Downtown Development District Program Celebrates Housing Rehabilitation Successes In 2022 Annual Report

Dover, Del. March 10, 2023 – The Downtown Development Districts (DDD) program, administered by the Delaware State Housing Authority (DSHA), recently released its Fiscal Year 2022 (FY2022) Annual Report and Story Map.

During FY2022, 64 development projects were completed receiving $4.6 million in state funds and leveraging $44 million in private investment. A majority were accomplished by rehabilitating existing buildings, which had been long vacant, and placing them back into productive use.

In addition, several historic properties were renovated to include mixed-use buildings with commercial or retail on the first floor and residential on the upper floors, helping to preserve the character of Delaware’s downtowns.

  • Ninth Street Holdings LLC in New Castle – A dilapidated structure, considered a blight on the neighborhood, was demolished and replaced with six town homes with brick
  • Triple Twelve LLC in Middletown – Originally a residence dating back to the 1800s, this building has been renovated into a tasting room and beer garden for a micro-brewery. This popular destination is attracting more visitors to Middletown while supporting surrounding businesses.
  • 200Front LLC in Milford – Long dilapidated structures were demolished over several parcels to construct and design nine affordable townhomes to complement the North Milford Historic District.

The DDD program was created by legislation proposed by Governor Markell and passed unanimously in May 2014 by the General Assembly. Through state and local collaborations, robust incentives are provided to overcome the financial barriers and redevelopment challenges associated with downtown infill development.

Since its inception, the program has catalyzed private investment in designated Delaware’s downtown districts, spurring 357 projects completed and placed in service to transform distressed downtown areas into vibrant community centers.

The twelve districts are dispersed across the state, including Clayton, Delaware City, Dover, Georgetown, Harrington, Laurel, Middletown, Milford, New Castle, Seaford, Smyrna, and Wilmington.

Further development successes can be found on the program’s Story Map. This interactive website details the DDD projects in local areas that have received rebates or are currently in the pipeline.

Applications for 2022 Large Projects are currently closed. Applications for 2022 Small Projects are accepted on a rolling basis. For more information on DDD, please visit the DSHA website. The full annual report is available here.

About Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, is dedicated to providing quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique in that it also serves as a Public Housing Authority and acts as a Community Development and Planning Agency. As a Public Housing Authority, DSHA receives funding from HUD to build, own and operate public housing in Kent and Sussex counties, two of

Delaware’s three counties. For more information about DSHA, please call (302) 739-4263 or visit destatehousing.com.


DSHA Celebrates Grand Opening of Splash Laundromat, Presents DDD Rebate Check

GEORGETOWN – Governor John Carney, Delaware State Housing Authority (DSHA) Director Anas Ben Addi, local legislators, town officials and members of the business community celebrated the grand opening of Splash Laundromat on Friday and presented a Downtown Development Districts (DDD) rebate check in the amount of $457,997 to owners Enrique and Veronica Nunez. The Nunezes applied for and received a DDD reservation in fall 2017 in support of the project.

“I am honored to celebrate the grand opening of Splash Laundromat and present a DDD rebate check to Enrique and Veronica Nunez for their hard work to help revitalize Georgetown’s downtown area,” said Governor Carney. “This project demonstrates how the DDD program can be used as a valuable resource during this time for small businesses looking to expand, entrepreneurs opening new businesses, and homeowners completing renovation projects in our state’s downtowns.”

During Friday’s event, Director Ben Addi also announced that the latest round of funding is now available for large project rebate reservations through the DDD program. DSHA is accepting applications from investors and business owners through January 8, 2021.

“Community development is central to DSHA’s mission, and we are pleased to be able to offer this funding to support continued economic growth in our downtowns,” said DSHA Director Anas Ben Addi. “We hope Enrique and Veronica Nunez’s story will inspire other business owners and investors to take advantage of the DDD program and apply for an award for their own large or small projects in one of the state’s 12 designated districts.”

The Nunezes purchased the property where Splash Laundromat is located in September 2015. At that time, the structure was vacant, but since then, the Nunezes have renovated and expanded the building to include the laundromat, a hair salon, and a coffee shop and snack bar on the first floor with three apartments on the second floor. The total development cost for the project was nearly $2.7 million.

“We could not have completed this project without the support of the DDD program,” said Enrique Nunez. “This program gave us the financial security of knowing we would receive a portion of our total development cost back as a rebate. For a small business owner, this security is crucial, especially given the current economic situation, and we are grateful to DSHA and the State of Delaware for offering business owners like us the opportunity to participate in the DDD program.”

