Delaware Supreme Court Opinion Issued on July 30, 2010
On Friday, July 30 the Delaware Supreme Court released their opinion as expected on the appeal by Dewey Beach Enterprises on the first lawsuit won by the town on the Ruddertowne plan. The State newspaper gave the impression that “DECISION ENDS DEWEY BEACH BATTLE” and this is a huge misnomer. The result of the Delaware Supreme Court decision is that DBE can build phase one of their plan at 35 feet but they do not have approval for phase two (48 feet) and phase three (68 feet) and they are far from overrunning this town’s laws with their goal of 240 condos and a 68 foot hotel!
DBE had made application to the town in the fall of 2008 to construct a concrete prison-like structure with commercial space on level one and 64 condos on levels two and three. Dewey Beach denied the application citing the area had only enough square footage for 35 condos. The DBE lawyers argued a loophole which would allow them to build close to double this density. The Delaware Superior Court agreed with the town Board of Adjustment and upheld the rejection of the DBE plan.
The Supreme Court ruled that the Dewey Beach zoning code was not specific regarding density in a mixed use application and reversed the Superior Court’s opinion.
THIS RULING HAS NOTHING TO DO WITH HEIGHT AND THIS MIXED USE STRUCTURE MUST COMPLY WITH THE 35 FOOT HEIGHT LIMIT! Read More
Rental Tax Revenues Disappoint In Dewey; Winter Income Estimate Off
By Rob Kunzig | Aug 10, 2010 | Cape Gazette
Dewey Beach officials were pleasantly surprised last year when a new tax on rental properties exceeded revenue expectations by $26,000. Months later, the second collection was a mirror image of underperformance: the town only received $826, missing its mark by $26,000.
The loss was reflected on May’s profit-and-loss report, presented at the July 8 budget and finance committee meeting. The tax, which takes 3 percent of rental income, is collected in April and October. Budget and finance committee Chairman Marc Appelbaum said this was the town’s first time collecting a winter accommodations tax – it was hard to anticipate an amount without supportive data.
“We didn’t have any kind of barometer,” he said. “We were guessing, because we didn’t have any historical data. We may have over-projected.”
If a down economy encouraged people to stay at home, the weather kept them there. Town Manager Diana Smith said two snowstorms in February probably killed whatever off-season vacations Dewey might have hosted.
“There were two blizzards,” she said. “We need to take that into account. Nobody’s going to drive out here with 2 feet of snow on the ground.”
Joy Howell, who owns two rental properties, said the off-season is typically a slack time in Dewey, because owners prefer to use the properties themselves.
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