Commission recommends conditional rezoning of 4118 Market Street to allow 76 studio apartments with conditions

On March 4 the Wilmington Planning Commission recommended approval, by a 3‑1 vote, of a conditional rezoning to convert the 76‑room hotel at 4118 Market Street into 76 studio apartments (MD17 conditional district). Commissioner Pollock moved approval with conditions; Commissioner Collier seconded. The roll call was Collier yes, Adams no, Pollock yes, Chair yes.

Staff planner Zach Smith presented the request and emphasized staff’s recommendation of denial. Smith noted the project site is 1.26 acres in an urban mixed‑use center and described variances the applicant received from the Board of Adjustment: a density variance granted to allow a higher unit count (the BOA previously granted an increase up to 60 units per acre), a reduction of required open space from 20% to 5.9%, and a parking variance reducing the required 80 off‑street spaces to 68. Staff flagged the lack of on‑site amenities and open space as concerns and said the CDMU option under existing zoning could offer an on‑site commercial component staff found desirable.

Applicant Nick Silivanch said the owner intends a rapid adaptive reuse with minimal interior changes — converting existing rooms already fitted with kitchenettes into long‑term studio apartments — and cited prior adaptive‑reuse projects (Vivo, River City Studio Suites) as precedent. Silivanch said the applicant negotiated with the BOA and committed to 20 workforce units rather than 100% workforce housing; the applicant estimated rents near HUD high HOME studio levels and said utilities would be included to lower tenant cost burdens.

Commission discussion centered on several process and program points: an apparent discrepancy in early submittals and parking calculations that gave the impression of 100% workforce units, whether the land‑use code provides a clear adaptive‑reuse pathway, and whether the site could sustain 68 parking spaces after restriping to meet current standards. Engineering testimony explained that bringing spaces to the minimum 8.5‑foot width and current aisle standards reduced the count from previous figures. Commissioners also discussed building code and Fair Housing requirements; staff and building inspection officials would review code compliance during the change‑of‑use and permitting process before a certificate of occupancy could be issued.

Before voting, the commission and applicant agreed to several conditions distributed during the meeting: a minimum of 20 workforce housing units at 80% of area median income maintained for 15 years (staff‑recommended reporting requirements apply), a sidewalk connection from Market Street sidewalk to the building entrance, street trees along Market Street where utilities allow, streetscape landscaping within the new open space area, and removal of an existing pole sign and replacement with monument signage per code. The commission found the project would produce 76 units rapidly in a transit‑served corridor, and despite staff’s concerns about amenities and code alignment, a majority voted to recommend the conditional rezoning to City Council.

The commission’s action is a recommendation to City Council; the record and approved conditions will accompany the rezoning request as it advances.