Big changes could be coming to the landscape of Sebastian, just north of Vero Beach, as property owners move forward with plans to transform a significant portion of the Chesser’s Gap development into a residential community. For residents of Indian River County keeping an eye on local real estate trends and zoning updates, this proposal represents a major shift from the site’s original intended use.
Located at the intersection of Sebastian Boulevard and South Fleming Street, the Chesser’s Gap Commercial Planned Unit Development (PUD) currently encompasses approximately 58 acres. While the site already features some commercial operations, a large portion of the land remains vacant. Under a conceptual plan that has been in place since 2004, the area was largely designated for commercial growth. However, developers are now seeking to pivot away from retail and office space to address the growing demand for housing.
The new proposal seeks to convert the remaining vacant lots into a townhouse subdivision. This move faces a regulatory hurdle: under the City of Sebastian’s current land development rules, commercial PUDs are generally restricted to dedicating only 25% of their acreage to residential use. The developer’s plan would significantly exceed this cap, requiring specific approval from city officials to amend the 2004 plan.
The proposal essentially aims to split the site, shrinking the commercial footprint to approximately 28 acres while dedicating nearly 30 acres specifically for medium-density residential use.
To make this vision a reality, the applicants have submitted a package of four distinct requests to the city:
- Reduction of the Commercial PUD: Scaling back the designated commercial area from 58 acres to 28.27 acres, requiring an update to the original 2004 conceptual plan.
- Land Use Map Amendment: Changing the Future Land Use Map (FLUM) designation for the vacant parcels from “Commercial General” to “Medium-Density Residential.”
- Rezoning: Officially rezoning the specific parcels from Planned Unit Development-Commercial to Planned Unit Development-Residential.
- New Residential Plan: Approval of a new 29.43-acre residential conceptual PUD specifically designed for the proposed townhouse community.
This comprehensive overhaul is set to be reviewed publicly this week. City planning staff and the developers will present the proposal to the Planning and Zoning Commission on Thursday, February 5, 2026.
The process will be handled step-by-step. The commission is expected to first vote on the request to reduce the size of the existing commercial PUD. If the commission recommends denying this initial request, the subsequent applications regarding the residential subdivision would likely be rendered moot. However, if the reduction is recommended for approval, the commission will proceed to review the land use amendment, rezoning, and the specific site plan for the new townhomes.
For homeowners and investors in Indian River County, this development highlights the continuing trend of repurposing underutilized commercial land for residential housing, a critical topic as the region continues to grow. We will continue to monitor the outcome of the Planning and Zoning Commission hearing.
