Ocean View and 26 Centre reach settlement for rezoning

The Town of Ocean View and owners of three parcels that had been requested to be rezoned for commercial use recently reached a settlement on the issue after the town’s denial of two of three applications was challenged in court.

In December of 2009, 26 Centre LLC had filed three applications with the Town of Ocean View for three separate parcels – one of which had been under commercial use for years – to be rezoned for commercial use. This past January, the council voted for only one of the three parcels to be rezoned as commercial, after the Planning and Zoning Commission had recommended denial of the rezoning, and 26 Center LLC appealed that decision.

On Aug. 19, the Delaware Court of Chancery approved an amicable settlement between the two parties.

“Essentially, the town recognized that, in the past, they had made a mistake on the zoning classifications for the property,” said Mark F. Dunkle, who represents JEM X LLC, the developer for the CVS Pharmacy that is proposed to be built a portion of the combined properties.

“By Delaware law, it was supposed to be have rezoned automatically by the town within 18 months after their 2004 Comp Plan,” Dunkle noted. That plan designated the parcels as being commercial in nature, though the actual zoning of the parcels remained as a mix of residential and church use.

The settlement says that the town “acknowledges that 72 West Avenue should have been rezoned commercial by Ocean View on or before August 2006 … within 18 months of the adoption of its 2004 Comprehensive Plan.”

It goes on to state the town’s denial of the rezoning application was “contrary to law” and thus it was rezoning the parcel to general business-commercial. The settlement also states that the site-plan review moratorium imposed by the town on Feb. 16 would be waived for the parcels, and each party will pay for their own incurred costs and legal fees.

The developers said they plan to submit revised site plans to the town’s Planning and Zoning Commission in the near future.

Ocean View Town Councilman Bob Lawless commented, “I think that it was important that the town recognize that an error was made, and not making that piece of property commercial in 2004 was an ongoing problem. It shouldn’t have gotten to be the issue that it was recently.”

“We did the right thing,” he added. “We agreed and move on from there.”