CCW Packet - REVISED

CITY OF DOVER, DELAWARE COUNCIL COMMITTEE OF THE WHOLE MEETING Tuesday, April 09, 2024 at 6:00 PM City Hall Council Chambers, 15 Loockerman Plaza, Dover, Delaware AGENDA THIS AGENDA AND PACKET HAVE BEEN REVISED BY REMOVING PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE ITEM #1 – ANNUAL REPORT FROM THE SILVER LAKE COMMISSION (MARIE KOZEL, CHAIR) Public comments are welcomed on any item and will be permitted at the appropriate time. When possible, please notify the City Clerk (302-736-7008 or email at cityclerk@dover.de.us) should you wish to be recognized. VIRTUAL MEETING NOTICE This meeting will be held in City Hall Council Chambers with electronic access via WebEx. Public participation information is as follows: Dial: 1-650-479-3208 Link: https://rb.gy/20w1i0 Event number: 2535 368 4426 Event password: DOVER (if needed) If you are new to WebEx, get the app now at https://www.webex.com/ to be ready when the meeting starts. CALL COUNCIL COMMITTEE OF THE WHOLE MEETING TO ORDER PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE ADOPTION OF THE AGENDA MAYOR AND COUNCIL REPORTS - March 2024 1. Council President Hare 2. First District 3. Second District 4. Third District

COUNCIL COMMITTEE OF THE WHOLE MEETING - April 09, 2024 PAGE 2 5. Fourth District 6. At-Large 7. Mayor Christiansen ADJOURNMENT OF THE PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE MEETING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF THE AGENDA 1. Discussion - The National League of Cities (NLC) Service Line Program for the City of Dover (Dennis Lyon, HomeServe Regional Director) (Committee Recommendation: Refer to staff for evaluation) 2. Evaluation of Bids - North Bradford Street Rehabilitation Project (Jason Lyon, Water/Wastewater Director) (Staff Recommendation: Award the contract to Sam's Construction, LLC, for the City of Dover North Bradford Street Rehabilitation Project, Bid #24-0025PW, for the amount of $1,103,390.70) 3. Downtown Development District Renewal Application (David S. Hugg, III, City Manager and Ann Marie Townshend, Senior Project Manager at the Rossi Group) (Staff Recommendation: Approve the application as presented) 4. The Delaware Marijuana Control Act - Overview and Options for Dover (David S. Hugg, III, City Manager, and Ann Marie Townshend, Senior Project Manager at the Rossi Group) (Staff Recommendation: The purpose of this presentation is to gain guidance on which approach Dover wishes to pursue: prohibit or restrict but allow. If the desire is to allow under restriction, then subordinate decisions must be made regarding where and under what conditions. It would be presumptuous to draft an ordinance without knowing City Council's position. This presentation is information sharing and overall policy determination) 5. Proposed Ordinance #2024-07 - Amending Chapter 80 - Personnel, Article IV - Pension Plans and Retirement Benefits, Division 3 - General Employee Pension Plan (Councilman Anderson and Councilwoman Dr. Pillsbury)(On February 08, 2024, the General Employee Pension Plan Board submitted proposed ordinance amendments that were reviewed and edited by the sponsors.) (Staff Recommendation: Approval of proposed Ordinance #2024-07) ADJOURNMENT OF THE LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING

COUNCIL COMMITTEE OF THE WHOLE MEETING - April 09, 2024 PAGE 3 ADJOURNMENT OF THE COUNCIL COMMITTEE OF THE WHOLE THE 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 THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING

Item 1. Dennis Lyon Regional Director Dennis.Lyon@HomeServeUSA.com 412.266.9545 4

Item 1. NLC Service Line Warranty Program by HomeServe HomeServe Key Statistics* • Over 4.8 million customers Offering 4.8 out of 5 stars customer Program endorsed • Over 8.5 million policies services for since 2010 over 20 years satisfaction • Over 1,200 municipal and utility partnerships • Job serviced every 34 seconds “The National League of Cities is proud to partner with this • Customer savings to date: highly reputable and reliable program. Their exemplary record of over $2 Billion customer service and transparency is what has driven the success * As of January 2023 of this partnership over the years.” Clarence Anthony, Executive Director National League of Cities 2 5 ©2023 HomeServe USA Corp. PROPRIETARY AND CONFIDENTIAL

3 Item 1. Aging Infrastructure Challenging for cities and homeowners Lateral lines are subjected to the same elements as public lines • Ground shifting, fluctuating temperatures, tree root penetration, corrosion, and more Out of sight, out of mind • Water and sewer lines located outside, usually underground Failed lines waste thousands of gallons of water • Presents a potential environmental hazard Common homeowner misconceptions • City is responsible for maintenance of the water and sewer lines on their property • Repairs are covered by their homeowner’s policy 6

Homeowners are unprepared for Item 1. emergencies and expect solutions from the city/utility 78% of homeowners believe the utility provider should educate them on repairs and preventative measures. (Ipsos Public Affairs/HomeServe 2019) 56% of Americans can’t cover a $1,000 emergency expense with savings. (Bankrate 2022) 60% of homeowners with annual household incomes under $50,000 a year reported having $500 or less or no money set aside for a home repair emergency. (Harris Poll/HomeServe 2021) 4 7

Item 1. NLC Service Line Warranty Program Benefits • Only Service Line program endorsed by NLC and multiple state leagues • No cost to municipality. No public funds used. Administered by us • Billing, Claims, Customer Service, and Contractor management • Optional revenue share for municipality • Free public awareness campaign • Educates residents • Peace of mind – one call solution • Repairs performed to code by licensed and vetted contractors 8 ©2023 HomeServe USA Corp. PROPRIETARY AND CONFIDENTIAL

6 Item 1. 3 Separate Products External Water External Sewer In-home Plumbing Line Line & Drain Up to $8,500 per incident Up to $8,500 per incident Up to $3,000 per incident to repair/replace broken, to repair/replace broken, on all water, sewer, and cracked, or leaking cracked, or clogged drain lines inside the exterior lines exterior lines home after point of entry No annual or lifetime Toll-free emergency limits, deductibles, Homeowner opt in or out number available service fees, forms, or at any time – no penalty 24 hours a day, 365 paperwork days a year No pre-inspection – 30 Locally based, fully Guaranteed repairs day waiting period licensed and vetted contractors 9

Item 1. Program-Funded Direct Mail Communications • No public funds used in marketing, distribution, or administration of the program • Direct mail only – no telemarketing or door-to- door sales • Up to 3 mailing campaigns per year • Partner must review and approve marketing material before every campaign • Marketing clearly states city does not provide program and is voluntary for homeowner • City role: provide logo and approve material • Economy of scale; transparency; maximize public education • Can enroll by mail, phone, or web 7 10

8 Item 1. Solution for Residents and Municipalities Residents Municipalities Educates residents about their responsibility for exterior lines Reduces calls to the City Optional low-cost protection Timely repairs reduce water loss from line against potentially expensive breaks – use of local contractors infuses money water, sewer, plumbing repairs into your local economy Money saved by residents can be reinvested in your local economy No cost for the City to participate, optional non-tax 10% revenue share per product, per month 11

Item 1. HomeServe in Delaware Update numbers for state Key Statistics X municipal partners Partners: • City of X customers with XK • City of X XK protection plans • City of X • City of X XK jobs in the last three years savings for Delaware $XM homeowners 12 ©2023 HomeServe USA Corp. PROPRIETARY AND CONFIDENTIAL

Item 1. NLC Service Line Warranty Program Summary The NLC Service Line Program helps residents understand their lateral line responsibilities before they have an unexpected issue and allows them to choose how they wish to prepare for these potentially expensive incidents. Our program increases the quality of life within your community by helping residents when they need it the most, while also reducing the number of distress calls made to the City. 10 13 ©2023 HomeServe USA Corp. PROPRIETARY AND CONFIDENTIAL

Item 1. Our Promise: We will be a trusted steward of your brand and reputation. Questions? For more information contact: Dennis Lyon Regional Director Dennis.Lyon@HomeServeUSA.com 412.266.9545 11 14

Item 2. CITY OF DOVER, DELAWARE ACTION FORM PROCEEDING: Council Committee of the Whole (Leg & Fin) DEPARTMENT OF ORIGIN: Water & Wastewater SUBMITTED ON: March 28, 2024 PREPARED BY: Jason A. Lyon, P.E., Director of Water & Wastewater / Engineering Services REVIEWED BY: David S. Hugg, III, City Manager, Patricia Marney, Interim Controller / Treasurer SUBJECT: Evaluation of Bids – North Bradford Street Rehabilitation Project TIMETABLE: Notice to Proceed to be issued within thirty (30) days of Council approval. Project anticipated to be completed within one hundred and twenty (120) calendar days from issuance of Notice to Proceed, weather permitting. RELATED PROJECT: X REFERENCE: CIP- General Fund Projects EXPENDITURE REQUIRED: $1,103,390.70 AMOUNT BUDGETED: $1,157,823.55 FUNDING SOURCE (Dept./Page in CIP & Budget): Department of Public Works Streets Division, ST2101 FY21 Street, Concrete and Alley Program, Account No.: 101-12-18-35-000- 54031 (available funds $807,823.55) and ST2201 FY22 Street, Concrete and Alley Program, Account No.: 101-12-18-35-000- 54031 (available funds $350,000) STAFF RECOMMENDATION: Award the contract to Sam’s Construction, LLC, for the City of Dover North Bradford Street Rehabilitation Project, Bid #24-0025PW, for the amount of $1,103,390.70. BACKGROUND AND ANALYSIS: This project, identified by staff, is to rehabilitate N. Bradford Street, from a point south of Mary Street (adjacent to the property owned by Delaware State University) to Walker Road. The length of this project is approximately 0.60 miles. Due to the current conditions of this street, multiple public outreach meetings were conducted and third-party recommendations were gathered to provide a plan that would limit the removal of street trees. Additionally, this project must meet American with Disabilities Act (ADA) sidewalk condition requirements. The bid was advertised to the public as an Invitation to Bid in accordance with the City’s purchasing policy by the City’s Purchasing Agent under ITB #24-0025PW. Bids were opened on March 13, 2024. 15

Item 2. The City of Dover received two (2) bids as shown in the table below: BID PRICE EVALUATED CONTRACTOR LOCATION PRICE SAM'S CONSTRUCTION, LLC WILMINGTON, DE $1,103,390.70 $1,103,390.70 GEORGE & LYNCH, INC. DOVER, DE $2,297,114.20 $2,228,200.77 *George & Lynch, Inc. was awarded a three percent (3%) reduction due to local vendor preference. City staff reviewed the submission and found that Sam’s Construction, LLC bid met all requirements for the qualifications of the project. Staff recommends awarding the contract to Sam’s Construction, LLC in the amount of $1,103,390.70 for the North Bradford Street Rehabilitation Project. 16

Item 2. 17

Item 3. City of Dover Downtown Development District Renewal Application March 2024 18

Item 3. Downtown Development Districts Application for District Renewal District Renewal Application for Expiring DDD Districts Application Period and Deadlines: The application period opens three years prior to expiration. Applications for extensions must be submitted within 6 months of the current DDD program expiration. Applications are accepted on a rolling basis and reviewed by the Cabinet Committee on State Planning Issues (CCSPI) at their next scheduled meeting. Application must be accompanied by a Resolution from the legislative body supporting the application for a DDD District Designation Extension, and an updated District Plan. Review and Approval: Applications for five-year DDD District Renewal are reviewed by OSPC and agency partners. OSPC will prepare a report and recommendation which will be presented to the CCSPI which will in turn make a recommendation to the Governor. The Governor may renew Districts for up to two 5-year renewal periods. Completed applications should be sent to OSPC@delaware.gov Completeness: Applications for District Renewal will be evaluated by the Office of State Planning Coordination for completeness upon receipt. Incomplete applications will not be reviewed and will not be forwarded to the Cabinet Committee on State Planning Issues for their consideration. Applicants are encouraged to meet with the OSPC early in the process, and work with the OSPC Principal Planners throughout the application process to ensure a complete and accurate application. Municipality / County: City of Dover DDD Program expiration date January 2025 Check list: □ Application Form □ Legislative Body Resolution □ Updated District Plan If proposing the removal of parcels from the original District Boundary: □ Certified Mail Receipts, to owners of all parcels to be removed □ Public Hearing Minutes, revised boundary meeting 19

Item 3. Downtown Development Districts Application for District Renewal Contact Person for Application District Administrator (if different) Name: David Hugg, III, City Manager Name: Address: 15 Loockerman Plaza Address: Dover, DE 19901 Phone: (302) 736-7005 Phone: Email: dhugg@dover.de.us Email: Signature Date Signature Date Legislative Body Resolution: The resolution must affirmatively indicate that the legislative body supports the application for the extension of Downtown Development District designation and is willing to adhere to the District Plan and the Local Incentives for the extended duration. Date of Resolution in support of DDD Extension Application: Resolution number: Program Administration: Describe any proposed changes in how the DDD program will be administered (such as new organizational structure or personnel to enhance implementation of the DDD program). Dover’s Downtown Development District (DDD) program is administered out of the Department of Planning and Inspections. From 2017 until October 2023, a planner within the Department served as the administrator of the program, with assistance from the Downtown Dover Partnership (DDP). In October 2023, this planner left the City. In the interim, the City Manager has been filling the role of program administrator. The City is recruiting to fill this vacancy, along with the Director of Planning and Inspections position. Once these vacancies are filled, the program administration will be transferred back to the Department of Planning and Inspections. As the Main Street organization and downtown redevelopment organization, the Downtown Dover Partnership (DDP) has been an important partner in administering and promoting the Downtown Development District program. Tina Bradbury, the DDP’s 20

Item 3. Downtown Development Districts Application for District Renewal Operations Manager, is often the first point of contact for business prospects looking to invest in downtown Dover. Ms. Bradbury is well-versed on the DDD program, including the City’s incentives. Additionally, the DDP offers its own incentives to prospective businesses, including façade grants, architectural assistance, and critical improvement grants. With the DDD designation renewal, Dover will renew efforts to market the program and will update the program materials and website. The City proposes developing a memorandum of understanding with the DDP to formalize the DDP’s role as an program partner and with program administration. 21

Item 3. Downtown Development Districts Application for District Renewal Need and Impact: Describe the impact the DDD program has had on your downtown thus far. In the response, please consider the program’s effectiveness in creating capital investment, creating jobs, improving housing stock, increasing residents and visitors, providing enhanced retail and entertainment opportunities, and otherwise improving the quality of life within such district. Refer to the Key Priority Projects identified in the initial DDD program application; Was the District successful in implementing these projects? Provide justification as to why the program should be extended. The Dover DDD has been instrumental in the success of transforming Downtown Dover’s residential neighborhoods by demolishing inadequate buildings and replacing them with new, affordable, owner-occupied homes during the first 10 years of the program. However, Dover has faced, and continues to face, significant challenges to downtown revitalization efforts due to the deterioration of existing building stock, the costs associated with renovating buildings that have been vacant or underutilized for decades, and fragmented neighborhoods resulting from neglected housing stock, low homeownership rates, and crime. At the time of the initial application, investing in housing was identified as being pivotal to revitalization efforts, because perceptions of safety and crime, high home rental rates, and the deteriorated condition of much of the housing stock deterred potential investors. These conditions resulted in a considerable number of marginally compliant rental properties owned by absentee or unresponsive landlords. Replacing vacant and demolished buildings with new, owner-occupied homes or other structures was key to the Restoring Central Dover Plan. It was clear that revitalization of the Central Business District could not be realized without addressing the deterioration of the downtown neighborhoods. This was a strong focus of the past ten years of the program. The transformation of neighborhood blocks was the key project for the program to date. Habitat for Humanity has constructed 34 new homes so far, and NeighborGood has completed 17. In addition, Milford Housing Development Corporation constructed two homes and several small, private developers built homes as well, for a total of more than 60 new homes. There are additional need and impact details included on pages 1-2 of the Updated District Plan attached, as well as detailed demographic data on pages 8-14. As a result of the DDD program, the City of Dover has been able to achieve significant improvements in terms of: 1. Housing: According to decennial census data, in census blocks that intersect with the DDD, the number of vacant housing units as a percentage of total housing units fell from 13% in 2014 to 10% in 2020. Additionally, homeownership rates improved. Based on block level data from the 2010 Decennial Census, of all occupied housing units, 82% were rentals and 18% were owner- occupied, with or without a mortgage. As of 2020, 25% of all occupied housing units within the DDD were owner-occupied and just 75% were rented. While clear progress has been made 22

