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Legislation Document
SPONSOR:
Sen. Brown & Rep. Bolden
Rep. Osienski
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 33
AN ACT TO AMEND TITLE 22, TITLE 29, AND TITLE 30 OF THE DELAWARE CODE RELATING TO THE DOWNTOWN DEVELOPMENT CORRIDORS AND DISTRICTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Chapter 19. The Downtown Development
Corridors and
Districts Act
Section 2. Amend Chapter 19, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Subchapter I. Establishment, Amendment, and Termination of
Corridors and
Districts
Section 3. Amend § 1902, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1902. Definitions.
As used in this chapter:
(1) “Committee” means the Cabinet Committee on State Planning Issues established
pursuant to
under
§ 9101 of Title 29.
(2)
“Corridor plan” or
“District plan” means the strategic plan or other detailed description of the overall strategy for the development of a proposed
corridor or
district submitted by the municipality or unincorporated area as part of its application for
corridor or
district designation.
(3) “Downtown” means that portion of a city, town, or unincorporated area that traditionally comprises its downtown or central business district, as determined by such city, town, or unincorporated area in accordance with guidelines promulgated by the Office.
(4) “Downtown Development Corridor” or “corridor” means an area within a municipality with a population of 30,000 or more based on the 2020 federal census that is designated as a Downtown Development Corridor under this chapter.
(4)
(5)
“Downtown Development District” or “district” means an area within a municipality or unincorporated area designated as a Downtown Development District
in accordance with the provisions of
under
this chapter.
(5)
(6)
“DSHA” means the Delaware State Housing Authority.
(6)
(7)
“Municipality” means any incorporated town or city of this State.
(7)
(8)
“Office” means the Office of State Planning Coordination.
(8)
(9)
“Unincorporated area” means an area of
the
this
State having a concentration of population that is not a municipality and that is eligible to apply for and receive district designation in accordance with rules promulgated by the Office.
Section 4. Amend § 1903, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1903. Applications for
corridor or
district designation.
(a) At the request of the Governor, the Office shall solicit applications from municipalities and unincorporated areas to have an area designated as a
Downtown Development Corridor or
Downtown Development District. Such application shall include a description of the area to be included; the need for
corridor or
district incentives; the
corridor plan or
district plan; local incentives offered; and such other information as may be required by the Office.
(b) The Office
of State Planning Coordination
shall administer the application process and establish criteria to determine what areas qualify as
Downtown Development Corridors and
Downtown Development Districts. The Office is authorized to take such actions as may be necessary or convenient to fulfill its responsibilities
hereunder, including but not limited to
under this chapter, including
promulgating rules and regulations relating to the establishment, amendment, and termination of
corridors and
districts and providing assistance to municipalities and unincorporated areas in connection with the application process.
(c) The criteria for designating
areas
an area
as
a Downtown Development Corridor or
Downtown Development
Districts shall include:
District must include all of the following:
(1) The need and impact of
such a
the
designation for
such
the
area, including
but not limited to
income, unemployment rate, homeownership rate, and prevalence of vacant or abandoned housing units in
such
the
municipality or unincorporated area. Need and impact factors
shall
must
account for at least 50 percent of the consideration given to applications for
corridor or
district
designation;
designation.
(2) The quality of the municipality’s or unincorporated area’s
district plan;
corridor plan or district plan.
(3) The quality of the local incentives
offered; and
offered.
(4) Such other criteria as may be determined by the Office.
Section 5. Amend § 1904, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1904. Review and approval of applications.
(a) Applications for
corridor or
district designation
shall
must
be evaluated by the Cabinet Committee on State Planning Issues, which shall recommend to the Governor those applications with the greatest potential for accomplishing the purposes of this chapter.
(b)
Upon
On
receipt from the Committee of any recommended application, the Governor
may:
may do any of the following
(1) Designate immediately the recommended area as a
district;
corridor or district.
(2) Designate the recommended area as a
corridor or
district effective 1 year from the date of
such
the
determination by the
Governor; or
Governor.
(3) Deny
such
the
application.
(c)
The initial round of applications shall result in the immediate designation of at least 1 but no more than 3 districts.
[Repealed.]
Section 6. Amend § 1905, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1905. Designation, renewal, and amendment of
corridors or
districts.
(a)
No
Not
more than 15 districts
shall
may
be designated at any 1 time.
Designation of the first 3 districts shall include 1 district in each county.
Not more than 1 corridor may be designated for each municipality.
(b)
Districts shall
A corridor or district is to
be designated for an initial 10-year period.
