LEWES, Del. - The developer of a proposed commercial development at the intersection of Rt. 24 and Mulberry Knoll Road near Lewes has filed a legal challenge against Sussex County’s recent denial of a zoning change that would have allowed the project to commence.
Sussex County Council denied rezoning the property near Rt. 24 and Mulberry Knoll Road from Agricultural Residential to C-4 Planned Commercial District in January. The change would have paved the way for development of an over-650,000 square-foot retail center including a Costco, Whole Foods, Target, and at least 20 other proposed buildings.
Critics of the proposal cited traffic concerns in the area that they claimed would be exacerbated by the large development. On Jan. 13, the Sussex County Council rejected the rezoning in a 4-1 vote.
Just shy of a month later, developer J.G. Townsend, Jr. & Co. filed a lawsuit in Delaware’s Court of Chancery seeking to reverse the county’s denial.
“The Office of State Planning Coordination, in reviewing the proposal stated it had ‘no objections,’” the lawsuit reads. “The County’s Planning & Zoning Commission recommended in favor of the rezoning and associated plans. The County’s Department of Planning identified no deficiencies with the proposed plans for the project. And yet, Sussex County Council rejected the rezoning. It did so for reasons inconsistent with the County’s Code and the applicable traffic requirements.”
The plaintiffs argue they have spent over two-and-a-half years and over $3.5 million in preparation for the Atlantic Fields project and that Sussex County Council’s denial based on an alleged residential component requirement and traffic concerns was baseless.
“Because the intersections would not fail as a result of the rezoning, but would be improved by Mulberry or DelDOT under the TID Agreement, it was error for [Councilmember] Gruenebaum to base her denial on her apparent misunderstanding that the intersections would not be improved so as to avoid failure,” the suit reads.
The lawsuit requests the Court of Chancery grant a permanent injunction against Sussex County, requiring a reversal of the rezoning denial vote and a new vote.
WBOC reached out to Sussex County officials for comment on Thursday.
“Per long-standing policy, the County does not comment on matters of litigation,” Sussex County Communications Director Chip Guy said.