CCW Packet

CITY OF DOVER, DELAWARE COUNCIL COMMITTEE OF THE WHOLE MEETING Tuesday, June 10, 2025 at 6:00 PM City Hall Council Chambers, 15 Loockerman Plaza, Dover, Delaware AGENDA 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/dupkak Event number: 2530 904 0317 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 ADOPTION OF AGENDA COUNCIL REPORTS - MAY 2025 1. First District 2. Second District 3. Third District 4. Fourth District 5. At-Large 6. Council President Neil 1

COUNCIL COMMITTEE OF THE WHOLE MEETING - June 10, 2025 PAGE 2 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF THE AGENDA 1. Downtown Development District (DDD) Relaunch (Ann Marie Townshend, Rossi Group, and Chris Salzano, Planner II) (Committee Action Not Required) 2. Proposed Ordinance #2025-12 - Amending Chapter 102 - Taxation, Article III - Realty Transfer Tax, Sec. 102-71 - Definitions and Article IV - Abatement of Real Estate Taxes, Sec. 102-113 - Qualifications (David S. Hugg, III, City Manager, and Ann Marie Townshend, Rossi Group) (Staff Recommendation: That the committee approve Proposed Ordinance #2025-12 and forward it to council for approval) ADJOURNMENT OF THE LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING 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 2

Item 1. Dover Downtown Development District Relaunch Council Committee of the Whole June 10, 2025 3

Item 1. Background 4

Downtown Development Districts Item 1. • The DDD Act of 2014 was enacted to Statewide Implementation • Spur private capital investment. • Dover, Wilmington, and Seaford were • Stimulate job growth. the first districts designated in 2015. • Help build a stable community of long-term • Today there are 12 designated DDD’s. residents by improving housing opportunities. • Dover’s first 5-year extension began on • Assist municipalities in strengthening February 1, 2025. neighborhoods while harnessing the attraction that vibrant downtowns hold. 5

Program Successes Item 1. Housing • More than 60 new homes constructed by Habitat for Humanity, NeighborGood Partners, and others. N. Kirkwood St. N. Kirkwood Street, Businesses Rail Haus Beer Garden, Janaid’s • New businesses have benefited Salon from DDD incentives. 6

Financial Impact Item 1. Incentives Results 2015-2023 • City: Waives Impact fees, building permit • Total state rebates since program fees, new business license fees; offers a started in 2015: $1.6 Million 10-year property tax abatement, a transfer tax rebate, and a historic tax credit. • 2018-2023 Total value of City • Downtown Dover Partnership: incentives used: $73,134.20 Architectural, Façade, and Critical improvement. • State: 20% construction rebate and a • Private Investment: $13.2 Million $10,000 matching program. 7

DDD Renewal Item 1. • Application and Updated District Plan approved by City Council in May 2024. • Governor Carney granted 5-year extension by letter dated August 20, 2024. • City Council adopted Ordinance #2025-01, amending the District Boundary on February 24, 2025. 8

Item 1. DDD Relaunch 9

Updated Webpage Item 1. 10 https://www.cityofdover.com/departments/Planning/dovers-downtown-development-district-210248

Updated Information Sheets Item 1. 11

New Incentive Application Form Item 1. 12

Other Implementation Actions Item 1. • DDD Signs Placed at New Boundary Locations. • Press Release to promote the DDD program. 13

Item 1. Questions? 14

Item 1. City of Dover, DE Downtown Development District Program Overview Adopted February 24, 2025 Dover’s Downtown Development District On January 11, 2015, Governor Jack Markell announced he had selected Dover as a Downtown Development District. On August 20, 2024, Governor John Carney extended Dover’s Downtown Development District Designation through January 2030. The goals of the program, as established in the Downtown Development Districts Act of 2014, are to: • Spur private capital investment; • Stimulate job growth and improve commercial vitality; • Help build a stable community of long term residents; and • Assist municipalities in strengthening neighborhoods while harnessing the attraction that vibrant downtowns hold for talented people, innovative small businesses, and residents from all walks of life. 15

