Plans for Cool Spring Crossing, which includes 1,922 homes and nearly 500,000 square feet in commercial space on Route 9 west of Lewes, will be sent to Sussex County Council after the planning & zoning commission recommended approval July 2.

The commission voted 4-0, with Commissioner Brian Butler absent, to recommend approval of:

• A zoning change for the 637-acre site from AR-1, agricultural-residential, to MR-RPC, medium-density residential planned community
• An amendment to the future land-use map, changing the property from low density to coastal area
• A conditional use for an educational facility for 1,800 students with a 500-seat auditorium as part of the town center in the development. It would comprise 45,000-square-foot and 30,000-square-foot buildings. One would be for programs offering associate degrees and professional certifications, while the other is planned for adult learning classes
• A conditional use for a 71,500-square-foot assisted-living and independent care building for 100 residents and a 25,000-square-foot medical office building. Both would be near the Bayhealth Emergency and Urgent Care Center.

At the beginning of the meeting, Robert C. Wheatley was reappointed 4-0 as chair of the commission, and Holly Wingate was reappointed vice chair. County Councilman Matt Lloyd said at a recent meeting that he plans to replace Wheatley on the commission, but Wheatley said during a recess in the July 2 meeting that he has not yet been replaced and council does not meet again until Tuesday, July 15. He said he will serve while a council vote on his position is pending.

In supporting the proposals for Cool Spring Crossing, commissioners concluded plans would be consistent with county and state goals, and the commission set dozens of conditions of approval. 

County council will hold public hearings before making a final decision on the project, and it is unclear when that will happen. After review by council, the proposed future land-use map change will be sent to the state for its review before a council vote, but the other proposals will be decided solely by council.

Among the largest projects in the history of the county, Cool Spring Crossing will be a first big test for county council since a backlash against booming development swept three newcomers calling for limits on housing development into council seats.

They were concerned that growth was burdening roads, schools, emergency services, healthcare providers and the environment. A land-use reform working group was created this year to review ordinances and recommend changes. 

It is unclear what latitude council has within the existing rules to consider Cool Spring Crossing, as the zoning ordinance approved in the 1970s permits up to two houses per acre in an AR-1 zone. The zoning covers much of the county, including the project site.

Rejecting the Cool Spring Crossing plan would not stop the developer from pursuing a large-scale housing project on the site. 

Jim Fuqua, an attorney representing Carl M. Freeman Cool Spring LLC, offered an alternative plan during a May 2024 Preliminary Land Use Survey review that included 1,260 single-family houses and no commercial space.

Fuqua said the original plan the commission considered July 2 was better, but the other option complies with county rules allowing two units per acre. Because the alternative project is a subdivision, only one public hearing before the planning & zoning commission would be required.

The current project before the county includes single-family houses, duplexes and townhouses on 637 acres. There would be 174 affordable apartments as part of the Sussex County Rental Program, which provides units below market rates based on income. 

The project also includes 450,975 square feet of commercial space, with options such as a grocery store, convenience store, retail shopping, bank, 100-room hotel, theater, YMCA, assisted-living facility with medical offices, educational facility and restaurants.

The land is on the north and south sides of Log Cabin Hill Road, the east and west sides of Cool Spring Road, the east side of Hudson Road and the north side of Route 9.

Among the critics of the project is the Sussex Preservation Coalition, which during a May 7 public hearing called on the planning & zoning commission to delay a decision. The group noted the county’s working group is expected to recommend changes in rules governing development by the end of the year, the state is working this year to update its five-year planning document and the county next year will begin to draft its next comprehensive plan, due at the end of 2028.

The coalition is also concerned that state plans to widen Route 9 are years away.

The effect of traffic on Route 9 from Cool Spring Crossing would be compounded by the planned Northstar development a short distance east, which includes 852 homes and commercial space between Route 9 and Beaver Dam Road.

The state Office of Planning Coordination submitted its objections to the project at the May 7 meeting, pointing out the project is in a rural area where the state does not support development, and shared environmental, transportation and archaeological concerns.

Dr. David Tam, president and CEO of Beebe Healthcare, urged the county to approve Cool Spring Crossing at the hearing. Tam said more housing options, including affordable housing, are needed by the healthcare provider as it expands to meet growing demands from a booming population, especially older retired people moving to the county.

Fuqua said the project is adjacent to an area designated for future development and is consistent with neighboring uses.