Why Rehoboth, after 48 years, will turn management of Deauville Beach over to the state

After 48 years, Rehoboth Beach will turn management of Deauville Beach over to the Delaware Department of Natural Resources and Environmental Control.

The city has long leased the beach from the state for $1 per year, but this year, for the first time, the state asked for a percentage of the parking fees. Rehoboth commissioners balked and, last week, the department announced it would assume management of Deauville.

The city won’t share profit from Deauville with the state because there is no profit, according to Mayor Stan Mills. Its operation, including its lifeguards, concessions and tennis courts, amounts to a net loss of about $30,000 annually, interim City Manager Evan Miller said.

When asked why the department sought to change the lease, spokesperson Nikki Lavoie said they “could not justify leasing 22 acres of oceanfront property to any municipality for free.”

Purple shading shows the location of Deauville Beach, north of Rehoboth Beach and south of North Shores and Cape Henlopen State Park.

Starting this year, Deauville Beach will be managed as part of Cape Henlopen State Park, a department news release said. Delaware State Parks entry fees are in effect between March 1 and Nov. 30, and lifeguarding services will be provided at Deauville between May 25 and Sept. 2.

“The city would like to have continued in a management role. We are disappointed in the outcome, but it was not to be without imposing significant additional costs on us,” Rehoboth Mayor Stan Mills said at a Feb. 16 meeting.

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Lease negotiations began in March 2023, Lavoie said. Originally, the department requested 15% of parking fee revenue but eventually lowered that number to 10%, which would have been about $12,000 a year based on 2022 revenues, Lavoie said. In addition, they offered Rehoboth a $15,000 credit for city-made improvements at the site.

The new lease was “down to a few minor edits,” Lavoie said via email when the department learned “through the press” that Rehoboth officials didn’t want to “compensate” them.

Shannon Marvel McNaught reports on southern Delaware and beyond. Reach her at [email protected] or on Twitter @MarvelMcNaught.

This article originally appeared on Delaware News Journal: Why Rehoboth, after 48 years, will turn management of Deauville Beach over to the state