Developer Appeals Cape Charles Zoning Ruling

North Beach Associates challenges town’s determination on multifamily housing project amid structural violations

CAPE CHARLES, Va. — A property development company has filed an appeal with Cape Charles’s Board of Zoning Appeals, challenging the town’s interpretation of zoning regulations that could affect a planned 28-unit residential project on Washington Avenue.

North Beach Associates LLC, represented by the law firm Wolcott Rivers Gates, is contesting a zoning determination made by Planning Director Katie H. Nunez regarding properties at 201-209 Washington Avenue. The dispute centers on whether the company’s multifamily residential use of the buildings remains legally nonconforming under current zoning laws.

The properties, which contain five buildings constructed in 1983 as a USDA-financed housing project, have been plagued by structural issues. The town issued a Notice of Violation in February 2024 citing serious safety concerns, including foundation problems and floor settling that forced tenant evacuations from two buildings.

The case involves overlapping deadlines and zoning interpretations. After the February violation notice, the town initially gave property owners until February 2025 to complete repairs. The deadline was later extended to August 27, 2025, when North Beach Associates purchased the property and applied for building permits.

However, the zoning administrator has now imposed a separate two-year deadline, stating that if residential rental use doesn’t resume by July 31, 2026, the buildings will lose their legal nonconforming status under the town’s R-3 zoning district.

North Beach Associates argues this interpretation is flawed, contending that temporary vacancy doesn’t constitute abandonment of the property’s multifamily use. The company points to a 1998 Virginia Circuit Court case, Montgomery v. Zoning Appeals Board, which found that brief periods of non-occupancy don’t automatically terminate nonconforming use rights.

The legal picture became more complex in April 2025 when the town rezoned the property from R-1 to R-3 (multifamily), which should have made the existing use conforming rather than nonconforming. The zoning determination acknowledges this change but maintains that other aspects of the development may still not conform to current regulations.

Christopher Pocta, the attorney representing North Beach Associates, argues that the zoning administrator’s decision contains multiple errors and provides insufficient guidance on how the property owner can remedy alleged nonconformities.

Beyond the immediate zoning dispute, North Beach Associates has entered into a purchase agreement with Beacon Custom Homes LLC for a significant redevelopment project. The buyer plans to renovate the existing buildings and convert them into an enhanced 28-unit condominium project.

However, the company estimates the full renovation will take 24-36 months to complete, potentially conflicting with the July 2026 deadline for resuming residential use.

The appeal, filed September 5, requests that the Board of Zoning Appeals overturn the zoning administrator’s determination. A hearing date has not yet been announced.

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Wayne Creed

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