downtown development district s...

After decades of losing residents who moved out to the suburbs, Delaware’s cities and towns have

been working hard to reestablish

thrive. However, poor building conditions, socioeconomic challenges, crime and perception of

safety have made redevelopment a daunting task for both communities and potential investors.

Fortunatel

traditional commercial corridors, compact walkable neighborhoods, parks, and architecturally

beautiful buildings. With strong coordinated effort to

new private

communities

In April of 2014 the General Assembly passed Senate Bill 191, the Downtown Development

Act of 2014 (the Act), which was subsequently signed by Governor Markell on June 5, 2014.

Act created the Downtown Development Districts program

“Central Business District” in selected city, town, and county areas through the use of economic and

other incentives.

• Spur private capital investments in commercial business districts and

• Stimulate job growth and improve the commercial vitality of districts and neighborhoods;

• Help build a stable community of long

• Assist municipalities in strengthening neighborhoods

vibrant downtowns hold for talented people, innovative small businesses, and residents from

all walks of life.

Local governments can take advantage of this program by identifying a

as being des

revitalization of the area

designation as a Downtown Development District

State Planning Coordination

State Planning Issues according to

the quality of the district plan

makes recommendations to the Governor who makes the final designation.

An initial applicatio

applications were recei

Castle County, Newark, Seaford, Smyrna, and Wilmington.





Fortunately, these same areas have desirable assets, such as designated historic districts,


eautiful buildings. With strong coordinated effort to

new private investment

communities.

DOWNTOWN DEVELOPMENT DISTRICT





other incentives. The purposes of the Act are to:

Spur private capital investments in commercial business districts and

Stimulate job growth and improve the commercial vitality of districts and neighborhoods;

Help build a stable community of long

Assist municipalities in strengthening neighborhoods


all walks of life.


as being desirable for revitalization

revitalization of the area


State Planning Coordination


the quality of the district plan


An initial application round for designation as a D

applications were recei



2015 Annual Report

DDD Grant





y, these same areas have desirable assets, such as designated historic districts,



investment and market opportunities






The purposes of the Act are to:



Help build a stable community of long




irable for revitalization

revitalization of the area in accordance with the goals of the Act


State Planning Coordination. The applications are


the quality of the district plan (30%) and the local incentives (20%).


n round for designation as a D

applications were received from nine local governments: Clayton, Dover, Middletown, Milford, New



Annual Report

DDD Grant Program

INTRODUCTION


been working hard to reestablish their downtowns as places where people can live, work, and






and market opportunities









Help build a stable community of long-term residents by improving housing opportunities; and,




irable for revitalization and then developing a

in accordance with the goals of the Act


. The applications are

State Planning Issues according to three criteria, as specified in the Act: the need and impact (50%),

(30%) and the local incentives (20%).


n round for designation as a D

ved from nine local governments: Clayton, Dover, Middletown, Milford, New


1


Annual Report

Program

INTRODUCTION


their downtowns as places where people can live, work, and





eautiful buildings. With strong coordinated effort to overcom

and market opportunities can be shifted back to the heart of Delaware’s









term residents by improving housing opportunities; and,

Assist municipalities in strengthening neighborhoods while harnessing the attraction that



developing a

in accordance with the goals of the Act

designation as a Downtown Development District (DDD or District

. The applications are then evaluated

three criteria, as specified in the Act: the need and impact (50%),

(30%) and the local incentives (20%).


n round for designation as a DDD was held in the fall of 2014. Completed




INTRODUCTION







overcome these

can be shifted back to the heart of Delaware’s

DOWNTOWN DEVELOPMENT DISTRICT PROGRAM



Act created the Downtown Development Districts program which seeks to revitalize the downtown





while harnessing the attraction that



developing a district plan and incentives to support

in accordance with the goals of the Act. The application process for

or District) is fac

evaluated by the Cabinet Committee on


(30%) and the local incentives (20%). The Cabinet Committee then


D was held in the fall of 2014. Completed









barriers to develop


PROGRAM OVERVIEW



seeks to revitalize the downtown


Spur private capital investments in commercial business districts and other neighborhoods;





