Clear Space Theatre is officially staying in Rehoboth Beach after months of negotiations and years of uncertainty about its future home. 

The theater company and the City of Rehoboth Beach have signed a new agreement that outlines a shared vision for a purpose built performing arts center. 

This project positions the city as a growing cultural destination and gives Clear Space the opportunity to expand its programming in a way it has been working toward for more than a decade.

A Partnership Built on Community Interest

City officials and Clear Space leadership spent months working through potential scenarios that would allow the theater to remain in town. 

Clear Space’s board reviewed nine sites across the region, including one in Lewes, and still chose to commit to Rehoboth Beach. 

The turning point came when the city offered a generous incentive package along with a long term lease that makes the project financially workable.

Rehoboth Beach Mayor Stan Mills emphasized that the discussions were open to public input and shaped by community priorities. 

Several commission meetings were dedicated to crafting the incentive package and residents engaged throughout the process. Mills highlighted that the city acted as a representative of the public and aimed for a transparent path forward.

One major component of that package is the lease structure. Clear Space will pay one dollar per year for up to fifty years to use the property at 11 Christian Street. 

The site is currently home to the Cape Henlopen Senior Center, which will relocate once its new facility on Hebron Road is completed. 

The low lease rate alone represents a multimillion dollar value over the course of the agreement.

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What the New Performing Arts Center Will Include

The project is designed to transform 11 Christian Street into Sussex County’s first purpose built performing arts center. 

The property, valued at more than seven million dollars, will give Clear Space the room it needs for a modern and expanded complex. 

Although final designs have not been drafted, early expectations outline a significantly larger footprint than the theater’s current space downtown.

Planned features include:

• A mainstage proscenium theater with nearly double the current seating capacity
• A black box venue for smaller productions and community events
• Rehearsal and educational studios to support Clear Space’s growing arts education programs
• Gallery space and public gathering areas
• Additional on site parking to help reduce downtown congestion

City Manager Taylour Tedder described the project as a chance to revitalize the surrounding neighborhood while creating new business opportunities. 

Leaders at Clear Space echoed that sentiment and stressed that the center will serve residents, visitors, and families throughout coastal Delaware.

How the Agreement Came Together

The relationship between the city and Clear Space has not always been easy. In 2020, the theater company planned to build a new center along Rehoboth Avenue, but neighborhood opposition and zoning concerns eventually halted the project. 

Clear Space filed a lawsuit to contest the city’s decision, but by 2022 the board chose to move on from the downtown location entirely.

The shift toward a collaborative approach began in March 2024 when Mayor Mills suggested the Christian Street site as a potential option. 

Managing Director Joe Gfaller credited the mayor with helping restart discussions in a constructive way. 

Clear Space leadership said negotiations were fair, thorough, and ultimately successful because both sides shared the same commitment to keeping the theater in the community.

A future city meeting will determine whether the project receives additional financial support. 

One idea briefly considered was a one million dollar city contribution that could be repaid through a small surcharge on ticket sales. 

Officials noted that any further incentives will be discussed openly before decisions are made.

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What Happens Next

Clear Space expects to launch a national request for architectural proposals in 2026. 

Community design forums will follow later that year, giving residents a chance to contribute to the look and function of the new center. 

Construction timelines will become clearer once the senior center relocates and a design team is selected.

For now, both the city and Clear Space are celebrating a renewed partnership that secures the theater’s long term future in Rehoboth Beach. 

With a forty million dollar project now in sight, the city’s cultural scene is preparing for a major transformation.

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Sources: Delaware Public Media, Delaware Business Times