A 17-acre parcel on Route 16 in Milton has been sold, clearing the way for plans to develop the site into a mixed-use venture with rental housing and commercial businesses.

The land, located across Route 16 from Po’ Boys Creole Restaurant, was purchased by a group headed by Rehoboth Beach-based restaurateur Eric Sugrue and realtor Preston Schell.

No plans for development have been submitted to the town at this time, said Town Manager Kristy Rogers.

Now farmland, the site starts directly across from Po’ Boys and goes back toward Milton Little League fields, abutting Country Road.

The project first came to public attention in May, when Sugrue appeared before the Milton planning and zoning committee for a concept review to get the committee’s input on whether this was a workable plan before Sugrue and his partners closed on the land. The committee was enthusiastic about the idea, although it had questions on the layout and design of the proposed housing.

Several steps are necessary before construction can begin.

First, the rear half of the property, closest to the Milton Little League fields, is within Sussex County, zoned AR-1, agricultural residential.The front half of the property, the portion closest to Route 16, is within Milton, zoned C-1, commercial.

If the county land is annexed, plans would have to be reviewed by planning and zoning and approved by town council before moving forward.

Sugrue said the idea is for most of the land to be used for affordable residential rental housing, primarily condominium and apartment units. The front half of the property, already zoned commercial, will contain six pad sites that will be used for small-scale commercial ventures, such as a bank or retail stores, Sugrue said. He added that there is no intention to have big, high-volume tenants such as Walmart or Wawa. The venture will do business as Milton Attainable Housing LLC.

Sugrue said plans are in progress but have not been submitted to the town. He said he anticipates the approval process to take 12 to 24 months before construction begins.