Local governments can take advantage of this program by identifying an area in their

lan and incentives to support

The application process for

facilitated by the Office of

by the Cabinet Committee on


The Cabinet Committee then




DOWNTOWN DEVELOPMENT DISTRICTS (DDD)







development,


OVERVIEW

In April of 2014 the General Assembly passed Senate Bill 191, the Downtown Development Districts

Act of 2014 (the Act), which was subsequently signed by Governor Markell on June 5, 2014. This



other neighborhoods;





n area in their downtown


The application process for

ilitated by the Office of






(DDD)





ment,


Districts

This



other neighborhoods;



owntowns


ilitated by the Office of





While many of the applications were very good, the high level of need demonstrated by three

municipalities distinguished thei

In January 2015, Governor Markell announced the first three DDDs: Dover, Seaford, and

Wilmington. Additional Districts can

Districts is limited to 15 at any one time.

can consider up to two five

Selection as a DDD entitles

residential, and mixed

and local incentives as well as a host of other benefits

• Downtown Development District Grant (DDD Grant

percent

Authority.

• Historic Preservation Tax Credits

allocation of Historic Preservation Tax Credits to be reserved for projects within a District.

• Municipal Incentives:

District within its jurisdiction and to the identified projects in the District Plan. Examples of

municipal incentives include, but are not limited to:

� reduction or waiver in fees or taxes

� permit process reform

� spec

� façade improvement grants

The DDD Grant Program award

Qualified Real Property Investments (QRPI) within the boundaries of a designated District and in

conformance with the District Plan.

expansion

or mixed

To qualify for a DDD

(MQIT) of

Investors making QRPIs are entitled to a D

excess of the MQIT up to $500,000 per building or facility. D

calculated at a lower

The DDD

period starting with the year in which a grant is first awarded or reserved.

PROGRAM DESIGN

Delaware was fortunate to have the highly successful Virginia

Enterprise Zon

DDD program for Delaware.

outreach to various stakeholde

considerations for De


municipalities distinguished thei


ngton. Additional Districts can


can consider up to two five

Selection as a DDD entitles

residential, and mixed


Downtown Development District Grant (DDD Grant

percent grant of capital construction costs and is administered by the Delaware S

Authority.

Historic Preservation Tax Credits


Municipal Incentives:



reduction or waiver in fees or taxes

permit process reform

special zoning districts or exemptions from local ordinances

façade improvement grants

he DDD Grant Program award



expansion, or new construction

mixed-use buildings or facilities

To qualify for a DDD Grant, an Investor must

(MQIT) of $15,000 or



calculated at a lower rate up to an additional

Grant is limited to $1,000,000 per building or facility within a five


PROGRAM DESIGN


Enterprise Zone program as a starting point when structuring the

DDD program for Delaware.

outreach to various stakeholde

considerations for De


municipalities distinguished their applications.


ngton. Additional Districts can


can consider up to two five-year extensions.

Selection as a DDD entitles businesses and investors who invest in commercial, industrial,

residential, and mixed-used buildings or facilities located



capital construction costs and is administered by the Delaware S

Historic Preservation Tax Credits


Municipal Incentives: Each municipality implement




permit process reform

ial zoning districts or exemptions from local ordinances


he DDD Grant Program awards grants to Qualified District Investors (Investors) who make



new construction

ildings or facilities

Grant, an Investor must

$15,000 or $25,000, depending on size of investment



rate up to an additional




e program as a starting point when structuring the

DDD program for Delaware. From there, DSHA con

outreach to various stakeholder groups to

considerations for Delaware’s program


r applications.


ngton. Additional Districts can be designated in future program years.

Districts is limited to 15 at any one time. District

year extensions.

businesses and investors who invest in commercial, industrial,

used buildings or facilities located




Historic Preservation Tax Credits: The Act allocates 30 percent of the State’s yearly


Each municipality implement






DDD GRANT SUMMARY

grants to Qualified District Investors (Investors) who make


conformance with the District Plan. The investment

new construction of commercia

ildings or facilities.

Grant, an Investor must first

, depending on size of investment

Investors making QRPIs are entitled to a DDD


rate up to an additional $500,000 for a maximum DDD





From there, DSHA con

r groups to identify important

program. The following

2


r applications.


be designated in future program years.

