This prime Lewes property near the beach is finally set to be developed after legal battle
The co-owner of arguably one of the most prime pieces of real estate in Lewes, a vacant corner lot one block from the beach, has closed another chapter in his efforts to develop it.
Rick Quill purchased the lot at Savannah Road and Cape Henlopen Drive, across from the Dairy Queen, with partners Joe and Karla Johnson in 2016, he said. Since then, he’s cycled through several failed development concepts.
A few years ago, Quill began talks to develop the property with Wilmington development group Apennine Acquisitions and, in 2022, the Lewes City Council approved his plan to build condominiums. Shortly thereafter, however, Apennine filed a lawsuit against him over their failed partnership.
In April, a Chancery Court master issued a final report in Quill's favor, and after learning last week Apennine will not challenge it, Quill said he will continue with plans to build 11 luxury townhouses at 203 E. Savannah Road.
Quill also planned to build condominiums at 209 E. Savannah Road, the former site of 2 Dips Ice Cream. The lawsuit, however, prevented him from purchasing that property, he said.
The last seven years
Quill is a loquacious 68-year-old with a baffling Boston accent (he grew up in Wilmington). He also owns the nearby Blue Water House Bed and Breakfast. He's affable enough, though some Lewes City Council members and state agency employees may not agree. He's expressed his displeasure with them publicly multiple times and once ran for City Council.
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Quill has attempted to build numerous concepts on the 203 E. Savannah Road property.
First, he had a local restauranteur on board for a mixed commercial/residential project, but that idea “died on the vine,” he said.
"I didn't account for all the other restaurants in town. In the wintertime, ... people don't come down this way all that much," he said. "And a restaurant with condos above it, if it didn't make it and they closed up shop, then you'd have a vacant building."
Next, Quill was able to get the property rezoned to build five single-family homes. The city actually approved the project, but Quill said he dropped the idea because the Delaware Department of Transportation wouldn't allow him to create entrances on Savannah Road or Cape Henlopen Drive, causing the cost to go up.
"They threw the kitchen sink at me," he said.
In early 2022, when Quill had the opportunity to purchase the 2 Dips property, he came up with a new plan. He proposed 12 residential units with a commercial-use ground floor on both the 203 and 209 E. Savannah Road properties, and the Lewes City Council approved the plan.
Despite the approval, a few months later, he offered to sell the 203 property to the city. He expected them to use it for much-needed parking, but the City Council declined to purchase it, much to his chagrin.
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The lawsuit
In November 2021, Quill was introduced to Apennine Acquisitions representatives by real estate broker Joseph Latina, Chancery Court Master Selena Molina wrote in her final report.
Apennine Acquisitions is owned by the same group that owns Apennine Development, according to Joseph Calabro, who is listed in Chancery Court documents as representing Apennine Acquisitions. Apennine Development is owned by partners Michael Stortini, Michael Scali and Calabro, according to the company website.
Quill, Latina and Apennine “orally agreed to form a joint venture” to develop the 203 E. Savannah Road property, according to the report. They planned to buy out the Johnsons first, but never executed an agreement, Molina wrote. Scali also sent an email to Quill and Latina outlining an agreement for the development of the property, but that agreement was never drafted, according to Molina.
After the email was sent, Apennine approved a site engineer, reviewed development plans and conducted other activities as if an agreement had been made, court documents say. When the company discovered, in May 2022, Quill was negotiating with another prospective buyer, they filed the lawsuit.
However, in April, Molina determined Apennine did not have an enforceable contractual obligation, and Quill said he received an email last week confirming Apennine would not be pursuing the matter further.
What’s next
This summer, Quill opted to bring food trucks to 203 E. Savannah Road, and they’ve been a huge hit. Yet, the fees he charges the food truck owners don’t even approach the mortgage payment, he said.
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He hopes to have all necessary state approvals to build the townhomes within the year and expects construction will prevent the food trucks from returning next year. While Quill initially planned for a dozen townhomes, he said he downsized to 11 after consulting a contractor.
Still, he’s open to selling the property for “the right price,” he said.
As for the 2 Dips property, when owner Donald Wagner died in 2019, the property passed to his brother, Carl Wagner, according to county land records. A "for sale" sign is posted on the property, but Carl Wagner did not return phone calls.
Shannon Marvel McNaught reports on Sussex County and beyond. Reach her at smcnaught@gannett.com or on Twitter @MarvelMcNaught
This article originally appeared on Delaware News Journal: Lawsuit that delayed prime Lewes property's development ends
