchange with Route 1 and the community’s planned commercial space and easy-to-access amenities.
The northern part of the property includes the former Mispillion Marina. Eriksen said there aren’t any plans to revitalize the marina.
“The developer doesn’t have any intention to expand that area at the moment,” he said. “We want to retain what’s out there and not do any improvements in those areas.”
Duane Fox of the Delaware State Fire Marshal’s Office said if things change with the marina in the future, the developer will have to provide infrastructure to give the fire department access to the area.



Nick Roth is the news editor. He has been with the Cape Gazette since 2012, previously covering town beats in Milton and Lewes. In addition to serving on the editorial board and handling page layout, Nick is responsible for the weekly Delaware History in Photographs feature and enjoys writing stories about the Cape Region’s history. Prior to the Cape Gazette, Nick worked for the Delmarva Media Group, including the Delaware Wave, Delaware Coast Press and Salisbury Daily Times. He also contributed to The News Journal. Originally from Boyertown, Pa., Nick attended Shippensburg University in central Pennsylvania, graduating in 2007 with a bachelor’s degree in journalism. He’s won several MDDC awards during his career for both writing and photography. In his free time, he enjoys golfing, going to the beach with his family and cheering for Philadelphia sports teams.




















