Established in May 2014, the DDD program was created to spur private capital investment in commercial business districts and other neighborhoods; stimulate job growth and improve the commercial vitality of our cities and towns; and help build a stable community of long-term residents in our downtowns and other neighborhoods. Investors who make qualified real property investments in one of 12 designated districts can apply for a rebate of up to 20 percent of eligible costs. The designated districts are: Clayton, Delaware City, Dover, Georgetown, Harrington, Laurel, Middletown, Milford, the City of New Castle, Seaford, Smyrna and Wilmington.

Since the first reservation awards in April 2015, the DDD program has been a catalyst for private investment in Delaware’s downtowns, with $36 million in rebates through the program leveraging $630 million in private investment in designated downtown districts in all three counties.

Under the latest round of funding, investors can apply for a DDD reservation award for large property construction or redevelopment project investments of more than $350,000. Applications for small projects – an investment between $25,000 and $350,000 – are accepted on a rolling basis throughout the year based on available funding. During this funding round, $10 million is available for large projects while $2 million is available for small projects.

Investments eligible for DDD rebate funds include capital investments on rehabilitation, expansion or new construction for commercial, industrial, residential or mixed-use buildings within the district boundaries. Rebates are issued after the project is completed. Qualified applicants include property owners, tenants, for-profit developers, nonprofit organizations, businesses and homeowners.

Applications for large project rebate funding must be received by DSHA by 4 p.m. on January 8, 2021. Additional information and application materials are available at www.destatehousing.com/ddd or can be obtained by calling DSHA at 888-363-8808.


DSHA Announces $9 Million in Funding Available for Downtown Development District Project Rebates

DOVER – Delaware State Housing Authority (DSHA) is accepting applications through June 1 for large project rebate reservations through the Downtown Development Districts (DDD) program. Investors who make qualified real property investments in one of 12 designated districts can apply for a rebate of up to 20 percent of eligible costs. The designated districts are: Clayton, Delaware City, Dover, Georgetown, Harrington, Laurel, Middletown, Milford, the City of New Castle, Seaford, Smyrna and Wilmington.

“Community development is central to DSHA’s mission, and we are pleased to be able to offer this funding to support continued economic growth in our downtowns,” said DSHA Director Anas Ben Addi. “We know many businesses and homeowners across our state are grappling with the impacts of the COVID-19 crisis, and we want to remind them that the DDD program can be a valuable resource during this time. Funding is available for restaurants working on renovations, a property owner looking to upgrade office space or the homeowner undergoing an extensive residential rehab project.”

The application period is for large property construction or redevelopment project investments of more than $350,000. Applications for small projects – an investment between $25,000 and $350,000 – are accepted on a rolling basis throughout the year based on available funding. During this funding round, $7 million is available for large projects while $2 million is available for small projects.

Investments eligible for DDD rebate funds include capital investments on rehabilitation, expansion or new construction for commercial, industrial, residential or mixed-use buildings within the district boundaries. Rebates are issued after the project is completed. Qualified applicants include property owners, tenants, for-profit developers, nonprofit organizations, businesses and homeowners.

Established in May 2014, the DDD program was created to spur private capital investment in commercial business districts and other neighborhoods; stimulate job growth and improve the commercial vitality of our cities and towns; and help build a stable community of long-term residents in our downtowns and other neighborhoods.

Since the first reservation awards in April 2015, the DDD program has been a catalyst for private investment in Delaware’s downtowns, with $36 million in rebates through the program leveraging $582 million in private investment in designated downtown districts in all three counties.

Applications for large-project rebate funding must be received by DSHA by 4 p.m. on June 1. Additional information and application materials are available at www.destatehousing.com/ddd or can be obtained by calling DSHA at 888-363-8808.


Governor Carney Announces Downtown Development District Designations

Governor Carney designates new districts in Delaware City, Middletown, New Castle and Clayton 

DELAWARE CITY, Del. – Governor John Carney on Monday announced the latest cities and towns receiving a Downtown Development Districts (DDD) designation. The program significantly builds on the state’s efforts to redevelop Delaware’s commercial business districts and drive private investment in towns and cities.   

Governor Carney officially designated four new Downtown Development Districts – in Delaware City, Middletown, New Castle and Clayton. Investors who make qualified improvements to residential, commercial or industrial properties in those districts now may qualify for state and local development incentives, including a rebate of up to 20 percent of eligible costs upon completion of the project.

“The Downtown Development Districts program is already bringing significant private investment to the eight currently designated cities and towns, and I am thrilled to welcome these four new designations to the program,” said Governor John Carney. “This expansion continues our commitment to revitalizing our downtown business districts and surrounding neighborhoods.”

Established in May 2014, the DDD program was created to spur private capital investment in commercial business districts and other neighborhoods; stimulate job growth and improve the commercial vitality of our cities and towns; and help build a stable community of long-term residents in our downtowns and other neighborhoods.

