Attachment

EXHIBIT #1 Council Workshop of 11/05/2007 Kent County, Delaware Economic Development Strategy Initiative Presentation to the City of Dover z November 2007 EXHIBIT #1 Moran, Stahl & Boyer Council Workshop of 11/05/2007

Economic Development Strategy Initiative: Final Report Discussion Topics • Project Objectives • Dynamics of a Typical Economy • Overview on Kent County’s Economy • Findings of Stakeholder Interviews and Employer Survey • Assessment of Physical Resources to Support Economic Development • Economic Development Recommendations for the City of Dover

Economic Development Strategy Initiative: Final Report Objectives of County-Wide Initiative • Address the employment needs of current and future residents while responding to the resource requirements of its businesses; • Understand Kent County’s economic development strengths and weaknesses from the “big picture” perspective; • Respond to a changing economy as well as unprecedented population growth by providing a strategic plan for Kent County’s economic development program; and • Identify the facilities, resources and organizational support necessary to achieve the county’s goals for economic growth and development.

Economic Development Strategy Initiative: Final Report Dynamics of a Typical Economy

Economic Development Strategy Initiative: Final Report Composition of a Local Economy Level 1 - Primary Industries: Employers that infuse money into the county from outside sources, such as: • State/Federal Government • Agriculture a• Manufacturing • Colleges/Universities 1 a • Financial Services Firms a • Professional/Scientific/Technical Serv. • Regional Healthcare Operations • Regional Retail Operations 2 a • Regional Distribution Operations • Tourism-Related Businesses 3 aTypical Economic Development Focus Level 2 - Business Support Services: Level 3 - Consumer Services: Provide support service to the primary Provide services to local residents industries located in the county Consider: Quality/Variety of Jobs and Size of Tax Base vs. Demand for Services

Economic Development Strategy Initiative: Final Report Land Use Options: Jobs/Tax Revenues vs. Quality of Life Jobs and Tax Revenue Quality of Life Generating Land Use Options Land Use Options Government Operations Transportation Infrastructure/Utilities Healthcare Parks/Natural Land Residential Development Industrial & Office Parks K-12 Schools Retail Options Cultural Facilities (Museums, Civic Center, etc.) Colleges and Universities Religious Facilities Tourism (Hospitality and/Destinations) Agriculture

Economic Development Strategy Initiative: Final Report Economic Development Opportunities vs. Community Impact Economic Number of Level of Tax Segment Jobs Compensation Revenue Impacts on Community Office Park Highest Highest Highest Increased commuter traffic Manufacturing Moderate Wide variation High • Traffic during shift Plant changes • Truck traffic (need to locate near primary highway) • Potential water use, air emissions, wastewater and solid waste Warehouse Low to Low to Moderate Truck traffic (need to locate Operation Moderate Moderate near primary highway) Retail Low to Low Moderate Increased local traffic Complex Moderate Residential Moderate Low to Relatively Expansion of schools and Development (construction) Moderate Low infrastructure required

Economic Development Strategy Initiative: Final Report Product/Business Life Cycle Product Production Growth/Expansion Consolidation Obsolescence R&D Startup and Decline Output Time

Economic Development Strategy Initiative: Final Report Options for Expanding Local Portfolio Attract New Business From Types of Operations Outside the Area • Headquarters > Within the state • R&D > Outside the state • Back Office/Shared Services > Current or new industries • Manufacturing • Distribution • Data Center • Other Start-Up Entrepreneurial Technology Businesses Expand Local > University research derivatives Business Operations > Spinoffs from local business > In-kind growth > Additional types

Economic Development Strategy Initiative: Final Report Overview on Kent County’s Economy

Economic Development Strategy Initiative: Final Report Kent County Economy The Good News . . . • Solid population growth at over 2%/year • Unemployment consistently low • Economy buoyed by diversified economy comprised of: > State and federal government > Tourism > Education institutions > Manufacturing > Healthcare > Construction > Small business • Significant construction will return with housing market rebound • Reasonable shopping options for a community of its size

