Fenwick Officials Voice Concerns About Former Dairy Queen Building; Owner: ‘We Could’ve Had This Done A Long Time Ago’

Fenwick Officials Voice Concerns About Former Dairy Queen Building; Owner: ‘We Could’ve Had This Done A Long Time Ago’
Photo by Bethany Hooper

FENWICK ISLAND – Citing concerns about safety and security, the owner of the former Dairy Queen property said efforts are ongoing to redevelop the site.

Last Friday, Town Manager Pat Schuchman came before the Fenwick Island Town Council to discuss a potential resolution declaring 1007 Coastal Highway a nuisance property. As the town awaits a building permit for the redevelopment of the former Dairy Queen site, she said concerns have been raised about safety.

“We spoke with our police department, and they received several calls for this property,” she said. “One in particular was a concern of a displaced person staying in the building. There’s water coming from the property. The building and the renovations have been abandoned since last spring, and obviously there are structural integrity issues. It’s hazardous for our police officers, members of the public, and in particular, children who are running around playing.”

In January 2022, Balsamo Real Estate LLC, owner of the Dairy Queen property, submitted a building permit for interior demolition and roof replacement, though officials say that work was ultimately abandoned. And late last summer, the company submitted to the town a development plan, which highlighted a 1,500-square-foot addition and the creation of new restaurant space.

Since that time, however, the redevelopment project has been held up as litigation has worked its way through Delaware Superior Court. When town staff advised the company they would not consider the development plan until a building permit application was submitted, Balsamo Real Estate filed a lawsuit, seeking a writ of mandamus commanding the town uphold its code. A judge ultimately dismissed the case in March.

On the agenda for discussion last week, Schuchman brought her concerns regarding the old Dairy Queen building to the town council. She noted the roof was caved in, the building was boarded up and that there was evidence of broken glass.

“Again, I have serious questions about the integrity of that building,” she said. “It’s a hazard. I worry about any incident that can cause injury to the public. I would like to suggest that it is in violation of Chapter 69, which is nuisance buildings.”

While she noted her concerns about the building, Mayor Natalie Magdeburger argued the town did not have enough information.

“I’m not prepared to declare it a nuisance …,” she said. “But I do think we should contact the previous tenant because obviously their engineers thought there were some concerns, and I think we should contact the owner and see if there’s engineering that shows it is safe.”

Magdeburger also noted there was a possible agreement between Balsamo Real Estate and SoDel Concepts to bring a Surf Bagel to the Coastal Highway property.

“Perhaps it’s just a matter of time, and we can get more information from Balsamo Realty in terms of them prepared to file for a building permit next week or whenever it is,” she said. “Then we don’t need to move forward.”

Councilman Richard Benn said he was most concerned about the fence currently placed around the property.

“What is there now is woefully inadequate, and I think that has to be addressed immediately with either more permanent fencing or they’ve got to enclose the building somehow to make it secure,” he said.

Magdeburger suggested the town send a letter to the previous tenant, Grab and Go Taco, as well as Balsamo Real Estate, seeking assurances that the building is structurally sound. She said the council could revisit the issue at the next town council meeting.

When reached for comment this week, Joe Balsamo Jr. of Balsamo Real Estate said the company is waiting for architectural plans to be completed before it can submit a building permit for the property.

“Believe me, we didn’t want this building to look the way it does,” he said.

Balsamo said the town’s concerns could have been addressed months ago, when the company submitted its development plan.

“Everything is in the works,” he said. “It takes time, but we could’ve had this done a long time ago.”

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.