Upon
On
recommendation of the Committee, the Governor may renew
districts
a corridor or district
for up to 2 5-year renewal periods. Recommendations for renewals
shall
must
be based on the performance of
corridor or
district responsibilities by the
municipality (or
municipality, or
county in the case of
a district in
an unincorporated
area);
area;
the continued need for
such a
the corridor or
district; and
its
the corridor’s or district’s
effectiveness in creating capital investment, increasing population, creating jobs, improving housing stock, providing enhanced retail and entertainment opportunities, and otherwise improving the quality of life within
such
the corridor or
district.
(c) Any
municipality (or
municipality, or
county in the case of
a district in
an unincorporated
area)
area,
having a
corridor or
district within its borders
shall be
is
responsible for providing the local incentives specified in its application, providing timely submission of reports and evaluations as required by rule or regulation, implementing an active local development
corridor or
district program within the context of overall economic and community development efforts, and fulfilling such other responsibilities as may be required by law, rule, or regulation in connection with
such
the corridor or
district.
(d) Each
corridor or
district shall
be required to
submit regular reports and information to the Office as may be necessary to evaluate
such
the corridor’s or
district’s effectiveness and compliance with this section.
Section 7. Amend § 1906, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1906. Local incentives.
(a)
Any
A
municipality or unincorporated area
submitting an application
applying
for district designation
, or municipality applying for a corridor designation,
shall propose local incentives that address local economic and community conditions, and that will help achieve the purposes set forth in § 1901 of this title.
Such
The
local incentives may include
but are not limited to
a reduction in fees or taxes. In addition, the application may also contain proposals for regulatory flexibility, which may include
but are not limited to
permit process reforms, special zoning districts, or exemptions from local ordinances.
(b) All incentives proposed in the application
shall be binding upon the municipality (or county in the case of an unincorporated area) upon
are binding on a municipality or unincorporated area applying for district designation, or municipality applying for a corridor designation, on
designation of the
corridor or
district. The extent and duration of
such
the
incentives
shall
must
be consistent with the requirements of the Delaware Constitution and the United States Constitution.
(c) A municipality or county may establish eligibility criteria for local incentives that differ from the criteria required to qualify for the incentives provided in this chapter.
Section 8. Amend § 1907, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1907. Amendments to
corridor or
district boundaries and incentives.
A municipality or county may apply to the Office to amend the boundaries of
the
a corridor or
district or to amend 1 or more
corridor or
district
incentives, provided that
incentives for a corridor or district designated by the municipality or county, if
any revised incentive proposed by the municipality or county
shall be
is
equal or superior to the incentive for which the amendment is sought. All proposed amendments are subject to approval by the Committee.
Section 9. Amend § 1908, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1908. Formal review and termination of
corridors or
districts.
(a) If a
municipality (or a county in the case of an unincorporated area)
municipality or county
fails to fulfill its obligations
pursuant to
under
§ 1905 of this title or as otherwise set forth in this chapter,
then
the Office may recommend to the Committee that the
corridor or
district be placed under formal review or that its
corridor or
district designation be terminated.
(b)
Except in instances where a city, town, or
Unless a
municipality fails to provide local incentives
in accordance with
under
§ 1906 of this title
hereunder
, the Office may not recommend
any of the following
:
(1) Placing
any
a corridor or
district under formal review for at least 2 years following the initial designation of
such district; and
the corridor or district.
(2) Terminating the designation of
any
a corridor or
district for at least 1 year following the placement of the
corridor or
district on formal review by the Committee.
(c)
In no event shall the
The
Office
may not
recommend formal review or termination of
any
a corridor or
district without providing sufficient notice and opportunity to be heard to
such
the corridor or
district.
(d) The Committee may approve any recommendation by the Office to place a
corridor or
district under formal review or to terminate a
corridor’s or
district’s designation
upon
on
the affirmative vote of
3
/
5
of the members of the Committee.
(e) The Office may promulgate regulations to authorize the continuation of previously authorized
corridor or
district incentives for a reasonable period following termination of the
district; provided, however, that no new incentives shall be
corridor or district. A new incentive may not be
authorized for any entity after the date of termination.
Section 10. Chapter 19, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Subchapter II. Downtown Development
Corridor and
District Grants
Section 11. Amend § 1921, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1921. Qualifications for
Downtown Development Corridor and
Downtown Development District
Grants.
Grants; definitions.
(a) Subject to the limitations set forth in this subchapter, any qualified
corridor or
district investor making a qualified real property investment in a
corridor or
district
shall be
is
entitled to a grant in an amount up to 20% of the qualified real property investments made by
such
the
qualified
corridor or
district investor in excess of the minimum qualified investment threshold.