Item 1. How to Participate Construction projects and new businesses within Dover’s Downtown Development District (see map on other side) may qualify for a variety of incentives from sponsoring agencies, including the State of Delaware, the City of Dover, and the Downtown Dover Partnership. Not all projects are eligible for all incentives. To make sure you know which incentives apply to your project, contact the administering agency or the Dover Planning Office at (302) 736-7196 or DoverDDD@dover. de.us. For the City of Dover local incentive application visit https://evogov.s3.amazonaws.com/ media/27/media/13253.pdf. For more information about the State’s Downtown Development District Program visit https://www.stateplanning.delaware.gov/ddd. Incentives by Sponsoring Agencies State of Delaware City of Dover Downtown Development District Rebates • Waiver of City Water and Wastewater Impact • Administered by Delaware State Housing Fees Authority • Waiver of Building Permit Fees • Up to 20% cash rebate for qualifying • Abatement of property taxes on the value of construction projects (capped at $1 million improvements per property) • Waiver of new Business License fees for • For more information visit https://www. three years destatehousing.com/build/ddd-program/ • Rebate of buyer’s City Transfer Tax when • Call (302) 739-4263 for more information. Certificate of Occupancy is issued within five years of property transfer State Historic Preservation Tax Credits • Transfer Tax waiver for owner-occupied • Administered by the Division of Historical and homes for first-time buyers Cultural Affairs • Abatement of property taxes for owner-occu- • Assist with the preservation and rehabilit- pied homes tion of historic buildings • Historic Property Tax Credits for restoration of • For more information visit https://history. building exterior delaware.gov/preservation/taxcredit/ • For more information visit https://wwwcity or call (302) 739-7400. of-dover.com/Dovers-Downtown-Develop ment-District-210248/. Downtown Dover Partnership • Call the Dover Planning Office at (302) 736- • The DDP also administers programs 7196 or email DoverDDD@dover.de.us with to help business owners. For more questions. information contact the DDP at (302) 678-2940 or visit https://www.down towndoverpartnership.com/. Department of Planning & Inspections Dover City Hall 15 Loockerman Plaza Dover, DE 19901 Phone: 302-736-7196 Fax: 302-736-4217 https://www.cityofdover.com/Planning-and- Inspections/ DoverDDD@dover.de.us 16 Updated June 2025

Item 1. City of Dover, DE Downtown Redevelopment Incentives Adopted February 24, 2025 17

Item 1. What Projects are Eligible for Incentives? Projects will be eligible for incentives if they meet the following criteria: • Are new construction or renovation projects. • Are located within the Target Area (outlined in red on the map) or Downtown Development District (outlined in blue on the map). The Downtown Development District is included in the Target Area. • Exceed $5,000 fair market value in terms of the materials used and the labor to be performed. Tax-exempt properties are not eligible for these incentives, except as specified in Appendix C. Incentive Applications must be filed prior to applying for a Building Permit. Incentives Available in the Target Area and Downtown Development District: Permit Fee Waivers - Waiver of Building, Plumbing, Mechanical & Fire Protection Permit fees. (Sign Permit fees are not eligible.) Impact Fee Waivers - Waiver of City Water & Wastewater (Sewer) Impact Fees. (Kent County Impact Fees are not waived by this program.) Property Tax Abatements - 10-year abatement of City property tax on the value of improvements. Additional Incentives Available in the Downtown Development District: Business License Fee Waivers - For new businesses or businesses that expand or relocate to the Downtown Development District, City of Dover Business License Fees will be waived for three years. All businesses are required to obtain a City of Dover Business License, but no fee will be charged. Transfer Tax Rebates - For properties that transfer on or after March 1, 2015, the property owner will be eligible for a rebate of the buyer’s portion of the Real Estate Transfer Tax paid to the City of Dover upon issuance of a Certificate of Occupancy, provided that a Certificate of Occupancy is issued for improvements to the property within five years of the payment of the Real Estate Transfer Tax. Additional Incentives Available Contact 302-678-2940 or visit https://downtowndoverpartnership.com for more Department of Planning & Inspections information about their additional incentives. Dover City Hall 15 Loockerman Plaza See Dover Code, Appendix C - Downtown Dover, DE 19901 Redevelopment for more detail about the Phone: 302-736-7196 incentives for downtown redevelopment or visit Fax: 302-736-4217 https://library.municode.com/de/dover/codes/ https://www.cityofdover.com/Planning-and-In- code_of_ordinances?nodeId=PTIICOOR_ spections/ APXCDORE DoverDDD@dover.de.us 18 Updated June 2025

