COUNCIL AND DOWNTOWN DOVER DEVELOPMENT CORPORATION
WORKSHOP
Members of Council met in a workshop session with members of the Downtown Dover Development Corporation on September 18, 1990, at 7:00 P.M., with the Mayor Richter presiding. Members of Council present were Council President Christiansen, Mr. Pitts, Mr. Lynn, Mr. Hall, Mr. Levitt and Mr. Daisey.
Members of the Downtown Dover Development Corporation present were Mr. Patterson, Mr. Fantini, Mr. Holden, Mrs. Flayhart, Mr. Records, Ms. Swain and Mr. Biddle. Mr. LaVenia was also present on behalf of the Dover Parking Authority.
Mayor Richter stated that the objective of the workshop is to assure that Council agrees with the Downtown Dover Development Corporation in their plans for the redevelopment of downtown Dover.
Mr. Patterson, Chairman of DDDC, stated that the workshop would also allow members of the Corporation to obtain Council's suggestions. It was his feeling that a meeting should be held periodically with Council's suggestions. It was his feeling that a meeting should be held periodically with Council to exchange suggestions and assure that the Corporation is pursuing Council's desires.
AGENDA ADDITIONS/DELETIONS
It was a requested that the agenda be revised to consist of the following items: 1) Update on ACME Building; 2) Capital Theatre; 3) Economic Incentives; 4)DDDC Staffing; and 5) Downtown Parking.
There were no objections to the agenda as revised.
UPDATE ON ACME BUILDING
Mr. Patterson advised members that the settlement of the ACME property was completed on August 31, 1990 and that the purchase of the lease was completed on September 12, 1990. He stated that several years ago, Wesley College placed a deed restriction on the property that prohibited the sale of alcoholic beverages. Mr. Patterson stated that this matter has been referred to the Wesley College Board of Trustees and that it is anticipated that the deed restriction will be removed.
CAPITAL THEATRE
Feeling that the Capital Theatre would bring activity to the Downtown Dover area, the DDDC has been researching the possibilities of re-opening the theatre. Mr. Frank Fantini explained that the theatre could be utilized for rehearsals, plays, and other low scale performances. He suggested that a fund raising board be established to assist restoration of the theatre.
Mr. Wayne Holden explained that there is a long-term lease on the building. The owner of the theatre, Muriel Schwartz, and Fox Theatres are negotiating termination of the lease.
Mr. Fantini stated that although acquisition of the Capital Theatre is desirable, there are several concerns that must be resolved. He advised members that this matter has referred to various attorneys and accountants for possible solutions.
DEVELOPMENT INCENTIVES
As instructed by Council, the DDDC Development Subcommittee has been considering incentives that would encourage redevelopment of the City of Dover downtown core area. The subcommittee has discussed this matter with developers and discovered that it is less costly and easier to construct outside of the central Dover area. Mr. Holden explained that for developers to build in the downtown area, they must consider the destruction of an existing building and the costs involved, low value property being reassessed after improvements are made, the requirement for impact fees, and significant building permit fees, which discourages developers to build in the downtown area. He advised members that developers are interested in mixed-use residential, commercial and office combination buildings and have a concern with building height restrictions and zonings that prohibit multi-story buildings in the downtown area. Mr. Holden stated developers want to have the ability to arrive at a net cost per square foot of construction. In order to redevelop the downtown area, he stated that the City must provide a cost incentive for developers.
Upon receiving information from developers, consideration was given to creating an incentive package that would include tax abatement, impact fee waiver, building permit fee waiver, and revenue bond refinancing, that could be utilized over a period of time. To encourage developers to explore the opportunities in the area immediately, the subcommittee recommended that a "window of opportunity" be created, as follows:
A. Tax Abatement
1.Window of Opportunity - Developers have three years from the effective approval date to begin development;
2.Taxes - Developer will pay the amount of property taxes assigned to the property at the time of sale for a period of ten (10) years;
3.Abatement Period - The ten year freeze on taxes begins with the date of issuance of a building permit;
4.Target Area - The Central Area as defined in the study, more specifically, Cecil Street to Hope Street and the Railroad east to the St. Jones River;
5.Eligibility - Commercial, Retail, Office and Residential uses for renovation and construction activities.
B. Impact Fee Waiver
1.Any project that maximizes land use (multi-story, mixed-use residential, commercial and office combination) in the designated area will be eligible for impact fee waiver.
C. Building Permit
1.Building permit fees will be capped at $1,000 for projects within the targeted area.
D. Revenue Bonds
1.The DDDC will assist developers in pursuit of revenue bond financing through the Delaware Economic Development Office.
Responding to Mayor Richter, Mr. Patterson stated that it is recommended that the above development and economic incentives be presented to the Legislative and Finance Committee in resolution or ordinance form for a recommendation to Council.
Mr. Worley stated that further discussions on the economic and development incentives at the committee meeting would allow staff to address the concerns of Council.
Mr. Christiansen suggested that contact the City Solicitor for a legal opinion and that the necessary ordinances be prepared and presented to the Legislative and Finance Committee for consideration during their meeting on September 25, 1990.
Feeling that it is the City's responsibility to protect the historical and residential areas located in the Central Dover area, Mr. Hall relayed his concerns with DDDC's recommendations for zoning changes and the elimination of building height restrictions.
Responding, Mr. Patterson explained that DDDC will make recommendations and depict the areas on a map for discussion purposes and to receive public input.
It was the consensus of Council that the development and economic incentives, as recommended by the DDDC, be presented to the Legislative and Finance Committee during their meeting of September 25, 1990. It was suggested that consideration of eliminating building height restrictions and zoning changes that would permit multi-story buildings in certain areas of downtown Dover, be deferred to allow the DDDC to meet the City Planner to formulate recommendations.
DDDC STAFFING
Mr. Patterson explained that the DDDC has been utilizing City staff in their efforts to redevelop downtown Dover. Realizing that the necessary work is increasing, the Corporation is requesting Council's consideration of establishing an additional City position that would provide clerical support, assist in marketing, work with community groups and developers, etc., for the DDDC. Mr. Patterson also suggested that this employee could be utilized by the Dover Parking Authority. He explained that the Corporation wanted to receive a positive reaction from Council prior to pursuing the matter and developing a job description.
Mayor Richter stated that in order for the redevelopment of downtown to be successful, he feels that it is necessary that an additional employee be provided to the DDDC.
Mr. Levitt suggested that the Corporation submit the rationale for the additional employee, a job description, and to whom the employee would report.
Having concern with a City employee being solely dedicated to the core area of the City, Council President Christiansen suggested that the City Solicitor be contacted for a legal opinion.
It was the consensus of Council that the DDDC and the Dover Parking Authority formulate a proposal for a new position with the City of Dover to be presented to Legislative and Finance Committee for further consideration.
DOWNTOWN PARKING
Mr. Pete LaVenia advised members that the parking at the ACME property will be a permitted environment and that the signs are scheduled to be posted by October 1, 1990.
Mrs. Flayhart stated that the downtown merchants are concerned that the parking in the downtown area will become al permitted or too restrictive. She stated that the merchants have considered purchasing the Bradford Street lot from the Parking Authority in order to provide free parking to their customers.
Members of the Corporation will continue to work with the Dover Parking Authority for a possible solution to the merchant's concerns of parking in the downtown area.
DOWNTOWN GROCERY STORE
Since the relocation of ACME, Council suggested that the corporation give priority in considering the establishment of a grocery store in the downtown area.
Meeting Adjourned at 8:50 P.M.
Respectfully submitted,
John E. Richter
Mayor
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