The Committee of 100 | FYI Archives

Of the major industry clusters in Delaware–Chemistry & Advanced Materials, Financial Services, Automotive/Plastics Manufacturing, Biotechnology/Life Sciences, Health Sciences, and Tourism–it is Tourism which usually gets the least attention when the focus is on economic development. According to the Delaware Economic Development Office (DEDO), in 2007, these industry clusters contributed over $15 billion to the Delaware economy. Financial Services was the largest, with nearly $5.2 billion, followed by Health Services with $3.24 billion, Chemistry & Advanced Materials with $2.15 billion, Biotechnology/Life Sciences with $1.86 billion, Tourism with $1.47 billion, and Automotive/Plastics Manufacturing with $1.2 billion.

The Greater Wilmington Convention and Visitors Bureau (GWCVB) reports that, for FY 2007, total tourism sales generated in Delaware was $1.8 billion, with 67% coming from out-of-state residents. In FY 07, tourism in Delaware supported 29,000 full-time job equivalents in Delaware and generated $163 million in revenue to the State. In New Castle County, total tourism sales generated were 42.5% of the total tourism sales in all of Delaware. However one calculates the numbers, tourism has a significant impact on Delaware and New Castle County’s economy. Hotel sales, alone, in New Castle County in FY 07 were $124,728,492 generating $9,978,279 in lodging tax.

WORKFORCE HOUSING IN NEW CASTLE COUNTY

New Castle County Council, at its February 26th meeting, passed the latest ordinance in its and the Coons Administration’s housing agenda. The Administration and Council had already worked together to pass the rental-housing code, which has now registered 35,000 rental units; the accessory dwelling unit ordinance, which allows accessory living units as part of a limited number of homes in the County; the Homeownership Incentive Program, an affordable home repair direct loan program; and a downpayment and settlement assistance program for police, paramedics, volunteer firefighters, and crossing guards for purchase of their homes.

On February 26, Council unanimously approved New Castle County Councilperson Penrose Hollins’ Workforce Housing Ordinance (Ord 07-150) with an oral amendment from Councilperson Bill Powers to say that density and incentives “will” (not may) be adjusted “when a transfer of development rights ordinance is enacted by County Council.” Councilperson Hollins received a lot of praise for his work in guiding this compromise to the point of passage. While Executive Director Beverley Baxter spoke in favor of the compromise ordinance, she noted that The Committee of 100 remained concerned with several provisions, including the lengthy “affordability period” which went beyond industry standards, punitive restrictions on low-income home purchasers, and the restrictive staging of market rate/affordable units. The Committee of 100 understands that this is a first step in a process that will need to be revisited as we test how workable the ordinance will be. Beverley reminded Council that one of the primary reasons for the high cost of housing in New Castle County (NCC) remains the provisions of the Unified Development Code (UDC) and the lengthy and cumbersome approval process, which add considerable expense.

Credit for this accomplishment must extend to other key players. Larry Tarabicos, of Young Conaway, Stargatt & Taylor, provided the first draft, before it was on Council’s radar screen. After the NCC Community Services Department took the first “official” NCC draft far afield, with a mandated program, punitive measures, and unrealistic provisions, Council President Paul Clark–in response to the testimony of The Committee of 100 and our members, as well as others in the business and affordable housing communities–stood up to those members of the Administration and Council who were making it so extreme. He insisted that this ordinance not be made mandatory and made sure that the concerns of the business community and the affordable housing providers were properly heard and addressed.

SUPERIOR COURT LAND-USE DECISION CREATES UNCERTAINTY

The January 30, 2008 Superior Court decision by Judge Witham to affirm the Kent County Levy Court’s affirmation of the Kent County Regional Planning Commission’s denial of a subdivision application, even though it “complied with all the requirements of the Kent County Code,” raises a number of issues for economic development in Delaware. Because this decision is a radical departure from established Delaware law, which has held that if plans conform to zoning and subdivision regulations, they must be approved, Judge Witham’s decision raises issues of fairness and certainty in the approval process. If the decision stands, it will make the entire land-use approval process one that is not only uncertain, but also, subject to subjective decision-making and undue influence.

Because of the import of this issue, The Committee of 100, the Delaware Bankers Association, Delawareans for Environmental and Economic Development, the American Council of Engineering Companies - Delaware, the Delaware Contractor’s Association, and Associated Builders and Contractors are joining together in filing an Amicus Brief in support of the Appellant. According to the Brief, “the issue presented by this appeal has significant implications for the fairness and certainty of the land approval process in Delaware, and for the large portion of Delaware’s economy that is related to land development.”

SMART CODE HAMLET & VILLAGE CODE

New Castle County Councilperson Stephanie A. McClellan’s Smart Growth Committee has been working since last fall on a Smart Code Hamlet and Village Code to replace the unworkable Village and Hamlet provisions in the UDC. With the Committee intentionally kept small, so that it could be more functional, members include, in addition to Councilperson McClellan, Executive Director Beverley Baxter, Department of Transportation Planning Director Ralph Reeb, Delaware Greenways Executive Director Brad Killian, New Castle County Chamber of Commerce President Mark Kleinschmidt, and New Castle County Civic League representative (and NCC Planning Board Chairperson) Vic Singer.

A draft Hamlet & Village Code for New Castle County can be found on the Smart Growth website at http://www.co.new-castle.de.us/countyCouncil/Home/webpage22.asp. The goal is to get an ordinance to Council for its consideration this spring.

Beverley Baxter