FENWICK ISLAND – The extension of a moratorium on new hotel construction will move forward with the approval of the town council.
Last Friday, the Fenwick Island Town Council voted to approve the first reading of an ordinance that will reestablish a two-year moratorium on new hotel and motel construction. Councilwoman Natalie Magdeburger noted the existing ordinance, adopted in 2020, is set to expire in July.
“Historically, we have had a moratorium in place for new hotel builds since 2016,” she told the town council last week. “The town council did a two-year moratorium at that time … They extended the moratorium for another two years in July of 2020 and that moratorium is going to expire July 24, 2022.”
In 2016, the town council voted to establish a moratorium on new hotel construction following an extensive debate regarding the former Sands Motel. Developed Spiro Buas purchased the property in 2015 with plans to construct a new, upscale hotel in its place. In doing so, he proposed an ordinance change that would allow for one motel room per 600 feet instead of one motel room per 1,000 feet, allowing the hotel to expand from 38 rooms to 65 rooms.
Despite outcry from nearby residents, the council at the time voted to approve the ordinance. However, a two-year moratorium on new hotel and motel construction was also put forward.
Since that time, the council has approved two extensions to the moratorium to allow the town more time to consider the impacts of a new hotel on Fenwick Island. Magdeburger told officials last week she was recommending a third extension.
“After looking at all the issues we’ve got going on in town, it’s my personal belief we need to extend the moratorium once again,” she said. “I’m going to propose, and I have a proposal for first reading, we extend it for another two years. It may be that we only need 18 months, but we’ve got several competing issues going on that we need to address.”
Madgeburger noted that one of those issues was the COVID pandemic.
“We now have three fulltime operating hotels – -one hotel opened up during the COVID pandemic — and to be fair I think we need to see what impact, positive and negative, that may be imposed by that additional hotel in terms of infrastructure, public safety, etc.,” she said. “And I think we need to do it outside COVID pandemic behaviors.”
Magdeburger added that the town was also looking to construct sidewalks in the commercial zone and address parking issues on commercial properties.
“I think we need to get a handle on the parking issues to get a full and fair idea of what any additional motel would do in terms of that issue,” she said.
Magdeburger also noted that the town would want to complete a resiliency study – which would provide the town with ways in which to address sea level rise and flooding – and a recertification of its 10-year comprehensive plan.
“That could easily be an 18-month process,” she said.
Councilman Bill Rymer added that the town had yet to do any studies on the impact of new hotels.
“It’s important to note when the moratorium was originally put in place and extended once or twice, there was mention of needing to study, and those studies never happened,” he said. “So it’s on us to get these studies together, combined with all these other actions, to make sure we understand what we’re doing.”
After further discussion, the council voted 7-0 to approve the extension of the moratorium on first reading.
“I think a two-year moratorium to sort of figure out how all these issues will come into play is certainly warranted,” Magdeburger said. “I think it’s certainly wise because those types of issues are important to the best interest of the town.”