Item 3. Downtown Development Districts Application for District Renewal in terms of stabilizing housing and increasing homeownership in the DDD, homeownership rates in the City of Dover as a whole, are significantly higher at 47% in 2020, and vacant housing units comprise only 6% of all units. This indicates that there is still need for ongoing investment in housing stock to continue increasing homeownership in Dover’s DDD. Please refer to the housing and population demographic data on pages 8-12 of the Updated District Plan for more information, as well as Appendix B of the plan. Maps 7 and 8 illustrate the block level change in homeownership rates from 2010 to 2020, and Map 9 shows 2020 block level vacancy rates. 2. Vacant and Dangerous Buildings In 2010, the DDD contained 49 registered vacant buildings, 7 buildings that had been declared dangerous, and 25 lots where buildings had been demolished due to a dangerous building declaration. Today, the number of registered vacant buildings has been reduced to 37. Additionally, there are 36 properties where a building has been repaired by the owner. While progress has been made in reducing blight within the DDD boundary, there is ongoing need. Even with the reduced number of vacant buildings, a disproportionate number of neglected buildings and lots are located within the district and immediately surrounding areas. The City continues to take a strong stance on code enforcement. There are currently 12 buildings that have been declared dangerous, and 29 lots where buildings have been demolished by the City or by the Owner. Please refer to the housing and population demographic data on pages 8-12 of the Updated District Plan for more information, as well as Appendix B of the plan. Maps 10 and 11 illustrate the locations of vacant and dangerous buildings. 3. Crime The crime density remains highest along S. New Street within the DDD, as it was in 2010; however, the intersection in Loockerman and State St. no shows as a crime a hot spot based on recent data. Please see Appendix B of the Updated District Plan. Maps 12-15 provide more information about crime patterns within the DDD. 4. Poverty & Income Based on available census data, it is challenging to draw any conclusions about the impact of the DDD on income and poverty thus far. There is not block level data for most income and poverty measures included in the U.S. Census. Block group shapes have changed significantly between 2010 and 2020, meaning direct comparisons of block groups over time are not useful. Therefore, we have used tract level data though census tract shapes have changed slightly, and significant portions of each census tract that intersects with the DDD fall outside of the district boundary. Please see Appendix B of the Updated District Plan. Maps 3 and 4 outline current tract, block group, and block shapes. Maps 5 and 6 demonstrate how those shapes changed between 2010 and 2020. 23

Item 3. Downtown Development Districts Application for District Renewal According to 5-Year American Community Surveys (ACS), the median household income increased in three of the four census tracts that intersect with the DDD between 2010 and 2020. Tracts 409 and 413 saw increases as much as 15%-16%. At the same time, median income in DDD census tracts ranged from $33,846 to $45,545, which is lower than the 2020 median of $48,500 in the City of Dover and $60,117 in Kent County. The percentage of the population living below the poverty level in census tracts that intersect with the DDD is higher than it is in Kent County. The percentage of the population living below the poverty level fell from 44.1% to 25.7% in tract 413 and from 27.2% to 20.1% in tract 414 between 2010 and 2020. At the same time, the percentage increased in tracts 409 and 433. It is unclear what impact the COVID-19 pandemic had on these ACS estimates. Please refer to the income and poverty data on pages 13-14 of the Updated District Plan for more information. The notable housing improvements that occurred in the first decade of the DDD program were a critical first step in revitalizing downtown Dover. At the time the initial application was submitted, the 2008 Dover Comprehensive Plan called for the creation of a downtown plan. The Transit Center Neighborhood Plan and Restoring Central Dover Plan met that objective and served as the heart of the District Plan in the City’s initial DDD application Since that time, the City, in collaboration with the Downtown Dover Partnership and others, worked with Mosaic Development Partners to create the Capital City 2030: Transforming Downtown Dover Strategic Master Plan for the downtown district and downtown gateways. The creation of Capital City 2030, along with track record of improvements to housing stock and neighborhood stabilization have spurred significant investment from the State, and several key projects are moving forward. This plan, along with the State’s planned investment to support it, will be a catalyst for even further investment in downtown Dover. The DDD designation is essential to the realization of this plan. For the current momentum created by Capital City 2030 and the recently announced State investment to generate the anticipated success and other investment, the City of Dover must maintain its DDD designation for an additional five years. In the process of conducting an evaluation of the programs’ first ten years, stakeholders made it abundantly clear that the investment to date would not have occurred without the incentives afforded by the program. Ongoing incentives are needed to spur the transformational capital investment needed to return Dover to the thriving hub of activity that it once was. The costs of revitalization remain high. Developers, builders, and potential property owners are often deterred from investing in the downtown area because the cost of renovating or building on a property may exceed the value of the property with the improvements, and the return on investment is uncertain. Prospective businesses are often undercapitalized and cannot complete the building renovations necessary to bring their shops up to code, purchase equipment and inventory, and pay expenses until they are able to turn a profit. Without the DDD incentives, there is a sense that it is easier and less expensive to locate elsewhere, such as in a shopping center on Route 13 or Route 8. With the many overlapping challenges creating hurdles to revitalization, Dover needs this additional time to achieve its goals. The City is just now on the precipice of seeing real capital 24

Item 3. Downtown Development Districts Application for District Renewal investment, with the needed assistance of the DDD designation and the State of Delaware’s investment. Within the next five years, Dover has tangible plans to leverage its DDD designation with other public and private funds to spur transformational capital investment, create jobs, and providing enhanced retail and entertainment opportunities, as well as transportation, culture, and quality of life improvement that will attract visitors to the area. District Plan: Revise the current District Plan to include the listed items below. The revised plan is intended to supersede the existing one and must be included with the Extension Application. The updated plan should assess progress made since program implementation, reflect relevant changes that may have occurred since plan adoption, and provide up-to-date guidance for redevelopment for the next 5 years and beyond. District Plan update must include the following: 1. Rationale as to why the five-year extension is necessary and/or desirable to achieve redevelopment goals stated in the District Plan. 2. An evaluation and self-assessment of past program implementation and performance. 3. Updated demographic and redevelopment data, and analysis of that data in the current plan. 4. An evaluation, and revision if necessary, of the vision, goals and strategies for downtown redevelopment. 5. Updated maps that reflect current conditions. Note any changes (within the District) to zoning or to the Future Land Use Map in the adopted comprehensive plan. Briefly summarize changes made to the plan here: At the time of the initial DDD application, Dover was utilizing the Restoring Central Dover Plan to inform its vision, goals, and strategies; Since that time, the City partnered with the Downtown Dover Partnership and Mosaic Development Partners to create the Capital City 2030: Transforming Downtown Dover Strategic Master Plan. While many core goals and strategies from the original plan remain intact, several additional key projects have been proposed, and modernized strategies have been identified to revitalize downtown Dover and achieve the vision developed with citizens. To date, through local, county and state incentives, $13,297,542 of private funds were leveraged and 59 projects were completed since the program’s implementation. The City of Dover contracted the Rossi Group to conduct a thorough program evaluation to assess implementation and performance to date, and recommend program changes moving forward as part of this application. Information and feedback gathered through the program evaluation process resulted in a series of recommendations that informed the updated district plan. The attached Updated District Plan includes a summary of the Capital City 2030 Plan on pages 15- 25

Item 3. Downtown Development Districts Application for District Renewal 22 and a full copy is included in Appendix A. In addition, the Updated District Plan includes the full program evaluation on pages 3-7. 26

Item 3. Downtown Development Districts Application for District Renewal Local Incentives: List the local incentive package currently in place and briefly assess the effectiveness of each using data from completed projects. Please note any changes proposed to these incentives and describe why the change is needed. List any new incentive options being proposed and explain how these new incentives will address the goals of the District Plan for the next 5-year period. The City of Dover offers five (5) different incentives to encourage investment in the DDD. They include waivers of Building Permit Fees, City Impact Fees, and New Business License Fees for three (3) years, as well as an abatement of property taxes on the value of improvements for ten (10) years, and a rebate of buyer’s City Transfer Tax when a Certificate of Occupancy is issued within five (5) years of property transfer. From 2018 to 2023, the total value of local incentives utilized was $73,134.20. In addition, the Downtown Dover Partnership offers a number of grants to incentivize development. These include: an architectural grant that reimburses up to $5,000 for architectural services, a façade improvement matching grant of up to $5,000, and a new critical improvements grant program offering rebates of up to 20% for priority projects, such as those that address critical life-safety and ADA compliance, preparing for commercial kitchens, or ensuring that properties become leased. The partnership also offers a business retention/expansion assistance program that provides small grants of up to $2,000. The most frequently utilized incentive is the Building Permit Fees waiver which covers Building, Plumbing, Mechanical, and Fire Protection Permit fees. With the exception of one (1) project, every DSHA-rebated project from fiscal year 2019 to 2023 was also provided Permit Fee waivers. The estimated value of Permit Fees ranged from $1,518 to $8,387, which can have a significant impact on the purchaser or builder. As larger transformative projects move forward, the value of the permit fee waiver will increase. City Impact Fee waivers cover Water and Sewer Impact Fees. They are utilized less often than Permit Fee waivers because some projects redevelop lots with preexisting water and wastewater service. Applicable projects greatly benefit from this incentive, which has been valued up to $4,000 per project. In the fiscal years 2022 and 2023, City Impact Fees waivers were provided for every applicant. As more high density, mixed use developments gets underway, the use of City Impact Fee waivers is expected to increase. The New Business License Fee waiver attracts commercial development to the Dover Downtown Development District. It waives New Business License Fees for three (3) years. As most of the projects in the past six (6) years were residential, this incentive was not as frequently utilized as the other fee waivers; however, numerous businesses have received its benefits. In 2019, it was utilized 19 times. 27

Item 3. Downtown Development Districts Application for District Renewal Abatement of property taxes on the value of improvements for ten (10) years is an incentive that offers effective and longer-term benefits for participants in the Downtown Development District program. While other incentives alleviate some of the upfront costs to developing, the ten (10) year tax abatement offers continual support for remaining in the DDD. From 2015 to 2020 it was utilized 63 times and was provided for nearly every project in the years following. This incentive is effective in ensuring that the development is completed after the property is transferred because it is only offered when a Certificate of Occupancy is issued within five (5) years of property transfer. It was most frequently utilized in 2018 where it was used 17 different times. Aside from one (1) project, it was provided for every project from 2021 to 2023. During the entire Downtown Development District program in Dover (2015 to 2023), projects received $1,619,563 in rebates thereby leveraging $13,297,542 in private investments. The City foes not propose changes to the local incentives; however, the proposed expansion of the DDD boundary will result in an increase in the applicability of those incentives. Key Priority Projects: The DDD application was updated in 2019 to include discussion of Key Priority Projects. These projects were to be identified in the District Plan as potential catalysts for other redevelopment activity or as examples of superior urban design. Key Priority Projects are specific projects expected to provide significant impact to the District when implemented. See DDD Program Guidelines for more information. ddd-program-guidelines-2022.pdf (delaware.gov) With this definition in mind, please describe the Key Priority Projects that were implemented during the past 10-year period. Briefly assess their impact and/or describe any barriers to implementation. Moving forward, what are the Key Priority Projects for the 5-year extension? Key projects and implementation strategies identified in the initial application included the addition of new housing units in the Central Dover neighborhoods within the district and expanded access to housing repair programs. Partnerships with Habitat for Humanity, the Kent County Association of Realtors, and Milford Housing Development Corporation resulted in more than 60 new homes built to date. Housing improvements have been a catalyst for new investment; New establishments like the Rail Haus and Stonerail Market would not exist without DDD incentives. However, Dover has had a slow start in terms of realizing truly transformational commercial and mixed-use projects. Several businesses have closed during the past ten years of the program. The challenges of attracting and retaining businesses were exacerbated by COVID-19. Unfortunately, the key projects identified in the initial DDD plan have not come to fruition. Most of these projects remain part of the vision in Capital City 2030, and with new momentum and funding opportunities, these projects are well- positioned to move forward. 28

Item 3. Downtown Development Districts Application for District Renewal Governor John Carney recently announced plans to allocate a total of $25 million in State funding to the City of Dover and Downtown Dover Partnership (DDP) to support implementation of Capital City 2030. Please see Appendix F of the attached Updated District Plan for the Governor’s press release and other relevant press coverage. This funding will be used for critical water and wastewater infrastructure upgrades as well as two key projects identified in the plan. The DDP will focus on five major projects from Capital City 2030 in the next few years, several of which will utilize this funding. The DDP notes that significant, visible changes will begin to take place in Downtown Dover in the next two to three years as they begin to implement the strategic plan. The three most transformational projects, identified as key projects for the DDD renewal application, include the following: Old Post: This city-owned parcel, home to the former Post Office, is currently under contract with a developer. The City selected a developer to redevelop the site through an RFP process. The Capital City 2030: Transforming Downtown Dover Strategic Master Plan initially re- envisioned this lot as a new building with commercial and office space as well as an outdoor courtyard. The developers selected through the City’s RFP process have proposed a 4-story mixed-use building with space for 2 retail establishments on the ground floor, parking, a courtyard, office space, and 30 apartment units. 120 Governors Avenue: This is the site of the former Acme grocery store. It is currently owned by the DDP and leased to Auto Plus. This site represents DDP’s priority redevelopment project with Mosaic Development Partners and Colonial Parking Inc. Capital City 2030 proposed constructing a 6-story mixed-use complex on this lot with a ground level grocery store, a parking garage, and more than 100 residential units. Additional amenities included in current planning efforts include a coffee shop, fitness center, and daycare facility. The State plans to utilize a portion of their investment on this project, which will cost $80 million in total. 129 Governors Avenue: The Bradford Street Parking Lot, at 129 Governors Avenue, is currently owned by the city and used for public parking. Capital City 2030 envisions Bradford Street as a multi-modal connector between DSU’s downtown campus and Loockerman St. To that end, Capital City 2030 proposes replacing this lot with a parking deck and mobility hub. This property is directly across the street from the 6-story building planned for 120 Governors Avenue and will complement that project. A mobility hub is a place where people can park, access travel information, and connect to multiple modes of transportation. This may include a car and/or bikeshare program, bicycle parking, and rideshare access. The State intends to utilize a portion of their investment on this proposed $14 million mobility hub between South Governors and South Bradford Street. The DDP notes that the hub will feature a parking garage, bike share, and micro-transit bus service. Local news sources note that the hub will include EV charging stations and additional amenities proposed by Capital City 2030. The target completion date for the transit hub is 2026. This transit hub compliments the Downtown Dover Pathways Plan, being completed by the Dover-Kent MPO in collaboration with the City 29

Item 3. Downtown Development Districts Application for District Renewal of Dover and the DDP, to better connect activity centers and downtown anchors and create a more walkable district with multi-modal transit options like bikes and scooters. Once these have been successfully implemented, State investment in infrastructure improvements take place, and marketing and program administration efforts are improved to spread awareness of DDD incentives and program successes, Dover expects to see greater interest in commercial development downtown and will have an easier time leveraging incentives to attract investors. 30

Item 3. Downtown Development Districts Application for District Renewal District Boundary Revisions: As a part of the District Renewal process the local jurisdiction may revise the original District Boundary to meet the redevelopment goals of the next five-year period. The updated District Plan must fully describe the rationale for the revised boundary. The revised boundary must meet all guidelines and criteria for the District Boundary as described in Chapter 5 of the DDD Program Guidelines. It is permissible to remove parcels from the original District Boundary and reallocate that acreage to other areas of the downtown as a part of the boundary revisions during the District Renewal process. Should the local jurisdiction propose removing parcels from the original boundary, the following is required:  The owners of all parcels that are proposed to be removed from the District Boundary must be noticed of the change via Certified Mail or similar method. The local jurisdiction shall keep receipts or other documentation of this notice and submit it with the District Renewal application.  All property owners that are proposed to be removed from the District Boundary must be given an opportunity to speak at a public hearing hosted by the local jurisdiction, to be held before the final decision has been reached regarding the revised boundary that is to be proposed as a part of the District Renewal application. Minutes of this public hearing or hearings must accompany the District Renewal application. If the revised District Boundary proposes to remove any parcels from the original District Boundary, please briefly describe the rationale for removing the parcels and where the acreage has been reallocated to: Since the initial establishment of the District Boundary, there have been changes in property ownership, most notably in the southwest edge. Of the 22 acres in the southwest corner, 20 acres are owned by either the State, City of Dover or US Postal Service and are therefore ineligible to receive the Downtown Development District program benefits. To maximize the program’s potential, the boundary has been revised to remove this portion and redistribute that acreage to properties eligible for the program. [Section will be added after the public hearing to demonstrate compliance with requirements regarding removing areas from the boundary.] The DDD Program now allows development districts to encompass up to 275 acres, an increase of 50 acres since the initial application. The City has strategically reviewed areas adjacent to the current District boundary to identify areas that meet the need and impact criteria and would benefit from the Downtown Development District Program. The revised 31

Item 3. Downtown Development Districts Application for District Renewal District Boundary adds area north of the existing boundary to provide more opportunities for housing development and vacant property improvements. The areas added include some of the former Wesley athletic program lands and the land of the former National Guard armory. These areas are positioned for future redevelopment. Additionally, in an effort to capture areas prime for larger redevelopment projects and to enhance gateways, the proposed boundary would expand east and west of the current District limits. The expansion to the west provides opportunities for redevelopment along the western gateway to downtown Dover. The small expansion to the east includes the former Dover Public Library building, which has been vacant since the opening of the new library. Addition of this are to the District will improve the opportunity for investment in this building and the surrounding area. The proposed expansion utilizes the updated allotted Downtown Development District acreage to maximize the potential of program incentives and investments. Please see Appendix B of the attached Updated District Plan as Map 16 illustrates the proposed boundary changes. If the revised District Boundary proposes to remove any parcels from the original District Boundary, please include the receipts or other documentation of the public notice to all property owners to be removed, as well as the minutes of the public hearing where the boundary revisions were discussed in the District Renewal application. 32

