1 EV Minutes January 20, 2021 draft

Economic Vitality & Development Committee MINUTES January 20, 2021 – Online Zoom Meeting DRAFT MEETING OPEN: Approx. 7:35 a.m. ATTENDANCE: Jonathan Street (chair), John Van Gorp, Mayor Robin Christiansen (via telephone), Kim Adams, Mike Glick, Mike Harrington, Todd Stonesifer STAFF: Tina Bradbury, Diane Laird COMMITTEE CHAIRS, PRESENTERS AND OTHER ATTENDEES: Roman Battaglia (Delaware Public Media) Agenda and Meeting Minutes (October 2020 meeting): Motion duly made by John Van Gorp and seconded by Jonathan Street; approved unanimously. Public Comments: Jonathan and Mike discussed concerns of where businesses are heading over the past year and the effects it will have on downtown - whether short term or long term. Mike shared that there is not much change in the commercial office market. They have heard that folks actually want to come to work. Work is a place to see other people. The hospitality market is in a downturn, but there is activity in the pipeline. They see strength in the beach and Middletown markets. Everything else has stopped. Diane shared the challenges experienced by Wilmington. She also shared that while things are very slow in downtown Dover, they have seen very few closures. Merchants are holding steady or improving with an online presence. Tina added that while they have seen merchants struggling, they have not seen anyone leave except 33 West. DDP continues to share retention measures made available by resource partners to ensure everyone stays afloat. Business Retention: Overview of DDP services/resources underway- Tina shared there is a wide range of services and resources to assist merchants. They have been working with resource partners at all levels of governments or other partners offering them ideas on ways to “pivot” and increase productivity, classes, grants and loans. There are two classes going on to help them move to an online platform. Some businesses learn easily, and some need a lot of hand holding. Tina plans to take a class at Delaware State University where a Main Street website will be made, and training will include how to do web design, create an e-commerce platform online, and offers one full year of free hosting. What is unique about is that there will be one state platform so that everyone will be able to put items online for sale. DSU is actually piloting this program for the nation. Diane added that the Merchants Committee remains very active. Business Recruitment: State Planning Office Coordination - DDD website - Tine gave an overview of an offer from the Office of State Planning Coordination (OSPC) to design and host a website which will put all of Dover’s resources, incentives, and properties in one spot for developers who are interested in their DDD. Diane pulled up the site the OSPC created for Clayton, which is much smaller but gives a broader reach in a ECONOMIC VITALITY COMMITTEE MEETING January 20, 2021 Page 1

Economic Vitality & Development Committee simple way. Diane, Tina and Dave Hugg’s team is working closely together to pull key Dover properties on this site which help prospecting efforts. What is very unique is how the site entwined with the Delaware Prosperity Partnership (DPP) which has a much larger market than just Kent County. This will really expand Dover’s reach in being able to market properties. Tina stressed this is not a duplication, instead it will be a new platform and a new “one-stop shop” to highlight rental and investment opportunities in the Capital City. The web design and hosting will be done by the OSPC. Unlock the Block initiative - 204 W. Loockerman - Diane explained that Milford Housing Inc. (property owner) hopes to sign a lease agreement with Black Swamp Farmstead in the next couple of weeks for an artisanal market. Black Swamp Farmstead is a veteran-owned business owned by Justin and Tara Brant. The Brants and their consigners plan to sell high-quality artisanal farm-to-table items as well as provide classes that allow participant to make their own items or learn Do It Yourself (DIY) techniques related to their artisanal products. Tina indicated that the classes in the evenings are a major draw right now. Diane further explained that they will be having a Zoom meeting with this company for lease questions and also to discuss subtenant agreements for this more complex business model. Diane shared that they are hopeful for a lease sign by the end of January and are targeting an Easter opening. This is a joint initiative with Unlock the Block. 108 W. Loockerman - Space next to Loockerman Way Plaza. Diane discussed that there has been an MOU signed and they anticipate that it will move forward as a full sale within the near term, and that prospective new owner is planning a food concept that they are excited about but cannot share more about at the moment. No major structural changes are needed; there will be active residential apartments upstairs. No bridge loan is needed. Diane shared that the vacancy ordinance can work slowly, but consistently applied it works well. 33 West Loockerman - Diane shared that loss of this restaurant in town was quite a disappointment. DDP staff learned two weeks ago that they could market the property. Diane and Tina immediately put together a video tour and press-release. Tina shared that owner Mike Harrington allowed assist in prospecting for the space. They are working now with a prospect that owns a food truck that operated previously in the Capital City Farmers Market, and then opened a store in Middletown. Tina reached out and they were immediately interested in the site, and within a week of touring the space, they are ready to work with Mike to sign a lease (likely today.) Tina requested $5,000 to assist in items not covered by DDD such as ABC licensing, transfer fees, and replacing kitchen equipment. The DDP FY21 Budget started with $16,300. Only spent $2,900 so a $5,000 grant would leave more than $8,000 in the budget. There was substantial discussion on the terms of monetary assistance and concerns how they can offer similar assistance to other merchants who also are making investments at present and have needs. A process is also needed on how to prioritize high-priority business categories – business types that we are seeking and have reason to believe will do well here. There was discussion of the need for a revolving loan fund. Diane recommended that they table the discussion for now and consider creating a revolving loan fund to launch in the next fiscal year (FY). (July 1 begins the new FY.) For this particular request, there was substantial discussion on different loan structures. Todd offered concerns that other investors in downtown may not have similar incentive opportunities and we need to be careful to not “open Pandora’s box.” The committee needs to be fair in offering incentives. In addition, the DDP should seriously consider supporting a revolving loan fund as we go forward in order to support this worthwhile kind of opportunity for those wishing to receive loans to support their small business. Could be loan, loan to grant, varied repayment structure, etc. Oher discussion: Todd suggested $2,500 grant, $2,500 interest free loan, nothing tied to lease. No repayment first year, amortized over five years. ECONOMIC VITALITY COMMITTEE MEETING January 20, 2021 Page 2

