Delaware’s Nonprofit Arts and Culture Industry Generates $149.9 Million in Economic Activity and Supports over 4,000 Jobs


WASHINGTON (June 22, 2017) — Delaware’s arts and culture industry generates $149.9 million in annual economic activity by supporting 4,062 full-time equivalent jobs and generating $10.5 million in local and state government revenues, according to the latest Arts & Economic Prosperity 5 national economic impact study, which was released on June 17 at the Americans for the Arts’ annual conference in San Francisco.

“This report demonstrates that the arts continue to be an important economic driver in Delaware, providing jobs for our citizens, generating business for our restaurants and other small enterprises, and tax revenue for our state and local governments. In addition to the important economic impacts, the arts benefit all Delawareans from children to senior citizens across the socioeconomic spectrum, and from rural communities to the cities,” says J. Mack Wathen, chair of the Delaware State Arts Council.

Results show that nonprofit arts and culture organizations spent $103.6 million during fiscal year 2015. This spending is far-reaching: organizations pay employees, purchase supplies, contract for services and acquire assets within their community. Those dollars, in turn, generated $111.6 million in household income for local residents and a $10.5 million in local and state government revenues, which is approximately a 3:1 return on investment. The Delaware Division of the Arts receives state funding approximately $3 million for grants to support arts and community-based organizations, schools and individual artists.

Arts Industry Boon for Local Businesses

In addition to spending by organizations, the nonprofit arts and culture industry leverages $46.3 million (excluding the cost of admission) in event-related spending by its audiences. As a result of attending a cultural event, attendees often eat dinner in local restaurants, pay for parking, buy gifts and souvenirs, and pay a babysitter. What’s more, attendees from out of town often stay overnight in a local hotel, which helps support local tourism offices.

“The report confirms that the arts mean business for Delaware. Investment in the arts contributes to a stronger economy and improved quality of life which attracts a talented workforce to Delaware. Delaware has countless arts and cultural events at any given time as seen in DelawareScene.com, an online calendar managed by the Delaware Division of the Arts. Corporations, small businesses and individuals looking for a vibrant location to call home should look to Delaware as a place to settle,” says Guillermina Gonzalez, executive director of the Delaware Arts Alliance.

In Delaware, 95 of the 135 eligible nonprofit arts and cultural organizations participated in this study—an overall participation rate of 70.4 percent. A list of the participating organizations can be found in the full report. In addition to organizational data, a total of 1,417 valid audience-intercept surveys were collected from attendees to nonprofit arts and cultural performances, events, and exhibitions during 2016.

The full report and one-page summary can be found at: http://arts.delaware.gov/resources/arts-research/


The Arts & Economic Prosperity 5 study was conducted by Americans for the Arts and supported by The Ruth Lilly Fund of Americans for the Arts. Americans for the Arts’ local, regional, and statewide project partners contributed both time and financial support to the study. Financial information from organizations was collected in partnership with DataArts™, using a new online survey interface. For a full list of the communities who participated in the Arts & Economic Prosperity 5 study, visit www.AmericansForTheArts.org/AEP5Partners.

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Contact: Leeann Wallett, Program Officer, Communications and Marketing
302-577-8280, leeann.wallett@delaware.gov


Governor Carney Announces Strategic Plan to Restructure Delaware’s Economic Development Efforts

Plan will create new public-private entity and new economic development division at the Department of State

WILMINGTON, Del. – Governor John Carney announced a plan on Wednesday to create a public-private partnership and strategically realign Delaware’s economic development efforts, with a new focus on promoting innovation, supporting Delaware’s entrepreneurs, and leveraging private sector resources to create jobs and grow Delaware’s economy.

Governor Carney – who signed Executive Order #1 on his first full day in office to explore a new economic development strategy – will work closely with members of the General Assembly to approve the concept and funding for the public-private entity, as well as a new division at the Department of State to oversee responsibilities for small business development and tourism.