Item 3. City of Dover, DE Updated District Plan – DRAFT Downtown Development District Table of Contents Need and Impact ............................................................................................................................. 1 Program Evaluation ........................................................................................................................ 3 Stakeholder Interviews and Focus Groups .................................................................................. 3 Dover DDD Program Beneficiaries ......................................................................................... 3 DDD Administering Bodies ..................................................................................................... 5 Other DDD’s ............................................................................................................................ 6 DSU .......................................................................................................................................... 6 Key Takeaways............................................................................................................................ 6 Demographic Data .......................................................................................................................... 8 Housing & Population Data ......................................................................................................... 8 Income & Poverty Data ............................................................................................................. 13 Employment Data ...................................................................................................................... 14 Vision, Goals, and Strategies ........................................................................................................ 15 The Capital City 2030: Transforming Downtown Dover Plan.................................................. 15 Key Projects ............................................................................................................................... 18 Appendix Appendix A – Capital City 2030: Transforming Downtown Dover Strategic Master Plan Appendix B – Maps Appendix C – Interview Summaries Appendix D – Census Data Appendix E – OnTheMap Inflow/Outflow Analysis Appendix F – Dover Downtown Investments Press Coverage 33

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Need and Impact The City of Dover is seeking a five-year extension to its Downtown Development District (DDD) designation. A five-year extension will allow Dover the opportunity to meet goals and objectives outlined in the initial district plan that include:  Mixed use development  Retail uses within the Central Business District  Increase the number/percent of owner occupied homes  Increase the density of development  Build on vacant lots  Bring buildings close to the street to line the sidewalk  Strategic location of open spaces, parks and gateways These goals were products of the Dover Transit Center Neighborhood Plan and Restoring Central Dover Plan. The Capital City 2030: Transforming Downtown Dover Strategic Master Plan (Appendix A) is Downtown Dover’s newest master plan that builds on the previous vision and outlines key projects and strategies to achieve this vision. The DDD designation allows those investing in downtown Dover to receive a rebate on the cost of improvements of up to twenty (20) percent from the State. In addition, the City of Dover offers five different incentives to encourage investment, and the Downtown Dover Partnership (DDP) offers four incentive programs. City incentives include a building permit fee waiver, sewer and water impact fee waiver, business license fee waiver for new businesses, and an abatement on tax on the value of improvements. The DDP incentives include architectural grants, façade grants, critical infrastructure grants, and business retention/expansion grants. In addition, investors have leveraged other grant funds including the EDGE grant administered by the Delaware Division of Small Business and the Strong Neighborhood Housing Fund administered by the Delaware State Housing Authority. Federal, State and local historic preservation tax credits can further leverage investments for qualifying properties. The layering of these various incentives has been instrumental in realizing the nearly sixty (60) projects that have occurred since the program was implemented. See Appendix B for maps that provide additional information about the DDD in Dover. Over the past nine (9) years, the DDD program has been successful in building affordable owner-occupied housing and reducing blight within the City of Dover. According to the DDD FY2023 Annual Report, since the program’s implementation, $13,297,542 in private funds were leveraged through local, county and state incentives, and 59 projects were completed. The City of Dover hired Rossi Group to conduct an independent program evaluation as part of the renewal application. Rossi Group analyzed program data, conducted interviews, and held a focus group meeting with stakeholders to assess program implementation and performance thus far. The information gathered was used to identify program strengths and areas for improvement, informing the development of this updated district plan. The program evaluation confirmed that Dover’s DDD has successfully improved housing stock and reduced blight, particularly in the residential areas. A review of relevant census data demonstrates that homeownership rates within this area have increased, but the need for Page 1 of 19 34

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District additional affordable homes persists. Stakeholders who invested in projects within the Dover DDD noted that their projects would not have been possible without available incentives. The program evaluation indicated that there is an interest in ongoing investment, provided the incentives continue. The program evaluation made suggestions for improved program implementation such as hiring a designated program liaison, streamlining processes, and increasing marketing efforts. A five-year extension to Dover’s Downtown Development District (DDD) designation would allow for the implementation of these suggestions, ensuring increased program benefits moving forward. At year ten of the DDD program, Dover is starting to see momentum pick up rapidly with the beginning stages of the Capital City 2030 plan kicking off. In February 2024, Governor Carney and state legislators announced plans to invest a total of $25 million in downtown Dover revitalization. Please see appendix E for relevant press coverage, including the Governor’s press release. Through the Governor’s proposed 2025 capital budget and a portion of the state’s American Rescue Plan Act (ARPA) funds, the City of Dover and the DDP will proceed with three key projects from the Capital City 2030 strategic plan, including: critical water and wastewater infrastructure upgrades, a six-story muti-use building, and a mobility hub. Mayor Robin Christiansen remarked that downtown revitalization efforts have been ongoing since the early 1990’s and the City now has a solid roadmap for success. As a result, City officials are hopeful that meaningful change will be realized by 2030. Figure 1: DDP Newsletter Blast about Downtown Investment The DDD incentives will play a vital role in supporting these initial projects, which are expected to be transformational in the community and a catalyst for future investment. The state investment in water and wastewater improvements will reduce the cost of renovating older buildings and increasing residential density in the area, providing added incentive for investment. Page 2 of 19 35

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Program Evaluation In the process of updating the district plan, Rossi Group completed an evaluation of Dover’s DDD program by soliciting perspectives from a range of stakeholders along with available program data to assess areas of success and areas for improvement. Stakeholders included City and State staff, organizations within Dover, program beneficiaries, and other DDD administrators. Stakeholders were engaged through a series of interviews and a moderated focus group session. Stakeholder Interviews and Focus Groups Stakeholder interviews were guided by pre-written questionnaires tailored to the different roles of stakeholders. Interviews were conducted between January 11 and February 7, 2024, and detailed notes were collected to document responses. For detailed interview summaries please see Appendix C. Dover DDD Program Beneficiaries Rossi Group interviewed stakeholders identified as downtown redevelopment partners in the 2014 District application. Interviewees included representatives of NeighborGood Partners (formerly NCALL), Central Delaware Habitat for Humanity, City of Dover Departments, Delaware State University, the Office of State Planning Coordination, and members of City Council representing the area encompassed by the District. NeighborGood Partners and Central Delaware Habitat for Humanity both benefited from the program as they redeveloped properties. In addition, program beneficiaries were invited to participate in a more in-depth focus group, which took place on February 6, 2024. Eight (8) individuals attended including Theresea Owens (owner of Stonerail Market), Trish Kelleher of NeighborGood Partners, Todd Stonesifer (President of DDP and downtown property owner), Donny Legans (owner of Rail Haus), Reverand Hodge of The People’s Church, Ashley Robinson of The Wedding Boutique, and property owners Doug Ferris and Michael Harrington, Sr. A list of questions was prepared containing the prompts listed below. The resulting conversation was not strictly guided by the question list, but organically touched on all the focus points. Focus Group Questions: 1. Please identify your role as it relates to a project in Downtown Dover. Raise your hand if you: a. Opened a new business b. built a new home c. renovated a home d. renovated an existing commercial space e. built a new commercial building f. other (explain) 2. Program Value a. Was the availability of incentives important in your decision to invest downtown? Page 3 of 19 36

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District b. Were the incentives helpful in making the numbers work with your investment? c. Are there additional incentives you feel would be helpful? d. Were the incentives easy to understand and apply for? e. Did the City and DDP help to make your investment worthwhile? f. Would you recommend downtown Dover investment to a friend or colleague? If not, why? 3. Program Administration a. How easy was it to navigate the incentives? b. How easily accessible was the information about the program? c. How did you hear about the program? d. Were City/DDP staff knowledgeable about the program? Were they responsive? e. Were the website and brochures helpful? f. If you needed information about the program, where did you go to find it? 4. Review Process a. Did you find the City’s review process straightforward and easy to understand? b. If not, what did you find difficult? 5. Going forward a. What suggestions do you have to help make the downtown revitalization efforts more successful? b. Is there anything you wish you’d known before applying for DDD program incentives? c. Do you see yourself investing in future downtown Dover projects? 6. Final Exercise: SWOT Analysis (Strengths-Weaknesses-Opportunities-Challenges) Across all organizations, the DDD incentive package was considered very helpful for encouraging downtown development. Some participants went so far as to assert that their housing efforts would be crippled had they not had access to the financial incentives made available through the DDD program. The City Impact Fee waiver and 20% state rebate were noted to be especially beneficial, and participants benefited from the ability to stack incentives with other funding sources. The Downtown Dover Partnership (DDP) was also said to be instrumental in helping individuals navigate the development process. Participants utilized the DDD program at different stages of the program’s implementation, therefore their experiences varied. For example, some of the first individuals to use the program did not receive the guidance that later participants had. The DDP, particularly Tina Bradbury, was unanimously named as a resource for navigating incentives; however, that expertise had been refined after the initial phases of the program and was not available to the early applicants. Most participants expressed enthusiasm for the DDD program and its potential to improve Dover’s downtown. Multiple participants identified opportunities for improvement in administering the program. Participants perceived City departments as disconnected from one another which complicated program participation. Feedback indicated that City Planning and Inspections, Public Works, and Water and Wastewater departments appeared to be disconnected and staff turnover rates did not help. Page 4 of 19 37

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Multiple participants expressed frustration with the City due to prolonged building permit wait times. Several mentioned that they received vacant building fees while improving properties. Others received grass cutting fines. Some felt the need to continuously advocate for themselves because permit issuing agencies did not know they are part of the program. There was additional frustration with upgrading buildings to meet code requirements. Curb cut and sidewalk upgrades were mentioned numerous times as a reliable challenge. A few participants mentioned changes to fire suppression requirements were not communicated by the City in the initial stages of their projects. The necessary upgrades were a large and unexpected expense. Multiple people mentioned that the age of buildings downtown complicates site plans, renovations, and their corresponding code requirements. To avoid surprise costs, one developer suggested that proactive efforts such as walkthroughs and onsite meetings with Public Works could help to identify construction requirements in earlier stages of projects. Additionally, there was some confusion about Impact Fee Waivers because they are only applicable to City Impact Fees, not County. All the focus group attendees suggested that the City create a program liaison to help guide applicants and coordinate among City departments. An allowance or waiver for code-required upgrades was also suggested. Additionally, some individuals believed the City should stay in touch with completed projects. A few participants stated they would appreciate a gesture of gratitude while others suggested longer term incentives to assist remaining downtown. DDD Administering Bodies Rossi Group interviewed representatives across City Departments including Public Works, Electric, Water and Wastewater, Planning and Inspections, and City Council Members. Acknowledging DDP’s role in the DDD administration, DDP leadership was also interviewed. The success of the program was most evident within the residential realm. Multiple participants noted converting vacant lots into affordable housing has improved the area, especially north of Division Street. Commercial success has not been as prolific, however, there have been several successful businesses. Navigating various incentives and their corresponding requirements was mentioned to be confusing for applicants. Participants across City Departments and the DDP felt that an official point of contact or program liaison would help applicants optimize the program and better coordinate downtown improvement efforts across City departments. It was noted that the DDP is often the first point of contact for applicants, and it may be beneficial to formally establish their role in program administration through a memorandum of understanding between the City and DDP. Interviewees also noted that City staff needed better process education to adequately to answer applicant questions or direct them to someone who can. Multiple participants acknowledged that staff turnover rates within City government make that difficult. In addition to improving communication about incentives, some interviewees identified a need to lay out code requirements for projects. Some suggested providing a flow chart or check list that walks applicants through the whole process, thereby reducing the frequency of surprise construction Page 5 of 19 38

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District costs. City staff also suggested having internal training on the program on a regular (annual) basis. In response to recommendations within Capital City 2030 to accelerate approvals, City officials stated there are multiple factors that influence the approval process. Receipt of code-compliant plan submissions would be key to expediting approval. Participants stated submissions could be better coordinated to expedite approvals. Some projects require review and approval by multiple entities; for example, plans for new construction or building exterior improvements in the Historic District require review by the Historic District Commission in addition to traditional code-compliant review. Other projects require external agency review and approval, such as DelDOT, Kent Conservation District, or DNREC, which may result in delays. Other DDD’s Rossi Group also interviewed Rob Pierce from the City of Milford and Sheldon Hudson and Jeremy Rothwell from the Town of Smyrna. . Commercial façade grants funded most of the façade improvements in downtown Smyrna. City of Milford representatives noted building permits take one to two weeks to be issued and cautioned offering expedited services. Interviews confirmed that neighboring communities have similarly had more success with the residential development and have struggled to see significant mixed-use projects come online. Each town placed emphasis on the importance of having someone act as a champion for the DDD program, promoting incentives. Milford noted that they use their code enforcement process to spread awareness of the program. Smyrna indicated that they help applicants layer historic preservation tax credits with DDD incentives to create generous packages. DSU Rossi Group met with Delaware State University (DSU) representatives, Marlena Gibson, Bernard Pratt, and Anas Ben Addi, to discuss the DDD program’s impact on the University. When asked if there have been any benefits to the campus following the programs implementation, representatives were neutral. Higher education is not eligible for the DDD Program; therefore, the university cannot take advantage of it. There have been indirect benefits as a result of the improvements downtown, but they feel Dover could better attract investors and engagement. Students and their families are still more inclined to spend their money outside of downtown Dover. The discussion with DSU was helpful in determining where the City may be interested in expanding the District boundary. As DSU recently acquired the former Wesley College campus, it is possible that some of their lands in the downtown could be identified as excess and available for redevelopment. Key Takeaways Dover’s DDD program has successfully attracted investment in historically neglected areas. Residential projects have improved the area by converting vacant buildings and lots into affordable housing. These projects would not have been possible without the support of the DDD program’s incentive package. While the program is instrumental in encouraging improvements within Dover, there are areas to improve its implementation. Based on input received during nearly all stakeholder interviews and the focus group, there is a clear need for a designated point of contact or program liaison. Due to staff turnover within the City, this role has been left vacant. Page 6 of 19 39

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Program beneficiaries and administrators agreed that hiring someone who could assist program applicants and communicate projects between City departments would enhance and encourage the use of the program. In addition to a program liaison, stakeholders suggested that a user- friendly resource, such as a flow chart or series of checklists, to clearly communicate program and code requirements to applicants would be beneficial. Participants mentioned that marketing efforts for the program should be more robust and that City staff may play a role in spreading awareness of the program and its incentives. Page 7 of 19 40

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Demographic Data A lack of quality housing stock in Downtown Dover was identified as an impediment to downtown redevelopment in the Restoring Central Dover Plan submitted with Dover’s initial DDD application. Since that time, the DDD program has had a significant impact on improving housing stock in downtown Dover. As a result of the available incentives, Habitat for Humanity constructed 34 new homes, and NeighborGood was able to complete 17 homes. This means that, in the first decade of the program, Dover’s DDD saw a total of more than 50 new homes constructed, transforming entire street blocks in Dover. Appendix B Map 1 shows the locations of all projects within the DDD and Map 2 shows the locations of Central Delaware Habitat for Humanity and NeighborGood projects. Figure 2: 18, 22, 26, & 29 N. Kirkwood St. Housing & Population Data Block level census data supports the narrative that Dover’s DDD has seen decreased vacancy rates and increased homeownership. Below, Tables 1 and 2 include population and housing data at the county, city, tract, and block level from the 2010 and 2020 decennial census. The tables include all blocks that either fall within the DDD boundary or intersect with the DDD boundary. Note, census block shapes and numbers changed between 2010 and 2020. This resulted in the land area being larger in 2010 and smaller in 2020. Please see Appendix B Maps 3 and 4 for details of current shapes of census tracts, block groups, and blocks. Maps 5 and 6 illustrate the changes that occurred between 2010 and 2020. It is unclear what impact the COVID-19 pandemic had on 2020 census data. Ultimately, this means that the data is not a perfect measure of what has taken place within the Dover DDD boundary from 2010 to 2020. That said, this census data is still a helpful tool in terms of indicating that some improvements have taken place, and that ongoing need exists in the area encompassing the DDD. Figures 3 and 4 further illustrate how homeownership and vacancy rates have changed from 2010 to 2020 within DDD census blocks and the surrounding areas. Overall, in the Dover DDD Census Blocks:  The number of vacant housing units as a percentage of total units decreased from 13% in 2010 to 10% in 2020.  In 2010, only 18% of housing units were owner-occupied (owned free and clear or with a mortgage/loan). In 2020, that percentage increased to 25%. Page 8 of 19 41

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District - Census blocks that intersect with the Dover DDD include areas that are not inside of the DDD. - As depicted in Map 4, census block boundaries changed between 2010 and 2020; the area encompassed in 2010 is larger, possibly explaining the reduced population and number of housing units. As such, percentages are a better measure for comparing data. Table 1: Dover Block Level Housing & Population Data 2010 Dover Block Le vel Data- Housing and Population 2010 Blocks that Intersect with Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 DDD POPULATION Total 162,310 36,047 2,561 2,068 3,648 6,131 2,958 HOUSING UNITS Total 65,338 15,024 1,211 1,073 1,628 1,743 1,252 Occupied 60,278 13,771 1,119 927 1,477 1,572 1,084 Vacant 5,060 1,253 92 146 151 171 168 % Vacancy 8% 8% 8% 14% 9% 10% 13% OCCUPIED HOUSING UNITS, BY TENURE Total Occupied Housing Units 60,278 13,771 1,119 927 1,477 1,572 1,084 Owner-Occupied w/ Mortgage or Loan 30,880 5,172 227 205 407 466 116 Owner-Occupied, free & clear 12,166 1,978 117 120 146 198 75 Renter-Occupied 17,232 6,621 775 602 924 908 893 % Homeownership 71% 52% 31% 35% 37% 42% 18% Source: U.S. Census Bureau, 2010 Census Table 2: Dover Block Level Housing & Population Data 2020 Dover Block Level Data- Housing and Population 2020 Blocks that Intersect with Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 DDD POPULATION Total 181,851 39,403 2,374 2,059 3,839 6,553 2,381 HOUSING UNITS Total 72,708 16,055 1,211 1,004 1,685 1,824 1,204 Occupied 68,290 15,155 1,147 926 1,575 1,688 1,084 Vacant 4,418 900 64 78 110 136 120 % Vacancy 6% 6% 5% 8% 7% 7% 10% OCCUPIED HOUSING UNITS, BY TENURE Total Occupied Housing Units 68,290 15,155 1,147 926 1,575 1,688 1,084 Owner-Occupied w/ Mortgage or Loan 34,442 5,207 239 206 446 490 180 Owner-Occupied, free & clear 14,050 1,909 108 93 141 174 88 Renter-Occupied 19,798 8,039 800 627 988 1,024 816 % Homeownership 71% 47% 30% 32% 37% 39% 25% Source: U.S. Census Bureau, 2020 Census Additional information regarding block level census data is available in Appendix D. Page 9 of 19 42

