DAGSBORO, Del. - Town officials in Dagsboro have extended a moratorium on new development for up to 180 additional days as they work to update outdated town fees and policies.
The extension gives the Town Council more time to revise building permit fees, impact fees, license fees, and the town charter. Changes originally targeted for completion within six months of the initial moratorium enacted in April.

Town officials in Dagsboro have extended a moratorium on new development for up to 180 additional days as they work to update outdated town fees and policies.
One key proposal includes adding a new impact fee dedicated to police services, joining the town’s existing fees for fire, ambulance, and general capital improvements. The proposed fee structure would increase the current rate to 0.5% of development costs, with a $10,000 cap for subdivisions. Single-family homes would remain under the existing $5,000 cap.
Town Mayor William Chandler said the council is confident it can complete the updates before the 180-day deadline and noted the moratorium only pauses new development, not the town’s ability to adopt new fees. Once enacted, the new fees will apply to all future building permits, regardless of prior project approvals.
“It’s not like fees are grandfathered in,” Chandler said. “You pay the fee that’s in effect when you pull the building permit.”
Some residents support the council’s decision to take additional time.
“A lot of it is arcane, and it’s a lot to unwind,” said local resident Ryan Stuckey. “It just doesn’t sound like they’ve had enough time to do it yet. It makes sense to me, and it doesn’t sound like they’re trying to milk it either.”
Officials told CoastTV that developments already approved by the town will not be affected by the moratorium.