By Glenn Rolfe

GEORGETOWN — While there is no definite timeline, a multistory, former cold-storage structure — vacant for decades — could become home to workforce housing and commercial ventures.

That’s the hope of DE OZ Property Management, an investment group now armed with conditional use approval from Town Council, which passed it 5-0 Monday.

“Moving forward with that project — I think it is a great thing for Georgetown,” said Mayor Bill West.

The approval includes a series of conditions, like exterior composition, lighting and fencing requirements. Additionally, outdoor patios, rooftop spaces, solar panels and stormwater facilities would be permitted.

The developer’s next step is the presentation of its proposal to the town’s Planning Commission.

Banking on potential subsidies and tax credits, the group sought approval to allow a mixed-use building at 107 Depot St., with a commercial tenant in the basement and first floor, and 25 apartments on the upper floors. But the town’s current urban business district zoning specifies no more than three housing units above commercial space.

A public hearing on the conditional use request was held at the March 25 Town Council meeting.

There, Daniel Bond, representing DE OZ, said the group is seeking Downtown Development District reimbursement and state and federal historic and renewable energy tax credits. With plans to incorporate solar and geothermal, there could also be energy efficiency subsidies, he said.

Remaining obstacles include securing ample parking, as well as permission from various town and state entities on final site plans.

For the commercial component, the developer is working with La Plaza, a local nonprofit that assists businesses.

The $15 million project has an emphasis on workforce housing, Mr. Bond said, estimating that the monthly rental rates could be about $1,400 for one bedroom, $1,600 for two bedrooms and $1,800-$2,000 for a three-bedroom apartment.

This proposal has received support from the Sussex Economic Development Action Committee, Sussex County’s Community Development and Historical Preservation divisions, the Greater Georgetown Chamber of Commerce, Sussex County Habitat for Humanity, La Esperanza, Southern Delaware Tourism and several others.

Also Monday, there was a first reading of a potential modification to the chapter on urban business district zoning in the town’s code. If approved with a second reading and adoption, the “no more than three apartments” wording would be eliminated.

Town manager Eugene Dvornick explained, “This would allow for a multifamily dwelling as part of a building utilized for nonresidential use, permitted under this article.”