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Percentage of Homeownership in DDD Blocks 80% 70% 60% 50% 40% 30% 2010 20% 2020 10% 0% Kent Dover Tract 409 Tract 413 Tract 414 Tract 433 Blocks that County Intersect with DDD Figure 3: % Homeownership in DDD Blocks Bar Chart The percentage of owner-occupied homes (with or without a mortgage), as opposed to a renter, increased from 18% in 2010 to 25% in 2020 in census blocks that intersect with the Dover DDD boundary. Meanwhile, homeownership rates appear to have remained the same or fallen in surrounding areas. Percentage of Vacant Housing Units in DDD Blocks 16% 14% 12% 10% 8% 6% 2010 4% 2020 2% 0% Kent Dover Tract 409 Tract 413 Tract 414 Tract 433 Blocks that County Intersect with DDD Figure 4: % Vacant Housing Units in DDD Blocks Bar Chart The percentage of vacant housing units decreased from 13% in 2010 to 10% in 2020 in census blocks that intersect with the Dover DDD boundary. The percentage of vacant housing units appears to have decreased in surrounding areas as well. Table 3 illustrates that the number of registered vacant buildings has decreased since the DDD program launched in 2010. Dover has maintained a strong stance on code enforcement, and while improvements have been made, there are still a disproportionately high number of neglected buildings and lots within the district and immediate surrounding areas, indicating a strong need for ongoing investment. Figure 5 provides examples of some of the vacant and blighted buildings within the DDD boundary. Page 10 of 19 43

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Table 3: Vacant & Dangerous Buildings Within Dover’s DDD Vacant & Dangerous Buildings within Dover’s DDD 2010 2023 Registered Vacant Buildings 49 37 Buildings Declared Dangerous 7 12 Lots where Dangerous Buildings 25 29 were Demolished Source: City of Dover 58 S. New St. 120 W. Water St. 53 S. New St. 45 S. New St. 56 S. New St. Figure 5: Vacant & Blighted Buildings Within the DDD Boundary Tables 4 and 5 include additional housing data, while tables 6 and 7 address income and poverty data at the County, City, and Tract levels. Data comes from the U.S. census bureau’s 5-Year American Community Survey (ACS) from the years 2006-2010 and 2016-2020 to provide an accurate comparison to the original application which also utilized ACS data. Block level data is unavailable for these measures. The Dover DDD boundary spans four census tracts, though each tract contains land that falls outside of the district. Census tract shapes changed somewhat Page 11 of 19 44

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District between 2010 and 2020 as well, as illustrated in Appendix B Map 5. Tract level data still provides some insight into the progress that has occurred from 2010 to 2020 as well as need that still exists in census tracts that intersect with Dover’s DDD. The ACS contains estimates with a margin of error, and it is unclear what impact the COVID-19 pandemic had on 2020 data. Table 4: Tract Level Housing Data 2010 Dover Tract Le ve l Data- Housing 2010 Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 AGE OF STRUCTURES % Housing Built 1940 or earlier 10% 11% 31% 38% 11% 19% Total Housing Units Built 1940- 1949 estimate 2,127 667 125 235 75 88 Total Housing Units Built 1939 or earlier estimate 4,324 934 253 168 111 291 Total Housing Units Estimate 63,563 14,829 1,205 1,067 1,746 1,984 MEDIAN HOME VALUE $ 207,500.00 $ 192,400.00 $218,000.00 $ 170,700.00 $ 195,200.00 $ 185,200.00 Source: U.S. Census Bureau, 2006-2010 5-Year American Community Survey Table 5: Tract Level Housing Data 2020 Dover Tract Level Data- Housing 2020 Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 AGE OF STRUCTURES % Housing Built 1940 or earlier 9% 10% 22% 38% 15% 15% Total Housing Units Built 1940- 1949 estimate 1,878 421 22 204 22 42 Total Housing Units Built 1939 or earlier estimate 4,719 1,128 228 182 249 233 Total Housing Units Estimate 73,073 16,062 1,114 1,010 1,833 1,785 MEDIAN HOME VALUE $ 226,600.00 $ 182,100.00 $ 239,900.00 $ 173,600.00 $ 185,500.00 $170,600.00 Source: U.S. Census Bureau, 2016-2020 5-Year American Community Survey  According to 5-Year ACS estimates from 2010 and 2020, the percentage of housing built in 1940 or earlier is currently higher in census tracts that intersect with the DDD than in the City of Dover or Kent County, though that percentage has declined in two of the four tracts that intersect with the DDD.  Median home values in Kent County increased 8% from 2010 to 2020, but in Dover they fell 6% in that same time. Census tracts 409 and 413 saw median home values increase, though tracts 414 and 433 saw decreases.  Census tract shapes have changed slightly between 2010 and 2020.  Significant portions of each census tract that intersects with the DDD lie outside of the district boundary. Page 12 of 19 45

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Income & Poverty Data Table 6: Tract Level Income & Poverty Data 2010 Dover Tract Leve l Data- Income & Pove rty 2010 Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 POPULATION Population for whom poverty status is determined 160,007 32,450 1,767 2,234 3,060 3,701 MEDIAN INCOME Median Household Income in the past 12 months $ 55,149.00 $ 46,267.00 $ 28,864.00 $ 31,429.00 $ 40,043.00 $ 45,000.00 Pove rty Status in the Past 12 Months Below Poverty Level 20,720 5,989 352 985 831 531 Percent Below Poverty Level 12.90% 18.50% 19.90% 44.10% 27.20% 14.30% % Low/Mod Income 31% 36% 28% 36% 37% 37% 80% of Median Income $ 44,119.20 $ 37,013.60 $ 23,091.20 $ 25,143.20 $ 32,034.40 $ 36,000.00 Total Households 57,396 13,046 1,007 876 1,453 1,744 Households that earn less than $10,000 6.60% 8.60% 12.00% 16.90% 14.40% 11.80% $10,000 to $14,999 4.60% 5.50% 15.70% 8.40% 6.80% 2.50% $15,000 to $24,999 10.00% 11.30% 20.30% 11.10% 15.80% 15.80% $25,000 to $34,999 10.20% 10.10% 7.60% 5.50% 13.40% 7.30% $35,000 to $49,999 15.60% 17.80% 7.80% 22.70% 14.20% 20.70% $50,000 to $74,999 21.80% 22.10% 20.00% 11.60% 18.30% 24.70% Source: U.S. Census Bureau, 2006-2010 5-Year American Community Survey % Low/Mod Income estimate based on households earning less than 58% of the median household income Table 7: Tract Level Income & Poverty Data 2020 Dove r Tract Leve l Data- Income & Pove rty 2020 Kent County Dover Tract 409 Tract 413 Tract 414 Tract 433 POPULATION Population for whom poverty status is determined 173,725 33,616 1,679 2,047 3,251 3,710 MEDIAN INCOME Median Household Income in the past 12 months $ 60,117.00 $ 48,500.00 $ 33,846.00 $ 37,545.00 $ 36,740.00 $ 45,545.00 Poverty Status in the Past 12 Months Below Poverty Level 22,994 7,378 403 527 655 1,076 Percent Below Poverty Level 13.20% 21.90% 24.00% 25.70% 20.10% 29.00% % Low/Mod Income 28% 37% 42% 39% 33% 38% 80% of Median Income $ 48,093.60 $ 38,800.00 $ 27,076.80 $ 30,036.00 $ 29,392.00 $ 36,436.00 Total Households 67,299 14,740 1,028 883 1,617 1,601 Less than $10,000 5.20% 5.80% 11.30% 7.50% 10.60% 9.90% $10,000 to $14,999 4.40% 7.60% 8.50% 7.70% 5.20% 7.70% $15,000 to $24,999 8.10% 11.50% 22.60% 23.60% 17.10% 8.90% $25,000 to $34,999 10.40% 12.50% 10.00% 6.80% 12.90% 11.10% $35,000 to $49,999 14.10% 13.60% 8.30% 15.70% 13.30% 17.70% $50,000 to $74,999 19.60% 18.30% 15.90% 13.70% 15.00% 20.10% Source: U.S. Census Bureau, 2016-2020 5-Year American Community Survey % Low/Mod Income estimate based on households earning less than 80% of the median household income Page 13 of 19 46

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District  According to 5-Year ACS, the median household income increased in three of the four census tracts that intersect with the DDD between 2010 and 2020. Tracts 409 and 413 saw increases as high as 15%-16%, which is higher than the 8% increase in Kent County.  Median income in these tracts remained lower than the 2020 median of $38,800 in the City of Dover and $48,039.60 for Kent County.  The 2020 percentage of the population living below poverty level in all census tracts that intersect with the DDD is higher than the 13.2% level in Kent County.  The percentage of the population living below the poverty level fell in tracts 413 and 414 between 2010 and 2020 and increased in tracts 409 and 433.  The percentage of low- or moderate-income households is based on the percentage of households who earn less than 80% of median household income. In all census tracts that intersect with the DDD, the percentage of low- or moderate-income households is higher than the 2020 percentage in Kent County of 28%.  The percentage of low or moderate-income households fell in census tract 414, but increased in other census tracts that intersect with the DDD.  Census tract shapes have changed slightly between 2010 and 2020.  Significant portions of each census tract that intersects with the DDD lie outside of the district boundary. Employment Data OnTheMap, a tool developed by the US Census Bureau for analyzing employment data, was utilized to analyze the flow of employees into and outside of the proposed DDD boundary. The full report produced is attached in Appendix E. As demonstrated in Figure 6, 1,501 employees are employed within the proposed DDD boundary, but live outside the boundary; 425 individuals live within the proposed DDD boundary, but work outside of it; only 11 individuals are both employed within the proposed DDD boundary and work within it as well. Overall, the DDD benefits from a net-migration of employees to the district. There is not a significant overlap between individuals who both live and work within the district boundaries. Figure 6: Worker Inflow and Outflow Page 14 of 19 47

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Vision, Goals, and Strategies Dover has been active in its efforts to revitalize the downtown since the 1990s. While the words used to describe the vision for downtown Dover have changed over the years, the vision has remained unchanged. All previous efforts undertaken by the City of Dover and many partner organizations have been striving for a strong, vibrant downtown with a thriving commercial district, a safe and attractive environment for walking, and housing that meets the needs of the Dover community. In 2014, when applying for the DDD designation, the City of Dover submitted two plans to articulate this vision. These were Restoring Central Dover: Our Vision for Vitality (2014) and the Dover Transit Center Neighborhood Plan and Design Book (2011). Together these plans established a roadmap for downtown revitalization while mitigating the gentrification that often accompanies reinvestment in an area. The Dover Transit Center Neighborhood Plan and Design Book sought to capitalize on the State’s investment in a new transit center on Water Street. Restoring Central Dover sought to improve housing stock, bolster homeownership, and build community in an area that had lacked investment. The Capital City 2030: Transforming Downtown Dover Plan The vision articulated in prior plans remains relevant, but the strategies and approaches outlined in The Capital City 2030: Transforming Downtown Dover reflect the time and the circumstances of Dover in 2023 (Appendix A, January 2023). This plan was a collaborative effort between the DDP, City of Dover, and Mosaic Development Partners as well as other private firms. Throughout 2022, the team worked to gather information and public input, assess current conditions, identify needs and opportunities for redevelopment and investment, and create implementation and investment strategies to guide the community toward an equitable and sustainable future. The target date by which Dover’s commerce and housing will reach its full potential is the year 2030. This plan builds upon many of the initial goals and strategies outlined in the Transit Neighborhood Plan and the Restoring Central Dover Plan, while bringing these plans up to date, adding additional expert and community input, and incorporating lessons learned in the first decade of the DDD program. Through a public process, barriers to capital investment were identified. These include the following key issues:  Homelessness, vagrancy, and safety,  The lack of pedestrian activity on Loockerman St.,  Street design and streetscapes fail to support a destination retail street and thriving downtown,  Condition of infrastructure,  Scarce amenities,  Streets prioritize vehicle movement over other modalities,  Regional anchors are disconnected,  Too few businesses to attract new residents,  Not enough regular foot traffic for food and beverage establishments,  Lack of parking, Page 15 of 19 48

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District  Limited housing stock- insufficient to support retail programming, and  More pro-business regulations and incentives are needed to spur private investment. Vision:  Transform Downtown Dover and the surrounding area into a vibrant, thriving community and regional destination, with Loockerman Street serving as the spine for the downtown district, with wide sidewalks, trees, vibrant store fronts, food and retail options, outdoor seating, and traffic calming strategies.  A multi-modal Dover that welcomes people who walk, cycle, use a scooter, take a bus, or drive and offers connection to existing key anchors and major hubs in the area.  A vibrant community built on the principles of equitable development that becomes a model for people to live, work, and play.  A thriving economy, commercial center, and destination that attracts residents and visitors while honoring Dover’s heritage. Goals: Figure 7: Capital City 2030 Plan Projected Outcomes  New Developments offering residential units to increase population density downtown, a boutique hotel, centralized parking, contemporary architecture upgraded building structures, and programmed public spaces.  The projected outcomes of the Mosaic plan include 97,700sf of commercial space, a hotel, a grocery store, 792 parking spaces, and 927 residential units across 6 sites.  Achieve an annual economic impact of 360 full time jobs per year offering $11.8 million in compensation.  Revive Loockerman and create 3,674 linear feet of commercial road.  21.6 acres of green space, a River Walk, and a community amphitheater.  A multi-modal transit hub, streetscape improvements, and improved lighting systems to promote safety.  Art installations, trees, and preservation of historic architecture to promote culture and preserve community character. Page 16 of 19 49

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District Strategies: Important strategies identified in the strategic master plan include:  Installing monuments at entry points to the downtown and implementing a crosswalk art program, which has already launched. Local artists have created painted crosswalks at 1 W. Figure 8: Capital City 2030 Plan Loockerman St. and 394 W. Loockerman St.. Monumental Signage  Create a Multi-Modal Dover by ensuring that the downtown core is accessible from all directions by car, bike, and foot. This involves creating street typologies, bike lanes and bike networks, widening sidewalks, adding traffic calming infrastructure, installing raised intersections, and creating more centralized parking. It also includes a transportation hub and strategically placed wayfinding signage directing visitors to Figure 9: Painted Crosswalks shopping, dining, and attractions. o The Dover/Kent County Metropolitan Planning Organization (MPO) is currently conducting a Downtown Dover Pathways study to identify means to better connect key activity centers within downtown Dover by walking, cycling, scooter, other active transportation and micromobility options. Activity centers include facilities such as Bayhealth, legislative mall, Delaware State University, Dover transit center, and Dover Air Force Base. Figure 10: Capital City 2030 Plan Rendering of the o Additional strategies for creating a Intersection of East Loockerman St. and Park Dr connected community may include the use of pedestrian only alleyways and bikeshare programs, increased public transit options to fill gaps, and sidewalk improvements.  Revive Loockerman Street so it is a pedestrian and activity corridor with wider sidewalks, narrower roads, room for outdoor dining and sidewalk planters, improved lighting systems, and a tree preservation program. The Figure 11: Capital City 2030 Plan Rendering of Recommended Streetscape pedestrian experience will be improved with Typologies on W. Loockerman St. Page 17 of 19 50

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District extended store hours and engaging consumer experiences that encourage visitors to spend time in the area.  Adjust the intersection design at State Street, Kings Highway, and Loockerman to improve safety and pedestrian access.  Address parking issues by creating a mobility hub with structured parking, bike or car share access, travel information, and more.  Preserving the architecture and historical character of downtown. Provide clear design standards that clarify which design elements should be encouraged or discouraged in renovations and in new construction.  Develop a community density plan that seeks to add residential units at various price points. Key Projects Capital City 2030 identifies target sites where implementing targeted strategies will have the greatest impact. The key projects have been identified with the goal of increasing density downtown and growing amenities in a manner that is equitable, sustainable, and in line with the goals and values of the City and its stakeholders. As the first decade of the DDD program ends, several of these key projects are taking shape. Capital City 2030 includes a financial framework to achieve the plan’s goals, and the incentives provided by DDD designation are instrumental. As it relates to the DDD District Plan, three major projects are expected to begin development within the next couple of years and will serve as catalysts for other redevelopment activity identified in Capital City 2030. These include the 120 and 129 Governors Ave projects and the Old Dover Post Office project. Availability of DDD incentives have played a major role in getting these projects off the ground. Figure 18 includes images of current sites on Governors Ave. and the project renderings from the Capital City 2030 Plan. This figure also includes the Old Dover Post Office location, and the rendering created by the private developer who is working to renovate the space. In addition, critical upgrades to the sewer and water infrastructure will ensure that the infrastructure can support the increase in density.  120 S. Governors Avenue- Construct a multi-level building with parking, residences, a grocery store, and outdoor space to increase downtown amenities.  129 S. Governors Avenue- Construct a parking deck to replace the existing surface lot. Create a transit hub and nearby residential units and town homes.  The Old Post - The City is currently working with a developer on an approved proposal to create a 4-story mixed-use building with space for 2 retail establishments, parking, office space, and 30 apartment units.  Critical Water and Wastewater Infrastructure Upgrades – The City will replace aging water and sewer lines needed to support downtown development. Appendix F features the Governor’s Press Release on the investment as well as subsequent news articles about the forthcoming investments. Capital City 2030 identifies additional key projects in the “Our Plan: Project Sites” section beginning on page 74. These projects are also important to the vision for downtown Dover and Page 18 of 19 51