Item 1. City of Dover, DE Downtown Homeownership Incentives The City of Dover offers a variety of homeownership incentives to qualifying purchasers. Some incentives are available citywide, and others are specific to the Downtown Development District. Adopted February 24, 2025 First Time Homebuyer Transfer Tax Exemption First time homebuyers are eligible for a transfer tax exemption citywide if they use the property as their principal residence. City Council shall have the right to deny this exemption to any property owner where the sale and purchase appears to be done fraudulently to take advantage of the realty transfer tax exemption ordinance. For property located within the Downtown Development District, the seller will also receive and exemption from their portion of the transfer tax if they sell to a first time homebuyer. See Dover Code, Chapter 102 Taxation, Article III Realty Transfer Tax, §102-71 Definitions (a)(3) for more detail about the Realty Transfer Tax Exemption. 19

Item 1. Real Estate Tax Abatement Any person purchasing a residential property in which they will reside within the Downtown Development District shall be eligible for relief from the payment of City real estate taxes in the following manner: 1st year of owner occupancy 100% reduction of City taxes 2nd year of owner occupancy 75% reduction of City taxes 3rd year of owner occupancy 50% reduction of City taxes 4th year of owner occupancy 25% reduction of City taxes 5th year of owner occupancy 0% reduction of City taxes How to Obtain the Real Estate Tax Abatement The homeowner must make application by letter sent to the city manager stating the provisions under which he or she qualifies for the real estate tax abatement. The city manager will notify the applicant within 30 days if their application is eligible for approval. After a certificate of occupancy is granted for the property, the city manager will present the abatement request with the qualifying documentation to City Council for approval. The applicant must submit a statement of compliance by April 15 of each year to the City Manager. Failure to submit the statement of compliance shall disqualify the applicant from the abatement. See Dover Code, Chapter 102 Taxation, Article IV Abatement of Real Estate Taxes for more information about this incentive. Dover First Start First time homebuyers in Dover may also be eligible for downpayment assistance through the Dover First Start program. For more information, contact the Community Development Office at (302) 736-7175. Applicants must have a household income of 80% of Area Median Income or less to be eligible for the Dover First Start Program. First time homebuyer means a natural person who has at no time held an interest in residential real estate, wherever located, and which has been occupied as their principal residence, and who intends to occupy the property being conveyed as his principal residence within 90 days following recordation of the deed. Department of Planning & Inspections Tax Assessor’s Office Dover City Hall P.O. Box 7100 15 Loockerman Plaza Dover, DE 19903 Dover, DE 19901 Phone: 302-736-7022 Phone: 302-736-7196 Fax: 302-736-4217 https://www.cityofdover.com/Planning-and-In- spections/ DoverDDD@dover.de.us Updated June 2025 20

Item 1. City of Dover, DE Tax Credit Program for Historic Properties The historic buildings and homes of Dover are an essential part of the City’s past and future. The Tax Credit for Historic Properties helps relieve some of the expenses of owning and maintaining a building within the Historic District. It serves as an incentive for repair and renovation of these historic buildings. How do the Tax Credits Work? • The Tax Credits equal 50% of the total cost of the approved project. The maximum Tax Credit is $6,000. The cost of the project must be at least $1,200, resulting in a minimum Tax Credit for the project of $600. • The Tax Credits are applied to annual City property tax bills. • The Tax Credits run with the property for a ten-year period and is prorated over the ten years. For example, a $1,000 tax credit would be $100 each year for ten years. However, the Tax Credit does not transfer to any new owners of the property.The maximum Tax Credit per year is $600. • The owners of the property may apply more than once for Tax Credits. A property may not receive a total Tax Credit greater than $12,000. 21

