Lighthouse restaurant in Dewey Beach to be demolished and replaced, developers announce

The 40-year-old Lighthouse restaurant in Dewey Beach will be coming down after all.

Instead of remodeling the bayside restaurant known for its Friday "Taco Toss" happy hour, the eatery will be demolished starting this month and replaced, the Lighthouse Cove Development Co. announced Friday.

The iconic lighthouse that towers over Lighthouse Cove complex will remain.

The new restaurant with a "casual coastal-inspired interior" is expected to open in 2020, developers say.

It will retain its original name and "Taco Toss" will return, says Ryan Kennedy, director of marketing for developers Harvey, Hanna & Associates Inc.

The decision to demolish and rebuild came after "extensive engineering and marketing studies," officials say.

The new restaurant will have an updated kitchen, along with expanded seating, new bathrooms and an expanded deck. It will be built on the restaurant's existing footprint.

The new eatery will complement the dining and entertainment destinations in the Dewey Beach area, said Harvey, Hanna & Associates President Thomas J. Hanna in a statement.

The construction at The Lighthouse is part of a multiyear, multimillion-dollar development effort that brought Delaware's first Hyatt Place to the location in 2013.

The old Baycenter was demolished and will be replaced with Lighthouse Cove Event Center with a 4,800-square-foot ballroom for events such as weddings, conferences and more.

Lighthouse Cove also includes The Residences at Lighthouse Cove made up of 83 bayfront condominiums with a rooftop pool, private balconies and other luxury features.

Formerly part of Ruddertowne, developers first proposed the massive redevelopment project in 2007, but butted heads with the town over the building’s proposed 68-foot height, nearly double Dewey Beach’s 35-foot limit.

They filed several lawsuits against the town before the two sides signed a mutual agreement in 2011 — an agreement that a few Dewey property owners filed a legal challenge against, claiming the deal should be invalidated.

The Delaware Supreme Court tossed that suit in mid-2013, ruling the appellants filed their challenge too late.

Contact Ryan Cormier of The News Journal at rcormier@delawareonline.com or (302) 324-2863. Follow him on Facebook (@ryancormier), Twitter (@ryancormier) and Instagram (@ryancormier).