Controversial Lewes-area apartment development up for deciding vote

For much of the past year, the Belle Mead development had sparked a debate within the surrounding community as it pitted two of Sussex County’s most important quality-of-life issues against each other — traffic and housing affordability.

The 40-acre property, which currently houses a horse farm, is adjacent to Beacon Middle School and across Route 24 from Love Creek Elementary School.  It sits about 2 miles southwest of Route 1.

Planning documents show how developer Capano Management intends to build 125,000 square feet of commercial and retail space and up to 334 multifamily housing units across more than a half dozen buildings.

To do that, Capano Management is asking the county to rezone the property to C-4, from AR-1, which allows farms and houses.

Tuesday’s meeting will host a public hearing on the zoning change. The county council then will decide whether to vote on the application or wait until a future meeting, Sussex County Administrator Todd Lawson said in an email. 

Need for affordable housing?

The plan comes just as Sussex County is deciding how to better guide new developments, after years of rapid growth made the once-rural county one of the fastest growing in the region. 

In February, the Sussex County Council created a working group to come up with recommendations on how to move forward. 

Christophe Tulou, a member of the Sussex County Land Use Reform Working Group, speaks at the group’s penultimate meeting on Aug. 21, 2025. | SPOTLIGHT DELAWARE PHOTO BY OLIVIA MARBLE

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Last month, it finalized those recommendations, emphasizing a need for more mixed-use retail and affordable housing developments in areas where infrastructure exists to support it. The recommendations also sought to protect farmland and open space throughout the rest of the county.

The Belle Mead property is in a Level 2 zone of the county, meaning it is a target for development. 

Spotlight Delaware previously reported that Beebe Healthcare President and CEO Dr. David Tam voiced his support for the project at a county planning meeting in March. Tam told the five-member commission that Beebe’s mission in southern Delaware is falling short due to staffing shortages.

“I need to recruit more physicians to move here to Rehoboth and Lewes. I am not a pro-growth person, by nature, having come from Orange County, Calif.,” he said.  

Capano Management is proposing to make about 34 units affordable to residents making $78,000, which is 80% of the area’s median income. 

Sussex County Director of Community Development Brandy Nauman said that rents that adhere to that standard would be about $1,220 for a one-bedroom apartment; $1,465 for a two-bedroom; and $1,695 for a three-bedroom,

The remaining 300 units will rent for a market rate between $1,600 and $2,000 per month, depending on the type of unit, said Becker Morgan Group Principal Engineer Michael Riemann, who has represented Capano Management in hearings for the project.

If built, the development would sit across the road from the Saddle Ridge community, where the median sales price for homes is $717,500.

Community voices concerns

There have been 257 comments recorded on Sussex County’s website about the Belle Mead project. 

All but one is labeled as opposing the project. 

Many of those opponents, such as Saddle Ridge resident Phyllis Nellis, have cited increased traffic as the primary reason for their opposition. 

“The traffic impact from yet another housing development would mean unbearable congestion, which in turn would mean longer bus rides for children and compromised safety for all,” Nellis said in a public comment submitted to the county. 

The development would create an estimated 6,800 additional vehicle trips on the road each day in one of the busiest corridors near the Delaware beaches, according to Department of Transportation estimates.

Other opponents worry about the removal of half of the woodland on the Belle Mead farm property. Saddle Ridge resident Stephen Shaffer asserted in his written public comments that the construction would “result in significant critical habitat loss for our local flora and fauna.” 

In an emailed statement sent to Sussex County, Cape Henlopen School District Director of Operations Jason Hale has also opposed the project. He wrote that the nearby elementary school and middle school are both “at or above capacity,” arguing that the increased traffic “could adversely affect school operations and student safety.” 

Delaware Department of Education data shows that Love Creek Elementary School is currently operating at 85% capacity, and Beacon Middle School at 95% for the 2024-2025 school year.

About 40 schools across Delaware currently operate at over 100% capacity, including Mariner Middle School in Milton, according to data from the Delaware Department of Education.

Beebe Healthcare President and CEO Dr. David Tam voiced support for the Belle Mead project at a county planning meeting in March. | SPOTLIGHT DELAWARE PHOTO BY JACOB OWENS

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While public comments came out against the project, Riemann, the principal engineer, argues that there is a constituency of potential renters in the county who would support the development. 

At the Delaware Real Estate Summit earlier this month, Riemann spoke about how nearby residents often try to shut down affordable housing projects through public comment periods in local government meetings. 

He said while it is important to listen to those concerns, there are also many others who support and need affordable housing. 

“The problem is that group doesn’t really show up,” Riemann said. 

Get Involved
The Sussex County Council will hold its meeting on Tuesday at 10 a.m. The public hearings will start at around 1:30 p.m., according to the agenda. The meeting will be livestreamed, and residents can comment by phone or in-person.