Southbridge warehouse developers wait on Wilmington zoning board decision

After an over four-hour meeting complete with testimony and exhibits, Wilmington zoning officials must now decide whether to approve a controversial warehouse proposal in the city’s Southbridge neighborhood.

Attorneys for Diamond Port Property LLC brought architectural and building design experts to the Zoning Board of Adjustment meeting Monday to testify to the appropriateness of building a warehouse and residential housing on the nearly 25-acre riverfront site.

The proposed Southbridge warehouse location on over top Wilmington's zoning map along the Christina River. (Photo provided by Diamond Port Property LLC)
The proposed Southbridge warehouse location on over top Wilmington's zoning map along the Christina River. (Photo provided by Diamond Port Property LLC)

The developers seek zoning variances to allow for wholesale storage facility operations at the property encompassing 1, 25 and 51 S. Heald and 0 Lobdell streets, which is located on land across the river from Christina Park near the East Fourth Street bridge.

They are also asking the zoning board to prevent the city’s Planning Department from “refusing to acknowledge the validity of the zoning certification,” according to a letter from the developer’s attorneys to the ZBA on Jan. 31.

The board did not issue a decision Monday, indicating officials needed more time to review the voluminous documentation submitted by attorneys.

BACKGROUND: Why Wilmington continues to oppose warehouse project as it divides Southbridge residents

Why developers want to hold city to zoning certificate

Before the Cirillo Brothers, under Diamond Port Property, purchased the riverfront parcel once the home of Diamond Oil, they sought a “certificate of zoning” to confirm the property could be used as they intended.

The certificate, received in November 2020 before finalizing the purchase, was signed by the city’s zoning administrator and stated the property could be used as: “warehousing, cross docking, bulk storage, trailer parking, (and) product packaging.”

The latest renderings for a warehouse and residential housing proposal by Diamond Port Property, LLC, along the Christina River in Southbridge.
The latest renderings for a warehouse and residential housing proposal by Diamond Port Property, LLC, along the Christina River in Southbridge.

The developers’ attorneys say city planners have continually ignored that document, which Diamond Port relied on for determining whether to purchase the site.

Mayor Mike Purzycki's deputy chief of staff, John Rago, said Tuesday that the zoning certificate was "issued in error."

It is unclear what this means for other records issued during that time period.

Rago provided a response Tuesday after Delaware Online/The News Journal contacted zoning manager Jim DiPinto to understand what he had stated during the zoning board's public meeting Monday.

COMPROMISE: This project added housing to get Wilmington's support. Why it's still not approved

"The employee who issued the certificate is no longer working for the city," Rago added.

The meeting was riddled with technical issues from lacking access to a projector that delayed the meeting 30 minutes to its virtual meeting void of video or adequate audio access to speakers in City Council chambers and those testifying. DiPinto could be heard speaking in the background at the end of the board meeting as city solicitor Robert Goff asked questions about the zoning certificate, but his answers were unclear.

Goff also questioned whether the certificate acts as an assurance or a promise to the buyer that “whatever he or she wants to do with it is going to be in compliance with the code.”

What is the project?

Diamond Port Property purchased the vacant land for $5.5 million in June 2021 from Greg Pettinaro, CEO of Pettinaro Management LLC, and began working with city planners on the warehouse proposal.

They sat down with local representatives, community organizations and leaders to fine-tune the plan so that it worked for Southbridge residents, which culminated in a community benefits agreement with a monetary value of at least $375,000.

While developers initially proposed two warehouses on the nearly 25-acre site, additional conversations with city leaders prompted Diamond Port to nix one warehouse to offer residential housing of which 20% of units would be designated for affordable housing.

The property, once the site of Diamond Oil, has known oil and other compound contaminates from the surface soil to the water table, according to Delaware Online/The News Journal archives.

The unresolved issues prompted the state Department of Natural Resources and Environmental Control to issue a deed restriction in 2005 on the property, prohibiting any residential or mixed-use development on the site.

Community, and city input on the proposal

The Wilmington Planning Commission first denied the project in July 2022, which blindsided both developers and residents who were supportive of the project.

The latest renderings for a warehouse and residential housing proposal by Diamond Port Property, LLC, along the Christina River in Southbridge.
The latest renderings for a warehouse and residential housing proposal by Diamond Port Property, LLC, along the Christina River in Southbridge.

City planners have been steadfast in their opposition, arguing that it doesn’t align with waterfront view standards nor the neighborhood’s long-term vision for the area, and would negatively impact Southbridge residents, as well as future and existing development.

The commission has rejected developers’ plans three times.

RELATED: Why Wilmington continues to oppose warehouse project as it divides Southbridge residents

Some residents continue to oppose the project expressing concern about what types of tenants would occupy the warehouse and questioning whether the Community Benefits Agreement struck will actually help residents.

The recent Zoning Board of Adjustment meeting was the first time the project has been before the public body. The board expects to issue a decision within the next few weeks.

Got a tip? Contact Amanda Fries at afries@delawareonline.com. Follow her on X at @mandy_fries.

This article originally appeared on Delaware News Journal: Wilmington zoning board to weigh in on Southbridge warehouse proposal