Economic Development Strategy Initiative: Final Report Kent County Economy The Challenging News . . . • 40% loss of manufacturing jobs from plant shutdowns and productivity enhancements • Significant on-going loss of customer service center jobs • Manufacturing employers having issues in hiring qualified people motivated to work in a factory environment • AF Base and state government are important segments but are not expanding with the economy to provide more jobs • Fastest growing age group: 50-64 yr. olds • High rate of land consumption to housing and retail • Education levels are low (only 18% of adults have 4-yr. college degree vs. 26+% nationally) • Fastest job growth sector is lower paying service jobs . . . losing our educated students (“brain drain”)

Economic Development Strategy Initiative: Final Report Where Do We Start? . . . Attract College-Level Jobs Retain College-Level Graduates . . . Which Comes First ?

Economic Development Strategy Initiative: Final Report Economic Development Segment Analysis Est. Civilian Growth Potential Economic Segment Employment (5 to 10 years) Growth Outlook and Comments State/Local 15,000 Stable State Capitol, agencies and local Government governments. Federal Government 1,730 Stable Primarily Dover AFB civilian employment. Agriculture 1,000 Slow Loss Strong efforts to sustain farm land but inevitable loss of active farms thru the generation turnover. Manufacturing 3,800 Moderate Some opportunity to bring in small to mid- Slow Loss size traditional and new technology companies. Employment with existing companies may erode over time due to automation and market shifts. Finance & Insurance 2,400 Moderate Short-term losses but still potential to attract Short-Term additional back office and call center Loss operations. Professional, Scientific 1,500 Moderate to New companies serving local/regional & Technical Services High population growth and relocating for quality of life.

Economic Development Strategy Initiative: Final Report Economic Development Segment Analysis (cont’d) Est. Civilian Growth Potential Economic Segment Employment (5 to 10 years) Growth Outlook and Comments Information 700 Moderate Potential for additional publishing (Publishing, Media, businesses to leverage paper and electronic Telecom & Internet) info explosion. Construction Services 3,500 Moderate Driven by residential and healthcare growth Educational Services 4,100 Moderate Planned growth at DSU and other colleges. Healthcare Services 6,700 High Driven by population growth and significant influx of retirement age residents. Transportation & 3,300 Slight Limited potential for another Wal-Mart size Warehousing warehouse due to the 40 miles to I-95. Wholesale 1,500 Moderate Reflects growth in retail. Retail 9,100 Moderate Driven by growth in population and tourism. Strong developer desire to expand this segment. Accommodation & 4,500 Moderate Driven by growth in population and tourism. Food Service Arts & Entertainment 2,800 Moderate Potential for Civic Center and other venues.

Economic Development Strategy Initiative: Final Report University Research: Delaware State University • Current expenditures $7+ million and expanding • Primary research areas include: > Computer modeling for environmental project > Enhancing software for 3D applications > Establishing lab and model to understand neurobiology of sensor systems and impact on the learning process > Delaware Biotech Center to study plant intercellular signaling > Applied Optics Center with initial focus on laser diode devices and laser spectroscopy > Recycling of spent fuel cell materials • Institution is building R&D infrastructure through facilities, relationships and effective grant writing • They are engaging in “the right efforts” but commercialization will take time, maybe 5-10 years

Economic Development Strategy Initiative: Final Report Findings of Stakeholder Interviews/Employer Survey

Economic Development Strategy Initiative: Final Report Stakeholder Interviews & Employer Survey – Key Findings „ Concerns About the Quality & Quantity of Labor > Limited availability of skilled technical labor and professionals > Manufacturers can’t get people when they need them > Local labor not comfortable in production (and warehouse) environments > Competition with the construction industry > Difficulty recruiting professionals and those with specialized skills from outside the area… “trailing spouse” problem > Some success recruiting from New Castle County if the job is located in northern Kent County > On a scale of 1 to 5 (with 1 as “excellent” and 5 as “poor”), labor availability rated 3.55; labor quality and work ethic rated 3.20

Economic Development Strategy Initiative: Final Report Stakeholder Interviews & Employer Survey – Key Findings „ Lack of Support for Small Business / Entrepreneurship > Perception that local and state agencies and commercial banks won’t help small businesses > Historically, Delaware dependent on large employers; today, 75% of business establishments in Kent County (and the nation) have < 10 employees > Some programs being created > Opportunities for entrepreneurship: retirees, graduates of local colleges