(b) For purposes of this
chapter:
subchapter:
(1)
“DDC Grant”,
“DDD
Grant”
Grant”,
or “grant”
shall mean
means
a
Downtown Development Corridor or
Downtown Development District Grant
as set forth in
under
subsection (a) of this
section hereunder.
section.
(2) “Facility” means a complex of buildings, co-located at a single physical location within a
corridor or
district, all of which are necessary to facilitate the conduct of the same residential, trade, or business use. This definition applies to new construction as well as to the rehabilitation and expansion of existing structures.
(3) “Minimum qualified investment threshold” means the minimum level of qualified real property investments required to be made by a qualified
corridor or
district investor in a building or facility
in order
to qualify for a
DDD Grant,
grant,
as determined by DSHA.
Notwithstanding the foregoing, for the fiscal year ending June 30, 2015, the minimum qualified investment threshold shall be $25,000 with respect to a single residential or mixed-use building or a facility. No
Not
more often than once per year, DSHA may amend the minimum qualified investment threshold with respect to uses (residential, commercial, industrial, etc.), types of projects (rehabilitation, new construction, etc.), or other criteria determined by DSHA to be necessary or convenient to accomplish the purposes of this chapter.
(4) “Qualified
corridor or
district investor” means an owner or tenant of real property located within a
corridor or
district
who
that
expands,
rehabilitates
rehabilitates,
or constructs
such
the
real property for residential, commercial,
industrial
industrial,
or mixed use.
In the case of
For
a tenant, the amounts of qualified real property investment specified in this section
shall relate
relates
to the proportion of the building or facility for which the tenant holds a valid lease.
In the case of
For
an owner of an individual unit within a “common interest community,” as
such term is
defined in § 81-103 of Title 25, the amounts of qualified real property investments specified in this chapter
shall relate
relates
to that proportion of the building for which the owner holds title and not to common elements.
(5)
a.
“Qualified real property investment” means the amount in excess of the minimum qualified investment threshold that is properly chargeable to a capital account for improvements to rehabilitate,
expand
expand,
or construct depreciable real property placed in service during the calendar year within a
corridor or
district. Specific inclusions and exclusions from the definition of “qualified real property investments”
shall
are to
be determined by DSHA, but
such
the
definition
shall
must
generally include expenditures associated with
all of the following
:
a.
1.
Any exterior, interior, structural,
mechanical
mechanical,
or electrical improvements necessary to construct,
expand
expand,
or rehabilitate a building or facility for residential, commercial, industrial, or mixed
use;
use.
b.
2.
Excavations;
Excavations.
c.
3.
Grading and
paving;
paving.
d.
4.
Installing
driveways;
driveways.
e.
5.
Landscaping or land
improvements; and
improvements.
f.
6.
Demolition.
b.
Notwithstanding
the foregoing, no
paragraph (b)(5)a. of this section, an
investment in the rehabilitation, expansion, or construction of any building or facility in a
corridor or
district
shall be
is not
a qualified real property investment unless it is performed in accordance with the
corridor plan or
district plan.
Section 12. Amend § 1922, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1922. Limitations and conditions.
(a) The availability of
Downtown Development District Grants
grants
in any given year
shall be
is
subject to appropriation by the General Assembly.
(b) In addition to its other powers and responsibilities
hereunder,
under this chapter,
DSHA is expressly authorized to establish
such
other limitations and conditions with respect to grants as may be necessary or convenient to accomplish the purposes of this chapter, including
but not limited to:
all of the following:
(1) Amending the minimum qualified investment
threshold;
threshold.
(2) Establishing caps or limits on
DDD Grants
grants
available to any qualified
corridor or
district investor, alone or in combination with other local, state, or federal incentives for any individual building or
facility (including but not limited to
facility, including
state historic preservation tax credits
pursuant to
under
Chapter 18 of Title
30);
30.
(3) Establishing additional qualifying criteria with respect to uses (residential, commercial, industrial, etc.) or types of projects (rehabilitation, new construction,
etc.);
etc.).
(4) Incentivizing particular types of uses or projects in 1 or more
districts; and
corridors or districts.
(5) Establishing
such
other limitations and conditions in 1 or more
corridors or
districts as DSHA
shall determine from time to time.
determines.
(c) DSHA may
not
establish or amend the
foregoing
limitations and conditions
no
authorized under this section
more often than once per year.
Section 13. Amend § 1923, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1923. Policies and procedures for allocation of
Downtown Development Corridor Grants and
Downtown Development District Grants.
(a) Qualified
corridor or
district investors
shall be eligible to
may
receive
DDD Grant
a grant
provided for in this chapter to the extent that
they
the investors
apply for and are approved for grant allocations through DSHA.