District designations last for 10 years, and the Committee


used buildings or facilities located within d

and local incentives as well as a host of other benefits.



: The Act allocates 30 percent of the State’s yearly


Each municipality implements




DDD GRANT SUMMARY



The investment must be

commercial, industrial

first meet a Minimum Qualified Investment Threshold

, depending on size of investment

Grant in an amount of 20 percent of the QRPI in


$500,000 for a maximum DDD





From there, DSHA conducted extensive

identify important

The following is a summary



be designated in future program years.

designations last for 10 years, and the Committee


within designated DDD

Downtown Development District Grant (DDD Grant): The DDD Grant




s incentives specific to the designated



DDD GRANT SUMMARY



be necessary for the

industrial, residential

meet a Minimum Qualified Investment Threshold

, depending on size of investment.


excess of the MQIT up to $500,000 per building or facility. DDD Grants in excess of $500,000 are

$500,000 for a maximum DDD





ducted extensive

identify important

is a summary:



be designated in future program years. The number of



esignated DDDs access

): The DDD Grant provides




incentives specific to the designated




necessary for the rehabilitation

residential (including multi



ts in excess of $500,000 are

$500,000 for a maximum DDD Grant of $1,000,000.

Grant is limited to $1,000,000 per building or facility within a five-consecutive


A key component of the

DDD Grant program is

funds are awarded only

after successful project

completion



The number of



s access to state

provides up to a 20

capital construction costs and is administered by the Delaware State Housing







rehabilitation,

(including multi-family),




Grant of $1,000,000.

consecutive-year




successful project

completion.


to state

20

tate Housing




,

family),



Grant of $1,000,000.




successful project

• Concern abou

• A variety of diverse projects are needed to reinvigorate distressed areas.

• Small investors

investors.

• Provide

• Ensure that investors in all DDDs have reasonable access to

• Provide incentives to projects that best meet local and state priorities.

As a result, the following components were

projects throughout the State and ensure State funds are used effectively and efficiently.

Reservation Process

A Reservation process was created to give Investors assurance that their project will be

once complete.

and a Lite

Flexibility and

Great effort was taken to incorporate flexibility in regard to eligibility of projects and applicants.

However

• The project

• The project

• The QRPI

• The Investor must demonstrate site control.

Small and Large Project Set

To ensure a variety of project

Small Project Set

• This set

with the complexities of larger scale projects.

receive from the Sm

on a capped QRPI (minus the MQIT

associated with a building or facility. Small Project

long as funding is available.

Large Project Set

• The maximum

$1,000,000 per building or facility.

for a DDD Grant

once per y

District Pool:

funding,

Pool. District allocations are based on the population of each District.

oncern about proceeding in hard

A variety of diverse projects are needed to reinvigorate distressed areas.

mall investors may not access the program if it is too complex

investors.

Provide flexibility and ease of use

Ensure that investors in all DDDs have reasonable access to

Provide incentives to projects that best meet local and state priorities.



Reservation Process


once complete. A Reservation is required for Investors applying for the Large Project Set

and a Lite-Reservation is an option for Investors accessing the Small Project Set

Flexibility and Threshold Requirements


However, there are four threshold requirements that must be met:

project must be made within the boundaries of a designated DDD.

The project must be

The QRPI must be in

The Investor must demonstrate site control.

Small and Large Project Set

To ensure a variety of project

Small Project Set-Aside

This set-aside is intended for Investors who may only use the program once, or are not familiar


receive from the Sm




Project Set-Aside

The maximum DDD


for a DDD Grant from this

ce per year; however, DSHA can offer additional application rounds.

District Pool:

funding, the Large Project Set


t proceeding in hard


may not access the program if it is too complex

flexibility and ease of use





Reservation Process


A Reservation is required for Investors applying for the Large Project Set

Reservation is an option for Investors accessing the Small Project Set

Threshold Requirements


here are four threshold requirements that must be met:

must be made within the boundaries of a designated DDD.

must be in conformance with the District Plan.

must be in excess of the required


Small and Large Project Set-Asides

To ensure a variety of projects, DSHA establishe

Aside

aside is intended for Investors who may only use the program once, or are not familiar


receive from the Small Project Set




Aside

DDD Grant award an


from this set-

owever, DSHA can offer additional application rounds.

