Federal tax incentives available for qualifying investments in Opportunity Zones

DOVER, Del. – Governor John Carney announced on Thursday that communities and economically-distressed properties across Delaware could see additional private sector investment after 25 census tracts were designated as Opportunity Zones by the U.S. Department of the Treasury.

Earlier this month, Governor Carney nominated the tracts – from Claymont to Laurel – for the federal designation to spur additional private sector investment in Delaware communities. Qualified investors in the zones will become eligible for federal tax incentives. The Delaware sites include a mix of residential, commercial, and industrial properties that are well-positioned to compete for the significant investment needed in low-income communities across the state.

“Strengthening neighborhoods and communities across Delaware helps improve our economy, stabilize families, and make our state an even better place to live, work and visit,” said Governor Carney. “These Opportunity Zone designations will help build on our ongoing community development efforts, and encourage additional private investment where it can have the most impact – in economically-distressed communities. We look forward to working with private sector partners, and with local leaders across our state, on this important initiative.”

“The Office of State Planning is very excited about the certification of the Delaware Opportunity Zones,” said Connie Holland, Director of the Office of State Planning Coordination. “Working very closely with the Governor’s Office and realizing his mission to lead the state’s economic revitalization, this program will enhance our planning goals through private investment in distressed communities across the State. Delaware communities will see job and economic growth which can only be a benefit to all citizens of Delaware.”

Delaware’s Opportunity Zone tracts include neighborhoods in Wilmington; properties along the Route 9 Corridor in New Castle; areas in Dover, Milford, Georgetown, and Seaford, including the Seaford Nylon Capital Shopping Center; the STAR campus in Newark; and aging industrial sites along the Delaware River in northern New Castle County that are eligible for additional development and cleanup under the Coastal Zone Act.

Many of the newly-designated Opportunity Zone tracts are located within Downtown Development Districts, where investors may already qualify for state investment rebates, local tax abatements, affordable bridge loans, and other state and local incentives. Since the downtown program launched in 2015, roughly $21 million in state-funded investment rebates has leveraged $371 million of additional public and private investment in Dover, Georgetown, Harrington, Laurel, Milford, Seaford, Smyrna and Wilmington. Governor Carney’s recommended Fiscal Year 2019 budget sets aside an additional $8.5 million for the program.

“We look forward to having another tool in Delaware’s toolbox. These economic development incentives are vital to growing jobs and strengthening neighborhoods,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “The future Opportunity Zone investments will further amplify the strength of Delaware’s downtown development impact.”

“As a Community Development Financial Institution (CDFI), Cinnaire is very excited to potentially facilitate these opportunity zone partnerships and strengthen Delaware’s economy,” said Jim Peffley, Executive Vice President of Cinnaire. “Delaware has been a priority target for most of our investment funds, and we are always seeking ways to bring new resources to the state.”

View a map of Opportunity Zones in Delaware.

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Governor Markell announces state will accept new applications to grow initiative after successful start in Wilmington, Dover, and Seaford

• Delaware’s Office of State Planning Coordination will administer the application process.
• Applications from local governments interested in being designated as a Downtown Development District are due to the OSPC on or before June 1, 2016.
• Application materials are available at stateplanning.delaware.gov.
• To date, $9.7 million in program grants is leveraging more than $160 million in private investment in downtown districts in Dover, Seaford and Wilmington

Wilmington, DE – Building on efforts to revitalize downtown areas statewide, Governor Jack Markell announced on Wednesday that the state will accept new applications from local governments interested in being designated as Downtown Development Districts.

Residential, commercial and industrial development in designated districts may qualify for a menu of local and state incentives, including grant rebates to offset the cost of private investment.

Governor Markell made the announcement Wednesday morning in Wilmington at the 2016 Downtown Delaware “Revitalize!” Conference.

“Delaware’s downtowns are drivers of economic growth and prosperity, and this program has proven that a small amount of state support can catalyze major private investment to energize these key areas,” said Governor Markell. “We look forward to building on the program’s success, and supporting more investment.”

The DDD program, initially proposed by the Governor in his 2014 State of the State address, was created by legislation passed unanimously by the General Assembly that spring.

In January 2015, Governor Markell selected areas of Dover, Seaford and Wilmington as Delaware’s first Downtown Development Districts. Wednesday’s announcement will allow cities to once again apply for the designation.

DDD Projects Underway

So far, $9.7 million in grant funding is leveraging more than $160 million of private investment in the current districts.

Projects include a 355-space public parking garage at 9th and Shipley Streets, which will make it easier for Delawareans to drive downtown, watch a concert, or have dinner at one of Wilmington’s restaurants. Above the garage, more than 200 apartments are planned with 12,000 square feet in ground-floor retail space.

Central Delaware Habitat for Humanity is building homes on vacant lots on New Street and Kirkwood Street in downtown Dover, investments that are helping revitalize the community through homeownership.

In Seaford, grants are helping support the construction of quality apartment buildings on the Nanticoke River, with boat docks outside. The apartments will help attract more people to live and work in Seaford, a city that is critically important to the economy in western Sussex County.

The Delaware State Housing Authority administers the program.

“We know the DDD program is working to encourage investment in Delaware’s downtowns,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “As we expand the program, we expect even more progress statewide.”

Dover Mayor Robin Christiansen said the designation of downtown Dover as a Downtown Development District is helping the city revitalize its neighborhoods.

“The Downtown Development Districts program has helped people to realize the investment opportunities we have in downtown Dover,” said Mayor Christiansen. “We are currently in the early stages, but this will ultimately make a significant improvement to downtown in both business and residential neighborhoods.”

The Downtown Development Districts Act of 2014 assigns the Office of State Planning Coordination with the responsibility to administer the application process for new Downtown Development Districts. The 2016 Application Form and Guidelines will be available on the OSPC website after noon today, March 16, 2016.

Applications will be reviewed based on the need for the Downtown Development District and its potential positive impacts; the quality of the district plan; and the quality of local incentives. Local governments interested in being designated as a Downtown Development District must submit their applications to the OSPC on or before June 1, 2016.

“I am extremely enthusiastic about this program,” said Constance Holland, State Planning Director at the Office of State Planning Coordination. “I sincerely believe that the Downtown Development District program is the backbone for the revitalization of downtowns throughout Delaware.”

The OSPC and its planners will serve as a resource for any government interested in applying to become a designated Downtown Development District. OSPC planners can provide information about the application form, data from the Census, assistance with mapping, or general advice about the program.

Local governments are encouraged to contact the OSPC early in the process of preparing an application to ensure that a complete application is submitted by June 1.

“The fact that the Governor and legislators recognize how important historic downtowns are to the people of Delaware gives local governments a lot of encouragement,” said Sam Cooper, Mayor of Rehoboth Beach and president of the Delaware League of Local Governments. “This state funding leverages significant private funds to make things happen in our downtowns. Bringing activity back downtown increases vitality, creates jobs and builds community pride – strengthening a whole community.”

DOVER, DE – The Delaware Office of State Planning Coordination (OSPC) today announced the release of the draft 2015 Strategies for State Policies and Spending Update. The documents and maps have been revised to include the most current data and information from local governments and state agencies. The public is invited to review and comment on the document, and OSPC will be hosting a series of seven public workshops in October to present the draft and answer questions from the public. Visit the Strategies Update website for a list of workshop dates and locations.