Item 3. City of Dover, DE Updated District Plan - DRAFT Downtown Development District will likely move forward after the initial key projects are underway. DDD incentives are important to the feasibility of all these key projects. Figure 12: Current Lots and Renderings Page 19 of 19 52

Item 3. Appendix A Please see the Transforming Downtown Dover Capital City 2030 Master Plan: https:// www.dropbox.com/scl/fi/zot7m23o8us1b4rzd4edh/DOVER_Masterplan_January.pdf? rlkey=fy132lnwpvwmfohyxiyiebkdy&dl=0 53

Item 3. Appendix B 54

Item 3. City of Dover, DE Updated District Plan: Appendix Downtown Development District Appendix B: Maps 1. Project Locations 2. CDHH and NeighborGood Project Locations 3. Census Tracts & Block Groups 4. Census Blocks 5. Census Tract Changes 6. Census Block Group Changes 7. Percent Homeownership 2010 8. Percent Homeownership 2020 9. Percent Vacant Units (2020) 10. Vacant Building 11. Dangerous Buildings 12. Total Crime 13. Violent Crime 14. Drug Crime 15. Property Crime 16. Proposed Boundary 17. Current Zoning 18. Current Land Use (2019 Comprehensive Plan) 19. Planned Land Use (2019 Comprehensive Plan) 20. FEMA Floodplain 21. National Historic Districts 55

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Item 3. Rossi Transportation Group, Inc. 555 E. Loockerman Street, Suite 220 Dover, DE 19901 77

Item 4. The Delaware Marijuana Control Act Overview and Options for Dover 78

Item 4. Dover, Delaware Marijuana Ordinance March 2024 Table of Contents I. Delaware’s Marijuana Control Act.......................................................................................... 1 A. Summary of Legislation ...................................................................................................... 1 House Bill No. 1- An Act to Amend Title 16 of The Delaware Code Relating to Marijuana 1 House Bill No. 2 as amended by HA1 and HA2- An Act to Amend Title 16 of The Delaware Code Relating to Marijuana ..................................................................................................... 3 B. Effects of Legislation ........................................................................................................ 10 C. Rights of Municipalities .................................................................................................... 11 II. Dover Ordinance Options ...................................................................................................... 12 A. Fully Prohibit Marijuana Facilities ................................................................................... 12 B. Allow Marijuana Facilities in Certain Zones .................................................................... 12 III. References ......................................................................................................................... 18 79

Item 4. Dover, Delaware Marijuana Ordinance March 2024 I. Delaware’s Marijuana Control Act A. Summary of Legislation During the 152nd general assembly, the Delaware Marijuana Control Act was passed. This act consisted of two bills:  House Bill 1 decriminalizes the purchase, possession, transportation, use, and sharing of personal use quantities (Figure 1) of marijuana for adults over the age of twenty-one.  House Bill 2 creates a framework for a legal recreational marijuana industry inclusive of cultivation, testing, manufacturing, distribution, and sales. This bill regulates and taxes recreational marijuana in a similar manner to alcohol. House Bill No. 1- An Act to Amend Title 16 of The Delaware Code Relating to Marijuana Bill History: 01/20/2023 Introduced 03/07/2023 Passed the House 03/28/2023 Passed the Senate 04/23/2023 Enacted without the governor’s signature Original Synopsis: This Act removes all penalties for use or possession of a personal use quantity of marijuana and marijuana accessories. It further specifies that the adult sharing of a personal use quantity or less of marijuana is legal activity for those 21 years of age or older and that those twenty-one or older may possess, use, display, purchase, or transport accessories and personal use quantities of marijuana without penalty. When transporting in a vehicle, those items must be in a closed container or otherwise not readily accessible to anyone inside the vehicle. The statute also specifies certain activities which remain unlawful. Finally, the definition of "personal use quantity" of marijuana is updated to include not only one ounce or less of leaf marijuana, but also equivalent amounts of marijuana product in other forms. Summary of Changes: Section 1. Amends Chapter 47, Title 16 of the Delaware Code § 4701. Definitions. This bill adds to the definition of “Personal Use Quantity,” as detailed in Table 1. 1 80

Item 4. Dover, Delaware Marijuana Ordinance March 2024 Table 1: Personal Use Quantity Product Maximum Allowable Personal Use Quantity Leaf Marijuana 1 Ounce Concentrated Cannabis 12 Grams Cannabis products containing delta-9- 750 Milligrams tetrahydrocannabinol § 4764. Possession of Marijuana; class B misdemeanor, unclassified misdemeanor, or civil violation. This bill eliminates penalties for the possession, use, and consumption of personal use quantities of marijuana. Penalties remain the same for greater amounts. The bill adds that those under the age of twenty-one who possess, use, or consume even personal use quantities of controlled substances will be assessed penalties. § 4764A. Legal marijuana-related activity. The bill adds this section to Title 16, defining ‘adult sharing’ as the transfer of marijuana between persons over the age of twenty-one, excluding any kind of transactional exchange. It also details specific activities that are lawful and unlawful (Table 2). Table 2: Marijuana Related Activities Activities that are legal: Activities that are not legal: Adults over the age of 21 may purchase, Those under the age of 21 may not engage in possess, and use a personal use quantity of these activities. No one may exceed the Marijuana and paraphernalia for use. personal use quantity of marijuana. Adults over the age of 21 may share No one may sell or distribute marijuana to marijuana with other adults provided there someone under the age of twenty-one. is no transactional exchange. Adults may transport personal use quantities No one may consume marijuana in an area of marijuana outside of a motor vehicle. accessible to the public as defined by § 4764(d) of Title 16. This includes sidewalks, streets, alleys, parking lots, parks, playgrounds, stores, restaurants, and other areas that welcome the public. It also includes any outdoor location within ten feet of these public areas. Adults may transport marijuana inside of a No one may drive a vehicle under the influence vehicle provided the marijuana and or consume marijuana while in a moving accessories are in a closed container not vehicle. readily accessible to anyone inside. Licensed establishments may cultivate, test, No one may grow or sell marijuana without a manufacture, and sell retail marijuana and license. marijuana products. § 4771 Drug paraphernalia. The bill ensures provisions of this section no longer apply to marijuana paraphernalia. 2 81

Item 4. Dover, Delaware Marijuana Ordinance March 2024 House Bill No. 2 as amended by HA1 and HA2- An Act to Amend Title 16 of The Delaware Code Relating to Marijuana Bill History: 01/20/2023 Introduced 03/02/2023 House Amendment 1 Passed 03/08/2023 House Amendment 2 Passed 03/09/2023 Passed the House 03/28/2023 Passed the Senate 04/27/2023 Enacted without the governor’s signature Partial Synopsis: The Delaware Marijuana Control Act regulates and taxes marijuana for recreational use in much the same manner as alcohol. It creates a framework for production, manufacture, and sale in a legal recreational marijuana industry. *The full synopsis is available here: https://legis.delaware.gov/BillDetail?LegislationId=129969 Summary of Changes: Section 1. Amend Subchapter IV, Chapter 47, Title 16 of the Delaware Code § 4750. State-legal marijuana activities The bill adds this section to the code to ensure that the offenses and penalties in this chapter do not apply to marijuana. Section 2. Amend § 4902A. Definitions., Title 16 of the Delaware Code The bill changes the definition of registered safety compliance facilities so that recreational marijuana can be tested. Section 3. Amend Chapter 4, Title 4 of the Delaware Code The bill gives the Division of Alcohol and Tobacco authority to enforce the Marijuana Control Act. It amends the following sections: - § 401. Division of Alcohol and Tobacco Enforcement. - § 403. Duties and powers of the Division. Section 4. Amend Title 4 of the Delaware Code This section of the bill is the most substantial and adds Chapter 13: The Delaware Marijuana Control Act, to Title 4. Subchapter, I General Provisions § 1301. Purpose and findings The purpose of this act is to legalize the personal use of marijuana for persons twenty-one and 3 82

Item 4. Dover, Delaware Marijuana Ordinance March 2024 older, while regulating and taxing the sale of marijuana in a manner similar to alcohol. § 1302. Definitions This bill defines the following terms:  Appeals Commission  Marijuana  Person  Commissioner  Marijuana accessories  Personal use quantity  Compassion center  Marijuana cultivation  Possession limit  Consumer facility  Public place  Department  Marijuana establishment  Retail marijuana  Disproportionately  Marijuana product  Retail marijuana store impacted area manufacturing facility  Social equity license  Division  Marijuana products  Smoking  Immature plant  Marijuana testing facility  Unreasonably  Labor peace agreement  Microbusiness license impracticable  License  Open License  Work § 1304. Marijuana accessories authorized The bill makes it legal for adults over twenty-one to engage in manufacturing, selling, and possessing marijuana accessories. § 1305. Places of employment This bill does not include requirements or restrictions on employers related to terms of employment, policies, or discipline. § 1306. Driving under the influence prohibited Driving under the influence of marijuana remains illegal. § 1307. Individuals under age 21; prohibitions The age restrictions are similar to those for alcohol sales. Marijuana is illegal for those under the age of twenty-one. Sellers must ID customers and underage persons are not allowed in marijuana establishments. The penalties for violation are detailed in this section. § 1308. Private property rights Those who occupy, own, or control a property (including schools, hospitals, detention facilities, etc.) can still prohibit or regulate marijuana on or in their property. Landlords can only regulate non-smoked marijuana in certain instances. § 1309. Unlawful marijuana extraction, penalties The bill prohibits certain marijuana extraction practices and limits those that can legally extract compounds from marijuana. § 1310. Lawful operation of marijuana-related establishments This section allows licensed facilities to cultivate, harvest, test, process, package, transport/deliver, display, and sell marijuana and specifies that it is lawful to use or lease a property for this purpose. It also restricts the sale and delivery of marijuana to the same days and hours as alcohol. It is illegal to sell marijuana where alcohol is sold. Municipalities with a population of 50,000 or more (which only includes Wilmington) may further limit selling hours within their jurisdiction through local ordinance, with some limitations. § 1311. Enforcement Enforcement will be under Title 16, Chapter 47, Subchapter VI. 4 83

Item 4. Dover, Delaware Marijuana Ordinance March 2024 § 1312. Contracts enforceable This section notes that contracts related to the operation of a marijuana establishment are enforceable even though marijuana is federally illegal. § 1313. Verifying the age of marijuana consumers This section explains the ID/Carding requirements for marijuana retailers and carries penalties for establishments that sell to minors, and for those who use fake ID’s. § 1314. Medical marijuana provision not affected This bill does not limit rights related to the Delaware Medical Marijuana Act. § 1315. Oversight Committee; annual report by the Commissioner This bill establishes the Delaware Marijuana Control Act Oversight Committee and charges them with evaluating and making recommendations regarding program implementation. § 1316. Protections for conduct authorized by this chapter Officers and employees of the state, including contractors and volunteers, have certain protections when performing duties related to this chapter. Subchapter II Marijuana Commissioner and Appeals Commission This section describes the role and responsibilities of the Marijuana Commissioner, Appeals Commission, and Deputy Commissioner. It includes an oath of office requirement and a conflict- of-interest policy. It gives the Department of Safety and Homeland Security (DSHS) the ability to hire employees to support Commission work and ensures that Commission property belongs to the State. - § 1321. Marijuana Commissioner; Appeals Commission; qualifications; appointment; term; compensation - § 1322. Duties and powers of the Commissioner - § 1323. Oath of Office of Commissioner and employees - § 1324. Conflict of interest - § 1325. Commissioner's statement of interest in marijuana business - § 1326. Employees of the Division; Commissioner - § 1327. Property and profits of the office of the Commissioner - §§ 1328-1330. Reserved Subchapter III Regulation and Licensure § 1331. Regulations The Commissioner will establish regulations relating to licensure, application fees, and suspending/transferring/revoking licenses. They will create a competitive scoring process that takes into account various criteria. They will establish additional regulations and penalties for the transportation and storage of marijuana, operation of establishments, product standards, etc. Part A. Open Licenses This section describes the application requirements and fees for each type of open license. Licenses are issued for 2 years. All licensees must follow the laws established by this act and by the Commissioner. They must provide product samples to testing facilities. Consumption of marijuana is not allowed on the premises of any marijuana facility. § 1332. Retail marijuana store licenses Retail stores can only purchase from a licensed cultivation facility. They cannot sell more than a 5 84

Item 4. Dover, Delaware Marijuana Ordinance March 2024 personal use quantity to one person in a single transaction. They must verify age, keep records, and abide by the Americans with Disabilities Act (ADA). There are certain products they cannot sell (i.e., alcohol, food). Online sales and delivery services are prohibited. These regulations do not apply to Compassion Centers. § 1333. Marijuana testing facility licenses Anyone with financial interest in a testing facility may not have financial interest in any other kind of marijuana facility. § 1334. Marijuana cultivation facility licenses Cultivation facilities must track products and there are limitations on the size and structure of the facility. § 1335. Marijuana product manufacturing facility license Manufacturers must track products and follow trademark laws. Retail products must be manufactured in a facility used exclusively for that purpose and products must be shelf stable. Part B Social Equity and Microbusiness Licenses This section provides criteria for qualifying as a social equity applicant or a microbusiness. It details the application and fee structure for these licenses. The Commissioner will develop a technical assistance program for applicants and will explore financial assistance opportunities. There is a conditional license option for these applicants. - § 1336. Social equity applicant - § 1337. Social equity application and fees - § 1338. Technical assistance - § 1339. Financial assistance - §1340 Microbusiness license - § 1341. Microbusiness application and fees - § 1342. Conditional license Part C Licensing Process § 1343. Licensing Process The commissioner will start accepting applications 13 months after the effective date of the bill. There are a required number of licenses that must be issued within a specified timeframe, however, the benchmarks are not enforceable if they cannot be met due to opposition by localities, lack of qualified applicants, etc. 2 years after the effective date, the commissioner may, at any time, accept applications for any type of license. §§ 1344-1350. Reserved Subchapter IV Determination of Applications § 1351. Local control Municipalities may prohibit the operation of any of these marijuana facilities or retail stores through the enactment of an ordinance or initiated/referred measure. A municipality or county can enact ordinances or regulations (if they are not in conflict with this chapter or regulations enacted by the commissioner) that govern the number of establishments permitted, and time, place, or way that marijuana establishments operate within their jurisdiction. They may establish civil penalties for ordinance violations. § 1352. Procedural requirements governing Commissioner's action; hearing; appeal If 10+ people, within 1 mile of the location where the license is to operate, file a protest of the 6 85

Item 4. Dover, Delaware Marijuana Ordinance March 2024 license with the commissioner within 30 days of the filing date, a public hearing must be held before a final written decision is issued. This section also details the appeals process. § 1353. Decision upon application for renewal of license; time of making This section addresses the timeframe in which the Commissioner shall issue a decision about applications for renewal. § 1354. Grounds for refusal of license; transfer or extension of premises The commissioner can deny a license if it violates the laws of a county/municipality, if there are issues with the applicant (i.e., criminal record, false statements in application, etc.), or if there is substantial objection by the community. They can also deny a license if the establishment is too close to a church, school, treatment facility, or other marijuana establishment. § 1355. Finality of Commissioner's decision refusing license This section covers how the commissioner shall issue a decision. § 1356. Improvements to premises This section allows the commissioner to issue a contingent license, however, they cannot require improvements to premises before issuing a license. Subchapter V. Cancellation or Suspension of License The Commissioner can suspend or cancel a license, and/or issue fines for violations. Violations include local, municipal, county, or state regulations, ordinances, or codes related to the operation of a licensed premises. This section covers the right of a licensee to a public hearing before the cancellation or suspension of a license. It also covers the process for appeals, posting notice, and the requirement that the state pay out portions of the license fee and value of surrendered products. - § 1361. Grounds for cancellation, suspension, or fines. - § 1362. Public hearing and right of appeal. - § 1363. Effect of cancellation or surrender of license; notice. - § 1364. Payments to former licensee. Subchapter VI. Transfer of License; Death of Licensee You can transfer a license to someone else approved by the commissioner. This covers the process for remitting payment to an estate in the event someone dies, and the license is not transferred. - § 1366. Transfer of license - § 1367. Death of licensee; payments to licensee's estate - §§ 1368-1370. Reserved Subchapter VII. Owner and Financial Interests of Licensee § 1371. Commissioner approval. The commissioner may refuse to approve a change in the ownership, officers, or directors, financial interest, or lease. This section describes the information and associated fees that an applicant wishing to make these changes needs to provide. - § 1371. Commissioner approval - § 1372. Change in ownership - § 1374. Change in officers or directors 7 86

