The Dewey Beach Planning and Zoning Commission voted unanimously March 1 to recommend to town council an application to rezone the property at 24 Houston St., currently the Sea Esta Motel.

In January, town commissioners first heard the request to rezone the parcel from Resort Business-2 to Resort Residential and to amend the comprehensive map. At the time, commissioners sent the application for review by the planning commission.

Vincent C. Thomas of GIR Properties LLC spoke on behalf of himself and two other LLC owners, Paul Perna and Mike Williams. GIR has a binding contract to purchase the property contingent upon its successful rezoning from a single 100-by-150-foot lot with the RB-2 designation to three 50-by-100-foot lots with RR designations.

Owners plan to construct three single-family homes on the three divided lots located on the corner of Houston and King Charles in Rehoboth-by-the-Sea. Thomas said the motel was built in 1961 and has 30 units. 

“It’s in struggling condition, to say the least,” Thomas said.

Thomas said the motel is near the end of its useful life. With an annual occupancy tax less than $10,000, he said the town will not miss a significant revenue stream. The building is in bad shape, he said, and the rooftop deck was vandalized to the point it can no longer be used.

Further, he said the rezoning will lessen traffic congestion and provide safety measures in that the entrances to the homes will be located on Houston Street, not Coastal Highway. Residential homes suit the character of the neighborhood more than a 30-unit hotel, Thomas said.

During public comment, resident David Moskowitz said he was concerned the action would be considered spot zoning and would set a precedent for rezoning. Thomas cited Delaware case law that he said shows spot zoning is not an issue in Delaware.

Town Counsel Fred Townsend said the state planning office made no objection to the requested changes, which was confirmed by Assistant Town Manager Jim Dedes.

In stating their reasons for recommending the application, commissioners said the change is in keeping with the town comprehensive plan, would clean up a safety issue and reduce crowding. The matter next goes to town council for action.

In other action, the planning and zoning commission tabled discussions regarding a potential increase in freeboard requirements pending further research.