Economic Development Strategy Initiative: Final Report Stakeholder Interviews & Employer Survey – Key Findings „ Quality of Life Issues > Kent County generally perceived as offering an excellent quality of life and low cost of living, but… > Need more leisure activities, recreational and cultural opportunities, etc. – especially for young professionals, singles, mid-career couples > College students are “mobile and global” – not staying in Kent County > Need venues for entertainment and sports – Civic Center overwhelmingly seen as a positive for Kent County > Concerns that Kent County will become a congested bedroom community serving cities to the north, resorts to the south – would prefer to see controlled/planned growth and a more diverse economy with new businesses

Economic Development Strategy Initiative: Final Report Stakeholder Interviews & Employer Survey – Key Findings „ Perceptions of Economic Development Overall, how would you rate Kent County as a place to do business? Fair, 4.2% Good, 33.3% Excellent, 10.4% Very Good, 37.5%

Economic Development Strategy Initiative: Final Report Assessment of Physical Resources to Support Economic Development

Economic Development Strategy Initiative: Final Report Resource Requirements by Target Industries Resource Comments on Requirements Labor • High School grads with good work ethic, drug free, ability to work in teams, shifts and different environments • Technicians • Functional professionals with admin support staff Industry Presence • Having enough local industry in type and size to sustain certain culture and with the specific skill sets for a particular operation. Real Estate • Industrial/office parks, land and stand-alone buildings Options Transportation • Air, interstate and rail Utilities • Access to power (two sources), gas, telecom, water and sewer Operating Costs • Cost of labor, real estate, utilities and transportation are critical Other Business • Incentives to offset startup/initial construction costs and the cost of initial and Needs/Incentives on-going training Quality of Life • For relocating highly trained staff: housing cost/availability, quality of education, culture and recreation, healthcare, etc.

Economic Development Strategy Initiative: Final Report Labor Supply Indicators Kent County • Current population: ~143,800 • 5-Year growth rate: 10.7% Age Cohort Current Population 5-Year Project Growth Rate 18-34 34,700 8.4% 35-49 32,000 2.1% 50-64 23,800 23.5% Comparison of Education Levels of 25-Year Old+ Population Sussex Co. New Castle Co. Kent Co. US Average 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <HS HS Some/ 2 Yr College 4-Yr+ College

Economic Development Strategy Initiative: Final Report Quality of Life as a Competitiveness Factor Critical for attracting top talent for other areas. Key criteria for evaluation: • Life Stage . . . unmarried/married, children/no children • Life Style . . . physically active, arts, social, travel, etc. • Place of Origin . . . city, suburbs or rural • Cultural/Ethnic Background . . . foods, religion, activities, special services • Specific Health, Education and Care Needs . . . elder care, handicapped or gifted children, etc. • Dual Career Challenges . . . spousal employment, child care, commute time, special services • Financial Situation . . . relative cost of living vs. income Each life stage has characteristic quality of life needs

Economic Development Strategy Initiative: Final Report Quality of Life Criteria Rating Source Comments Cost of Living Index 96 Cities Ranked & Rated U.S. average = 100 Cost of Housing Index 84.1 Cities Ranked & Rated U.S. average = 100 $159,990 (3 Bed, 2 Bath) $224,900 (4 Bed, 2.5 Bath) Opportunities to improve area for young professionals: • More meeting places in the downtown area (“cyber cafes”) • Build the Civic Center to attract more entertainment to the area

Economic Development Strategy Initiative: Final Report Industrial/Office Parks, Land and Buildings (Northern Kent Co.) 1 No. Description 2 1 Duck Creek 2 Smyrna Health & Wellness Center 3 3 Smyrna Industrial Pk 4 Central Delaware Ind. Pk 5 McKee Business Pk 6 Former Sara Lee Building 7 Enterprise Business Pk 4 8 West Side Development 5 Project 9 Eden Hill Farm 12 10 Creekside Center 6 11 Blue Hen Corporate 7 8 Office Pk 9 11 10 12 Garrison Oaks 13 13 Kent County Aeropark