Item 4. Dover, Delaware Marijuana Ordinance March 2024 - § 1374. Changes in financial interest - § 1375. Fees Subchapter VIII. Marijuana Regulation Fund; Taxes. § 1381. Marijuana Regulation Fund; Justice Reinvestment Fund This section establishes the Marijuana Regulation Fund, which will be used to collect fees and penalties related to this chapter. A portion of the marijuana taxes imposed will be deposited here. § 1382. Levy and rate of marijuana tax; collection Taxes only apply to retail, and not medical, facilities. § 1383. Collection and administration of the marijuana tax; mandatory reports; preemption This section covers the reporting requirements and tax payment procedures for marijuana establishments. It does state that fees and taxes imposed by the state are in lieu of all county and municipal license fees and taxes, though general occupational license fees and taxes, imposed uniformly on everyone within the class are not preempted. § 1384. Retention of records by retail marijuana store licensee; penalties This section includes recordkeeping requirements and penalties for failure to comply. § 1385. Discontinuance, sale, or transfer of business by retail marijuana store licensee; penalties This section details when taxes and penalties are due and who is responsible for payment in special circumstances. § 1387. Deposit of receipts Tax and fee monies will be deposited and credited to the Marijuana Regulation Fund. A portion of the tax revenue (7%) will go to the Justice Reinvestment Fund. § 1388. Appropriation of revenue The General Assembly will appropriate the money in the Marijuana Regulation Fund each fiscal year to cover the administrative costs of the Commissioner and their division, as well as the Criminal Justice Council for administering the Justice Reinvestment Fund. The remainder may be appropriated as determined by the General Assembly. This section also specifies how the Justice Reinvestment Fund should be used. § 1389. Financial statements of the Commissioner This section covers Commissioner reporting requirements to the state treasurer. § 1390. Annual audit The state auditor will conduct an annual audit. Section 5. Amend § 1903, Title 30 of the Delaware Code § 1903. Computation of taxable income This section allows marijuana establishments to deduct business expenses from state, but not federal taxes. Section 6. Amend Subchapter II, Chapter 16, Title 30 of the Delaware Code § 1625. Special rules for certain tax deductions for pass-through entities This section defines qualified business and qualified expenses to include marijuana establishments. 8 87

Item 4. Dover, Delaware Marijuana Ordinance March 2024 Section 7. Amend § 581, Title 30 of the Delaware Code § 581. Inspection of returns by federal, state and local officials This section adds the marijuana commissioner to the list of people who can enter into an agreement with the Director for tax purposes. Section 8. Amend § 2901, Title 30 of the Delaware Code § 2901. Definitions This section adds marijuana product taxes to the definition of gross receipts. Section 9. Amend § 1448, Title 11 of the Delaware Code § 1448. Possession and purchase of deadly weapons by persons prohibited; penalties This section addresses the prohibition from having firearms while in the possession of a controlled substance. The bill changes the reference from “4763 or 4764” to only 4763. Section 10. Amend § 501, Title 30 § 501. Application of this chapter This section adds the marijuana commissioner to the list of people governed by this chapter. Section 11 The Commissioner will provide the Joint Finance Committee with a quarterly report about program implementation and issuance of licenses. Section 12 This section addresses that portions of the act are still valid if portions are found to be invalid. Section 13 The regulations required by § 1331 of Title 4 must be adopted not later than 1 year after the effective date of this Act. Section 14 When funds have been appropriated, the Controller General will notify the Registrar of Regulations. Section 15 This Act takes effect upon enactment. 9 88

Item 4. Dover, Delaware Marijuana Ordinance March 2024 B. Effects of Legislation  HB 2 requires a license for growing, manufacturing, testing, and selling marijuana.  HB 2 stipulates that all growing facilities will be indoors.  HB 2 establishes a certain number of licenses that the Commissioner must issue within a specified timeline over the next 2 years. The benchmarks are not enforceable if they cannot be met due to opposition by localities, lack of qualified applicants, etc. For additional details, see Table 3.  The commissioner is responsible for establishing a licensing process and promulgating regulations and penalties related to manufacturing, transportation and storage, and the operation of marijuana facilities, as well as product standards.  The sale of marijuana will be restricted during certain dates and times. Operating hours should be the same as liquor stores.  Retail establishments will not be allowed to engage in online sales or offer delivery services.  Retail establishments will require proof of age and underage people will not be allowed inside.  Retail establishments cannot sell alcohol, tobacco, or food.  No consumption of marijuana is permitted on the premises of marijuana establishments. Table 3: Timeline 2023 2024 2025  April 2023:  May 2024: Proposed regulations will be  March 1, 2025: Up House Bills 1 & published in the Register of Regulations to thirty retail 2 were enacted. followed by a formal public comment licenses and five period. Licensure applications will be  June 2023: testing facility made available. Robert Coupe licenses will be  July 2024: The OMC will adopt was named regulations to administer the licensing of issued. Delaware's first recreational marijuana businesses.  May 2025: The marijuana  September 1, 2024: The Commissioner Commissioner may Commissioner. will begin accepting applications for all accept ongoing  July 5, 2023: licenses. applications for any  October 1, 2024: The commissioner will type of license and The Marijuana start to issue licenses. Control Act issue additional  November 1, 2024: Up to 60 cultivation became facility licenses will be issued. licenses. effective.  December 1, 2024: Up to 30 product  Spring 2025: Adult manufacturing licenses will be issued. recreational use 10 89

Item 4. Dover, Delaware Marijuana Ordinance March 2024 sales are expected to begin. Since the Marijuana Control Act was passed in late April of 2023, Robert Coupe was named Delaware’s first marijuana commissioner, and The Office of the Marijuana Commissioner (OMC) was established and staffed. The OMC is responsible for regulating the recreational marijuana industry within the state. Their focus is “safeguarding public health, deterring underage usage, and generating tax revenue.” They strive to “promote an equitable and competitive marijuana market that places consumer welfare and public safety at the forefront, with the goal of eliminating the illegal marijuana market.” The OMC now has a website where they answer frequently asked questions and provide information such as their Annual Reports (State of Delaware Office of the Marijuana Commissioner). The office is currently posting draft recreational marijuana regulations for informal public comment as sections are completed. The target date for a formal public comment period in the Register of Regulations is May of 2024. The Department of Safety and Homeland Security (DSHS) has been working in partnership with the Department of Health and Social Services (DHSS) on implementation, by creating a framework for the production, manufacturing, and sale of legal recreational marijuana. The State is working on proposed health and safety regulations related to marijuana cultivation, as they will manage licensure and enforcement. The anticipated date by which licensure applications will be available is May of 2024. Their Marijuana Control Act Guide is available online (MCA Guide). C. Rights of Municipalities  HB 1 legalizes marijuana use, but not in public places (§ 4764A).  HB 2 notes that there are no impacts, requirements, or restrictions on employers related to terms of employment, policies, or discipline (§ 1305).  HB 2 notes that those in charge of a property can still prohibit or regulate marijuana on or in their property (§ 1308).  HB 2 includes a section on local control that gives municipalities the right to prohibit the operation of marijuana establishments in their jurisdiction through ordinances or initiated/referred measures. They can also enact additional regulations that govern the time, place, or manner in which these establishments operate and establish civil penalties for violations (§ 1351).  HB 2 establishes a commissioner of marijuana who will be responsible for managing licenses for marijuana establishments. There is a process for local residents to object to the issuance of a license (§ 1352).  HB 2 places limitations on the days and hours during which legal marijuana sales may take place. Municipalities with a population of 50,000 or more may further limit sales within their jurisdiction through local ordinance, though there are certain restrictions and conditions placed on those ordinances. 11 90

Item 4. Dover, Delaware Marijuana Ordinance March 2024  HB 2 mentions violation of county or municipal laws and objection by the community as grounds for the refusal of a license (§ 1354). The commissioner can also suspend or cancel a license for violations of local, municipal, or county regulations (§ 1361).  HB 2 does state that fees and taxes imposed by the State are in lieu of all county and municipal license fees and taxes, though general occupational licenses fees and taxes imposed uniformly on everyone within the class are not preempted (§ 1381). II. Dover Ordinance Options A. Fully Prohibit Marijuana Facilities Dover may consider drafting an ordinance prohibiting subject use of marijuana facilities in all zones. Dagsboro, Dewey Beach, Bethany Beach, Rehoboth Beach, and Seaford are some examples of municipalities that have chosen to ban marijuana establishments since the bill passed. Common concerns cited among municipalities prohibiting marijuana sales: - There is a perception that marijuana establishments may lead to increased crime, traffic, or other unwanted outcomes. - Municipalities have limited capacity to increase policing to address potential issues. - Municipalities are not entitled to a specific stream of tax revenue from marijuana sales. - There is some evidence to suggest that retail marijuana establishments may be targets for burglaries because they are known to be cash businesses. - Additionally, odor has been an issue in some areas surrounding indoor cultivation and manufacturing facilities. Centreville, MD is currently addressing this issue (Miller, 2024). B. Allow Marijuana Facilities in Certain Zones Dover may control where marijuana facilities are able to operate through City zoning code. Items to consider in drafting an ordinance include which zones will allow marijuana facilities and whether these will be conditional use or permitted uses. There are four types of permits, so an ordinance should specify which regulated uses are permitted in each zone (i.e., cultivation, manufacturing, testing, and/or retail). Oakland, California permits most locations in industrial zones, which may stimulate revitalization in blighted areas. Their permitting zone map is available online (Cannabis Facilities Permitted Zones). Supplemental regulations in article 5 of Dover City Code often specify the distance from residential zones or uses and may impose a limit on floor area for certain establishments. For example, Aurora, CO imposed odor control standards to mitigate the smell outside of cultivation and manufacturing facilities, as well as lighting and energy use standards (City Code: Sec. 22-279.1 ). Additional examples of cannabis ordinances and regulations in Sonoma County, California are available online along with the Aurora Zoning Maps. Planning for appropriate community outreach and education strategies is also an important consideration with this option as questions and concerns associated with a new industry will need to be addressed. 12 91

Item 4. Dover, Delaware Marijuana Ordinance March 2024 It is worth considering whether the ordinance should address medical marijuana establishments. These establishments are distinct from the recreational marijuana industry. Medical Marijuana was legalized under the Medical Marijuana act and the program is operated by the Office of Medical Marijuana through the Department of Health and Social Services (DHSS). There are two license types: 1. Compassion Centers- May cultivate, manufacture, and sell medical marijuana. 2. Compliance Facilities- Responsible for testing. There are currently 12 compassion centers in Delaware, though only a few currently cultivate and manufacture the medical marijuana they sell. Municipalities cannot ban medical facilities from opening within their jurisdiction, however, they do have some leeway in terms of regulating this industry. Medical Marijuana is currently classified as retail use in Kent County and Dover. There is currently only one facility located within City limits, though retail use is permitted in the following zones:  RG-O: General Residence and Office  C-1: Neighborhood Commercial  C-1A: Limited Commercial  C-2: Central Commercial  C-2A: Limited Central Commercial  C-3: Service Commercial  C-4: Highway Commercial  SC-1, SC-2, and SC-3: Shopping Center Development  C-PO: Commercial & Professional Office Dover City Council Committee of the Whole discussed the Marijuana Control Act at a meeting on September 26, 2023. There were 19 public comments given in opposition to a ban on recreational marijuana establishments in Dover. The ACLU was among this group. Potential benefits of legalized marijuana were discussed. Benefits included replacing the illegal market with a regulated industry leading to increased product safety, as well as economic development. New businesses have the potential to generate jobs and tax revenue. They may occupy otherwise vacant buildings. Delaware Technical Community College is considering the launch of a cannabis industry training program to meet this demand (Petrowich, 2024). It is important to note that, while municipalities may prohibit marijuana facilities from opening within their jurisdiction, county governments may not. This means that marijuana establishments may still open along Dover’s border. The Central Delaware Chamber of Commerce spoke in favor of a ban on marijuana uses within Dover. Concerns cited during this conversation and by municipalities that have chosen to ban marijuana facilities altogether include the potential for unwanted outcomes such as increased crime, traffic, unwanted odor, or other public nuisances that may create more work for police. Oakland, California is one locality that has seen a number of burglaries of marijuana establishments, as noted in their Cannabis Regulatory Commission’s 2021 annual report. 13 92

Item 4. Dover, Delaware Marijuana Ordinance March 2024 14 93

Item 4. Dover, Delaware Marijuana Ordinance March 2024 Figure 1: Map of Industrial, Manufacturing, & Commercial Zones in Dover * This map is not exhaustive. 15 94

Item 4. Dover, Delaware Marijuana Ordinance March 2024 The City may want to consider limiting which industrial and manufacturing zones would permit cultivation, manufacturing, and testing facilities. Figure 2: Select Manufacturing & Industrial Zones in Dover 16 95

Item 4. Dover, Delaware Marijuana Ordinance March 2024 The C-4 Highway Commercial Zone may be most appropriate for retail establishments. Figure 3: C-4 Highway Commercial Zones in Dover 17 96

Item 4. Dover, Delaware Marijuana Ordinance March 2024 III. References (n.d.). Retrieved from State of Delaware Office of the Marijuana Commissioner : https://omc.delaware.gov/ American Planning Association . (2019, April ). Retrieved from Planning Magazine: From Seed to Sale: https://planning.org/planning/2019/apr/seedtosale/ Cannabis Facilities Permitted Zones. (n.d.). Retrieved from https://oakgis.maps.arcgis.com/apps/webappviewer/index.html?id=a3d41f22295f47de91 378f8da0c3eb46 Cannabis Ordinances and Regulations by City. (n.d.). Retrieved from Sonoma County Cannabis Program: https://sonomacounty.ca.gov/administrative-support-and-fiscal-services/county- administrators-office/projects/cannabis-program/legislation-and-policy/cities City Code: Sec. 22-279.1 . (n.d.). Retrieved from City of Aurora Colorado: https://aurora.municipal.codes/Code/22-279.1 CITY OF OAKLAND CANNABIS REGULATORY COMMISSION. (n.d.). Retrieved from https://cao-94612.s3.us-west-2.amazonaws.com/documents/2021-CRC-Annual- Report.pdf Delaware.gov DHSS Division of Public Health. (n.d.). Retrieved from Medical Marijuana Program: https://dhss.delaware.gov/dhss/dph/hsp/medmarhome.html Department of Safety and Homeland Security. (n.d.). Retrieved from Delaware.gov: https://dshs.delaware.gov/omc/index.shtml House Bill 1:152nd General Assembly. (2023). Retrieved from Delaware General Assembly : https://legis.delaware.gov/BillDetail?LegislationId=129970 House Bill 2 with House Amendments 1 & 2: 152nd General Assembly. (2003). Retrieved from Delaware General Assembly: https://legis.delaware.gov/BillDetail?LegislationId=129969 Marijuana Control Act. (n.d.). Retrieved from Department of Safety and Homeland Security : https://dshs.delaware.gov/omc/index.shtml MCA Guide. (n.d.). Retrieved from dshs.delaware.gov: https://dshs.delaware.gov/omc/contentFolder/pdfs/MCAGuide.pdf?cache=170897546879 6 Medical Marijuana Program. (n.d.). Retrieved from Delaware Health and Social Services : https://dhss.delaware.gov/dhss/dph/hsp/medmarhome.html Miller, L. (2024, January 4). "We Just Want Them To Be Good Neighbors": Centreville Residents Seek Solution To Marijuana Odor Problem. Retrieved from WBOC: https://www.wboc.com/news/we-just-want-them-to-be-good-neighbors-centreville- residents-seek-solution-to-marijuana-odor/article_73e8b1f2-ab5e-11ee-af8a- 33f1b8fb9f71.html Petrowich, S. (2024, February 21). Office of the Marijuana Commissioner announces cannabis industry training program at Del Tech. Retrieved from Delaware Public Media : https://www.delawarepublic.org/politics-government/2024-02-21/office-of-the- marijuana-commissioner-announces-cannabis-industry-training-program-at-del-tech The Delaware Code Online. (n.d.). Retrieved from Title 4, Chapter 13: The Delaware Marijuana Control Act : https://delcode.delaware.gov/title4/c013/index.html 18 97

Item 4. The Delaware Marijuana Control Act Overview and Options for Dover 98

The Delaware Marijuana Control Act Item 4. • Passed during the 152nd General Assembly • Includes 2 Bills: • House Bill 1 decriminalizes the purchase, possession, transportation, Personal Use Quantity: use, and sharing of personal use Maximum Allowable Product quantities of marijuana for adults over Personal Use Quantity the age of 21. Leaf Marijuana 1 Ounce • House Bill 2 creates a framework for a Concentrated Cannabis 12 Grams legal recreational marijuana industry, Cannabis products containing 750 Milligrams regulating and taxing recreational delta-9-tetrahydrocannabinol marijuana in a similar manner to alcohol. 99

House Bill 1 Item 4. Lawful Activities Unlawful Activities • Adults over 21 may share personal • Individuals may not sell marijuana. use quantities of marijuana. • It is illegal to consume marijuana • Adults over 21 may possess, use, inside of a moving vehicle or drive display, purchase, and transport under the influence. personal use quantities of marijuana • It is illegal to transport marijuana over and accessories. state lines. • Adults may transport marijuana and • It is illegal to consume marijuana in an accessories in a vehicle if the items area accessible to the public. are in a closed container, not readily accessible to anyone in the vehicle. • Individuals under 21 may not partake in these activities. 100

House Bill 2 with House Amendments 1 & 2 Item 4. • Adds Chapter 13 to Title 4 of the Delaware Code • Establishes the role of the Marijuana Commissioner • Responsible for establishing a licensing process as well as regulations and penalties related to the industry. • Establishes procedures for the 15% marijuana tax and the Marijuana Regulation Fund. • Enforced by the Division of Alcohol and Tobacco. • Department of Safety and Homeland Security will staff the Office of the Marijuana Commissioner. 101

