Small Town News

Council delays vote on time extensions for developers

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Measure attracts both support and opposition

"You may delay, but time will not."

A 230-year-old quote from founding father Ben Franklin pretty much sums up the debate taking place over a proposal by Sussex County Council to give developers more time to start projects.

During a May 10 public hearing, a parade of people connected to the land-use business lauded the benefits of giving developers two or three more years beyond the date when their applications would otherwise expire to keep projects afloat.

But just as many county residents stepped up to the podium asking council to reconsider the ordinance until there is a better understanding of just how many projects are in jeopardy. County planning and zoning staff has been working to compile a list, but has yet to produce one. Director Lawrence Lank said it could take several more weeks before a list would be forthcoming.

Lank said the number of applications has fallen off dramatically over the past three years. He said there were a dozen applications in 2010, with two so far in 2011. Compare that to 100 applications in 2005. The application process, which took up to 22 months three years ago, now takes three to four months, the same time frame as 10 to 15 years ago.

Under the proposed ordinance, any recorded subdivision, residential planned community

or conditional-use application approved as of Jan. 1,2010, would remain valid - regardless of any previous expiration dates - for two years.

Planning and zoning recommended more time be added to the ordinance. The commissioners' ordinance would cover recorded applications between Jan. 1,2009, and Jan. 1,2013, or the expiration of the current approval, whichever is later.

Councilman Vance Phillips, R-Laurel, urged council to vote on the proposed ordinance after the public hearing. "There are people out there who are trying to survive, and this is a minor effort on our part to save jobs," he said. "This is not site specific, but for applications that have already been approved."

Councilman George Cole, R-Ocean View, said it was not possible to make a decision without knowing the scope of the problem. He made a motion, which passed 4-1, to defer on a decision for 30 days.

Councilwoman Joan Deaver, D-Rehoboth Beach, said she wanted to know the extent of the problem before voting on a blanket ordinance that would allow time extensions to developers without providing a reason for the action.

Proponents said without the proposed ordinance, residents could look forward to lower property values, appraisals, transfer taxes and property taxes.

Opponents countered that by saying a glut of more housing in the marketplace would force property values down. "There have been so many approvals already that demand can't match supply," said John Walsh of Re-hoboth Beach.

Proponents also said financing for projects is hard if not impossible to obtain, especially if those projects are nearing the time their application or permits expire. They said giving a time cushion could ease the financing burden. Those in favor and those against

Joe Conaway of Bridgeville, president of Conaway Associates and former county administrator, said people are scrambling to keep some semblance of economic development going. "Some are calling this the second Great Depression," he said.

Conaway said the Sussex Economic Development Action Committee supports the ordinance as proposed by planning and zoning. SEDAC was the group that first approached council with the idea for a time extension ordinance.

Conaway said allowing more time for projects makes sense for a number of reasons, including maintaining jobs', consistency in government, as a hedge against lost tax revenue and to head off possible zoning issues.

If an RPC project, which is approved with medium-density residential or commercial-residential zoning, expires, the zoning stays with the land. In some cases, Conaway said, that would allow for up to 12 units per acre instead of two units to an acre under traditional zoning. "And the public would not have a say in this increase in density that may not be in their best interest," he said.

Two local groups, the League of Women Voters and Citizens Coalition, are opposed to the amended ordinance.

Carol Summers of the league said the proposed ordinance was premature, hasty and unneeded. "At this point, the size of the problem remains unknown. The number of applications affected have not been identified, nor is there a map showing where existing and approved projects are located," she said.

Several who spoke in opposition to the measure echoed that sentiment.

Henry Glowiak, vice president of Citizens Coalition, said developers who spoke in favor of the ordinance were hypocritical. "They are always evoking fair market yet they want government intervention and government protection," he said.

He said Sussex County provides the most liberal zoning in the Mid-Atlantic region. "Developers want more than their fair share and now they want more. Why not do away with all rules," he said.

Testimony pro and con

Bruce Patrick, vice president of Tidewater Utilities, said his company has 10 projects pending in the county. He said the company has invested more than $2 million in preliminary work for just two projects - regional wastewater plants near Laurel and along Route 24 near Long Neck

He said it always takes more than three years to get the required permits and approvals to get a typical project started.

Rich Collins, director of the Positive Growth Alliance, asked council if government's role was to enforce the rules regardless of the consequences or to assist the economy to get back on its feet.

He said the term "sunset" is an artificial government deadline to begin with that has nothing to do with supply and demand. "It's the opposite of a free market," he said.

Walsh said a blanket ordinance without any reasons was akin to a judge walking into a courtroom and telling everyone they were acquitted.

Betty Deacon of Lewes asked if the hearing was legal since council did not have a list outlining the extent of the problem. "Without specifics, would this even hold up in court?" she asked.

Barbara Vaughan, a Lewes city councilwoman, took a different approach. "If you want to be proactive, convene a meeting with local banks and developers and have a conversation about these issues to see if there is some accommodation to keep the market moving," she said.





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