To ensure that Investors from

the Large Project Set


t proceeding in hard-to-develop areas without assurance



flexibility and ease of use to the greatest extent possible



As a result, the following components were incorporated into the program to su





Threshold Requirements




in conformance with the District Plan.

of the required


Asides

DSHA establishe



all Project Set-Aside is

on a capped QRPI (minus the MQIT of $15,000


Grant award an Investor

$1,000,000 per building or facility. An Investor must apply for a Reservation

-aside. Applications for Large Project Reservations are accepted


hat Investors from

the Large Project Set-Aside is further divided into a General Pool and a District


3

develop areas without assurance



to the greatest extent possible



incorporated into the program to su









of the required MQIT ($15,000 for Small; $25,000 for Large)


DSHA established two funding set


with the complexities of larger scale projects. The maximum DDD Grant award an

Aside is $50,000 per building or facility. This award is based

of $15,000) of $250,000 regardless of the actual QRPI

associated with a building or facility. Small Project Investors can apply throughout the year,

nvestor can receive from the Large Project Set

An Investor must apply for a Reservation

Applications for Large Project Reservations are accepted


hat Investors from all Districts have reasonable access to DDD

Aside is further divided into a General Pool and a District


develop areas without assurance


may not access the program if it is too complex or if compet

to the greatest extent possible.

Ensure that investors in all DDDs have reasonable access to funds.


incorporated into the program to su









MQIT ($15,000 for Small; $25,000 for Large)

d two funding set-asides for D


The maximum DDD Grant award an

$50,000 per building or facility. This award is based

) of $250,000 regardless of the actual QRPI

Investors can apply throughout the year,

receive from the Large Project Set

An Investor must apply for a Reservation



all Districts have reasonable access to DDD



develop areas without assurance of funds


or if competing


incorporated into the program to support a variety of




Reservation is an option for Investors accessing the Small Project Set-Aside.



MQIT ($15,000 for Small; $25,000 for Large)

asides for DDD Grant awards.


The maximum DDD Grant award an




receive from the Large Project Set

An Investor must apply for a Reservation to






s.

ing with large

pport a variety of


A Reservation process was created to give Investors assurance that their project will be funded

A Reservation is required for Investors applying for the Large Project Set-Aside

Aside.


MQIT ($15,000 for Small; $25,000 for Large).

Grant awards.


The maximum DDD Grant award an Investor can




receive from the Large Project Set-Aside is

to be considered




pport a variety of

funded

Aside


Grant awards.


Investor can


Investors can apply throughout the year, as

Aside is

be considered


Priority Consideration

In cases where Reservation requests

highest quality projects would receive a DDD Grant. This is done by giving projects priority

consideration when they meet additional state and local community

were developed in collaboration with local governments with DDDs.

• Identified as a Priority Project in District Plan

• Readiness to proceed

• Creates permanent jobs

• Provides mixed

• Expands housing opportunities

• Protects historic resources

• Actively reuses existing structures

• Promotes sustainable practices.

iority Consideration





Identified as a Priority Project in District Plan

Readiness to proceed

Creates permanent jobs

Provides mixed-use development

Expands housing opportunities

ects historic resources

Actively reuses existing structures

Promotes sustainable practices.

The historic Priscilla Block building, at a key intersection in downtown Dover,

received a Large Grant Reservation that will result in mixed

office space, retail, restaurant, and apartments.

iority Consideration






Readiness to proceed

Creates permanent jobs

use development


ects historic resources






In cases where Reservation requests exceed the funding available,





use development







4

the funding available,








the funding available, DSHA


consideration when they meet additional state and local community objectives.





DSHA wanted to ensure that the


objectives. These priorities


received a Large Grant Reservation that will result in mixed-use commercial

wanted to ensure that the


These priorities


use commercial

wanted to ensure that the

These priorities

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dover Seaford Wilmington Total

Other Investments $985,822 $10,742,235 $97,107,374 $108,835,431

DDD Funds $164,068 $671,000 $4,806,137 $5,641,205

Private Investment Leverage

% o

f T

ota

l D

ev

elo

pm

en

t C

ost

s

(TD

C)

FISCAL YEAR 2015

When the DDD Act was enacted, the initial allocation was $7 million to fund and administer the

DDD Grant program. These funds were divided into the following categories:

TOTAL ALLOCATION: $7,000,000

Administration* $350,000

SMALL Project Set-Aside $1,000,000

LARGE Project Set-Aside $5,650,000

* Represents 5 percent to DSHA for administration.