Economic Development Strategy Initiative: Final Report Target Industries vs. Local Industrial/Office Parks Trad. New Tech. Back Prof. Industrial Park Mfg. Mfg. Office Serv. Publish Warehouse Duck Creek1 „ „ „ „ Smyrna Health & Wellness Ctr. „ Smyrna Industrial Park „ „ „ „ „ „ McKee Industrial Park „ Former Sara Lee Building „ „ Enterprise Industrial Park „ „ „ „ Westside Development Project „ „ „ „ Eden Hill Farm „ Creekside Center „ Blue Hen Corp. Office Park „ „ Garrison Oaks „ „ Kent County Aeropark Area „ „ „ „ 1Duck Creek will be located just north of the Kent/New Castle County border

Economic Development Strategy Initiative: Final Report Economic Development Recommendations for the City of Dover

Economic Development Strategy Initiative: Final Report Recommendations for the City of Dover „ Define an Economic Development Vision for the City > Long-term economic portfolio (types of employers and jobs) > Land/facility requirements > Workforce preparation „ Work Closely With Economic Development Partners > Kent County/Central Delaware Economic Development Council > State of Delaware Economic Development Functions • Ongoing interface with existing companies (needs assessment) • Small business development (target entrepreneurial companies) • External marketing and lead management (networking relationships) • Management of facilities (industrial park development/operation) • Secure bonds/grants (industrial revenue bonds, other sources)

Economic Development Strategy Initiative: Final Report „ Develop the Garrison Oaks Property > Critical asset for Dover and Central Delaware (accessibility/size) > Prepare long-term development plan (few vs. many tenants) > Implement site development over 5-year period > Amass funds for site development and initial spec facility

EXHIBIT #2 Council Workshop of 11/05/2007 THE DOWNTOWN DOVER PARTNERSHIP CORPORATION

MAINSTREET DOVER Mission: To restore and revitalize the downtown Dover, Delaware area through educating and mobilizing the community in a common effort. This will strengthen aesthetically, culturally and historically the entire City of Dover.

MAINSTREET DOVER Board of Directors Executive Committee Organization Design Promotion Economic/ Committee Committee Committee Restructuring

PARKING AUTHORITY Mission: The Parking Authority shall be for the purpose of conducting research activities and creating an effective system of off-street parking for the fulfillment of public needs in relation to parking. The Dover Parking Authority shall, in addition, have power to lease, buy, construct, manage and maintain facilities designed for the purpose of providing greater parking facilities.

DOWNTOWN DOVER DEVELOPMENT CORPORATION Mission: To promote the public welfare of the residents of the City of Dover, Delaware, by promoting and furthering, in any way, consistent with its public welfare purposes, the enhancement and development of the economic resources of the City of Dover and its residents, to the extend that the common good and general welfare of the community is served. In particular, the DDDC will work to improve the opportunities for job creation and broadening of the tax base through the development of the commercial and residential potential of the central Dover area.

DOWNTOWN DOVER PARTNERSHIP Consolidation of the following four entities: ¾Parking Authority ¾Main Street Dover ¾Downtown Dover Development Corporation ¾B.I.D.

DOWNTOWN DOVER PARTNERSHIP CORPORATION Statement of Purpose The purpose of this corporation is to promote the public welfare of the residents of the City of Dover, Delaware by promoting and furthering in any way, the development of the economic, cultural and historic resources of the downtown area and provide for the residents to the extent that the common good and general welfare of the community is served.

GOALS OF THE CORPORATION 1.Improve the opportunities for job creation. 2.Broaden the tax base through the development of the commercial and residential potential of the central Dover area. 3.Maintain and restore the historic architectural and community qualities of the downtown area consistent with the goals of the national Mainstreet Program.

DOWNTOWN DOVER PARTNERSHIP CORPORATION Board of Directors Partnership Director Economic Marketing/ Organization Design Development/ Parking Promotion Committee Committee Revitalization Committee Committee Committee

BOARD OF DIRECTORS Six (6) Individuals from Government: Appointed by the Mayor and Approved by Council • City Manager • City Planner • 3 Council Members • State Government Representative Nine (9) Members Appointed by Mayor and Approved by Council • Downtown Business Owner • Resident of Downtown or resident from a neighborhood adjacent to downtown • President of Wesley College or designee • CEO of Bayhealth or designee • Downtown Retail Merchant • Real Estate Professional • Financial Services Professional • Discretionary Appointment (appointed by Board of Directors and approved by Council?) • Discretionary Appointment (appointed by Board of Directors and approved by Council?)