Since the first reservation awards in April 2015, the DDD program has been a catalyst for private investment in the eight Delaware downtowns previously designated. Those districts are: Dover, Georgetown, Harrington, Laurel, Milford, Seaford, Smyrna and Wilmington. To date, $31.6 million in rebates through the program has leveraged $597 million in private investment in those designated downtown districts.

Governor Carney made the announcement in downtown Delaware City on Monday morning, joined by local officials representing the new districts.

“We are excited about the transformation that will occur in downtown Delaware City thanks to this program. We want our residents to be able to live, work and enjoy themselves in our downtown, and this designation will go a long way to helping us achieve that,” said Delaware City Mayor Paul H. Johnson, Sr.

“The City of New Castle is honored to accept the Governor’s Downtown Development District designation, and we are excited to see the positive changes this program can have for our community,” said New Castle City Mayor Michael J. Quaranta. “Investors looking to make improvements in our city now have another incentive to help further strengthen our community.”

“The Town Council and I are committed to continuing the economic growth in Middletown, particularly within the main commercial district,” said Middletown Mayor Ken Branner. “We firmly believe this designation, combined with significant local incentives, will encourage private investment in the downtown areas that have been left out of current development.”

“This Downtown Development Districts designation provides a wonderful opportunity for the Town of Clayton to jump start our revitalization,” said Clayton Vice Mayor Alex Dias. “By participating in the program, our downtown is certain to prosper, maintain its character, and be the center of our community.”

The DDD program is administered by the Delaware State Housing Authority (DSHA). In October, DSHA will launch a new funding round for large projects in each of Delaware’s Downtown Development Districts. Nearly $8 million in funding will be available for projects statewide. Applications to fund small projects are accepted on a rolling basis.

“We’re thrilled to work with homeowners, developers, and small business owners to drive investment in all of the newly-designated districts,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “This program is already successful in the eight current districts, and we look forward to even more progress statewide.”

Governor Carney announced in February that the DDD program would expand through new district designations. Delaware’s Office of State Planning Coordination led the process to review the applications and designate the new districts. Applications were scored based on the town or city’s need for Downtown Development District incentives, the jurisdiction’s downtown revitalization plan and the creativity of its incentive package.

“All of Delaware’s towns and cities are unique, and I am so pleased that we were able to expand this program to the four diverse communities being recognized today,” said State Planning Director Constance Holland. “The best part of this program is that it supports such a wide range of redevelopment activities so each town can thrive. This program demonstrates that the state supports all of our local governments and their visions of economically vibrant, healthy, and complete communities.”

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DSHA Announces Downtown Development Districts Funding Awards

DOVER – Twelve downtown revitalization projects in Milford, Smyrna and Wilmington have been selected to receive funding through Delaware’s Downtown Development Districts (DDD) program, with $5.5 million in rebates leveraging $103 million in total investment, Governor John Carney and the Delaware State Housing Authority (DSHA) announced today.

Established in May 2014, the DDD program was created to spur private capital investment in commercial business districts and other neighborhoods; stimulate job growth and improve the commercial vitality of our cities and towns; and help build a stable community of long-term residents in our downtowns and other neighborhoods.

Since the first reservation awards in April 2015, the DDD program has been a catalyst for private investment in Delaware’s downtowns. With these new reservation awards, $31.6 million in rebates through the program has leveraged $597 million in private investment in designated downtown districts in all three counties.

“This latest round of Downtown Development Districts funding will continue our commitment to revitalizing our downtown business districts and surrounding neighborhoods,” said Governor Carney. “These investments are a vital tool in our economic development toolbox and will have a long-term impact on these communities.”

“DSHA is pleased to support these new projects that will renovate empty and vacant buildings, create homes, and bring businesses and jobs to our downtowns,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “Community development is central to our mission, and we are encouraged by the continued strong interest in the Downtown Development District program in all eight districts.”

Investments eligible for DDD rebate funds include capital investments on rehabilitation, expansion or new construction for commercial, industrial, residential or mixed-use buildings within the district boundaries. Rebates are issued after the project is completed. Qualified applicants include property owners, tenants, for-profit developers, nonprofit organizations, businesses and homeowners.

By utilizing a DDD large project reservation award, investors Randy Dawson and Kaushik Shah plan to renovate and repurpose the former Metal Masters/Harris Manufacturing plant located at 655 Glenwood Avenue in Smyrna. At more than 170,000 square feet, the building will be repurposed for warehousing, recreational and light manufacturing use, and the investors also plan to create a farmers’ market that will provide approximately 72,000 square feet of retail and restaurant space for tenants to sell merchandise, food, crafts, and more. “The building we are renovating has been vacant and neglected for a number of years. This Downtown Development Districts reservation award will allow us the opportunity to bring the site back to life in a meaningful way for the residents of Smyrna,” Shah said.