LARGE PROJECTS SET-ASIDE

In April, the recipients of the inaugural round of DDD Grants were announced for Large Projects. A

total of 13 projects in the three DDDs were selected to receive $5.6 million. While the intent of the

DDD program is to leverage private investment, the demand for the funds and extent to which

private investment is leveraged through this program is impressive. Sixteen applications were

received requesting nearly $8 million in funding. In addition, this initial $5.6 reservation will

leverage more than $114 million dollars – in other words for every state DDD dollar invested, it is

anticipated to be met with $20 in private investment.

Total Development Costs $1,149,890 $11,413,235 $101,913,511 $114,476,636

The District Pool ensures that each District has fair access to grant funds. From the applications

received in the first round, the majority of funds were awarded to projects located in Wilmington.

Those funds will leverage over $101 million dollars.

The projects that received a Reservation reflect a broad range of activities. Residential

development received the largest Reservation amount with $2.26 million and represents a wide

range of housing opportunities: single-family homes intended for homeownership; rental

apartments above small

Applications for mixed

million dollars. Approximately 75 percent

existing buildings.

projects.

and project descriptions.

DISTRICT/INVESTOR

Dover

Central Delaware Habitat for

Humanity

G & J Holdings, LLC

Seaford

The Residences at River Place, LLC

Wilmington

608 Market LLC

627 Market LLC

Connections CSP

Delmar Affordable Housing Partners

Historical Society of Delaware

Market Street Village LLC

Midtown Parking

Sacred Heart Village II

STM II

Wilmington Housing Partnership

Grand Total

apartments above small

lications for mixed


existing buildings. The following

Additional information is then detailed in the next two tables by District, Investor, costs,


DISTRICT/INVESTOR


Humanity

G & J Holdings, LLC


Wilmington

608 Market LLC

627 Market LLC

Connections CSP




Midtown Parking LLC

Sacred Heart Village II


Grand Total

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

apartments above small-scale retail; and both market rate and affordable rental apartment units.

lications for mixed-use projects


The following chart



DISTRICT/INVESTOR







$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Rehabilitation

DDD Funds by Type and Use

Commercial

scale retail; and both market rate and affordable rental apartment units.

projects received the next largest Reservation award with

million dollars. Approximately 75 percent of all mixed use project will involve the rehabilitation of

chart is a summary of


APPLICATIONTOTAL DEV.

$

$

$101

$11,851,171

$29,122,842

$

$1

Rehabilitation


Commercial

6


received the next largest Reservation award with

of all mixed use project will involve the rehabilitation of

is a summary of Reservations awarded by type and use of


LICATION EV. COSTS

$1,149,890

$680,300

$469,590

$11,413,235

$11,413,235

$101,913,511

$7,698,809

$11,851,171

$3,874,784

$6,310,671

$6,800,000

$29,122,842

$25,922,644

$8,071,166

$327,205

$1,934,219

$114,476,636

New Construction


Mixed Use




eservations awarded by type and use of


APPLICATIONQRPI

$820,340

$375,750

$444,590

$9,089,846

$9,089,846

$55,

$3,977,003

$5,743,135

$1,557,530

$2,004,883

$1,811,511

$11,727,622

$22

$4,700,509

$302,205

$1,219,557

$65,549

New Construction


Residential






LICATION QRPI RESERVATION

$820,340

$375,750

$444,590

$9,089,846

$9,089,846

$55,639,688

$3,977,003

$5,743,135

$1,557,530

$2,004,883

$1,811,511

$11,727,622

22,595,733

$4,700,509

$302,205

$1,219,557

549,874

Total

Residential


received the next largest Reservation award with just over $2




AWARDEDRESERVATION

$164,068

$75,150

$88,918

$671,000

$671,000

$4,806,137

$528,000

$585,000

$311,506

$400,977

$362,302

$757,000

$1,000,000

$557,000

$60,441

$243,911

$5,641,205


just over $2




AWARDED RESERVATION

$164,068

$75,150

$88,918

$671,000

$671,000

$4,806,137

$528,000

$585,000

$311,506

$400,977

$362,302

$757,000

$1,000,000

$557,000

$60,441

$243,911

$5,641,205

PROJECT DESCRIPTIONS

Dover

• Construction of 5 single family homes on South Kirkwood Street for

• Rehabilitation of historic Priscilla Block Building/Annex at Loockerman and State Streets resulting in

