A major commercial development proposed near one of Sussex County’s busiest corridors will not be moving forward. 

On January 13th, the Sussex County Council voted unanimously to deny a requested zoning change that would have allowed the Atlantic Fields shopping center to be built near the intersection of Route 24 and Mulberry Knoll Road. 

The decision follows months of public input, planning discussions, and debate over infrastructure capacity in a rapidly growing part of the county.

The vote also came after continued concerns that Route 24 cannot handle additional traffic growth at its current capacity, especially with major transportation improvements not expected until years from now.

Overview of the Atlantic Fields Proposal

The Atlantic Fields project was planned as a large-scale commercial development totaling approximately 695,000 square feet. 

The plans included 23 buildings and several major national retailers, including Costco, Whole Foods, and Target. 

The project was proposed by Baltimore-based developer Southside Investment Partners.

Some reports estimated the development at approximately 665,000 square feet of retail space, making it about half the size of the Christiana Mall.

The Atlantic Fields site sits on the northwest corner of Route 24 and Mulberry Knoll Road, an area that has seen increasing traffic volumes as residential growth continues along the Route 24 corridor. 

The shopping center would have been located about five miles from Delaware’s beaches and roughly one mile southwest of Route 1, placing it close to one of the state’s busiest seasonal travel areas.

While the development promised expanded shopping options and potential economic benefits, its size and location quickly raised concerns among nearby residents and county officials.

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Zoning Change at the Center of the Decision

For the project to proceed, the properties involved would have needed to be rezoned from AR 1 Agricultural Residential to C4 Planned Commercial District. 

This zoning change was critical, as the existing designation does not permit large scale commercial developments of this nature.

The rezoning request would have applied to approximately 70 acres of land.

In October, the Sussex County Planning and Zoning Commission voted 4 to 1 in favor of recommending the rezoning request. 

That recommendation followed a five-hour public hearing where more than a dozen residents spoke, with all but one opposing the project due to concerns about traffic and road safety.

Council’s Unanimous Vote to Deny Rezoning

On Tuesday, January 13th, the Sussex County Council voted unanimously to deny the rezoning request. 

That recommendation sent the final decision to the Sussex County Council, where the proposal faced closer scrutiny as county council leaders noted concerns around traffic, infrastructure, and overall impact to the area for their unanimous vote of denial for this project.  

Councilwoman Jane Gruenebaum was the only member of the council to speak before the vote, and the other council members stated they agreed with her remarks.

Gruenebaum said she believed Route 24 could not handle the tens of thousands of additional vehicle trips the project was expected to generate.

She also noted that while the Delaware Department of Transportation has planned upgrades to the corridor, those improvements are not expected until at least the early 2030s, which would have been well after the shopping center’s proposed opening timeline of 2028.

She also stated that projects within the C4 zoning district should ideally be mixed-use developments, including both housing and retail.

Atlantic Fields did not include a housing component, which was viewed by some officials as a missed opportunity to reduce traffic trips by allowing residents to live closer to shopping and employment.

After the vote, dozens of residents in attendance reportedly reacted with applause, shouts of joy, and hugs in the hallway outside the council chambers.

Councilman Steve McCarron also acknowledged the economic potential of the project but emphasized that the region’s infrastructure cannot support development of that scale, stating that growth without infrastructure is not success.

This decision does halt the Atlantic Fields from moving forward in its current form, although developers could come back with a revised plan in the future. 

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Public Input and Community Response

The county’s Land Use Application Docket received more than 600 public comments related to the Atlantic Fields proposal. 

These submissions reflected a divided community with strong opinions on both sides.

Opponents of the project frequently cited traffic congestion and road safety as major concerns. 

Residents also questioned whether existing and planned road improvements would be sufficient to handle the additional traffic generated by a development of this scale.

Supporters of the project highlighted different priorities, including improved access to grocery stores and retail options, job creation, and potential economic growth. 

Some residents noted that similar amenities are currently located farther away, requiring longer drives that also contribute to congestion on other roadways.

According to a presentation from the developer to county officials, the $175 million Atlantic Fields project was expected to employ nearly 1,000 construction workers during development and then create approximately 1,750 permanent jobs once operational.

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What This Decision Means for the Rt. 24 Corridor

The denial of the Atlantic Fields rezoning underscores the increasing tension between growth and infrastructure in Sussex County. 

Route 24 remains a focal point for development pressure, particularly as residential communities continue to expand west of Lewes and Rehoboth Beach.

While the council’s decision halts this specific proposal, it does not eliminate future development interest in the area. 

Property owners and developers may pursue alternative plans that better align with existing zoning or propose smaller scale projects that place less strain on local infrastructure.

For residents, the vote signals a cautious approach by county leaders when it comes to large commercial developments near already congested roadways. 

It also highlights the growing influence of public input in shaping land use decisions across Sussex County.

Just a week before the Atlantic Fields decision, the Sussex County Council approved another mixed-use plaza nearby called Belle Mead, which drew local opposition but ultimately passed with a 3 to 2 vote, in part due to its inclusion of affordable housing units.

Another proposed development called Ocean One, planned off Route 1 near Milton, has also been mentioned as a potential future location for a Costco, though no confirmation has been made.

If you want to stay informed about zoning decisions, development proposals, and local news shaping life here for locals here in Coastal Delaware, keep following our blog for the latest updates!

Source: January 13th County Council Meeting, January 13th Meeting Minutes, WBOC, Spotlight Delaware