Rehoboth BoA denies Canalside Inn variance requests

Despite the owner’s pitch that two single-family homes would better fit the neighborhood than an existing 13-room inn, the Rehoboth Beach Board of Adjustment voted to deny a number of variance requests that would have paved the way for a redevelopment of the Canalside Inn property.

Located on a triangular lot at the intersection of Canal and Sixth streets, the inn has been in existence for many years. The property is part of 300,000 square feet of land along the Lewes-Rehoboth Canal that was rezoned from commercial to residential in 2009.

The inn is currently owned by Dr. Bryan Deptula and Kristen Deptula, who bought it in 2019. The property has been listed for sale since 2024. The Deptulas sought a variance from lot area per dwelling, floor-to-area ratio, number of single-family dwellings per lot and side-yard setbacks.

Corey Shinko, the city’s building and licensing interim director, began the public hearing by reviewing his report. He said the Deptulas were looking to build two 2,500-square-foot houses on a lot that’s 8,748 square feet. The lot would need to be at least 10,000 square feet to fit the two homes, he said, and code says there can’t be two homes on one lot.

As for the floor-to-area ratio, there were two options presented related to habitable and nonhabitable basements. Shinko said if the houses were built with nonhabitable basements, a variance of about 875 square feet would be needed. If the houses had habitable basements, it would be a variance of about 1,375 square feet, he said.

Bryan said they looked at all the options available and the one presented to the board was the best fit for the neighborhood, the city’s long-term goal for that area and their family’s goal of living in Rehoboth Beach. The financially viable way to accomplish all goals is for the family to live in one of the houses and sell the other, he said.

“The heart of our request is simple. The lot is triangular in shape, making it geometrically impossible to meet the standard setback requirements as written and other variances as requested,” said Bryan. “The unique layout of the land as created requires variances for any change in use or modification.” 

Citing the change from commercial to residential, the majority of public comment was favorable. However, some neighbors had concerns about one of the houses being turned into a loud rental unit with cars that would be parked on the streets, not confined to the property.

Ultimately, none of the board members were swayed in favor of the variances.

Board Chair Barry Brandt said he had a hard time getting past the severity of the requests, especially two dwellings on one lot.

Board member Bill Perlstein said the Deptulas purchased the property knowing the rules, and to request so many variances raised alarm bells for him. There appear to be alternatives, he said, and he has concerns about creating lots that aren’t code-compliant and then adding structures with a floor-to-area ratio much higher than allowed, he said.

Board member Edith Herron said the city is full of noncompliant lots, which means the property in question is not unique. The applicants appear to be creating a bit of hardship by focusing solely on the option with two single-family homes, she said.

The board of adjustment hearing was the second time the Deptulas went before a city board. In February, the Deptulas presented a plan that called for four townhomes on the property. At the time, the planning commission was generally favorable to the idea of converting the property from commercial to residential, but also expressed concerns about FAR, lot size and other issues.