05-15-24 DDP Economic Vitality Packet

Economic Vitality Committee Meeting May 15, 2024 7:30 a.m. Cendel Building, 101 W. Loockerman St., Dover AGENDA Welcome Agenda Minutes (March 2024) Public comments Updates on Master Plan • 120 S. Governor’s Ave • Multi-Modal Transportation Hub between S. Bradford & S. Governor’s Ave. • DDP Federal Appropriations funding request • Dover Kent MPO (Metropolitan Planning Organization) o Wednesday charette: invitation to public to attend on Wednesday: Lunchtime Open House between 11:30 a.m. and 1:30 p.m. Dinnertime Open House & Presentation 5:30 p.m. Updates from working groups 1. Critical Improvements • Status of projects round 1 • Status of round 2, now open 2. Site Readiness • ITB (680-684) Forest Ave. • 120 S. Governor’s Ave 3. Unlock the Block (REAP, Revolving Loan Fund) • N/A 4. Marketing Downtown Dover • N/A Next EV meeting (determine)– June 19 is a holiday (Juneteenth) Other business Adjournment Next scheduled meeting – to be determined Agenda items as listed may not be considered in sequence. Pursuant to 29 DEL. C. 10004(e)(2), this agenda is subject to change to include the addition or deletion of items, including executive sessions, which arise at the time of the meeting.

Economic Vitality Committee Meeting March 20, 2024 7:30 a.m. at CenDel Foundation Attendance: John Van Gorp, Jonathan Street, Dave Hugg, Mike Glick, Mike Harrington, Mitch May Staff: Diane Laird, Ken Anderson, Tina Bradbury, Jordan Resh Street opened the meeting at 7:35 a.m. Street motioned to amend the agenda to discuss procurement procedures as update #5. Unanimous approval of amended agenda. Van Gorp motioned to approve the minutes. Hugg seconded. Unanimous approval except Street who abstained because he did not attend the meeting. No public comments. UPDATES ON MASTER PLAN Laird shared that the Governor announced $25 million for downtown Dover, with funding towards development projects and infrastructure. Hugg suggested researching the requirement for wage rates for ARPA funding. Hugg added that the city is working with the MPO to determine how to put the streets back together after they are removed/repaired by the city. Laird added that the MPO plan is targeted for completion on Nov. 1 and is in addition to the study being conducted by the DDP and MPO. Laird added that DPP contributed 10%, with additional funding from DelDOT and the MPO. Street asked about the City’s plan for infrastructure. Hugg responded that KCI provided a preliminary design and that all/most of the water/wastewater is being serviced. Glick asked if the focus is existing vacant parcels. Hugg responded that they are trying to forecast what future development will look like and ensure enough infrastructure to support it. Bradbury asked if Mosaic Development Partners will be included in the infrastructure improvements. Hugg responded that the project to fund infrastructure on the west end was not funded and is not a part of the ongoing project. Laird shared that a grant request is due next Friday, and they may not know for 18 months if funding is secured. She asked to hear more details about the plan for infrastructure at 120 S. Governors so a recommendation can be added to the grant. Laird added that additional funding from the Governor will come through bond bill, to be voted on in June. She added that a meeting with Rep. Heffernan is scheduled to discuss passing the bond bill. Hugg noted that the city is not applying for additional bond bill funding, nor is the DDP beyond the Governor’s recommendation. Anderson added that they are meeting with DSU Senior Leadership to ask them to advocate on behalf of DDP receiving funding. 120 S GOVERNORS & MULTI-MODAL SITE Laird presented the concept map of 120 S. Governors and the Multi-Modal Site. She added that 300 parking spots are planned for the parking structure and that 120 S. Governors will have both residential and commercial. Laird noted that the parking structure is planned to have a parking management office with staffing to help increase eyes on the street and offer a resource to the patrons. She added that the concept has changed given the ability to acquire certain properties. Laird added that parking and amenities, such as a daycare, will help attract developers. Van Gorp asked if a preliminary design is available for the parking structure, and if plans to divide residential and visitor parking are underway. Economic Vitality Committee 3/20/24 Downtown Dover Partnership Page 1

