GEORGETOWN, Del. - The nonprofit behind a proposed 122-unit affordable cottage community is suing Georgetown, alleging the town unlawfully halted review of new cottage-housing applications while considering whether to repeal the rules allowing them.
The Springboard Collaborative and Springboard Communities, LLC filed the lawsuit Sept. 11 in Delaware’s Court of Chancery asking a judge to invalidate two Town Council actions and order Georgetown to process their preliminary development application.
The town denies wrongdoing, arguing the suspension was a temporary administrative measure and that Springboard had not submitted a preliminary application when the pause took effect.
According to the complaint, Springboard plans to build and manage rental cottages on approximately 14 acres in Georgetown for individuals and families unable to afford more traditional housing.
Springboard representatives met with town officials Jan. 6 to discuss the project. The organization says that meeting began the town’s development-review process and that it subsequently worked on engineering and plans needed for town and state review.
On July 13, the Town Council voted to suspend review of new cottage-housing applications pending potential zoning changes. On Aug. 10, the council voted 3–1 to refer a proposed repeal of the cottage-housing provisions to the Planning Commission.
Springboard alleges the town failed to adequately notify the public that votes could occur because the meeting agendas described the cottage-housing items as discussions. It also argues the suspension effectively changed the zoning code without the written measures, public notice and other procedures required by town and state law.
The organization submitted its preliminary plan Sept. 11, according to the complaint.
In its Oct. 12 answer, Georgetown disputes that the January meeting formally began the application process, describing it as an informal discussion of a potential project. The town says no preliminary site-plan application was pending when the council suspended review in July.
Georgetown also denies that the agendas were inadequate and says Springboard representatives attended the meetings. It argues that temporarily suspending application review did not itself amend the zoning code.
The town further disputes Springboard’s assertion that no written repeal proposal existed when the lawsuit was filed. According to its answer, draft Ordinance 2026-06 was publicly available beginning Aug. 17, and notice was provided for a September Planning Commission hearing.
Georgetown says it acknowledged receiving Springboard’s application materials in a Sept. 24 letter but advised that processing remained suspended. The town said it would revisit the application’s status after the pending repeal ordinance was resolved.
The town also challenges the plaintiffs’ legal standing. It says Springboard Communities, LLC was formed Sept. 4 and acquired the property Sept. 9, after both council votes. Georgetown argues the claims are premature because the application had not been formally denied and the repeal ordinance had not received final council action.
Springboard is seeking an order requiring the town to accept and process its preliminary application, rather than final approval to build the community.
