An investor named Raymond owns a parcel within Delaware's designated coastal zone that was previously used as a light industrial storage facility — a use that pre-dates the Delaware Coastal Zone Act. Raymond now wants to convert the site into a heavy petroleum bulk transfer terminal. His agent, Sandra, correctly advises him about the Coastal Zone Act implications. Which of the following best describes the regulatory outcome Raymond should expect?
Correct Answer
B) Raymond's conversion to a petroleum bulk transfer terminal would constitute a new prohibited heavy industrial use under the Coastal Zone Act, and the pre-existing non-conforming status of the site does not automatically authorize an upgrade to a more intensive prohibited use
Under the Delaware Coastal Zone Act, 7 Del. C. § 7001 et seq., new heavy industrial uses — including bulk product transfer facilities such as petroleum terminals — are prohibited within the coastal zone. A critical nuance tested at the expert level is that while pre-existing non-conforming uses may retain some protected status, a property owner cannot use a pre-existing non-conforming use as a basis to convert or upgrade to a new, more intensive prohibited use. Raymond's light industrial storage facility does not grant him the right to establish a petroleum bulk transfer terminal, which is a categorically prohibited heavy industrial use under the Act. Sandra is correct to advise that the conversion would face prohibition, not merely conditional approval.
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