REHOBOTH BEACH, Del. — The demolition of the old Dolle's building won't happen until September 2026, according to the communications manager for the City of Rehoboth Beach.
Businesses located at the site of the former Dolle’s Candyland building will be able to reopen for the 2026 spring and summer seasons before demolition begins in September.
The buildings at the corner of Rehoboth Avenue and the boardwalk include structures that housed Zelky’s and Kohr Bros, and Grotto Pizza. Eventually, they will be torn down as part of the “One Rehoboth Avenue” redevelopment project.
According to the city, that work revealed unknowns related to the foundations of neighboring properties, prompting adjustments to the project design. As a result, the development team elected to delay demolition until after the height of the 2026 summer season, a schedule intended to minimize disruption and give the project the best chance to miss only one summer season during construction.
“The City of Rehoboth Beach supports the decision to start demo and construction on One Rehoboth in September 2026,” City Manager Taylour Tedder said. “This gives our businesses, residents and visitors the summer season without additional fencing, detours and construction; and allows work to begin immediately after the height of the summer season. Instead of two summers being impacted, which would be the case if the project started now, it will just be one.”
“All this will be done in the off-season this coming fall. It won’t disrupt the visitors. The tourists will still come to town,” said Jerry Kernan, a local, noting that projects like this benefit the city. “New projects like this are nothing but good for the city. Always a great thing for Rehoboth in general, on the boardwalk specifically, because you’re not going to lose too many vendors.”
But some longtime residents worry that larger developments are changing the city’s character. Jim Aliquo, a local who has lived in Rehoboth Beach for more than 20 years, said the city is losing its small-town feel.
“Some of these buildings are so old that there are things you get into, I’m not a structural engineer, but you get into some things and get some surprises,” Aliquo said.
About One Rehoboth
The commercial building, situated on the boardwalk between Rehoboth and Baltimore avenues, will encompass four above-ground stories — three to be used as a hotel and the bottom floor as retail and restaurant space — as well as underground parking. The hotel will have 60 rooms.
The owner-applicant for the project is One Rehoboth Avenue LLC, a partnership between Grotto Pizza and Onix Group, a Pennsylvania-based real estate development company.
The One Rehoboth Avenue Hotel will feature 60 rooms, retail, and dining in a four-story building. Some locals are nostalgic for the past, while others welcome change. Demolition permits are filed, with remaining work possibly starting soon. (Rehoboth Beach Documents.)
According to the city, signs will be posted soon to let the public and nearby businesses know about the adjusted timeline.
The redevelopment project, known as One Rehoboth Avenue, will replace the former Dolle’s building with a 60-room hotel and retail space on the ground floor at the corner of Rehoboth Avenue near the boardwalk.
Hotel timeline: Complete in 2028
The city's communications representative said demolition is expected to start in September 2026 and be followed by construction of the hotel. The overall project is estimated to take 18 to 19 months, with the plan to have work completed in spring 2028.
Demolition permits for the site were issued in September, and while work was originally anticipated to begin as early as October, updates from city meetings and developer reports have pushed the start date further out.
The Dolle's sign has been on the Rehoboth Beach Museum for years, on display to drivers coming into the city over the drawbridge. The sign was removed from the boardwalk building in 2021, with Dolle's opening up next door.