Economic Vitality Committee Meeting March 20, 2024 7:30 a.m. at CenDel Foundation Laird responded that conversations about mixing residential and visitor parking to allow visitors to utilize residential spots while they are not parked have occurred, and that Colonial Parking will manage the logistics of the site. Laird added that Bernardon architects are working on developing new visuals. Laird added that two sites on S. Bradford are under contract for purchase or donation but have not closed yet. UPDATES FROM WORKING GROUPS 1. Critical Improvements Laird added that Theresa Owens of Stonerail Market was given a 15% allocation of funds (close to $40,000), as renovations added ADA compliance and residential units, and she was funded afterwards for her efforts, like Coney Island. Laird noted that due to limited funds, the new round may not be able to fund non-critical improvements. She added that Ken Anderson, Tina Bradbury, Sarah Keifer, Dave Hugg, Rick Ferrell, and Laird are on the review committee. Laird shared that $7M in investment is projected at the depletion of funds. Street expressed support of the impact of this program, noting the value is helping to seek sources of funding beyond CIP. Laird noted that the DDD in Dover has resulted in housing improvements, but with limited commercial improvements. She added that it is anticipated that 5-7 large DDD projects could be funded soon. Hugg agreed that the DDD program has focused on housing, providing 60+ new houses downtown, and anticipates the program to be renewed without issues, allowing additional awards. Laird shared that she and Bradbury presented to DSHA to discuss leveraging DDD funding to spur private investment. Hugg noted that flood issues in part of the DDD boundary were discussed but expected to resolve. Bradbury shared that funding for architectural drawings for the critical improvement program recipients will be paid out by DDP’s Economic Vitality Committee. 2. Site Readiness Laird shared that properties are being demolished to prepare for development. Anderson shared that two qualified bids were received for the ITB with a sealed opening occurring on Feb. 27. He noted that one bidder participated in the bid opening. Anderson shared that DE Landscaping Services (otherwise known as JT Snow Removal) submitted a bid for $67,500 with a good statement of work, good references (two projects with NCALL/NeighborGood Partners, one with Diamond State, and one with Habitat for Humanity). He added that Bradbury is vetting the certificate of liability and noted that they are in the City of Dover. Anderson shared that the second bid was from Pierson Construction of Pilesgrove, NJ for $77,905 with a good statement of work, bid bond in order, and a certificate of liability. He added that there would have been a third bid but it would have arrived late. Anderson shared that once approval is received, they will issue a notice to proceed and will need to permit through City of Dover, which Bradbury shared is currently active. He added that the two remaining structures at DIMH (680-684 Forest St.) are the properties scheduled to be demolished down to gravel. Laird added that DIMH vacated at a good time, with lease extensions to accommodate, and after moving to a new location. She noted that there have been squatters and occasional break-ins, causing the project to need to move forward quickly. Economic Vitality Committee 3/20/24 Downtown Dover Partnership Page 2

Economic Vitality Committee Meeting March 20, 2024 7:30 a.m. at CenDel Foundation Van Gorp asked if a vote will be made. Street shared that the committee will make a recommendation that will be shared with the Board for vote. Street shared that the bids were vetted by the site readiness committee as well. Anderson shared that there are a lot of incentives to work with local contractors for the master plan implementation. Anderson recommended going forward with DE Landscaping Services. He added that they were very interested, discounted their own work, and have experience locally. Van Gorp motioned to recommend hiring DE Landscaping Services for $67,500 for the demolition of 680- 684 Forest St. Harrington seconded the motion. Unanimous approval. Hugg asked how quickly demolition could take place. Anderson responded that they must complete the work within 30 days and are awaiting the go ahead. Anderson added that a minimally invasive survey had already taken place, was provided to the city, and did not find asbestos. 3. Unlock the Block Laird shared that retention efforts, the Retention Expansion Assistance Program (REAP), are working to fund the Hive on Loockerman to assist with reimbursement for property security improvements. Laird shared that the Revolving Loan Fund was dependent on very low loan repayments (2%), but that was no longer made available, and so the program no longer works with the USDA. Laird shared that a request for $40,000-$45,000 went in for Grant-In-Aid to provide an in-house Revolving Loan Fund. She added that the program is important to support existing merchants and prevent vacancies. Street asked about the rate of vacancies and Laird responded that vacancies are around 50%. She noted that there is a high rate of turnarounds with many people interested in opening a business, but needing additional support to learn how, such as attending Open for Business. Bradbury suggested that merchants work with the city as well to ensure their businesses are up to code. 4. Marketing Downtown Dover Laird added that landlords are recommended to sign short-term leases to allow for the opportunity to grow or open for new businesses and following the “top ten” businesses list when possible. Laird suggested that in a year or two there will be more development that will make attracting into properties easier, so they are not actively recruiting at this time. Harrington shared that he put two new tenants on Loockerman – a dance/exercise facility and accountant next to La Hacienda. Bradbury suggested that merchants are asked to speak with DDP to discuss curb appeal, such as avoiding dark curtains. Harrington added that La Hacienda asked to prepare another lease for three years. Hugg shared that the changes to C2 zoning passed, allowing more flexibility for parking, setbacks, and extends to The Old Post to help with redevelopment there. He added that a lot of cooperation took place between business and property owners to allow the changes to pass. He added that the changes are active once posted. Laird noted that fitness centers were not previously allowed downtown. Street shared that he worked on the language for the zoning changes and noted that previous language had significant “conditional use” and/or other opportunities for people to prevent a project from taking place, so the new changes make it easier to receive approval. Street shared that one change included trees on the property, which previously required a mitigation plan if not conceivable, to instead have the Economic Vitality Committee 3/20/24 Downtown Dover Partnership Page 3