The plan will reorganize Delaware’s economic development efforts by early 2018.

“We can and should do more to promote innovation, support our entrepreneurs, build and retain a talented workforce in Delaware, and strategically partner with the private sector to grow the state’s economy,” said Governor Carney. “This plan will position Delaware to create good-paying jobs, build an entrepreneurial ecosystem, and keep our state a competitive place to do business.”

Governor Carney’s plan calls for the creation of the Delaware Prosperity Partnership – a jointly funded public-private entity that will lead statewide business marketing efforts to recruit and retain businesses, including early-stage technology-based ventures, as well as large employers. The partnership also would provide support for startup businesses, with a focus on high-growth industries, and work closely with employers and education institutions to build and retain a talented workforce in Delaware.

Governor Carney’s plan calls for $2 million in annual state funding for the partnership, and $1 million in annual funding from private business. Contributions from the state would remain contingent on an ongoing, annual financial commitment from the private sector.

The Delaware Prosperity Partnership would be led by a Chief Executive Officer and governed by a 15-member board with members from the public and private sectors.

Governor Carney’s plan also would eliminate the Delaware Economic Development Office (DEDO), and shift responsibilities for small business development and tourism to a new division at the Department of State.

“This is about positioning Delaware to be competitive for good jobs moving forward,” said Jeff Bullock, Delaware’s Secretary of State. “By strategically partnering with the private sector, we can leverage business resources to strengthen the state’s economic development efforts, while continuing to support small business owners and promote our state’s $3 billion tourism industry.”

The new division at the Department of State will maintain a strong focus on supporting small business – especially women, minority, and veteran-owned businesses. It will help business owners identify available resources and navigate local, state and federal rules and regulations.

Division leaders also will administer Delaware’s publicly-funded economic development incentive programs, such as the Strategic Fund, the Main Streets program, and the Blue Collar Workforce Training grant program.

Governor Carney’s plan builds on recommendations last month from the Economic Development Working Group, a committee created by Executive Order #1 to study a new economic development strategy. Exploring a new model for economic development that includes a public-private partnership, and an emphasis on innovation and entrepreneurship, also was a recommendation of the Action Plan for Delaware.

Reaction to Governor Carney’s Plan:

“Even with the strongest economy in this region, Delaware can do better,” said Senator Jack Walsh, D-Stanton, a member of the Economic Development Working Group. “Bringing leaders from the private sector to the table adds a valuable new perspective to our economic development strategy and will help make our economy more dynamic over time. At the same time, Delaware is maintaining its firm commitment to empowering women, minority, and veteran-owned small businesses. Not all public-private partnerships are created equal, but the balance that we’ve struck here not only protects existing businesses and jobs, but also gives us a leg up in attracting promising new industries to our state.”

“There were two specific things I was looking for in considering this public-private partnership: One was there be a high level of transparency with the intermingling of public and private funds. I was concerned that it be as transparent as possible so the public would have every confidence that things were being done above board,” said Senator Brian Pettyjohn, R-Georgetown, a member of the Economic Development Working Group. “The second was to be sure this was not a New Castle County only solution for business development and that both Kent and Sussex Counties also had opportunities to reap the benefits of this new structure, proven to work very well in other states. I am satisfied both those conditions will be met.”

“This venture will put Delaware in a position to leverage the best that the public and private sectors have to offer to continue to strengthen and improve our economic climate,” said Representative Bryon Short, D-Highland Woods, a member of the Economic Development Working Group. “I look forward to working with this new partnership going forward.”

“This is not an end, it is a beginning,” said Representative Lyndon Yearick, R-Dover South, a member of the Economic Development Working Group. “Bringing the pragmatic knowledge of entrepreneurs into the process of creating a better business environment is a major step forward. Now we need to do realize the promise this concept holds for creating new, dynamic employment in Delaware.”