mixed

Seaford

• Construction of 72 market rate apartment units within two

Wilmington

• Mixed use construction of 24 market rate apartments units and 2,811 sf ground floor retail

• Mixed use rehabilitation of 46 market rate apartments and 4,470 sf ground floor retail

• Rehabilitation of 3

establish housing for artists.

• Rehabilitation of Quaker Hill Apartments that will increase by 1 unit to 45 apartment units

• Several renovations as well as construction of a phys

and Delaware History Museum

• Rehabilitation of 3 historic building to be adapted and used for residential and commercial purposes.

Total 76 apartment units, community center and Walgreens Pharmacy

• Constr

• Construction of three

• Renovations for upgraded fire suppression system for historic building comprised of 86

and 20 commercial units

• Construction of 7 townhomes on formerly blighted 800 block of Bennett St. to be sold to homebuyers

with incomes at 120% of area median income.


Construction of 5 single family homes on South Kirkwood Street for

Rehabilitation of historic Priscilla Block Building/Annex at Loockerman and State Streets resulting in

mixed-use commercial office space, retail, restaurant, and apartments

Construction of 72 market rate apartment units within two

Wilmington

Mixed use construction of 24 market rate apartments units and 2,811 sf ground floor retail

Mixed use rehabilitation of 46 market rate apartments and 4,470 sf ground floor retail

Rehabilitation of 3


Rehabilitation of Quaker Hill Apartments that will increase by 1 unit to 45 apartment units

Several renovations as well as construction of a phys


Rehabilitation of 3 historic building to be adapted and used for residential and commercial purposes.


Construction of 3-

Construction of three

Renovations for upgraded fire suppression system for historic building comprised of 86


Construction of 7 townhomes on formerly blighted 800 block of Bennett St. to be sold to homebuyers





use commercial office space, retail, restaurant, and apartments




Rehabilitation of 3 properties to expand permanent housing for individuals with special needs and







-level, 355-space parking garage available to the public

Construction of three-story building to offer 25 apartment units for very low











properties to expand permanent housing for individuals with special needs and





space parking garage available to the public

story building to offer 25 apartment units for very low




7









Several renovations as well as construction of a physical glass connector between historic Old Town Hall








Construction of 5 single family homes on South Kirkwood Street for homeownership



Construction of 72 market rate apartment units within two buildings, pool, clubhouse, and marina





ical glass connector between historic Old Town Hall







homeownership


buildings, pool, clubhouse, and marina








story building to offer 25 apartment units for very low-income seniors



The rehabilitation of

the existing building at

627 N. Market

will provide a mix of

uses

small scale and ground

floor retail. This vital

combination

preserve

Wilmington’s

traditional commercial

corridor.


buildings, pool, clubhouse, and marina







income seniors

Renovations for upgraded fire suppression system for historic building comprised of 86 residential units




627 N. Market Street


uses – residential on a



combination helps to

preserve and enhance

Wilmington’s


ridor.





residential units




Street


residential on a



helps to

and enhance


SMALL PROJECT SET

While both set

Set-Aside d

in September of 2015 for

As a result,

project completion.

Aside in August and September.

DISTRICT/INVESTOR

Dover

Carmen Hardcastle

John and Karen Marble

Event Horizons LLC (Grey

Seaford

Craig de Marlana Aleman

Wilmington

Jamestown Hospitality Group, LLC

Grand Total

* Indicate applications are currently under review.

While active

in each DDD

PROJECT SET

While both set-asides requir

Aside does not require a Reservation

in September of 2015 for

As a result, it has been difficult to determine the number of projects accessing the funds until

project completion. However, Investors began submitting applications for


DISTRICT/INVESTOR

Carmen Hardcastle

John and Karen Marble

Event Horizons LLC (Grey


Wilmington


Grand Total

Indicate applications are currently under review.

