By Moly Albertson, Cape Gazette
This winter Dewey Beach may see the end of an era. The restaurants and shops that make up the Rusty Rudder and Ruddertowne complex – The Lighthouse, Crabbers Cove and others – have been year-round attractions for decades – but this year, owners say, Ruddertowne and the Rusty Rudder might close their doors during the off-season.
“It’s on the table because we’re trying to assess where we are, but no definite decisions have been made yet,” said Highway One LLP partner Jim Baeurle.
Several factors will be considered, he said. “Business had dropped off dramatically in the off-season,” Baeurle said. He said there are now 38 restaurants and bars between Midway and The Lighthouse that stay open in the winter. “That doesn’t even include going into Rehoboth. That’s just on the highway. Those weren’t there three years ago,” he said.
A few years ago, the bars and restaurants were bustling with people, but now people don’t want to drive to Dewey Beach when they can stop on the highway, he said.
Beyond lagging business, Highway One is still considering its own plans to knock down the businesses to build more than 40 townhouses. The commercial area may be a dangerous demolition zone this winter, he said. “We have to consider the overall safety of our customers,” Baeurle said.
Although Highway One has entered into a possible agreement with developers Harvey and Hanna Associates of Newark to sell the land, Baeurle said that has not put the brakes on the company’s existing plans.
“We can’t wait to see how this comes out,” he said. If the deal with Harvey and Hanna works out, “we’ll pull the plug on our plans, but if it doesn’t, we’ll go through with them,” Baeurle said.
Highway One originally filed plans to build more than 40 townhouses, but then agreed to sell the land to Harvey and Hanna if the company could meet the town’s requirements for developing a business district. But Baeurle said, once filed, Highway One’s site plans had five years from the time they were filed, a little more than a year ago in April, before they expire. “If this doesn’t work out between Harvey and Hanna and the town, then we need to work on our plans,” he said. After Highway One filed its plans, Dewey Beach placed a moratorium on converting commercial space to residential use. The moratorium is still in effect.
Dewey Beach officials are meeting with Harvey and Hanna representatives to iron out a plan for a commercial zone that could include shops, eateries and other businesses. Negotiations between the new developer and the town are in early stages, but they have been contentious thus far, including several meetings with angry residents who do not want to see tall buildings. But the developer says to make a commercial area profitable and meet the town’s desire for a parking garage, the town might have to waive its 35-foot height regulations.
Harvey and Hannah representatives say they will follow the comprehensive plan for its plans, but Mayor Dell Tush has said the plan has not been approved. Tush called a special meeting to discuss the comprehensive plan at 6 p.m., Friday, June 29, at the Lifesaving Station. She said the council would not make major changes to the plan, other than to comply with language recommended by state agencies. The plan has been approved by the state, on condition the town add a clause that it will consider affordable housing.
But Tush said the plan doesn’t give the builders the right to build more than 35 feet. Tush said the plan is a guide for the future of the town, not a carte blanche for new developers to build anything they want.
She said she has received an overwhelming number of phone calls from residents opposed to building taller than 35 feet. She said she would support whatever the majority of landowners want. The town will send out a survey to all homeowners in the next few weeks.
“I would love to see it commercial rather than townhouses, but they’ve got a lot of hurdles to overcome,” she said.
Contact Molly Albertson at malbertson@capegazette.com