Court Dismisses Residents’ Lawsuit Against Fenwick Island Over Hotel

FENWICK ISLAND – A lawsuit against the town has been dismissed.

In a meeting of the Fenwick Island Town Council last Friday, Mayor Vicki Carmean announced the end of a lawsuit against the town.

“I have just learned that the courts have dismissed the writ of mandamus that has been filed by residents in town …,” she said. “We can move on.”

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. And according to court records, a two-day jury trial had been scheduled for October 2022.

Councilwoman Natalie Magdeburger told residents last week the dismissal was filed jointly with the courts, ending a year-long legal battle that has cost the town roughly $5,900 in attorney’s fees.

“So the case is now concluded,” she said.

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.