Summary of Town Council meeting 1-13-2007

SUMMARY OF DEWEY BEACH TOWN COUNCIL MEETING HELD AT THE LIFESAVING STATION ON SATURDAY, JANUARY 13, AT 9:00 A.M.

1. The Council enacted an ordinance prohibiting any new timesharing arrangements in the future.

2. The long awaited Town Comprehensive Plan was approved, pending approval from the State.

3. Changes to real estate broker fees were put on hold, pending recommendations on other licensing fees being completed in the near future.

4. The Council, in a close vote and with active discussion, enacted an ordinance prohibiting further conversions of hotel/motel space to condominiums.

Overall, the meeting was very well attended and there continued to be a great deal of active and productive contributions from the audience, with the Mayor and Council members’ encouragement. The new town attorney, John Brady, appeared to be fully up to speed and contributed concisely and effectively to the proceedings. The meeting was long, with a packed agenda, but a great deal was covered and accomplished.

The police chief reported that a $38,000 grant had been received for “homeland security” purposes. He said it would be used to change the pass key system at the police station from buttons to a passcard, and to add security cameras at the station.

There was an active public hearing on a proposed ordinance to prohibit new fractional shares, or time-sharing arrangements in the town. This would not affect currently in force timeshares, such as the Surf Club. It would also not affect group ownership of property in the name of one or joint owners who determined how they will use the property on a mutually determined schedule. Proponents argued that timeshares create a host if problems such as increased density, parking issues, and confusion over voting rights, since a each timeshare owner receives a deed that entitles him or her to vote in town elections. There is also confusion over licensing and fees, since some equate timeshares to hotel space. Several years ago, the town held a referendum in which residents largely expressed disapproval of new timesharing arrangements, especially since it gives disproportionate voting rights to buildings with large numbers of timeshare residents who spend little time in the town. Opponents argued that it should be possible to deal with the voting issue separately, and that the increased density would be good for business. It was pointed out that restrictions on timeshare voting rights had been rejected by the state legislature when the town had sought them after thxxx. After an active discussion, the ordinance was passed unanimously.

Next the Town Comprehensive Plan, which has been in the works for many years, was presented for approval (see League Pro/Con analysis of one aspect of this plan). Several changes from the last draft were approved, including the removal of a requirement that space in the RB 1 zone (the most intensive commercial zone) be at least 50% commercial. This change was requested by Highway One and was seen as potentially tying the hands of negotiators in trying to find a compromise over the Ruddertowne situation. The town attorney agreed that this language under some circumstances could constitute a restriction, and the commissioners agreed that the language of the plan should in this and other respects speak in terms of broad goals and not specific ratios. Language was added confirming that negotiations with Highway One would continue. Everyone seemed pleased with the resulting plan, and applauded at the conclusion of the vote to approve it. Harry Wilson, Chair of Planning and Zoning, as well as David King, Vice Chair, were especially commended for their hard work.

Next, a proposal was presented that would reduce certain real estate licensing fees. While the commissioners agreed that these fees needed to be reduced, they felt, in the end, that it would send the wrong signal to the business community to deal with one segment without doing likewise for others, such as the licensing fees for small restaurants and eateries. The challenge is to establish fees that have a rational basis in the true cost to the town of the regulatory activity, rather than appear to be for the purpose of raising revenues, which is not legally valid. Since the Budget and Finance Committee is hard at work on addressing this problem for all licensing fees, it was concluded that action on real estate fees would be postponed until it was part of a final package for all businesses. The next meeting where these matters are to be considered is the Budget and Finance Committee meeting on February 16 at 10:00 am.

Next there was a public hearing on an ordinance that would prohibit further conversions of hotel and motel space to condominiums. Those favoring this restriction argued that the town and surrounding areas had too much unsold and unrented condominium space and that further conversions would make it even harder for town residents to rent their properties in a depressed rental market. It was also noted that there were many unrented condominiums sitting empty, and that the town’s business trade had been adversely affected by the town having fewer motel rooms than in the past. Moreover, Highway One was proposing to add even more condominium space through the conversion of Venus and parts of Ruddertowne to residential use. Opponents argued that a prohibition on conversion would be an unwarranted restriction on the highest and best use of hotel and motel property, that it was unfair to impose it after hotel owners had bought their property without such restrictions in existence, and that there is no proof that the reduction in hotel space had adversely affected business. With a very active discussion on this issue, the prohibition passed on a three to two vote, with Commissioners Tush, Fitzgerald, and Eisenhauer voting in favor and Commissioners Cooke and Walsh voting against it.