Economic Vitality Committee Meeting March 20, 2024 7:30 a.m. at CenDel Foundation property owner pay a fee into a tree fund to allow the city to plant the trees elsewhere. Street shared that the changes also removed the parking requirement, but that developers will be expected to handle their properties’ parking needs. Laird added that the developers will have to submit a parking strategy in place of providing specific parking spaces. Anderson added that the setback requirements allow for larger buildings to be developed. Street responded that the setback requirement changes was one of the more challenging parts to get support for, but it ultimately passed smoothly. 5. Procurement Procedures Street shared that DDP had procurement procedures previously, not having to follow the city or state’s process. Street shared that the procurement process was developed during a previous procurement that dealt with inconsistencies/challenges, leading to the creation of an in-house model. Street added that for expenses of $5,000-$10,000, staff could sign off, but $10,000+ requires board approval and RFP. Street presented the process from 2012, which included set asides for city businesses, minority or women owned businesses, and in BID. Street noted the language, “lowest qualified bid” to ensure that the awarded applicant is qualified to complete the work and not just offering a low rate. Street noted that the state has guidelines for minority owned businesses, with a certification process as well. Anderson shared that he worked for the Governor’s Supplier Diversity Council and determined a fair procurement process for the state. He added that the language of set asides helps have the ability for preferences, but they are not required to select it. Anderson offered to review the procurement process and Street offered to review any changes for the committee. Bradbury shared that if the city is funding procurement, they will be required to use the city’s process. Street shared that if the state gives DDP funding, they should follow the state’s procurement procedure unless otherwise specified, so it is normal to follow procurement guidelines of the funder. Anderson suggested having a brainstorming session to discuss funding, types of solicitation, etc. to have the committee on board and reduce the number of approvals required, as the committee is already informed. Street noted that the process can be changed to not require voting from the Executive Committee as recommendations would come from the Economic Vitality Committee. Anderson shared that working with Mosaic and discussing responsibilities/ownership, it has been discussed that Mosaic will demolish 120 S. Governors and that demolition may be paid for by DDP. Street suggested that demolition is included in the scope of work of the developers. Anderson shared that DDP and Mosaic are producing a draft redevelopment agreement that will delineate all issues/ responsibilities, showing what each party is responsible for paying, what will be owned by who, and may be able to be vetted by this committee. Bradbury noted that if a new entity is formed and the agreement is filed with the new entity (501c3 for development) a different board’s approval will be required. Laird noted that a concern for the new entity was that DDP would not quality DDD funds, but they have since learned that the developer can apply for DDD funds instead, meaning there may be flexibility with the different entities. OTHER BUSINESS Glick shared that they are meeting with the architects this afternoon to progress forward at the Old Post Office. Laird thanked Glick for attending the C2 meetings, along with KEP and Mosaic. Economic Vitality Committee 3/20/24 Downtown Dover Partnership Page 4

Economic Vitality Committee Meeting March 20, 2024 7:30 a.m. at CenDel Foundation ADJOURNMENT Harrington motioned to adjourn. May seconded the motion. Unanimous approval. The meeting adjourned at 8:52 a.m. Next Meeting – April 17, 2024 Economic Vitality Committee 3/20/24 Downtown Dover Partnership Page 5