At Smith Mountain Lake, large parcels of undeveloped waterfront property are few. Some single lots bear an asking price of half a million dollars, which has led real estate investors to look for opportunities beyond the water's edge.

Jim Fields and Mike Loflin of Smith Mountain Lake Partners plan to develop about 485 acres of such farmland into Sunset Cay, a mixed-use residential and commercial development on Hendrick's Store Road.

The Bedford County Board of Supervisors holds the power to approve or deny SML Partners' rezoning request after a public hearing Monday. If approved, more than 1,500 homes will be permitted in the Moneta development.

This is the second time in a year Sunset Cay has sought new zoning from the Bedford County government. Last year the board of supervisors approved a plan for 132 single-family homes. Developers returned with expanded plans in the spring.

When the county planning commission heard the request in July, commissioners expressed concerns about the impact of the development on the county's schools, emergency services and public utilities. A motion to postpone a decision until SML Partners could meet with those agencies failed.

The commission then voted 6-1 to forward the request to the supervisors for approval with a provision that the developers would approach the school board and the emergency services department. Chairman Fred Fralick, who represents Forest, was the dissenter.

"I think this project is a good project," commission member Lynn Barnes said at the July 16 meeting. "I am concerned about traffic, but it is heartening to know some discussion will happen between now and the next hearing."

After talks with emergency services personnel, the road and traffic plans for Sunset Cay will be engineered to accommodate fire and rescue vehicles, Fields said.

"Because of how the subdivision is marketed, we do not expect it to impact schools," he said.

Sunset Cay is targeted at baby boomers and empty nesters, he said.

According to correspondence from Bedford County schools Superintendent James Blevins, neither Staunton River Middle School nor Staunton River High School can accommodate any additional students. Moneta Elementary School can handle 36 additional students, he said.

Fields estimates the development will draw approximately 3,000 residents. The single-family homes in Sunset Cay will be in the $300,000 price range. A variety of living options will be offered, including single-family dwellings, multifamily dwellings, town houses, condominiums and cottages.

The residential units in Sunset Cay will be clustered closely together. More than 240 acres of the development will be preserved as open space, in the form of an 18-hole golf course, parks and greenways.

The 21 parcels requested to be rezoned are for a combination of low-density residential, medium-density residential and general commercial uses. The current zoning allows for more than 2,500 homes to be built.

Sunset Cay will be served by the county's public utilities, making it possible to accommodate 190,000 square feet of commercial development.

SML Partners bought Campers Paradise on Virginia 122, north of Hales Ford Bridge. The developers closed the restaurant, renovated the space and opened a new restaurant, Harrison's at Sunset Cay. Next month, the campground will close and 285 condominiums will be built on the land.

The marina and boat ramp will remain open to give homeowners in Sunset Cay access to the lake.