Fenwick Expects Lawsuit Over Hotel Process Nearing End

FENWICK ISLAND – Officials say a lawsuit against the town has reached an end.

In a council meeting late last week, Mayor Vicki Carmean announced the end of a lawsuit against the Town of Fenwick Island.

“While it’s not officially ended, and we don’t have the paperwork, it is my understanding it is in the process of being resolved,” she said. “I will update the public once it is. I think it’s the end of that chapter.”

In August of 2020, 17 plaintiffs – including the now-Councilwoman Jacque Napolitano – filed a petition for writ of mandamus in Delaware Superior Court demanding the Town of Fenwick Island address alleged zoning violations at the Fenwick Shores hotel.

In 2018, developer Spiro Buas demolished the aging Sands Motel on Coastal Highway and began building a new Tapestry brand hotel in its place. The Fenwick Shores, which features 65 rooms, also includes a second-floor pool deck with an outdoor bar. As part of the development process, Buas applied with the state’s Alcoholic Beverage Control Commissioner (ABCC) for a hotel liquor license. The application also sought a patio permit and variance to permit live entertainment, external speakers, a paging system and a wet bar on the second-floor patio of his property.

Since that time, however, several property owners have voiced their objections to his request and argued the town code did not allow for an outdoor bar. The plaintiffs also took issue with a letter the town sent to the ABCC, in which it took no position on the liquor license application.

“Fenwick has failed to enforce the Code by permitting the Sands Hotel: (a) to have a bar, (b) to have a bar not connected to a restaurant, (c) to have a bar area in any outside service area, (d) to have an outside service area more than three feet above ground level, (e) to have music or entertainment on an outdoor deck on the top floor of the hotel, and (f) to have a large outdoor deck bar and entertainment area on the top floor of the hotel …,” their petition reads. “The foregoing are violations of the Fenwick Code and violations of Fenwick’s duty to enforce the Code.”

In March, a motion to dismiss the case was denied, allowing the petition to move forward. According to court records, a two-day jury trial had been scheduled for October 2022.

FOIA Request Answered

The town council last week also issued its public response to a Freedom of Information Act (FOIA) request filed by resident Andre Collins.

On Sept. 29, Collins issued a FOIA request seeking information on the amount of money the town had spent defending the lawsuit.

“Also the amount the town council anticipates spending to continue defending this suit, and the amount the council can expect to pay the plaintiffs in the event they are successful in their suit,” the request reads.

In last week’s council meeting, Councilwoman Natalie Magdeburger said she had issued a written response to Collins. She noted that while the town’s former solicitor had been paid approximately $5,900 defending the suit, she did not expect the town to incur any more legal fees relating to the petition.

“I also advised that the town did not expect to pay any damages …,” she added. “A writ of mandamus is a specific legal action. It’s not seeking monetary damages, it’s seeking actual direction and decision making.”

About The Author: Bethany Hooper

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Bethany Hooper has been with The Dispatch since 2016. She currently covers various general stories. Hooper graduated from Stephen Decatur High School in 2012 and the University of Maryland in 2016, where she completed double majors in journalism and economics.