Item 1. What are Eligible Properties? Properties located in the City’s Historic District Zone (as shown in the shaded area on the map) or properties listed on or within a Historic District on the National Register of Historic Places may be individually eligible for tax credits for exterior improvements. What are Eligible Projects? • An eligible project is a preservation, restoration, and/or rehabilitation project involving exterior improvements to the architectural facade of the building. • The project must be visible from a public street, sidewalk, or public way. An exterior preservation project is construction or maintenance work that sustains the existing form, integrity and material of the building. A rehabilitation project returns the property to a state of utility while preserving features which are central to its historic significance. Exterior restoration projects recover the form and detail of a property as it appeared at a particular period of time. How to Apply for Historic Properties Tax Credit 1) Contact the City Planning Office for the Application Form & instructions. 2) Property Owners must submit a Historic Property Tax Credit Application and required documentation with their Building Permit Application. 3) Include the following in the submittal: • Color photographs of the property showing its current condition and existing materials on site. • Plans and information describing the project activities. • An itemized cost estimate for the project. 4) The City Planner will review the application to confirm eligibility and ensure consistency with the Design Standards and Guidelines for the City of Dover Historic District Zone and the Architec -tural Review Certificate, if one has been approved. The City Planner may refer any application to the Historic District Commission for consultation. See Dover Code, Chapter 102 Taxation, Article V Tax Credits for Historic Properties for more Department of Planning & Inspections detail about tax credits for historic properties. Dover City Hall 15 Loockerman Plaza How are Tax Credits Activated? Dover, DE 19901 Once an approved project is completed: Phone: 302-736-7196 Fax: 302-736-4217 • Submit a final expense report to the https://www.cityofdover.com/Planning-and-In- Planning Office. The project is inspected for spections/ compliance with approvals. DoverDDD@dover.de.us • Upon verification of the project, the Tax Tax Assessor’s Office Assessor will apply the Tax Credit. P.O. Box 7100 Dover, DE 19903 Phone: 302-736-7022 22 Updated June 2025

Item 1. APPLICATION FOR DOWNTOWN DEVELOPMENT DISTRICT & TARGET AREA INCENTIVES City of Dover - Planning and Inspections PO Box 475 Dover, DE 19903 DoverDDD@dover.de.us Please complete electronically or print. 1. APPLICANT INFORMATION Name: Address: Phone: Email: 2. SUBJECT PROPERTY DATA Tax Parcel ID: Location/Address: Owner Name: Owner Address: 3. INCENTIVES AVAILABLE FROM THE CITY OF DOVER Please check incentives for which you are applying: Waiver of Building Permit Fees Waiver of City Water and Wastewater Impact Fees Abatement of property taxes on the value of improvements Waiver of new Business License fees for 3 years (DDD only) Rebate of buyer’s City Transfer Tax when Certificate of Occupancy is issued within 5 years of property transfer (DDD only) 4. PROJECT DESCRIPTION Use additional sheet if necessary. Additional information attached Updated June 202523

City of Dover Item 1. Application for Development Incentives Page 2 Date of Purchase: Project Cost Estimate: 5. ASSURANCES All information in this application is complete and true to the best of my/our knowledge. I/We cer- tify that certain expenses are only reimbursable after Certificate of Occupancy or final inspection by Planning and Inspections. I/We understand that if I/we do not comply with the provisions of the development incentives program, the City may terminate the incentives. Date Applicant Signature 6. STAFF ACTION YES NO STAFF NOTES/COMMENTS Located within Target Area? Located within the DDD? Cost of Project: Transfer of Property Date: APPROVED DENIED Building Permit Fee Waiver 10 Year Tax Abatement City Impact Fees Transfer Tax Rebate New Business License Fee Date Signature of City Planner Date Signature of City Manager Updated June 202524

