Sussex County Council leaves record open on North Star rezoning, affordable housing after hours of testimony

Sussex County Council delayed final decisions Monday on three linked North Star applications — a change-of-zone to C-3 heavy commercial, a change-of-zone to MR medium-density residential and a conditional-use request for 94 affordable multifamily rental units (the Willows at North Star) — after more than two hours of public testimony and questions from council members.

The council voted to leave the hearing record open for two weeks to allow members to submit written questions to the Delaware Department of Transportation and to give DelDOT two weeks to respond; the public and applicants may then file written replies. Council members then voted, unanimously, to defer action on all three applications pending that information.

The deferment follows detailed presentations from the applicant and its consultants about financing and program details for the proposed affordable apartments, public comments from community groups and residents raising traffic, safety, stormwater and equity concerns, and technical testimony about the Henlopen Transportation Improvement District (TID) and DelDOT timing for road projects. The applicant said it has applied for Low Income Housing Tax Credits through the Delaware State Housing Authority and that the award process and construction schedule are tied to strict timelines.

The applicant’s representative described the affordable housing proposal to council and said the project is intended to be 100% rental housing financed through the low-income housing tax credit program administered by the Delaware State Housing Authority. Natalie DiFilippo, vice president of development with Ingerman (the developer), said, “A 100% rental. There's no conversion to home ownership at the end,” and confirmed the project would accept Section 8 vouchers. She told council the developer submitted a tax-credit application in April and that the application round is competitive and time-limited.

Why it matters

The North Star plan combines a 758-lot cluster subdivision, roughly 96,118 square feet of proposed commercial space along Route 9, and a separate 7.882-acre parcel proposed for 94 affordable multifamily units. Opponents and preservation groups told council the cumulative traffic and infrastructure impacts, phasing and the location of the apartments warrant additional review and clearer, enforceable timing for related off-site road and drainage improvements.

What was presented and disputed

Applicant materials reviewed at the hearing show two separate change-of-zone requests: about 12.696 acres to C-3 heavy commercial and about 7.882 acres to MR medium-density residential for the multi‑family site. The conditional-use filing requests permission for 94 affordable rental units on the MR parcel. The applicant proffered contributions to the Lewis Fire Department totaling roughly $679,000 for the overall North Star project, with a $150,000 contribution tied to the first commercial building permit and a $500 per-residential building‑permit fee for single‑family homes in the larger subdivision.

Traffic and timing were the central points of dispute. Speakers for the Southeast Preservation Coalition and others presented DelDOT counts and internal Henlopen TID forecasts to argue that cumulative vehicle trips in the area would rise substantially and that some DelDOT corridor studies and capital projects would not be complete for many years. Rich Barrasso of the Southeast Preservation Coalition said, “you have a projection of this development creating 34,112 projected vehicle trips, going forward,” and urged the council to require a phasing plan tied to the timing of road improvements.

Developers and their traffic consultant said the proposed county and TID mitigation tools — including TID fees and the privately built portion of the Mulberry Knoll Road extension — are consistent with the Henlopen LUTP (land use/transportation plan) and county comprehensive plan policies. The applicant also noted the commercial parcel’s C-3 designation is consistent with the county’s projected land use and the site’s location on Route 9, a designated arterial.

Community concerns raised at the public hearing included: - Safety of pedestrian crossings and walkability between the residential and commercial parcels, particularly given Route 9 speeds and the location of signalized intersections; - Stormwater coordination between DelDOT Route 9 plans and the project’s drainage/master plan; - The physical separation of affordable units from amenities and whether the units should have equivalent on-site amenities rather than off-site YMCA passes; - Buffer widths and lighting impacts on neighboring single‑family communities; - Phasing and whether the affordable units — which the planning commission recommended be built first — will, in practice, be completed before substantial work on the single‑family subdivision begins.

Jill Hicks of the Sussex Preservation Coalition testified that “the affordable housing was not only decoupled in its hearing and approval process, but it is also physically and socially segregated from the North Star community,” and urged stronger written commitments on timing, buffering and drainage. Several nearby residents and organizations, including the Cape Henlopen Elks Lodge, asked for a wider perimeter buffer and other protections against noise, lighting and traffic impacts.

Applicant financing and program details

Ingerman representatives described the tax-credit financing process and requirements. They said the Delaware low-income housing tax credit award is a critical source of funding, the DSHA application round is competitive and time-limited, and the applicant must complete construction within DSHA’s required schedule if awarded credits. The applicant said it had submitted a DSHA application in April and expects that, if funded and after permitting, the earliest occupancy could be spring–summer 2027.

The developer also described management and compliance structures: a dedicated compliance department, annual tenant income recertifications, and reporting obligations to DSHA and institutional investors who purchase tax credits. When asked if residents could remain if their income rose above program limits, DiFilippo said tenants are not evicted solely for income increases; rents may be adjusted to the applicable maximum rent tier and annual recertifications are used to track eligibility.

Council action and next steps

Council members voted unanimously to leave the record open for two weeks so that council can submit written questions to DelDOT; DelDOT was asked to respond in writing within two weeks of receiving the questions. After DelDOT’s responses are posted, the public and the applicant will have a second two-week period to submit written replies. The council then deferred final action on the three zoning and conditional-use matters pending that written exchange.

Votes at a glance

- CZ 2025-25 (rezoning ~12.696 acres to C-3 heavy commercial): Decision deferred; council vote to defer: yes — Lloyd, Gruenbaum, McCarron, Riley, Eiler (unanimous). - CZ 2025-26 (rezoning ~7.882 acres to MR medium-density residential): Decision deferred; council vote to defer: yes — Lloyd, Gruenbaum, McCarron, Riley, Eiler (unanimous). - Conditional Use 2499 (allow 94 multifamily affordable rental units on ~7.882 acres): Decision deferred; council vote to defer: yes — Lloyd, Gruenbaum, McCarron, Riley, Eiler (unanimous).

Where the record is now

The council’s temporary hold keeps the applications active but without a final decision while DelDOT answers technical questions about level of service, project phasing and the Henlopen TID forecasts. Opponents and the applicant will be able to supplement the record in writing; the council indicated it will consider the additional submissions before acting.

The council did not adopt or reject the requested zoning changes or the conditional-use permit at this meeting; the actions were deferred pending the written technical information requested from DelDOT and any subsequent written public comment.

(Reporting by Sussex County Council meeting transcript; applicant materials and county staff exhibits were entered into the public record.)