Council holds consolidated hearings on Northstar rezoning and 94‑unit affordable housing proposal; DelDOT, developer discuss TID and road coordination

Sussex County Council on March 11 held consolidated public hearings for two change‑of‑zone petitions and a conditional use filed by Northstar Property LLC that would reclassify two portions of a parcel along U.S. Route 9 and Beaver Dam Road and allow a 94‑unit multifamily affordable housing project, called The Willows at Northstar.

The applicant and DelDOT described the project as planned within the Hanover Bend Transportation Improvement District (TID). DelDOT staff said the development is within the TID scope and that the agency and applicant are coordinating so the county and state can reserve right‑of‑way for future dualization of Route 9, improvements on Beaver Dam Road and the Mulberry Knoll Road extension. Pam Steinbeck (DelDOT planning) and the DelDOT team said preliminary engineering for subsequent sections of Route 9 is scheduled in the capital transportation program and that DelDOT and the developer are meeting monthly to align the timing of roadway and development work.

Why it matters The applications would add mixed uses and a compact housing option to a corridor that DelDOT and county planning have identified for future transportation investments. The applicant proposed donating land and infrastructure contributions in‑kind (including a Mulberry Knoll Road extension segment) and an affordable housing component developed by Grama Group using state low‑income housing tax credits. If approved and built, the project would alter traffic patterns, contribute TID fees and credits, and add a sizable affordable‑housing complex to eastern Sussex County.

What the applicant told council Attorney David Hutt said the developer offered to donate the land for the affordable housing component to reduce the primary barrier — cost of land — and to provide entitlement support to expedite financing timelines. "If [Northstar] would partner with Northstar, it would offer to donate the land to be used for the affordable housing," Hutt said, describing the agreement with the Grama Group.

Engineer Rick Lardner and other consultants presented technical work: environmental assessments, a public facilities evaluation, a draft stormwater master plan for the broader watershed, and a traffic allocation consistent with the TID. Lardner said the TID analysis capped trips assigned to the Northstar parcel (the presentation cited an earlier allocation of approximately 771 single‑family equivalents and 96,100 square feet of commercial for the whole property) and that the applicant must enter a recorded TID agreement with DelDOT before final plan approval. He said Mulberry Knoll Road would be built by the developer in‑kind for the portion on the property and dedicated to DelDOT when complete; that alignment is expected to connect Route 9 to Route 24 in stages.

Affordable housing details The conditional‑use application covers about 7.882 acres and proposes The Willows at Northstar: four buildings, 94 rental units targeted at households at or below 60% of area median income (AMI), a fenced play area, bike lockers, a maintenance shed and a building designated as a resiliency center with backup power for residents during outages. The applicant proposed two construction phases (Buildings 1 and 4 in phase 1; Buildings 2 and 3 in phase 2) and deed restrictions and reporting requirements to ensure the units remain affordable; the planning commission’s recommended conditions include those affordability controls and annual reporting requirements.

Public comment and council response Several members of the public urged stricter growth controls, impact fees or a moratorium on changes of zone; speakers included long‑time residents and farmers who said infrastructure and services are already strained. Jay Dean Abbott said residents "are way past time to impose impact fees" to pay for schools and infrastructure. Henry Bennett of Bennett Orchards, who identified himself as a sixth‑generation farmer, expressed concern about east‑west road proposals and urged the council to protect farmland. Other residents questioned school capacity, medical access and emergency evacuation on narrow local roads.

DelDOT questions and timing Council members asked DelDOT about timing for Route 9 and Beaver Dam Road improvements and whether the developer’s in‑kind road work would reserve the right‑of‑way for future dualization. DelDOT said preliminary engineering for the next Route 9 section is slated to begin in fiscal 2026 and later projects are in the capital program through 2045; the agency said it will coordinate with the developer to reserve right‑of‑way and accommodate mutually required drainage and intersection work. DelDOT staff and the developer confirmed the project is in the TID and that some improvements will be credited against developer TID fees when the developer constructs intersections or segments that are part of the TID plan.

Outstanding issues and next steps - No council decision was recorded during the March 11 hearing; the matter remained in the hearing phase at the meeting’s close. - Key dependencies for implementation include DelDOT approvals, final TID agreement and site‑plan approvals, stormwater design to meet Chapter 89 recharge rules, and the applicant’s ability to secure affordable‑housing financing tied to timing of entitlements. The applicant proposed an expedited review schedule to align financing and construction timelines and said it intends to submit the Mulberry Mill Road/affordable housing phase 1 designs in 2025 and begin construction in 2026 if approvals proceed.

Sources: DelDOT briefing materials and letters, applicant exhibit booklet, Sussex County engineering memos, Planning & Zoning staff analysis and public testimony.