Economic Vitality & Development Committee John suggested a much simpler process. Diane indicated that other organizations are in place to process loans. DDP is not set up to do loan processing at this time. The final motion was to provide a $5,000 loan-to-grant within three years. The loan will be reduced 75 percent after they have stayed one-year; 50 percent after they have stayed two-years; and become a full grant after three years. This funding would be used for inventory, which is not covered by DDD funds. Restaurants are very high priority on the list of the “top ten” types of businesses that Dover is seeking and will maintain the vitality of downtown. Motion duly made by John Van Gorp and seconded by Jonathan Street; approved unanimously. Mike Harrington abstained from voting. In the future, guidelines that offer parameters for monetary incentives from the DDP should be developed. Discussion on current vacancies: Diane shared updates on some buildings that are vacant, those that look vacant but in some cases, are occupied; or some that are “in process” behind the scenes, but taking time. She reached out to Theresa Owens, Joe Petrosky, and some brokers as well. Diane read the email provided by Ms. Owens who responded that she had been working on 25 W. Loockerman for the past two years and has given it a face lift, a new roof, new HVAC and it now has a fully renovated apartment with new floors, granite countertop, floors, doors, and bathrooms. With this all completed, the work on the cafe has begun (demo). She anticipates completion in 2021. The name of the business is Stone Rail Market. Diane explained that this is good news because we have seen papers on the windows for some time. Theresa has been working hard. Regarding the long-vacant Priscilla building, owner Joe Petrosky indicated in an email that restaurant area is still vacant. He had mentioned he was open to the idea of subdividing the restaurant's base into multiple shops and he is open to discuss an indoor farmers market on the corner idea (which Tina had discussed with him over the last several years, and he is willing to explore.) Joe Petrosky also owns the two adjacent buildings (13 and 15 west Loockerman). Allard’s Accounting is in one and the other appears to be vacant, but they are both leased at present. He indicated that downtown safety, mostly nuisance and panhandling, is concerning to potential investors. He would like the large trees to be removed and additional lighting provided. Diane indicated that this is underway by the city currently. Diane shared a chart to illustrate a way look at vacancies and devise strategies to move each property to its highest and best value. The Greens indicates the parcels are “ready for prospecting”. Red indicates there are issues - often structural - that prevent a building from moving forward in the near term. Yellow indicates a discussion is needed to move it forward. Blue indicates the parcel is in the process of becoming active. This chart will also be a good way of showing trends over time. Other business: Todd shared that there is a finite amount of parking space in downtown. With the limited amount of parking spaces available, the demand for parking spaces will increase and that enforcement on the parking spaces will become important to the success of our businesses. We need to ensure that there is a higher turnover and that the spaces need be utilized to highest efficiency. In order to enforce this, the discussion has led to parking meters (that use the latest technology) and the revenue generated will go to reimburse the parking meter equipment/installation and then to the DDP Parking Committee to discuss where additional money generated would be best directed. (For instance, safety projects are a top priority, but beautification projects are also a consideration). They are in the process of developing the plan and have done research on other cities and how the parking meters benefitted their downtown area. Todd encouraged members of the different DDP committees to hear what is going on and to attend the other public meetings. Adjournment Approx. 9:15: Motion duly made Jonathan Street, seconded by Kim Adams; approved unanimously. DJL ECONOMIC VITALITY COMMITTEE MEETING January 20, 2021 Page 3