City of Dover Contact List Item 1. City Manager’s Office Fire Marshal’s Office Water/Wastewater (302) 736-7005 (302) 736-7011 Department CityManagers@dover.de.us PermitsandLicenses@ (302) 736-7025 Role/Responsibility: dover.de.us WaterWastewater@ Conformance with Downtown Role/Responsibility: Development District Plan dover.de.us Fire Code, Change of Occupancy Role/Responsibility: of Building Space, Fire Protection Additions to Plumbing Fixtures, Water Contacts: Permits, Public Occupancy Permits and Sewer Utilities, Impact Fee David S. Hugg III, City Manager Calculation Contacts: Yvonne Martine, Executive Assistant Jason Osika, Fire Marshal Contact: to the City Manager Jason Lyon, P.E., Director of Water/ Matthew Brown, Deputy Fire Marshal Wastewater Planning Office (302) 736-7196 Licensing & Permitting Public Works Department DoverDDD@dover.de.us (302) 736-7011 (302) 736-7005 Roles/Responsibilities: PublicWorks@dover.de.us Conditional Use, Site Plan, Zoning, PermitsandLicenses@ dover.de.us Role/Responsibility: Subdivision, Architectural Review Trash Collection/Recycling, Grounds/ Certificates/Historic Reviews, Role/Responsibility: Business Licenses, Building Street Trees, Public Streets, Downpayment Assistance and Stormwater Management Housing Rehabilitation Permits, Rental Dwelling Permits, Planning and Inspections Payment Contact: Contacts: Dawn Melson-Williams, AICP, Contacts: Mark Nowak, Director of Public Works Principal Planner Kristen Mullaney, Licensing & Permitting Supervisor Electric Department Chris Salzano, AICP, Planner II (302) 736-7070 Taryn Bauer, Office Assistant Tracey Harvey, Planner/Community Electric@dover.de.us Development Roles/Responsibilities: Tax Assessment Office Electric Service Size/Feed, Load Maretta Savage-Purnell, Sheets (302) 736-7022 Administrative Assistant DoverDDD@dover.de.us Contacts: Role/Responsibility: Paul Waddell, Electric Director Current Assessment Values, Tax Building Inspections Incentives, Tax Billing Lois King, Administrative Assistant (302) 736-7011 PermitsandLicenses@ Contacts: Aren Wright dover.de.us Annette Hart Role/Responsibility: Customer Service New Construction, Building Renovations, Change of Occupancy Department of Building Space, Building Code/ (302) 736-7035 Building Permits CustomerService@ dover.de.us Contact: Role/Responsibility: Matthew Brown, Deputy Fire Marshal Utility Accounts, Billing and Collections, Tax Payments Contacts: Updated June 2025 Allison Haines 25

ACTION FORM Item 2. PROCEEDING: Council Committee of the Whole - Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: June 3, 2025 PREPARED BY: Ann Marie Townshend, AICP (Consultant with Rossi Group) SUBJECT: Proposed Ordinance #2025-12, Amending Chapter 102 – Taxation, Articles III and IV REFERENCE: RELATED PROJECT: Downtown Development District REVIEWED BY: David S. Hugg, III EXHIBITS: Proposed Ordinance #2025-12 EXPENDITURE REQUIRED: n/a AMOUNT BUDGETED: n/a FUNDING SOURCE (Dept./Page in CIP & Budget): n/a TIMETABLE: CCW on June 10, 2025; First Reading on June 23, 2025; Final Reading on July 14, 2025 STAFF RECOMMENDATION: Staff recommends approval of the proposed ordinance. BACKGROUND AND ANALYSIS On February 24, 2025, City Council approved ordinance #2025-01, which updated the boundaries of the Downtown Redevelopment Target Area and the Downtown Development District. The ordinance replaced the terminology “Downtown Redevelopment High Priority Target Area” with “Downtown Development District,” given that this terminology has wide recognition. In updating Downtown Development District informational materials, we identified two locations in the code where the terminology had not been changed and still refers to the “Downtown Redevelopment High Priority Target Area.” This proposed ordinance rectifies this inconsistency. 26