“We know that bringing additional, private-sector resources to Delaware’s economic development efforts can help strengthen our state’s ability to create jobs, grow the economy, and equip our workforce with the skills necessary to succeed in our new economy,” said Mark Brainard, President of Delaware Technical Community College, and co-chair of the Economic Development Working Group. “We are excited to support Governor Carney’s plan and look forward to making Delaware even more competitive moving forward.”

“This plan offers a real chance to dramatically re-think the way Delaware does business – by leveraging additional resources, and bringing more ideas to the table as we seek to grow our economy, attract talent to our state, and create good-paying jobs for all Delawareans,” said Rod Ward, President of Corporation Service Company, and co-chair of the Economic Development Working Group. “Private businesses are ready and willing to be a full partner in this effort, and help create the kind of entrepreneurial, innovation-based economy that will lead to real growth.”

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Related news:
Governor Carney and Legislators Announce Bill to Spur Investment in Innovative Delaware-based Small Businesses
Governor Carney Announces Partnership Between Tourism Office, State Parks and Geoswap to Promote Delaware
Partnership Creates Major Business Incubator & Research Institute at Experimental Station
Delaware Economic Development Working Group Recommends Plan for Public-Private Partnership
Governor Carney Signs Executive Order to Explore Public-Private Partnership at DEDO


Delaware Economic Development Working Group Recommends Plan for Public-Private Partnership

Governor Carney created the working group with Executive Order #1

WILMINGTON, Del. – The Delaware Economic Development Working Group submitted its report to Governor John Carney on Friday, recommending a plan to implement a public-private partnership – the Delaware Prosperity Partnership – that would restructure Delaware’s economic development efforts.

The nonprofit partnership, as recommended by the working group, would leverage private resources to enhance business recruitment, promote entrepreneurship and innovation, support workforce development and provide market analysis on Delaware’s economy.

On January 18, his first full day in office, Governor Carney signed Executive Order #1, creating the working group to recommend a plan for implementing a public-private partnership to improve Delaware’s system of economic development.

Governor Carney is reviewing the working group’s recommendations.

“Delaware’s economy continues to undergo substantial change, and we should do everything we can to ensure Delaware is competing for the good-paying jobs of the future, preparing our workforce for those jobs, supporting our entrepreneurs and promoting innovation,” said Governor Carney. “It makes sense to ask the business sector to partner in those efforts. Thank you to the members of the working group for their attention to this important issue. I am committed to working with the General Assembly as we explore a path forward.”

A new partnership, as recommended Friday by the working group, would be designed as a forward-looking entity to anticipate economic trends – with success of the initiative defined by a set of metrics to include new job creation, higher wages, expanding Delaware’s high-quality talent base, growing Delaware’s tax base, and new business formation.

The working group’s plan does not call for a full replacement of the Delaware Economic Development Office. Under the group’s recommendations, DEDO would remain responsible for administering the Delaware Strategic Fund, Delaware’s Tourism office, business development initiatives and various additional functions.

The Delaware Prosperity Partnership would be led by a Chief Executive Officer and governed by a 15-member board with members from the public and private sectors. Friday’s report anticipates a total annual budget of $2.5 million – with the private sector funding a target of 40-60 percent of the nonprofit’s operational costs.

“The members of the working group were honored to serve the Governor on this project and brought a lot of energy, commitment and great thinking to the process of developing the final report,” said Mark Brainard, President of Delaware Technical Community College, and co-chair of the Economic Development Working Group. “The literature shows that states that want to bring additional resources and talent to their economic development initiatives in the future utilize public-private partnerships as a mechanism for generating these additional resources and this proposed model is a very solid start for the Governor’s team and the General Assembly to build upon during the weeks and months ahead.”

“I want to thank all the working group members for their active and thoughtful participation,” said Rod Ward, President of Corporation Service Company, and co-chair of the Economic Development Working Group. “Our report outlines a wonderful opportunity for the business community to work more closely with the state on economic development through a public-private partnership. It can be a game changer for economic growth.”

