Smokey Hollow, LLC. v. Sussex County Planning & Zoning Commission

Superior Court of Delaware·Decided October 1, 2025·No. S24A-09-001·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

SMOKEY HOLLOW, LLC, )

) C.A. No. S24A-09-001 CAK Petitioner, )

) CERTIORARI

v. )

)

SUSSEX COUNTY ) PLANNING & ZONING ) COMMISSION, )

)

Respondent. )

Submitted: September 15, 2025 Decided: October 1, 2025

Upon Petitioner’s Petition for Writ of Certiorari Seeking Review of Respondent’s Decision

Decision REVERSED

MEMORANDUM OPINION AND ORDER

Richard A. Forsten, Esquire, Jennifer M. Becnel-Guzzo, Esquire, Mackenzie M. Peet, Esquire, SAUL EWING LLP, 1201 N. Market St., Suite 2300, Wilmington, Delaware 19801, Attorneys for Petitioner.

David N. Rutt, Esquire, Moore & Rutt, P.A., 122 W. Market Street Georgetown, Delaware 19947, Attorney for Respondent.

KARSNITZ, R. J.

INTRODUCTION

American legal and political thought has always valued giving landowners freedom to use their property as they see fit. As congestion has increased, zoning regulations have limited landowners’ freedom. A compelling limitation on land use regulation requires clear and specific designation of what is allowed and what is prohibited.1 This clear and specific rule allows fairness to landowners so that they know their rights in advance of purchase or development.

In the case before me, the County, through Respondent, argues that, even if a plan for development meets all requirements, it may still limit the development by applying a number of general, if admirable, goals.2 By way of example, one goal is to limit the effect of the plan on local school districts. At oral argument on the Petition, in response to a hypothetical question as to whether it could limit to 40 lots a development which the Code permitted 60 lots, in order to ameliorate any effect on schools, Respondent answered yes. Other similar general guidelines allow consideration of environmental effects.

1 Jack Lingo Asset Management, LLC v. Board of Adjustment of City of Rehoboth Beach, 282 A.3d 29 (2022). 2 The Sussex County Code provides that, when the Commission considers approval of a plan, it shall include consideration of other provisions within [the Code] as well as specific criteria under Section 99-9(C) including the following (stating those applicable to this Petition): (1) integration of the proposed subdivision into existing terrain and surrounding landscape, (2) minimal use of wetlands and floodplains, (3) preservation of natural and historic features, (5) minimization of tree, vegetation and soil removal and grade changes, (10) minimization of erosion and sedimentation … , minimization of potential for flooding, and (16) compatibility with other area land uses.

Respondent suggests legal authority for its position in Tony Ashburn & Son, Inc. v. Kent County Regional Planning Comm’n.3 In that case, our Supreme Court reasserted the right of landowners to get approval of plans which meet the Code provisions, subject to conditions imposed to minimize any adverse impact on nearby landowners. The latter proviso creates an opening in the rights of landowners with complying plans. While I will have more to say about this opening below, Respondent seeks to drive a truck through the hole to justify any additional limitations. For me Respondent’s position proves too much. Accepting its position would provide it limitless discretion and power to shape land developments well beyond the written Sussex County Code. It would also fly in the face of the requirement that landowners be put on written notice in advance of what is allowed.

This case juxtaposes the ability of Petitioner to develop a Sussex County subdivision in compliance with applicable Sussex County Code and Ordinances against the ability of Respondent to impose reasonable conditions on such development. As discussed above, our Supreme Court has said:

When people [own] land zoned for a specific use, they are entitled to rely on the fact that they can implement that use provided the project complies with all of the specific criteria found in ordinances and subject to reasonable conditions which the Planning Commission may impose in order to minimize any adverse impact on nearby landowners and residents. To hold otherwise would subject a purchaser of land zoned for a specific use to the future whim or caprice of the Commission by 3 962 A.2d 235, 241 (Del. 2008) (en banc).

clothing it with the ability to impose ad hoc requirements on the use of land not specified anywhere in the ordinances. The result would be the imposition of uncertainty on all landowners respecting whether they can safely rely on the permitted uses conferred on their land under the zoning ordinances.4 [Emphasis supplied.]

On the other hand, a recent decision of this Court affirmed the power of the Sussex County Council, and by extension Respondent, to impose conditions and even deny a zoning application which failed to meet those conditions.5 At issue was whether the Commission could deny the zoning application which the developer demonstrated met all County ordinance criteria. The Commission denied the application finding there were deficiencies in the application with respect to conditions not specifically stated in the County Code. The Court found the Commission had the authority to grant conditional approval and, in that case, to deny the application. The Court gave broad deference to the County. The Order was appealed to the Delaware Supreme Court, and the developer argued on appeal that the plan met all requirements and should be approved because the conditions cited to deny the application were not specifically set out in the County Code. The Supreme Court affirmed this Court’s decision in a one sentence order. 6 The developer sought reargument by the Court en banc, which the Supreme Court

4 Ashburn at 241. 5 Stillwater Harbor, LLC v. Sussex County Planning & Zoning Commission, et al., C.A. No. S23A- 11-001-MHC (Order dated Aug. 8, 2024). 6 Supreme Court Order No. 356, 2024, dated April 9, 2025.

denied.

In my view, Stillwater is not helpful to Respondent. That case dealt with denial of a plan for failure to comply with the Code, primarily because of flooding at a nearby intersection, and this Court held that the Commission had identified plan deficiencies that justified denial. In the instant case there is no assertion that the plan did not comply with the Code or was otherwise deficient. The three-justice Supreme Court panel affirmed for the reasons set forth in this Court’s opinion and did not write its own opinion. Its affirmance in Stillwater did not reverse or modify its en banc opinion in Ashburn. To me, if the Supreme Court had intended to overrule Ashburn it would have done so expressly. Thus, Ashburn still guides me as to what conditions Respondent may impose on a conforming plan, which are limited to those designed “to minimize any adverse impact on nearby landowners and residents.”

I am left with the quandary: where along the spectrum of “reasonable conditions” which the County may impose do the two conditions which Respondent seeks to impose fall? Are they designed to minimize any adverse impact on nearby landowners and residents?

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Smokey Hollow, LLC. v. Sussex County Planning & Zoning Commission, (Del. Ct. App. 2025).

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