While active communication with officials from each DDD indicate several small projects underway

in each DDD, only projects with a submitted application are included in this report.

This newly constructed home on Mary Street received a Small DDD Grant to

bring homeownership to an area of Dover experiencing a very

PROJECT SET-ASIDE

asides require project completion before

oes not require a Reservation

in September of 2015 for Investors

it has been difficult to determine the number of projects accessing the funds until

However, Investors began submitting applications for


DISTRICT/INVESTOR

Event Horizons LLC (Grey Fox Grille)




communication with officials from each DDD indicate several small projects underway

projects with a submitted application are included in this report.


homeownership to an area of Dover experiencing a very

e project completion before

oes not require a Reservation. The

Investors with a building permit.



DESCRIPTION

Residential

Residential

Commercial

Mixed use

Commercial






8

e project completion before funds are distributed,

. The option for a Lite

with a building permit.



DESCRIPTION TOTAL DEV. C

Residential

Residential

Commercial

Mixed use

Commercial






funds are distributed,

for a Lite-Reservation

with a building permit.



TOTAL DEV. COSTS

$357,187

$50,933

$157,889

$148,365

$321,090

$321,090

$250,000

$250,000

$928,277





funds are distributed, the Small Project

Reservation just became available


However, Investors began submitting applications for the Small Project Set

OSTS FINAL QRPI

$357,187 $178,822

$50,933 $35,933

$157,889 $142,889

$148,365 *

$321,090

$321,090 *

$250,000

$250,000 *

8,277 $178,822




homeownership to an area of Dover experiencing a very high rental rate.

the Small Project

just became available


the Small Project Set

FINAL QRPI DDD GRANT

$178,822

$35,933

$142,889

$178,822




rental rate.

the Small Project

just became available

the Small Project Set-

DDD GRANT

$35,765

$7,187

$28,578

*

*

*

$35,765


Just one year after the first Districts were announced, the DDD program has proven to be a true

public-private partnership. Local governments with designated DDDs have demonstrated

tremendous leadership in

seeking additional expertise

examples include:

• The City of Dover worked closely with local realtors to implement a real

their designated DDD

whether the property is for sale or rent and contact

• Seeing the potential to accelerate revitalization in the State’s most distressed areas, other

entities have since stepped fo

� Kent County

� Delaware’s Sustainable Energy Utility increased rebates for their Home Performance with

ENERGY STAR program by 50 percent

residential program, they extended the same to commercial units that are less than 2,500

square feet in mixed use buildings.

� Cinnaire, a community development financial institution,

economic void in financing projects in DDDs.

This infusion of partnerships, private inv

and economic returns in the form of new retail and commercial development,

residential

redevelopment as the barriers to redevelopment continue to dissolve.

With the

Investor

Riverfront received a Reservation for $671,000 in DDD Grant funds and is the first of several

proposals that will redefine downtown Seaford.


private partnership. Local governments with designated DDDs have demonstrated

tremendous leadership in

seeking additional expertise

examples include:

he City of Dover worked closely with local realtors to implement a real

their designated DDD


Seeing the potential to accelerate revitalization in the State’s most distressed areas, other

entities have since stepped fo

Kent County allocated $200,000 to match the DDD Grant up to $10,000 per project.

Delaware’s Sustainable Energy Utility increased rebates for their Home Performance with




Cinnaire, a community development financial institution,




residential opportunities


With the smalles

Investor with a powerful





tremendous leadership in marketing to potential Investors,

seeking additional expertise – all to


their designated DDD that shows not only the incentives available to each property, but



entities have since stepped forward with additional incentives to offer Investors:

allocated $200,000 to match the DDD Grant up to $10,000 per project.









opportunities, improved


smallest District, Seaford’s leadership leveraged

powerful vision



COLLECTIVE IMPACT



marketing to potential Investors,

to capitalize


hows not only the incentives available to each property, but



rward with additional incentives to offer Investors:








This infusion of partnerships, private investments and public incentives is


ed quality of life for current resident


t District, Seaford’s leadership leveraged

vision who is transforming



9

COLLECTIVE IMPACT



marketing to potential Investors,

ize on the potential of the DDD Program.



whether the property is for sale or rent and contact information





ENERGY STAR program by 50 percent for projects located in DDDs. Also, primarily a




estments and public incentives is


quality of life for current resident


t District, Seaford’s leadership leveraged

transforming Seaford’s riverfront.