In Milford, investor and business owner Lisa Johnson plans to complete extensive renovations of a restaurant building in the Riverwalk Center at 249 NE Front Street. The restaurant will include a bar and areas for general and fine dining as well as event spaces for catered meetings or parties. Johnson currently operates a private events business. “We are excited to be receiving this reservation award from the Downtown Development Districts program. This award will allow us to expand upon our growing business in Milford and gives us the opportunity to provide the residents of the city with a new dining option.”

DDD Rebate Large Project Reservation Award Details

Milford

  • Benvenuto LLC plans to use a DDD large project reservation award for extensive renovations of the restaurant building at 249 NE Front Street. Renovations will consist of removing and opening up walls, removing carpeting, rewiring the building, expanding the restrooms for ADA compliance, building new storage areas, replacing walls, ceiling tiles and lighting and updating the alarm system and security cameras. The investors plan to open a restaurant in the building later this year.
  • Mispillion Street Partners LLC plans to construct four 12-unit condominium buildings (48 total units) to be situated along the Mispillion River at 401 Mispillion Street. This will be new construction on a vacant lot, and units will consist of two and three bedroom options available for renters or buyers. Each unit will have a panoramic view of the Mispillion River and be a short walk to the downtown shopping district.

 

Smyrna

  • Shadaw Enterprises LLC plans to completely restore and fit out the former Metal Masters/Harris Manufacturing plant located at 655 Glenwood Avenue. The building is vacant and neglected and in need of significant renovations including demolition of walls and structures, roof replacement and repairs, new insulation, a new electrical distribution system, new plumbing and HVAC systems and fire alarm, surveillance and technology wiring throughout the building. Upon completion of renovation work, the building will be repurposed for warehousing, recreational and light manufacturing use, and the investors also plan to create a farmers’ market that will provide approximately 72,000 square feet of retail and restaurant space for tenants to sell merchandise, food, crafts, and other items.

Wilmington

  • 9th and Tatnall LLC plans to construct a new building housing 34 apartment units and two ground floor retail spaces on the southeastern corner of North Tatnall Street and West 9th Street. The investor has assembled seven parcels (226 West 9th Street, 836, 838, 840, 842 and 844 North Tatnall Street and 11 Girard Street) with the plan to demolish a fire-damaged central portion of one of the consolidated parcels and part of a garage complex facing onto Girard Street in order to construct the new building. The project will include a mix of three-story historic buildings and a five-story newly constructed building slotted in between.
  • 105 West 7th LLC plans to demolish three existing vacant buildings (103, 105 and 109 West 7th Street) and construct a new building containing 30 market-rate multifamily units with six units on each of five floors.
  • 210 Market Cooper LLC plans to create a mixed-use, ground-up development on the 200 block of N. Market Street. The project will consist of the demolition (some facades exempted) of the existing structures at 206, 210, 212, 214 and 216 N. Market St. as well as 221 and 225 N. King Street. The development will include 90 market-rate apartment units as well as ground floor retail space and parking.
  • 627 Market LLC plans to fit-out the retail space at 627 N. Market Street for a modern Chinese food concept restaurant called Tom’s Dim Sum. The investor previously used a DDD reservation for the renovation of the apartments and general work done on the façade of the building.
  • 901 Market Associates LLC plans to renovate the Market Tower Building at 901 N. Market Street to create studio, one and two bedroom apartments totaling 68 units over 11 floors. Floors one through three will be renovated into new functional commercial and retail space totaling over 16,000 square feet.
  • BPG Real Estate Services LLC plans to renovate the existing retail space at 838 N. Market Street in order to fit out the space for the installation of a bank branch at the site. The project will also include substantial work on the exterior of the building in order to create an appropriate entrance and signage for the branch.
  • Quaker Arts LLC plans to upgrade four existing buildings (708-710, 801, 816 and 822 West Street) into 53 apartments with a preference for artists. The four existing buildings will be converted into affordable housing for individuals and families with incomes ranging between 30 and 80 percent of Area Median Income. The units will range in size from efficiencies to three-bedroom units as well as six units set aside for special needs populations. Building amenities will include community and meeting rooms, music rooms, a fitness studio, computer lab and communal laundry facilities.
  • The Mill – Wilmington LLC plans to further grow The Mill co-working space located within the Nemours Building at 1007 N. Orange Street by 10,000 additional square feet. The current space will be rehabbed to meet the needs of the project.
  • The Warner 927 LLC plans to renovate the building at the corner of 10th and Orange Streets. The property is a multifamily mixed-use building that was constructed in 1923. The building includes two ground floor commercial spaces, four residential units and two underutilized units that will be converted to residential. The majority of the renovation work will occur in the six residential units. Renovation work will include new bathrooms, kitchens, HVAC, painting, floorcovering, roof and façade. One of the ground floor commercial spaces will be redeveloped for a new restaurant concept.