(b) The accuracy and validity of information on qualified real property investments
shall be
is
subject to verification procedures in accordance with rules promulgated by DSHA on forms supplied by DSHA and in accordance with dates specified by DSHA.
Section 14. Amend § 1924, Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1924. Administration.
(a) DSHA
shall have
has
the primary responsibility for administering the
DDD Grant program.
grants program.
In connection
therewith,
with administering the grants program,
DHSA’s powers and duties
shall include but not be limited to the following:
include all of the following:
(1) Adopting
such
rules and procedures as may be necessary or desirable to effectuate the provisions of this
chapter;
chapter.
(2) Administering, enforcing, and interpreting
such
the
rules and
procedures;
procedures adopted under paragraph (a)(1) of this section.
(3) Allocating grant funds in accordance with the provisions of this
chapter; and
subchapter.
(4) Monitoring the implementation and operation of this subchapter.
(b) Beginning
no
not
later than December 31, 2015, DSHA shall issue an annual report to the Governor and the General
Assembly
Assembly, with a copy to the Director of the Division of Legislative Services
evaluating the effectiveness of the grant program established
hereunder.
under this subchapter.
(c) DSHA may delegate to, and receive assistance from, other entities including the Office, the Division of Small
Business
Business,
and other state agencies in carrying out its responsibilities
hereunder.
under this subchapter.
Section 15. Amend § 9101, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 9101. Cabinet Committee on State Planning Issues.
(c) The Committee shall consider matters relating to the orderly growth and development of the State,
including, but not limited to:
including all of the following:
(6) Performing such other duties and responsibilities with respect to
the
Downtown Development
Corridors and
Districts
Act
as set forth in Chapter 19 of Title 22.
(h) The Office of State Planning Coordination shall render local planning technical assistance. The Office of State Planning Coordination may serve as the lead agency to engage other state agencies, local governments, and other governmental and nongovernmental organizations for the purposes of coordinating planning activities, promoting liaison between various state agencies and local governments, building capacity through training and sharing of digital and other information, developing infrastructure plans and master plans, addressing specific growth and design issues, and such other actions as are appropriate to achieve the purposes of this chapter. The Office of State Planning Coordination shall develop and promote cooperation and coordination among state agencies and local governments to ensure effective and efficient planning and infrastructure investment. The Office of State Planning Coordination may make grants available to county and municipal governments to assist them in achieving any of the objectives outlined in this section, provided that funded activities and deliverables are in compliance and in harmony with the Strategies for State Policies and Spending. The Office of State Planning Coordination shall further have such authority and responsibility with respect to
the
Downtown Development
Corridors and
Districts
Act
as set forth in Chapter 19 of Title 22.
Section 16. Amend § 1812, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1812. Definitions.
The following words, terms and phrases, when used in this subchapter, shall have the meanings ascribed to them herein, except where the context clearly indicates a different meaning (singular includes plural):
(6) “
Downtown Development Corridor or
Downtown Development District” means an area of a
city or town
municipality or an unincorporated area
that has been designated by the Governor as a
Downtown Development Corridor or
Downtown Development District
in accordance with
under
Chapter 19 of Title 22.
Section 17. Amend § 1816, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1816. Total amount of credits permitted in each fiscal year; allocation of such credits.
(a) The maximum amount of credit awards under this chapter in any fiscal year shall not exceed $5,000,000. One hundred thousand dollars of the credit awards in a fiscal year must be reserved for distribution to qualified resident curators. If in any fiscal year there are insufficient qualified resident curators to exhaust this allotment, the unused credit amount will be available in the next fiscal year for award to persons qualifying under § 1813(a)(1) or (2) of this title. In any 1 year, $1,500,000 of tax credits shall be reserved for projects receiving a credit of not more than $300,000. In addition, in any 1 year, $1,500,000 of tax credits shall be reserved for projects located in
Downtown Development Districts,
Downtown Development Corridors or Downtown Development Districts
of which $500,000 shall be reserved for projects in such
corridors or
districts receiving a credit of not more than $300,000. On April 1 of each year, any unused balance of the foregoing pools of tax credits shall be available to any eligible project. However, should a credit award exceed the actual credit claimed, the amount of the excess credit award shall not be available for a subsequent award.
Section 18. The initial round of applications for Downtown Development Corridors under this Act must result in the designation of at least 1 Downtown Development Corridor.
SYNOPSIS
This Act builds on the success of the Downtown Development Districts Act, Chapter 19 of Title 22 of the Delaware Code, by permitting a municipality with a population of 30,000 or more in the 2020 federal census, which includes Wilmington, Dover, and Newark, to designate an area in the municipality as a "Downtown Development Corridor".
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
Author: Senator Brown