COLLECTIVE IMPACT



marketing to potential Investors, creating meanin

the potential of the DDD Program.



information.





for projects located in DDDs. Also, primarily a


Cinnaire, a community development financial institution, created a program to fill

estments and public incentives is


quality of life for current residents


t District, Seaford’s leadership leveraged the DDD Grant

Seaford’s riverfront.




creating meaningful incentives, and

the potential of the DDD Program.

he City of Dover worked closely with local realtors to implement a real-time interactive








created a program to fill

estments and public incentives is achieving

and economic returns in the form of new retail and commercial development, new and enhanced

s, and additional


the DDD Grant program to attract

Seaford’s riverfront. The Residences at




gful incentives, and

the potential of the DDD Program. Some

time interactive map of

hows not only the incentives available to each property, but also







created a program to fill the

achieving multiple social

new and enhanced

additional

program to attract an

The Residences at



gful incentives, and

map of

also



social

new and enhanced

an

10

DOWNTOWN DEVELOPMENT DISTRICT – DOVER PROJECTS AWARDED

11

DOWNTOWN DEVELOPMENT DISTRICT – SEAFORD PROJECTS AWARDED

12

DOWNTOWN DEVELOPMENT DISTRICT – WILMINGTON PROJECTS AWARDED

13

DISTRICT INCENTIVES

DISTRICT/INCENTIVES DESCRIPTION

Dover

• First Time Homebuyer Transfer

Tax Exemption

Transfer tax exemption for first time homebuyers if property is used as principal

residence.

• Tax Abatement for Owner-

Occupied Properties

4-year property tax abatement as long as home is principal residence. The first

year is a 100% tax reduction and is reduced 25% each subsequent year.

• Waiver of Water/Sewer Fees Expanded beyond multistory, mixed use to include residential, office, commercial

uses.

• Business License Fee Waiver Waives business license fees for new businesses for three years.

• Property Tax Abatement 10-year abatement of City property tax on the value of improvements.

• Transfer Tax Abatement for

businesses 50% transfer tax rebate upon issuance of Certificate of Occupancy.

• Façade Improvement Grants Architectural support services up to $5,000 for renovation for new business or

expansion.

Seaford

• Reinvestment Tax Incentive Substantial qualifying improvements may receive a 10-year rebate (upfront cash

payment) from the City for taxable value of improvements.

• Sidewalk Loan Program 4-year, no interest loan up to $2,000 for sidewalk/curb repairs.

• C-3 Riverfront Enterprise Zone Mixed–use zoning district encompassing 50-acre Riverfront area that allows for

downtown style development.

• Fee Reduction Incentive Fee reduction for water capacity charge, downstream sewer assessment and

electric system cost recovery fee.

• C-3 Zone Façade Improvement

Program

5-year tax reduction on expenses above $25,000 – cannot exceed 50%. The

percentage “would equate to the amount of tax reduction the property the

property owner would receive for the 5-year period.

• Fee Waiver for Water and

Sewer Tap Fees Waives the tap fees for water and sewer for large project investors.

Wilmington

• Expedited Permitting

Permit applications in DDD are walked through multi-department approval

process to ensure shortest possible review time. A City-wide permitting reform

process is underway to reduce review time further in the DDD.

• Architectural and Engineering

(A&E) Feasibility Assistance

50% match (up to $20,000k) for architectural and engineering feasibility work for

for-profit small business developers to explore capital Investments in DDD. (Total

development cost capped at $1 million, program allocation of $100,000, approval-

based). [City-wide]

• Grow Wilmington Fund SBA 7(a) loan that offers 3.75% rate for qualified borrowers making investments in

downtown that result in new jobs or capital improvements. [City-wide]

• Creative District Mixed-Use

Overlay Zone

Special DDD-specific zoning overlay to facilitate mixed-use development. This

zone is in the process of being written and is not yet adopted.

downtown development district s...

Documents