Effects of Legislation Item 4. • A specific license is required for growing, manufacturing, testing, or selling marijuana. • All growing facilities must be indoors. • Marijuana sales will be restricted to the same days and times as liquor sales. • Retail establishments will not be allowed to sell online or offer delivery. • Retail establishments cannot sell alcohol, tobacco, or food. • No consumption of marijuana is permitted on the premises of marijuana establishments. • Private Property Rights: • Employers still have freedom to manage their terms of employment, policies, and discipline procedures. • Those in charge of a property can still prohibit or regulate marijuana on their property. 102

Timeline to Date Item 4. April 2023: • House Bills 1 & 2 were enacted. June 2023: • Robert Coupe was named Delaware's first Marijuana Commissioner. July 5, 2023: • The Marijuana Control Act became effective. 103

Timeline Moving Forward Item 4. 104 Source: Office of the Marijuana Commissioner - Office of the Marijuana Commissioner (delaware.gov)

Rights of Municipalities Item 4. Municipalities Cannot: Municipalities Can: • Prohibit Use: HB 1 legalizes marijuana • Municipalities may prohibit the use, though not in public places. operation of marijuana • Municipalities cannot create a establishments in their jurisdiction specific marijuana license or tax, through local ordinance. though general occupational licenses • Municipalities may regulate the time, fees and taxes imposed uniformly on place, or manner in which marijuana everyone are not preempted. establishments operate and establish • Even if the City permits marijuana penalties for violations. establishments in their jurisdiction, • There is a process for residents to there is a process for residents to object to the issuance of a license. object to the issuance of a license. 105

Dover Ordinance Options Item 4. Option 1: Fully Prohibit Facilities Option 2: Allow in Certain Zones • The City of Dover may draft an • The City of Dover may control where ordinance to prohibit subject uses in marijuana facilities are able to operate all zones. within City limits through their zoning code. 106

Option 1: Prohibition Item 4. Examples • Bethany Beach, Dewey Beach, Dagsboro, Fenwick Island, Millsboro,Millville, Ocean View, Rehoboth Beach, Middletown, and Seaford. • Ordinances generally include • Whereas Clauses • Code Amendment “no business license shall be used for the following marijuana facilities…” • Effective date • Synopsis 107

Option 2: Allow in Certain Zones Item 4. Items to Consider: • Which Zones? • Conditional Use or Permitted Use? • Which Regulated Uses? Cultivation, Manufacturing, Testing, Retail • Supplemental Regulations (Article 5) • Distance from Residential Zones or Uses • Distance from Schools • Limit on Floor Area • Odor Control Standards • Outreach & Education 108

Medical Marijuana Item 4. • Distinct from the recreational industry • Medical Marijuana is currently • Legal under the Medical Marijuana Act: classified as retail use, and allowed in: • RG-O: General • C-3: Service Program operated by the Office of Residence and Office Commercial Medical Marijuana through DHSS • C-1: Neighborhood • C-4: Highway • Allows for compassion center licenses Commercial Commercial and registered compliance facilities • C-1A: Limited • SC-1, SC-2, and SC-3: Commercial Shopping Center • Currently 12 Compassion Centers • C-2: Central Development • 3 cultivate & manufacture Commercial • C-PO: Commercial & • C-2A: Limited Central Professional Office • Municipalities cannot ban medical Commercial facilities but can regulate. Sources: Medical Marijuana Compassion Center • Best Buds on Jefferic Blvd. is the only Information - Delaware Health and Social Services - facility in the City today. 109 State of Delaware & Delaware - NCS Analytics

Item 4. All Commercial, Industrial & Manufacturing Zones *This list is not exhaustive 110

Item 4. Industrial & Manufacturing Zones Consider for Cultivation, Manufacturing, & Testing Facilities 111

Item 4. Highway Commercial Zones Consider for Retail Establishments 112

Item 4. Resources: • The Office of the Marijuana Commissioner Contact Website contains answers to FAQ’s, annual Questions and comments reports, draft regulations, and more. regarding this project may be • DSHS has posted a Marijuana Control Act directed to Guide. AnnMarie.Townshend@rossit g.com • The Marijuana Commissioner’s Presentation to Georgetown’s Town Council. • Additional Examples of Cannabis Ordinances & Regulations: Cannabis Ordinances and Regulations by City, Zoning & Buffering Maps - City of Aurora (auroragov.org), 22-279.1 Ventilation of marijuana businesses and hemp manufacturing facilities | Aurora City Code (municipal.codes) 113

Sources: Item 4. • The Office of the Marijuana Commissioner Website: Office of the Marijuana Commissioner - Office of the Marijuana Commissioner (delaware.gov) • The Delaware Marijuana Control Act: Delaware Code Online Contact • • House Bill 1: Bill Detail - Delaware General Assembly House Bill 2: Bill Detail - Delaware General Assembly • The Dept. of Safety & Homeland Security (DSHS) Website: Marijuana Questions and comments Control Act - Department of Safety and Homeland Security regarding this project may be • (delaware.gov) The Dept. of Health & Social Services Website: Medical Marijuana directed to Program - Delaware Health and Social Services - State of Delaware AnnMarie.Townshend@rossit • American Planning Association (APA) Planning Magazine “From Seed to Sale” April 2019: From Seed to Sale (planning.org) g.com • "We Just Want Them To Be Good Neighbors": Centreville Residents Seek Solution To Marijuana Odor Problem | Latest News | wboc.com • City of Rehoboth Beach, DE Marijuana (ecode360.com) • Medical Marijuana Compassion Center Information - Delaware Health and Social Services - State of Delaware • Office of the Marijuana Commissioner announces cannabis industry training program at Del Tech | Delaware First Media (delawarepublic.org)) 114

Item 5. City of Dover PROPOSED ORDINANCE #2024-07 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 4 That Chapter 80 – Personnel, Article IV – Pension Plans and Retirement Benefits (except 5 Police), Division 3 – General Employee Pension Plan, be amended by inserting the text indicated 6 in bold, blue italics and deleting the text indicated in red strikeout as follows: 7 8 Section 80-500 – General employee pension plan established; purpose. 9 10 (a) Generally. There is hereby established the city general employee pension plan. The purpose 11 of the plan is to establish the terms and conditions under which retirement and disability 12 benefits shall be provided to eligible employees of the city. The benefits under the plan shall 13 be in addition to amounts received as social security benefits or from any other pension plan. 14 15 (b) For employee exclusively. This plan is created for the exclusive benefit of the employees of 16 the city and shall be interpreted in a manner consistent with it being an employee's trust, as 17 defined in section 401(a) of the Internal Revenue Code (26 USC 401(a)). Therefore, under 18 no circumstances shall any funds contributed to this plan, or any assets of the plan or trust 19 ever revert to or be used or enjoyed by the city, nor shall any such funds or assets ever be 20 used other than for the benefits of the employees of the city and their ones’ s beneficiaries, 21 prior to the satisfaction of all liabilities under this plan to the employees. 22 23 Section 80-501 – Eligibility of participant. 24 25 Each eligible employee not drawing any retirement benefits from the mayor and city 26 council as of January 1, 1967, shall, upon compliance with the provisions of this division, 27 become a general employee pension plan participant under this division, commencing on July 28 1, 1967, or at any subsequent time immediately upon his one’s employment. Effective 29 September 28, 2009, the general employee pension plan is closed to new participants. 30 31 Section 80-502 – Participation mandatory; exceptions. 32 33 The pension plan shall not be construed to give any employee the right to be retained in 34 the employ of the city. All new employees hired after July 1, 1991, shall be required, as a 35 condition of employment, to join the general employee pension plan or the deferred 36 compensation plan. All new employees hired after September 29, 2009, are required to join the 37 money purchase plan (IRC 401(a)), as defined in division 4. All participants of the general 38 employee pension plan as of September 28, 2009, will remain members of either plan thereafter 39 unless they one shall leave the employment of the city, retire, pass away, or elect to terminate 115

Item 5. 40 their one’s participation in the general employee pension plan and become a member of the 41 money purchase plan (IRC 401(a)), as defined in division 4. 42 43 Section 80-503 – Defraudment. 44 45 It shall be unlawful for any person to knowingly make any false statement or falsify, or 46 permit to be falsified, any record of the pension plan in an attempt to defraud the plan. 47 48 Section 80-504 – Normal retirement. 49 50 The normal retirement date for each participant shall be the first day of the month following 51 the attainment of the age of 65 years, provided that he one has completed ten years of continuous 52 service. 53 54 Section 80-505 – Early retirement. 55 56 (a) Reduced benefits. A participant who has completed ten years of continuous service and who 57 has attained the age of 55 years may retire at any time within the ten years preceding his 58 one’s normal retirement date; provided, however, that his one’s retirement benefits shall be 59 computed at a reduced rate of one-half percent for each month computed from the date of 60 early retirement to age 65 years. 61 62 (b) Unreduced benefits. 63 64 (1) Hired May 1, 1994, or later. For eligible employees hired on or after May 1, 1994, a 65 participant who has attained the age of 55 years, and whose attained age plus years of 66 continuous service is equal to or greater than 80, may retire at any time prior to his 67 one’s normal retirement date with no reduction in retirement benefits. 68 69 (2) Hired before May 1, 1994. For eligible employees hired before May 1, 1994, a 70 participant who has completed 25 years of continuous service or has attained the age 71 of 50 years and completed 20 years of continuous service may retire at any time prior 72 to his one’s normal retirement date with no reduction in retirement benefits. 73 74 Section 80-506 – Later retirement. 75 76 If a participant works beyond his one’s normal retirement date, the payment of the 77 participant's retirement benefits shall be deferred until his one’s actual retirement. 78 79 Section 80-507 – Forced retirement with pension. 80 81 The general employee pension plan board, upon recommendation of the city council or the 82 city manager, may require retirement in any case where deemed necessary due to the lack of 83 work or inability of the employee to perform with a satisfactory degree of efficiency, provided 84 that the employee qualifies for either normal retirement pursuant to section 80-504, or early 85 retirement pursuant to section 80-505. The employee shall then be entitled to receive, 116

Item 5. 86 commencing on the first day of the month coinciding with or next following his one’s date of 87 retirement, pension benefits equal to the benefits computed in accordance with the provisions of 88 section 80-508 on the basis of the employee's service completed prior to actual retirement. 89 90 Section 80-508 – Amount of retirement benefits. 91 92 Retirement January 1, 1995, or later. The amount of retirement benefits payable to a 93 participant who retires on or after January 1, 1995, shall be computed on the basis of one-fiftieth 94 of his one’s average actual monthly earnings multiplied by the total number of years of 95 continuous service. Average actual monthly earnings shall be a participant's base pay plus 96 scheduled overtime, payment for being on call, except those hours reported for being called out, 97 and any retroactive pay corrections which involve any one of the mentioned payments during 98 any period of 36 consecutive months in his one’s final ten years of continuous service which 99 results in the highest average monthly earnings. 100 101 If an employee's approved absence is the result of a workers compensation injury, the base 102 wages that the employee would have earned had he one not been on workers compensation leave 103 will be included when determining the highest 36 consecutive months within his one’s final ten 104 years of continuous service. 105 106 The value of lost base salary as a result of mandatory furlough shall be added to an 107 employee's final average compensation and considered in the calculation of the amount of 108 retirement benefits if the time period in which the mandatory furlough was required is within 109 the highest 36 consecutive months or earnings within the final ten years of continuous service. 110 111 Annual Increase. The retirement income of a retired member of this plan shall be increased 112 by three percent per annum every January 1. This increase in retirement pay shall be cumulative 113 and the previous year's increase shall be included in the retired member's retirement income for 114 the purposes of calculating the annual three percent increase. 115 116 Annual Increase. The retirement income of a retired member of this plan shall be 117 increased by two percent per annum every January 1. This increase in retirement pay shall 118 be cumulative and the previous year’s increase shall be included in the retired member’s 119 retirement income for the purpose of calculating the annual two percent increase. 120 121 Section 80-509 – Form of benefits. 122 123 (a) Normal form. A monthly benefit shall be payable on the first day of the second month 124 preceding the date on which the application for such benefit is filed. Payment will be 125 retroactive to the retirement date. Payments of benefits shall be payable monthly thereafter 126 during his one’s lifetime and terminating with the last payment on the first day of the month 127 of the death of the participant. 128 129 (b) Death of participant, etc. Upon the death of a participant who has retired, or who is eligible 130 to be retired under any of the provisions of this division, payment shall be made to their 131 one’s eligible survivors in the amount of 50 percent of the monthly payments to which the 117

Item 5. 132 participant was or would have been entitled. Upon the death of a participant who has 133 completed a minimum of ten years of service but is not yet eligible to retire because of age 134 and/or years of service, payment shall be made to their one’s eligible survivors in the amount 135 of 50 percent of the monthly payment to which the participant was or would have been 136 entitled. The pension amount will be based upon section 80-508. There shall be no reduction 137 in benefits. In no instance shall actual monthly payments be less than $200.00, to be 138 effective July 1, 2000. Upon the death of both the participant and eligible survivor, if the 139 benefit payments received in the aggregate are less than the member's contributions, the 140 balance of the member's contributions, plus five percent interest, will be paid to the 141 surviving beneficiary designated or his one’s estate if no designation has been made and 142 submitted to the general employee pension plan board. The amount of benefit payments 143 received and the amount of the member's contributions shall be determined from the record 144 of the pension board. The city shall request all plan participants to review one’s eligible 145 survivor and surviving beneficiary information annually and revise as needed. 146 147 (c) Eligible survivor. An eligible survivor shall be one of the following in the order of 148 preference listed: 149 150 (1) Spouse. The participant's spouse who was married to the participant for at least one 151 year. Surviving spouse shall be required to provide supporting documents of marriage. 152 153 (2) Child or Children of, unmarried participant. 154 155 a. The surviving child or children, biological or legally adopted, of the unmarried 156 participant, who have not attained their 18th birthday. The child or children must 157 not have attained age 18, or have attained age 18 but not age 26, and are 158 attending school on a full-time basis. 159 160 b. If said child or children is attending school on a full-time basis and provides proof 161 of attendance each year of eligibility, with the payment due for the month in which 162 he one ceases to attend school on a full-time basis or with the payment due for the 163 month in which his one’s 22nd 26th birthday shall occur, whichever shall occur 164 first. 165 (d) Commencement of payment. Benefits payable to eligible survivors shall commence on 166 the first day of the month following the date of the participant's death. 167 (e) Benefits payable. Benefits payable to eligible survivors shall cease: 168 (1) Spouse. With respect to an eligible survivor who is a spouse, with the payment due 169 for the month in which their one’s remarriage or death shall occur, whichever 170 occurs first. 171 (2) Child or Children. With respect to an eligible survivor who is a child(ren) or 172 children, with the payment due for the month in which his one’s 18th birthday or 173 death shall occur, whichever shall occur first., unless the child or children attend 174 school full-time and have not attained one’s 26th birthday. Payments shall be 175 made in accordance with subsections (2)a. and b. 118

Item 5. 176 (f) Eligibility for benefits. The eligibility of any person or persons to receive payment of 177 benefits as an eligible survivor shall be determined conclusively by the general employee 178 pension plan board based on the application of such person or persons and any other 179 information which the pension board deems to be appropriate. 180 181 Section 80-510 – Early retirement due to permanent disability. 182 183 Any employee who, after completing at least ten years of continuous service, shall be 184 injured or whose health shall become permanently impaired to such an extent as to render him 185 totally and permanently disabled, shall be retired upon application and approval of the general 186 employee pension plan board. The pension amount will be based upon section 80-508. There 187 shall be no reduction in benefit. 188 189 An employee who has completed a minimum of ten consecutive years of service and 190 sustains an injury or experiences a permanent health impairment to the extent of total and 191 permanent disability shall be eligible for retirement upon application and approval by the 192 general employee pension plan board. The pension amount will be determined in 193 accordance with section 80-508, and there shall be no reduction in benefits. 194 195 Section 80-511 – Total and permanent disability. 196 197 (a) Definition. As used in this division, a participant shall be deemed to be "totally and 198 permanently disabled" when the general employee pension plan board, on the basis of a 199 medical examination by a physician or physicians selected by the pension board, finds the 200 employee: 201 202 (1) Work generally. To be totally and permanently prevented from engaging in any 203 occupation or employment for remuneration or profit as a result of bodily or mental 204 injury or disease, whether occupational or nonoccupational in cause; or 205 206 (2) Employment. To be totally and permanently prevented from continuing in their one’s 207 capacity as an employee as a result of bodily or mental injury or disease, whether 208 occupational or nonoccupational in cause. 209 210 (b) Exclusions. Total and permanent disability, within the terms of this division, shall exclude 211 disability resulting from or consisting of chronic alcoholism, addiction to narcotics, 212 engaging in a felonious criminal act for which they one are is found guilty, or a willful effort 213 on their one’s part to bring about the injury or illness to themselves or any other person or 214 service in the armed forces of any foreign country. 215 216 Section 80-512 – Commencement of disability benefits. 217 218 (a) Removed from payroll. A participant who files for a disability pension shall not work and 219 be kept on the active payroll and receive credited service from the inception of the disability 220 to the end of the first full calendar month following the date of application. 221 119

