By Philip Rucker
Washington Post Staff Writer
Sunday, July 15, 2007

A controversial plan to build luxury condominiums, a hotel and retail shops in Dewey Beach, Del., advanced early yesterday when the Town Council voted 3 to 2 to send the proposal to the planning commission.

The development would nearly double the town's building height limit of 35 feet and would require the town to change its zoning laws. A separate measure to hold a public referendum on zoning changes allowing buildings taller than the height limit did not pass.

The redevelopment plan has engrossed the beach resort. The council meeting lasted nearly until 1 a.m. and included vigorous debate among the developer, residents and land-use attorneys.

Mayor Dell Tush, who voted against advancing the proposal, said she fears the town is being pushed to support the plan.

"Once the issue is sent to Planning and Zoning, they expect to approve the plan quickly," Tush said in an interview. "These are things that will change Dewey Beach in a big way."

The developer, Harvey, Hanna and Associates, says the $40 million project could be a tourist attraction that would help Dewey emerge from the shadow of the more bustling Rehoboth Beach, Del., and Ocean City.