Item 2. City of Dover CITY OF DOVER ORDINANCE #2025-12 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 4 That Chapter 102 - Taxation, Article III - Realty Transfer Tax, Section 102-71 – Definitions, be 5 amended by inserting the text indicated in bold, blue, italics, and deleting the text indicated in red 6 strikeout as follows: 7 8 (3) First-time homebuyer means a natural person who has at no time held an interest in 9 residential real estate, wherever located, and which has been occupied as their principal 10 residence, and who intends to occupy the property being conveyed as his principal 11 residence, within 90 days following recordation of the deed. The first-time homebuyer 12 must file an affidavit certifying to his qualifications before the exemption can be granted. 13 In order to alleviate claims for rebate of the transfer tax paid, no rebate shall be made once 14 the deed for the transaction has been recorded. First-time homebuyers submitting a false 15 affidavit in any respect, which would entitle them to the exemption, shall be subject to 16 payment of the unpaid transfer tax, plus interest at the rate of one and one-half percent per 17 month and, upon direction by the council, referral to the attorney general of the state for 18 criminal prosecution. This subsection shall apply to all real estate settlements held on or 19 after January 2, 2000. First-time homebuyers are exempt from the transfer tax as provided 20 herein. The first-time homebuyer exemption shall apply to the seller of property that 21 qualifies for the first-time buyer exemption but only for property located within the 22 downtown development district redevelopment high priority target area defined in 23 Appendix C. Council shall have the right to deny this exemption to any property owner 24 where the sale and purchase appears to be done fraudulently to take advantage of the realty 25 transfer tax exemption ordinance. 26 27 BE IT FURTHER ORDAINED: 28 29 That Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-113 - 30 Qualifications, be amended as by inserting the text indicated in bold, blue, italics, and deleting 31 the text indicated in red strikeout as follows: 32 33 (d) Any persons purchasing residential real property in which they will reside within the 34 downtown development district redevelopment high priority target area defined in 35 Appendix C shall be given tax relief from the payment of real estate taxes in the following 36 manner: first year of ownership, total tax abatement; second year of ownership, 75 percent 37 tax abatement; third year of ownership, 50 percent tax abatement; fourth year of ownership, 38 25 percent tax abatement; fifth year of ownership, no tax abatement. Provided however 27

Item 2. Proposed Ordinance #2025-12 – Amending Chapter 102 – Taxation, Article III & Article IV Page 2 39 that the homeowner is required to occupy the home as their principal place of residence 40 during the entire time that the taxes are abated and if the property ceases to be their 41 principal place of residence at any time during the four-year period of abatement, then they 42 shall lose their right of abatement and shall be required to pay immediately all taxes abated 43 up to the time that the home ceases to be their principal residence. In order to obtain the 44 tax abatement, the homeowner must make application by affidavit submitted to the city 45 assessor, city manager or his/her designee, or contractor showing qualification for the 46 abatement and each year thereafter, submit a similar affidavit showing their continued right 47 to the abatement. If qualification for the abatement ceases within the four-year period of 48 abatement the homeowner is required to notify the city assessor, city manager or his/her 49 designee, or contractor of the lack of qualification for the abatement and within 90 days 50 from the date the qualification ceases, pay all taxes abated in the past. 51 52 ADOPTED: 53 54 SYNOPSIS 55 The purpose of this ordinance is to correct the reference to the 56 downtown redevelopment high priority target area to be consistent with the change made in 57 Ordinance #2025-01, which changed this terminology to downtown development district 58 (SPONSORS: HUGG, ANDERSON) 59 60 Action History 61 06/10/2025 – Introduction – Council Committee of the Whole/Legislative, 62 Finance, and Administration Committee 28