INTERIM STAFFING • City Planner will serve as the acting director upon the creation of the Partnership. The Partnership Board will determine when/if there is a need to hire a full time Executive Director to run the Partnership. • City Planning and various other city staff will assist the City Planner with the duties of the Partnership. • Current staff for MSD will be under the direction of the City Planner and will assist with running the Partnership.

PARTNERSHIP DIRECTOR Will be responsible for the coordination of the Corporation’s policies and such other duties as the Board of Directors may require. Shall report directly to the President. Needs to have leadership and economic development abilities!

ORGANIZATION COMMITTEE Will work to encourage cooperation and leadership building in the business community. This committee will also implement a systematic process to raise funds for the Corporation’s programs, projects and general operating fund.

DESIGN COMMITTEE Will work to improve the appearance of the downtown Dover area and to educate the public and private sector about good design principles and the value of historical and cultural preservation.

MARKETING AND PROMOTION COMMITTEE Will work to create a positive image for the downtown Dover area by promoting the downtown area as an exciting place to live, work, shop and invest.

ECONOMIC DEVELOPMENT/ REVITALIZATION COMMITTEE Will work to rebuild and diversify the downtown Dover area’s economy. Strategic purchases, development and Redevelopment enhancements to the area will be Key to success!

PARKING COMMITTEE Will work to develop parking in the downtown Dover area and provide oversight over the parking lots owned and/or managed by the Corporation.

TO DATE • Drafted bylaws for Partnership. • Presented bylaws and organizational structure of the Partnership to Main Street Dover, Parking Authority and the Downtown Dover Development Corporation. • Asked each organization to provide input on the partnership concept. • Mainstreet Dover Parking Authority and Downtown Development Corporation voted to endorse partnership concept. • Began discussions regarding how to revise the bylaws to incorporate the input obtained from the three downtown groups.

ISSUES/SUGGESTIONS • Keep the process inclusive. • Develop an initial budget and a source for funding. • Provide city staff with necessary resources to ensure partnership success. • Make sure the process involves public input. • Reserve revenue stream for parking projects. • Follow recommendations from KSK Transport Study (February 2004) • Include a cultural arts representative on the Board of Directors.

TOP REASONS TO PURSUE THE PARTNERSHIP 1. Consolidation of the current groups into one entity should create better communication and better leadership from the new board. 2. One group handling the issues of the Downtown Revitalization should utilize less resources of the city staff which should aid in better distribution of resources to downtown businesses and revitalization efforts as a whole. 3. The City of Newark has implemented a similar partnership at the direction of HyettPalma. They are a similar sized city and their partnership has made tremendous strides in revitalization of their downtown.

TOP REASONS TO PURSUE THE PARTNERSHIP 4. All funding resources available to the current organizations will remain in tact with one leadership entity. One entity will reduce overhead and more $ will be spent on revitalization less on administration. 5. The board will control budgeting of the resources. The new partnership will allow the Mayor and City Council the opportunity to unite all our downtown constituents through inclusive representation. 6. Downtown needs our help!

NEXT STEPS • Incorporate input from downtown organizations into the draft bylaws. • Outline the necessary code changes to implement Partnership. • Outline the initial Partnership budget that includes the consolidation of all three organizations and their current budgets. • Present final details to City Council and ask that they vote to begin implementation of the Downtown Dover Partnership Corporation.

