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

Supreme Court of Delaware·Decided August 6, 2026·No. 440, 2025·Published

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

SUSSEX COUNTY PLANNING & § ZONING COMMISSION, § § No. 440, 2025 Defendant Below, § Appellant, § Court Below: Superior Court § of the State of Delaware v. § § C.A. No. S24A-09-001 SMOKEY HOLLOW, LLC, § § Plaintiff Below, § Appellee. §

Submitted: May 20, 2026 Decided: August 6, 2026

Before SEITZ, Chief Justice; TRAYNOR, and LEGROW, Justices.

Upon appeal from the Superior Court. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.

David N. Rutt, Esquire, MOORE & RUTT, P.A., Georgetown, Delaware, for Defendant Below, Appellant Sussex County Planning & Zoning Commission.

Richard A. Forsten, Esquire, (argued), Jennifer M. Becnel-Guzzo, Esquire, and Mackenzie M. Sindelar, Esquire, SAUL EWING LLP, Wilmington, Delaware, for Plaintiff Below, Appellee Smokey Hollow LLC. SEITZ, Chief Justice:

The Sussex County Planning & Zoning Commission approved Smokey

Hollow, LLC’s application to build an 82-lot residential subdivision. The approval

came with strings attached – 19 conditions. Smokey Hollow agreed to all but two

conditions – eliminating one lot and requiring a 25-foot fixed buffer from non-tidal

wetlands. The Commission refused to reconsider the two conditions.

Smokey Hollow sought certiorari review by the Superior Court. The court

struck the two conditions as unreasonable. On appeal, the Commission argues that

the court erred by applying a faulty reasonableness analysis. After careful review,

we reverse and remand the lot elimination condition but affirm the Superior Court

on the buffer condition.

I.

A.

Under the Delaware Constitution:

The General Assembly may enact laws under which municipalities and the County of Sussex and the County of Kent and the County of New Castle may adopt zoning ordinances, laws, or rules limiting and restricting to specified districts and regulating therein buildings and structures according to their construction and the nature and extent of their use, as well as the use to be made of land in such districts for other than agricultural purposes; and the exercise of such authority shall be deemed to be within the police power of this State.1

1 Del. Const. art. II, § 25.

2 In Sussex County’s case, the General Assembly delegated authority to Sussex

County Council to regulate land use and development.2 The General Assembly also

established the County Planning and Zoning Commission of Sussex County

(“Commission”).3 It created the Commission to address land use development in a

way that promotes “the health, safety, prosperity and general welfare,” “secur[es]

coordinated plans for land use, transportation, public facilities and utilities and

public works expenditures,” and “prevent[s] the unnecessary duplication of facilities

or utilities.”4 The Commission advises County Council on zoning changes and

conditional use requests, but approves or denies subdivision applications.5

The Sussex County Zoning Code (“Zoning Code”) provides that all

unincorporated Sussex County land and certain incorporated municipalities without

zoning provisions are part of zoning districts defined by Sussex County’s Zoning

Map.6 If a developer plans a project on a parcel and the proposed development

cannot be undertaken as of right – meaning it is not permitted under the existing

2 9 Del. C. § 6902. 3 Id. § 6802. 4 Id. 5 Sussex Cnty. C. §§ 115-173, 115-216, 99-6, 99-9. 6 Id. §§ 115-2, 115-5, 115-7.

3 zoning classification – the landowner must apply to rezone the property.7 If the

parcel’s current zoning allows the proposed development but the property must be

subdivided, the property owner follows the Sussex County subdivision

approval process.8

Stated generally, under the Sussex County major subdivision approval

process, after the developer completes the State of Delaware Planning Office for

Preliminary Land Use Service (“PLUS”) review process, the developer meets with

the Sussex County Planning and Zoning Office (“Zoning Office”) to review the

proposed project and submits a preliminary plan.9 If the subdivision has 50 or more

dwelling units and is in a Coastal Area, the developer must also provide an

environmental assessment.10 After Zoning Office review, the Commission holds a

public hearing on the preliminary plan.11 The Commission must “either tentatively

7 See id. Ch. 115. 8 See id. Ch. 99. A major subdivision is any subdivision of six or more lots. Id. § 99-5. A minor subdivision is “[a]ny subdivision creating five or fewer lots and not adversely affecting the development of the remainder of the parcel or adjoining property and not in conflict with any provisions or portion of the County Comprehensive Plan, Official Map, Zoning Ordinance, or this chapter.” Id. 9 See 29 Del. C. Ch. 92; Sussex Cnty. C. §§ 99-7, 99-8. 10 Sussex Cnty. C. § 115-194.3. 11 Id. § 99-9. Recently enacted Senate Bill 23 allows some code-compliant or “by-right” residential subdivisions to bypass public hearings. S.B. 23, 153d Gen. Assem. § 9209(b)(4) (2026).

4 approve or disapprove or conditionally approve the plat subject to specific changes

or modifications.”12

If the applicant disagrees with the Commission’s decision, it may appeal to

County Council within 30 days after the Commission’s official action.13 The

applicant can also “request in writing that the Commission reconsider a condition

imposed by the Commission but there shall be no appeal from the decision of the

Commission on such request.”14

B.

Smokey Hollow owns a 66-acre parcel in unincorporated Sussex County

where it wanted to build an 82-lot residential subdivision. The property is zoned

GR, or General Residential, meaning that the developer can build a residential

subdivision as of right and did not need to rezone the property. It is also located in

a Coastal Area. As explained above, because Smokey Hollow sought to subdivide

the parcel into over 50 lots, the Zoning Code required major subdivision approval

from the Commission.

Smokey Hollow completed PLUS review, conferred with the Zoning Office

on technical requirements, filed a subdivision application with the Office, and

12 Sussex Cnty. C. § 99-9(A). 13 Id. § 99-39(A). 14 Id. § 99-39(H).

5 submitted a preliminary plan. At the public hearing, homeowners in the contiguous

Fox Haven residential subdivision raised a number of concerns, including that lot 64

posed flooding and runoff risks to their neighborhood.15 They also spoke about how

the proposed development could displace wildlife, destroy trees, increase summer

traffic, encroach on private property, and change the area’s natural character.16

The Commission unanimously approved the preliminary plan subject to 19

conditions.17 Smokey Hollow accepted all but two – Condition A, which eliminated

lot 64, and Condition O, which required a 25-foot fixed (as opposed to an average)

minimum buffer from non-tidal wetlands.18 Regarding Condition A, the

Commission explained that lot 64 was an isolated lot, access was dependent on

crossing wetlands, and the lot and surrounding area were subject to frequent

flooding.19 The Commission did not explain why it imposed Condition O. It stated

that “there shall be a buffer that is at least 25 feet wide from all non-tidal wetlands.”20

15 See App. to Appellant’s Opening Br. at A117-18 [hereinafter A__]. 16 Id. 17 A137-40. 18 A131-35.

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