Item 5. 222 (b) Change in compensation; leave. During the application period above, the participant's 223 compensation shall not be increased. 224 225 (c) Commencement of benefits. The eligibility for payment of disability benefits under this 226 division shall commence, if approved, on the first day of the month following the application 227 period set forth in subsection (a). 228 229 Section 80-513 – Termination of employment. 230 231 (a) Forfeiture of participation. Any participant whose employment is terminated prior to the 232 date he one becomes eligible for retirement benefits shall forfeit his one’s status as a 233 participant in the pension plan and all accumulated credit for continuous service. 234 235 (b) Ten years' service. Any participant with a minimum of ten years of continuous service and 236 whose employment is terminated prior to the date he one becomes eligible for retirement 237 benefits under sections 80-504—Normal retirement, 80-505—Early retirement, 80-506— 238 Later retirement or 80-510—Early retirement due to permanent disability, shall become 239 vested and upon attaining the age of 65 years, shall be eligible for pension benefits under 240 the provisions of section 80-508—Amount of retirement benefits, upon application to the 241 pension board of trustees. The form of the benefit will be based on the formula which was 242 in effect at the time of termination. 243 244 (c) Layoffs. Upon recall, any participant whose employment is terminated due to a layoff and 245 is recalled within five years of layoff, may apply to the pension board to have their one’s 246 previous service credits restored immediately. If they one have has withdrawn their one’s 247 contributions, they one must repay them as calculated by the city's actuary. A returning 248 employee must make an election to return previously refunded amounts, plus calculated 249 interest, within 30 days of approval of the general employee pension plan board. 250 Contributions will be reimbursed based on the gross amount received. Participants who are 251 laid off and not recalled within five years shall forfeit their one’s status as a participant in 252 the pension plan and all accumulated credit for continuous service. 253 254 (d) Request for refund. When an employee leaves the employment of the city and is entitled to 255 withdraw his one’s contributions with interest thereon at the rate of five percent per annum, 256 compounded annually from the last day of the plan year in which such contribution was 257 made to the earlier of the date of commencement of retirement income or the date on which 258 contributions are payable pursuant to the provisions of the plan, then he one shall submit a 259 written notarized request for a refund of these contributions before payment shall be made. 260 Refunds will be issued 90 days from the date when the notarized request is received. 261 Contributions will automatically be refunded five years from the date of separation. 262 263 Section 80-514 – Cessation of disability pension benefits. 264 265 (a) A participant shall cease to qualify for disability pension benefits: 266 120

Item 5. 267 (1) Recovered. At the time that the general employee pension plan board determines, on 268 the basis of a medical examination by a physician or physicians selected by the pension 269 plan board, that a participant is no longer totally and permanently disabled or has 270 sufficiently recovered, but refuses to resume their one’s regular occupation as an 271 employee or to be reemployed by the city in some other position for which they one 272 are is suited or which is appropriate to their one’s training and experience; 273 274 (2) Refuses examination. When the participant refuses to undergo a medical examination 275 requested by the general employee pension plan board; or 276 277 (3) Age 65 years. On the first day of the month following the participant's 65th birthday. 278 279 (b) Upon the occurrence of the earliest of the above events, disability pension benefits shall 280 cease, except that, if the event of subsection (a)(3) of this section occurs, payment of the 281 normal retirement benefits shall commence on that date, in the same amount as the 282 disability pension benefits. 283 284 Section 80-515 – Effect of state workers’ compensation on disability benefits. 285 286 Any disability pension benefits received by a participant under the terms of this division 287 as the result of an injury or illness compensable under the workers' compensation laws of the 288 state shall be reduced by the amount of the workers' compensation payments actually received 289 by the participant. 290 291 Section 80-516 – Benefits to cease upon reemployment; exceptions. 292 293 The Internal Revenue Code has provided guidance that to be considered retired for 294 purposes of prohibitions against "in-service distributions," one must have an at least six-month 295 break before returning to employment with the same employer and that such a return cannot be 296 pre-planned at the time of retirement. If the individual is under the normal retirement age of 65, 297 the individual will be subject to an annual earnings limit of $30,000.00. 298 299 Any employee of the city who is receiving, or who shall receive, benefits under this 300 division, and who is thereafter reemployed by the city or appointed to any position by the mayor 301 or council bearing remuneration, shall cease to draw benefits during the period of reemployment. 302 Upon termination of the reemployment, the benefits shall be restored. The provisions of this 303 section shall not apply to any employee who receives remuneration as a result of being elected 304 or appointed to an elective or appointed office in the city, nor to any employee reemployed by 305 the city in a casual/seasonal capacity, not to exceed 180 calendar days. Employees would be 306 eligible to return to casual/seasonal status immediately following retirement. 307 308 Casual/seasonal employees may be employed by the city on a temporary basis in order to 309 provide assistance for the following situations: 310 121

Item 5. 311 (a) Casual assistance. Employee is needed on a sporadic or on-call basis where hours 312 cannot be predetermined and vary greatly from week to week. Such employees may be 313 used as needed. 314 315 (b) Seasonal assistance. Employee is needed for peak operating seasons. 316 317 (c) Project assistance. Employee performs duties related to a specific project that has 318 defined objectives and an established time period of completion that does not exceed 319 180 calendar days. 320 321 (d) Primary incumbent replacement. Employee is needed to fulfill the job responsibilities 322 of the primary incumbent who is unable to perform such responsibilities for an 323 extended period of time. Such employees may be used for a maximum of 180 calendar 324 days or the length of time the incumbent is unable to perform the job responsibility, 325 whichever is less. 326 327 (e) Contracting. Any individual participating in the plan who contracts with the city or 328 represents any private enterprise that has a contract with an employer participating in 329 the plan must have a six-month separation from their one’s effective date of retirement 330 if the individual is under 65. The city shall maintain, in a form prescribed by the human 331 resources director, a certification of the worker's status. The certification will be used 332 for a determination of the individual meeting the definition of eligible employees under 333 this section. 334 335 Section 80-517 – Benefit assignment, transfer, etc. 336 337 No participant or beneficiary under the plan shall assign, transfer, hypothecate, encumber, 338 commute, or anticipate any interest he one may have in payments, funds, or contracts under this 339 plan. No interest shall in any way be subject to any legal process, levy of execution, attachment, 340 or garnishment proceedings for the payment of any claim against the participant or any 341 beneficiary under the plan, nor shall any such interest be subject to the jurisdiction of any 342 bankruptcy court or insolvency proceedings. 343 344 Section 80-518 – Contributions. 345 346 (a) Payroll deductions. 347 348 (1) Amount. For each year, while a participant of the plan, a participant shall contribute, 349 by payroll deductions, an amount equal to 3½ percent of his one’s average actual 350 monthly earnings as described in section 80-508—Amount of retirement benefits 351 (effective May 1, 1994). The city shall provide the plan participants with an annual 352 statement of individual contributions. 353 354 (2) Employer contributions. The city, pursuant to the provisions of section 414(h)(2) of the 355 United States Internal Revenue Code (26 USC 414(h)(2)), shall pick up and pay the 356 contributions which would otherwise be payable by the employee under this section. 122

Item 5. 357 The contributions so picked up shall be treated as employer contributions for purposes 358 of determining the amounts of federal income taxes to be withheld from the employee's 359 compensation. 360 361 (3) Employee contributions picked up by city. Employee contributions picked up by the 362 city shall be paid from the same source of funds used for the payment of compensation 363 to an employee. A deduction shall be made from each employee's compensation equal 364 to the amount of the employee's compensation picked up by the employer. This 365 deduction, however, shall not reduce the employee's compensation for purposes of 366 computing benefits under the retirement system pursuant to this *division. 367 368 (4) Employee contributions credited. 369 370 a. Employee contributions shall be credited to a separate account within the 371 employee's individual account so that the amount contributed prior to the effective 372 date for the pickup of the employee's contributions may be distinguished from the 373 amounts contributed on or after the effective date. 374 375 b. The contributions, although designated as employee contributions, are being paid 376 by the employer in lieu of the contributions by the employee. The employee will 377 not be given the option of choosing to receive the contributed amounts directly 378 instead of having them paid by the employer to the retirement system. 379 380 (b) City contributions. The city shall make such contributions as necessary to meet the 381 requirements of the plan. Effective May 1, 1994, the city shall pick up the employee 382 contributions by a reduction in current earnings. Such picked up contributions shall be 383 treated as employer contributions in determining tax treatment under the Internal Revenue 384 Code; however, the contributions so picked up shall be included in earnings for purposes of 385 the plan. Participant contributions which are picked up shall be treated, for all purposes of 386 this plan, in the same manner as participant contributions made prior to May 1, 1994. 387 388 (c) Other contributions. The general employee pension plan board shall receive all 389 appropriations, contributions and interest allowances as may be received from time to time 390 by the city from the state or any other source, and designated specifically for employee 391 pensions. 392 393 (d) Withdrawal from plan. A member who withdraws from the general employee pension plan 394 for any reason, other than retirement, death or disability, may request their one’s 395 accumulated contributions, plus five percent interest, be paid to them after such date of 396 withdrawal; provided, however, their one’s contributions shall not be refunded to them 397 earlier than 90 days after receipt of their one’s notarized application for the same. 398 399 (e) Death of ineligible member. Upon the death of a member not eligible to retire under any 400 provision of this division, their one’s employee contributions shall be payable in a single 401 sum to their one’s designated beneficiary or their one’s estate if no designation has been 402 made. 123

Item 5. 403 404 Section 80-519 – City paramedics transferred to county. 405 406 Notwithstanding any other provision of this division, all persons employed by the city as 407 paramedics, who are transferred to the county emergency medical services department and who 408 make a written election to remain in the city general employee pension plan, shall continue to 409 be considered eligible employees within the meaning of the pension plan as long as they one are 410 is employed by the county emergency medical services department. All benefits for any such 411 paramedic shall be calculated as if the paramedic had remained a city employee during his 412 employment with the county emergency medical services department. 413 414 Section 80-520– General employee pension plan board; established; duties. 415 416 There is hereby established a general employee pension plan board, the duties of which 417 shall be to manage the general employee pension plan. 418 419 Section 80-521– Composition. 420 421 The general employee pension plan board shall consist of the following persons: 422 423 (1) Manager. The city manager. 424 425 (2) City officials. Two elected city officials who shall be appointed by the council 426 president, subject to confirmation of a voting majority of the city council at its annual 427 meeting. 428 429 (3) Participants. Three participants or retired participants of the plan who shall be elected 430 by the participants and retired participants of the plan. 431 Participants. Three participants; active, retired, or vested members of the 432 general employee pension plan who shall be elected by the active, retired, or 433 vested members of the plan. 434 (4) Controller/treasurer. The city controller/treasurer. 435 436 (5) Election. 437 438 (a) Such election shall be for three-year staggered terms, beginning July 1 and ending 439 June 30 three years later. A regular election for filling these positions will be held 440 the third week of June each year. 441 442 (b) In the first week of April of each year, the city clerk shall notify those eligible to 443 vote of the exact time and place of the election. Any general employee pension 444 plan member that is eligible to vote and appears on the listing of qualified voters 445 who will be unable to appear at the polling place on the date and time of the 446 election may cast his or her vote by absentee ballot in the general employee 447 pension plan election for the following reasons: 1) armed forces, 2) public service, 448 3) occupation, 4) sickness, 5) disability, 6) religion, 7) vacation, or 8) residency 124

Item 5. 449 outside of the Dover area which makes it infeasible to vote in person. Any active, 450 retired, or vested member of the general employee pension plan who wishes 451 to fill an expiring term or vacancy must submit one’s name to the city clerk’s 452 office by the deadline determined by the city clerk. 453 454 (c) Any general employee pension plan member that is eligible to vote and 455 appears on the listing of qualified voters who will be unable to appear at the 456 polling place on the date and time of the election may cast his or her vote by 457 absentee ballot in the general employee pension plan election for the 458 following reasons: 1) armed forces, 2) public service, 3) occupation, 4) 459 sickness, 5) disability, 6) religion, 7) vacation, or 8) residency outside of the 460 Dover area which makes it infeasible to vote in person. Participants wishing 461 to vote by absentee ballot must request an affidavit for absentee voting from 462 the city clerk’s office. Once the affidavit is returned, the city clerk shall send 463 the participant an absentee ballot which must be completed and returned to 464 the city clerk’s office. Both the affidavit and the completed absentee ballot 465 must be returned by the deadline determined by the city clerk. 466 467 (d) Persons appearing to vote shall present proof of identity. The identification 468 shall be 1 or more of the following items that show the identity of the person: 469 (1) A current driver’s license or ID card; (2) A uniformed service ID card; 470 (3) Another current photo ID issued by a government agency. The Election 471 Officer shall then check the person’s name against the voter list, and if that 472 person is eligible to vote, have the person sign the voter list. If the Election 473 Officer determines that the person is not eligible to vote in the election, the 474 Election Officer shall refer the person to the city clerk The city clerk, after 475 hearing and considering evidence, shall determine whether to permit the 476 person to vote. Upon making the decision, the city clerk shall appropriately 477 annotate the voter list. 478 479 Section 80-522 – Term of office of members. 480 481 The term of office of each member of the general employee pension plan board, except the 482 city controller/treasurer, city manager, and elected city officials, shall commence on the first day 483 of the month following their election and continue for a period of three years or until their 484 successor shall be elected and qualified. 485 486 Section 80-523 – Officers and ex officio members. 487 488 At its first meeting after each regular The general employee pension plan board election, 489 the board shall elect a chairperson. and a vice chairperson who shall serve in the absence of 490 the chairperson. The Committee Chair's responsibilities include chairing the general 491 employee pension board meetings, setting agendas, and facilitating communication with 492 the board as needed. Only in the event of the absence of the chair will the vice chair assume 493 these duties. The city controller/treasurer shall be the pension fund treasurer and their one’s 494 bond shall cover all monies deposited with them. 125

Item 5. 495 496 Section 80-524 – Vacancies. 497 498 If a vacancy occurs in the offices of the general employee pension plan board, the vacancy 499 shall be filled for the unexpired term within 60 days and in the same manner as the office was 500 originally filled. Should a member of the pension plan board cease to be in the employ of the 501 city, other than by retiring or being vested in accordance with this division, their one’s office 502 as a member of the board shall be declared vacant. 503 504 Section 80-525 – Compensation of members. 505 506 Members of the general employee pension plan board shall serve without compensation. 507 508 Section 80-526 – Meetings. 509 510 The general employee pension plan board shall make all rules as to the time and place of 511 meetings; and a majority of its membership shall be required to transact pension board business. 512 The board shall meet on a quarterly basis to review investment performance but may meet 513 more frequently if needed. Meetings may be called by the chairperson, however, in the 514 absence of the chair, the vice chairperson may do so. The board will follow Robert’s Rules 515 of Order as its parliamentary authority. The rules contained in the current edition of 516 Robert’s Rules of Order Newly Revised shall govern the pension board in all cases to which 517 they are applicable and in which they are not inconsistent with any special rules of order 518 the board may adopt. 519 520 Section 80-527 – Powers. 521 522 The general employee pension plan board, in administering the pension plan, shall have 523 the following powers in carrying out the purposes thereof: 524 525 (1) Payment of funds. To pay funds to those entitled to receive them. The 526 controller/treasurer shall sign all vouchers for the disbursements of the funds and shall 527 report to the general employee pension board all financial transactions on an annual 528 basis; when approved. Monthly cash receipts and expenditure reports will be 529 compiled into quarterly reports, which shall be provided in writing and presented 530 at the quarterly meetings. 531 532 (2) Purchase annuity contracts. To purchase and pay the costs of group annuity contracts 533 from any insurance company for the benefit of participants; 534 535 (3) Employment of agents, employees, etc. To employ agents, employees, or experts to 536 assist the pension board in carrying out the provisions of this division, including an 537 agent to advise and make recommendations concerning the investment of funds, and to 538 pay reasonable compensation for those services, and the compensation may be paid 539 from income or corpus of the pension fund or by direct appropriation by the city council 540 as the pension board and the city council may determine; 126

Item 5. 541 542 (4) Investments. To invest and reinvest money in the pension fund, without any limitation, 543 in United States or state municipal bonds or group annuity contracts. Money in the 544 pension fund may also be invested and reinvested in other types of bonds, stocks, and 545 securities to the extent the pension board may deem best and as is not prohibited by 546 any law now or hereafter in force limiting the investments of the trustees. The pension 547 board may from time to time change the investments of the fund and, to this end, may 548 make sales of any investment privately, without advertisement and without the 549 necessity of any court order, upon the terms that the pension board deems proper. The 550 funds and investments may also be from time to time turned over to and placed in the 551 custody of any fiscal agent designated by the pension board; 552 553 (5) Contracts. To generally contract in matters relevant to effectuating and achieving the 554 purposes of this plan; 555 556 (6) Pension benefits. To receive and pay out pension benefits in accordance with the 557 provisions of this division, or designate a fiscal agent to receive and pay out the pension 558 benefits; 559 560 (7) Rules and regulations. To make rules and regulations as may be necessary to effectuate 561 this subdivision. 562 563 Section 80-528 – City solicitor to render legal services. 564 565 The city solicitor shall render whatever legal service the general employee pension plan 566 board shall require. 567 568 Section 80-529 – Appeals. 569 570 Any employee dissatisfied with the action of the general employee pension plan board shall 571 have the right to appeal to the city council within 30 days from the date of formal notification of 572 that action. 573 574 ADOPTED: * 575 576 Action History 577 04/09/2024 – Introduction at Council Committee of the Whole – Legislative, Finance, and Administration 127