DISCUSSION

EXHIBIT #3 Council Workshop of 11/05/2007 Downtown Dover Incentives Dover City Council Economic Development Workshop EXHIBIT #3 November 5, 2007 Council Workshop of 11/05/2007

Presentation Overview z Incentives Currently Offered z Opportunities to Expand Incentives

Downtown Redevelopment Appendix C – Dover Code z Eligible project – New construction or renovation – Located within the target area – Fair market value of the materials to be used in and the labor to be performed on the project exceeds the sum of $15,000.00; – Commercial, office, or a residential use; and z Target Area Identified

Downtown Redevelopment Appendix C – Dover Code z Waiver of Permit Fees – Building, plumbing, mechanical & fire protection z Sewer Impact Fee Waiver – Multiple story new construction on one lot – Combination of retail, office, residential or commercial services (at least two) – One-half of City sewer impact fee waiver

Downtown Redevelopment Appendix C – Dover Code z Property Tax Waiver – 10-year waiver of property tax – 10-year period begins with building permit issuance z Contribution to Downtown Dover Development Corporation – 10% of the value of incentives must be contributed to DDDC

Historic Preservation Tax Credits z City of Dover z State of Delaware z Federal Government

Tax Credits for Historic Properties Dover Code, Chapter 102, Article V z Tax Credits for Preservation, Restoration and/or Rehabilitation (Exterior) z Eligible Properties – Within City Historic District – Listed on National Register of Historic Places z 50% of Total Cost – Maximum $6,000 credit – Minimum project cost of $1,200 z Prorated Over Ten Years

State Historic Preservation Tax Credit Delaware Code, Title 30, Chapter 18 z Certified Historic Properties – Listed on National Register of Historic Places – Located within a historic district listed on the National Register of Historic Places – Designated historic property by local ordinance certified by State Historic Preservation Office – Located in a local historic district certified by the State Historic Preservation Office

State Historic Preservation Tax Credit Delaware Code, Title 30, Chapter 18 z Credit Against State Bank Franchise or Income Taxes z Amount of Credit – 20% of qualified expenditures if eligible for federal tax credit – 30% of qualified expenditures if not eligible for federal tax credit – 100% of qualified expenditures for properties qualifying for credit award as resident curator property

Other Incentives z Main Street Façade Grants z Downtown Dover Development Corporation Loans

Downtown Incentives: Moving Forward Proposed Incentives for Downtown Dover

Proposed Incentives z Align downtown jurisdictions - apply incentives to downtown target area – Numerous districts create confusion z Create fast-track approval process z Hire case manager for new business issues

Proposed Incentives z Eliminate the BID tax in downtown Dover – Business Improvement District tax viewed as a disincentive z Reduce property taxes in the target area – Property tax reduction for mixed use properties z Provide incentives for existing employers to invest in the downtown

Proposed Incentives z Real estate tax abatement in downtown – Current real estate abatement should be reviewed and potentially expanded z Tax Incremental Financing – TIF should be explored as a mechanism to finance downtown redevelopment z Façade grants – Continuation of Main Street Dover’s Façade Improvement Grants with additional funding requested from the General Assembly

Proposed Incentives z Historic preservation tax credits – Request that the State ear-mark a portion of historic preservation tax credits for use in downtown z City historic preservation tax credit – City should re-tool historic preservation tax credit and promote its use in the target area z Renter’s deduction on personal income tax

Proposed Incentives z Add surface parking immediately – Underway at Governors Avenue z Create “ambassadors” in the downtown target area, similar to the Seattle Metropolitan Improvement District ambassadors

EXHIBIT #4 Council Workshop of 11/05/2007 Toward an Economic Development Strategy: 2008 Comprehensive Plan Dover City Council Economic Development Workshop EXHIBIT #4 November 5, 2007 Council Workshop of 11/05/2007

Economic Development – 2003 Comprehensive Plan Update z Economic Development Combined with Community Development z Overview of Economic Development from Land Use/Zoning Perspective z Not Used to Promote a Comprehensive Economic Development Strategy for Dover

Economic Development - 2008 Comprehensive Plan z Separate Economic Development from Community Development z Incorporate a Sound Economic Development Strategy for Dover z Bring in Regional Experts & Regional Studies z Identify Impediments to Economic Development z Identify Policies and Actions to Be Taken by City to Further Economic Development

Economic Development - 2008 Comprehensive Plan z How Do We Get There? – Advisory Committee for the Comprehensive Plan – Pull from other studies and strategies – Public meetings z Timeline – Begin process this fall – Finalize plan in fall 2008