DAGSBORO, Del.- Dagsboro councilmembers postponed a vote on updated development fees and policies Monday night, keeping a development moratorium in place for now.
The decision came after the town received more feedback Monday night, including strong objections from Morse Holdings CEO Tom Morse.
Morse said the proposed fee changes — which he described as a 150% increase — would hurt longtime local builders.
“You’ve let the town grow for years, and now you suddenly want to mirror what Lewes is doing?” he said. “You need to think about this some more. This is seriously going to impact those of us who have been doing this for years. You’re killing us.”
On Oct. 20 town officials extended a moratorium on new development for up to 180 additional days as they work to update outdated regulations.
The extension gives the town council more time to revise building permit fees, impact fees, license fees and the town charter.
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 percent 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.