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Governor Carney Announces Economic Development Working Group Members

Membership guidelines outlined in executive order

 

WILMINGTON, Del. – Governor John Carney announced Wednesday the members of the Economic Development Working Group who will develop recommendations for implementing a public-private partnership at the Delaware Economic Development Office.

The working group will explore how state government can work with the private sector to improve economic development efforts in Delaware, including ways to attract new, growing companies to the state, build a stronger entrepreneurial community, and support innovation.

“Over the next several weeks, the working group will explore how we can best position Delaware to be at the top of the list for businesses looking to start-up, grow or relocate,” said Governor Carney. “We will work with private industry to help grow our economy so that Delaware can compete for good-paying jobs.”

The Economic Development Working Group members include:

  • Mark Brainard – President, Delaware Technical Community College (Co-Chair)
  • Doneene Damon – Executive Vice President, Richards, Layton & Finger, P.A.
  • Mark Kleinschmidt – President, New Castle County Chamber of Commerce
  • Nick Lambrow – President, M&T Bank, Delaware Region
  • Jim Maravelias – President, Delaware AFL-CIO
  • Terry Murphy – President, Bayhealth Medical Center & Chairman of the Delaware Business Roundtable
  • Mona Parikh – Community Engagement Liaison, UD Horn Program in Entrepreneurship
  • Sen. Brian Pettyjohn – Senate Republican Caucus
  • Albert Shields – Policy Director, Office of Governor Carney
  • Rep. Bryon Short – House Democratic Caucus
  • Richelle Vible – Executive Director, Catholic Charities
  • Sen. Jack Walsh – Senate Democratic Caucus
  • Rod Ward – President, Corporation Service Company (Co-Chair)
  • Bernice Whaley – Director, Delaware Economic Development Office
  • Rep. Lyndon Yearick – House Republican Caucus

 The working group will begin its work in February and report back to Governor Carney by April 7, 2017. The group includes a member from each of the General Assembly’s four caucuses; four representatives from the business community; the Director of the Delaware Economic Development Office; the Governor’s Policy Director; and representatives from the nonprofit sector, higher education, labor and the public.

The Economic Development Working Group was established by Executive Order Number One, which Governor Carney issued on his first day in office.

 

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Text of Executive Order

EXECUTIVE ORDER

NUMBER ONE

 

TO: HEADS OF ALL STATE DEPARTMENTS AND AGENCIES

RE: CREATING A WORKING GROUP TO CONSIDER A PUBLIC-PRIVATE PARTNERSHIP BETWEEN THE DELAWARE ECONOMIC DEVELOPMENT OFFICE AND DELAWARE’S BUSINESS COMMUNITY

WHEREAS, Delaware’s economy is undergoing a fundamental shift toward industries and employment that require innovation and higher levels of skill.

WHEREAS, Delaware must embrace this change and focus its economic development efforts on making investments that result in jobs for Delaware workers, maintaining a business climate and infrastructure that supports economic growth, and developing a culture of entrepreneurship to grow the industries and jobs of the future. 

WHEREAS, Delaware’s business community has valuable information about emerging markets, the skills needed in a modern workforce, and resources to invest in new opportunities.

WHEREAS, the strength of Delaware’s economy will increasingly rely on identifying opportunities for growth and developing a well-trained workforce to meet the needs of existing and potential Delaware companies.

WHEREAS, allowing the Delaware Economic Development Office to work in partnership with Delaware’s business community will enhance the resources available for job creation and economic growth.

NOW, THEREFORE, I JOHN C. CARNEY, by virtue of the authority vested in me as Governor of the State of Delaware, do hereby declare and order the following:

1. A working group is hereby established to study how Delaware’s public and private sectors can work together to improve the process of economic development in Delaware, including, in particular, to attract more growing and fledgling companies to the state and to build a stronger entrepreneurial community (the “Working Group”).

2. The Working Group shall consist of no fewer than 14 members to include:

  1. Four members of the General Assembly, to include one member from each of the House Majority and Minority caucuses, who shall be appointed by the Speaker of the House, and one member from each of the Senate Majority and Minority caucuses, who shall be appointed by the President Pro Tempore of the Senate;
  2. The Director of the Delaware Economic Development Office (DEDO);
  3. Four members of Delaware’s business community, to be recommended by the Delaware State Chamber of Commerce;
  4. The Governor’s Policy Director; and
  5. Representatives from the higher education, non-profit and labor union communities, and one member of the public, to be appointed by the Governor.

  3.  The Governor may appoint a chair and vice-chair, or two co-chairs, one each from the public and private sectors.

  4. The Governor may increase the size of the Working Group and appoint additional members at his pleasure. 

  5. The Working Group shall convene in February and shall consider at least the following matters:

  1. All duties and responsibilities of DEDO mandated by the Delaware Code and other applicable Delaware law;
  2. All additional duties and responsibilities currently being undertaken by DEDO;
  3. Current DEDO staffing and funding levels;
  4. The extent to which other states in the United States have used public-private partnerships (PPPs) as a tool to promote innovation and build an entrepreneurial community, the significant features of those partnerships and the degree to which they have achieved measurable results; and 
  5. The conditions necessary to making effective use of a PPP to foster economic development in Delaware.

  6. No later than April 7, 2017, the Working Group shall produce a report to the Governor that includes at least the following:

  1. Policy recommendations regarding the use of a PPP to foster economic development in Delaware, particularly in the area of strengthening the environment for entrepreneurs;
  2. The features essential to the success of any recommended PPP, including but not limited to a proposed governance structure and an estimate of necessary appropriations from the General Assembly;
  3. A proposed process and timeline for implementing any policy recommendation; and
  4. A draft of any necessary implementing legislation.

   7. The Working Group shall dissolve on April 7, 2017 unless reconstituted by further executive order.

                                                            APPROVED this 18th date of January 2017.


Governor, legislators comment on redevelopment of former GM Boxwood Road manufacturing facility

Wilmington, DE – Governor Markell and state legislators today expressed support for job creation and economic development efforts at the site of the former General Motors manufacturing facility near Wilmington following the announcement that CBRE Group, a global commercial real estate services firm, will begin soliciting bids for the redevelopment of the Boxwood Road facility on behalf of their client, Wanxiang America. The project aims to maximize the value of the site for future economic development opportunities.

In announcing the plans, CBRE noted that the site had a number of features which would make it attractive to a future buyer, including its proximity to major East Coast cities, access to major networks of road, rail, sea, and air transportation, Delaware’s high quality workforce and public education system, and the state’s responsive government.

“I will never forget walking into the Boxwood Road facility just hours after the workers there got the news from GM that the plant would close down,” said Governor Markell. “I look forward to this redevelopment project, and hope it will ensure a brighter future for the site.”

“Like so many in my district, I fondly remember the glory days of the Boxwood Plant and I’ll be sad to see it torn down,” said Senator Patricia Blevins (D-Elsmere). “Its closure was tough for Delaware because of the job losses that came with it and because it represented a significant shift in the American economy. That shift continues with the acquisition of the facility and corresponding plans to redevelop it, which I’m confident will lead to extraordinary new job opportunities that simply don’t exist there today. Like with the STAR Campus in Newark, tech-focused redevelopment plans have the opportunity to propel our state forward and make us a regional leader in the 21st Century economy.”

“While we ideally would have loved to see vehicles rolling off the assembly line again, this is great news and an indication that we are on the path to having a facility employing Delaware workers on that site once again,” said Rep. Larry Mitchell, whose district includes the former Boxwood plant. “I am looking forward to more positive developments and seeing a new business rise from the ground.”