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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:
1 Section 1. Amend Title 22 of the Delaware Code by making deletions as shown by strike through and insertions as
2 shown by underline as follows:
3 Chapter 19. The Downtown Development Corridors and Districts Act
4 Section 2. Amend Chapter 19, Title 22 of the Delaware Code by making deletions as shown by strike through and
5 insertions as shown by underline as follows:
6 Subchapter I. Establishment, Amendment, and Termination of Corridors and Districts
7 Section 3. Amend § 1902, Title 22 of the Delaware Code by making deletions as shown by strike through and
8 insertions as shown by underline as follows:
9 § 1902. Definitions.
10 As used in this chapter:
11 (1) “Committee” means the Cabinet Committee on State Planning Issues established pursuant to under § 9101
12 of Title 29.
13 (2) “Corridor plan” or “District plan” means the strategic plan or other detailed description of the overall
14 strategy for the development of a proposed corridor or district submitted by the municipality or unincorporated area as
15 part of its application for corridor or district designation.
16 (3) “Downtown” means that portion of a city, town, or unincorporated area that traditionally comprises its
17 downtown or central business district, as determined by such city, town, or unincorporated area in accordance with
18 guidelines promulgated by the Office.
19 (4) “Downtown Development Corridor” or “corridor” means an area within a municipality with a population
20 of 30,000 or more based on the 2020 federal census that is designated as a Downtown Development Corridor under this
21 chapter.
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22 (4)(5) “Downtown Development District” or “district” means an area within a municipality or unincorporated
23 area designated as a Downtown Development District in accordance with the provisions of under this chapter.
24 (5)(6) “DSHA” means the Delaware State Housing Authority.
25 (6)(7) “Municipality” means any incorporated town or city of this State.
26 (7)(8) “Office” means the Office of State Planning Coordination.
27 (8)(9) “Unincorporated area” means an area of the this State having a concentration of population that is not a
28 municipality and that is eligible to apply for and receive district designation in accordance with rules promulgated by
29 the Office.
30 Section 4. Amend § 1903, Title 22 of the Delaware Code by making deletions as shown by strike through and
31 insertions as shown by underline as follows:
32 § 1903. Applications for corridor or district designation.
33 (a) At the request of the Governor, the Office shall solicit applications from municipalities and unincorporated
34 areas to have an area designated as a Downtown Development Corridor or Downtown Development District. Such
35 application shall include a description of the area to be included; the need for corridor or district incentives; the corridor
36 plan or district plan; local incentives offered; and such other information as may be required by the Office.
37 (b) The Office of State Planning Coordination shall administer the application process and establish criteria to
38 determine what areas qualify as Downtown Development Corridors and Downtown Development Districts. The Office is
39 authorized to take such actions as may be necessary or convenient to fulfill its responsibilities hereunder, including but not
40 limited to under this chapter, including promulgating rules and regulations relating to the establishment, amendment, and
41 termination of corridors and districts and providing assistance to municipalities and unincorporated areas in connection
42 with the application process.
43 (c) The criteria for designating areas an area as a Downtown Development Corridor or Downtown Development
44 Districts shall include: District must include all of the following:
45 (1) The need and impact of such a the designation for such the area, including but not limited to income,
46 unemployment rate, homeownership rate, and prevalence of vacant or abandoned housing units in such the
47 municipality or unincorporated area. Need and impact factors shall must account for at least 50 percent of the
48 consideration given to applications for corridor or district designation; designation.
49 (2) The quality of the municipality’s or unincorporated area’s district plan; corridor plan or district plan.
50 (3) The quality of the local incentives offered; and offered.
51 (4) Such other criteria as may be determined by the Office.
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52 Section 5. Amend § 1904, Title 22 of the Delaware Code by making deletions as shown by strike through and
53 insertions as shown by underline as follows:
54 § 1904. Review and approval of applications.
55 (a) Applications for corridor or district designation shall must be evaluated by the Cabinet Committee on State
56 Planning Issues, which shall recommend to the Governor those applications with the greatest potential for accomplishing
57 the purposes of this chapter.
58 (b) Upon On receipt from the Committee of any recommended application, the Governor may: may do any of the
59 following
60 (1) Designate immediately the recommended area as a district; corridor or district.
61 (2) Designate the recommended area as a corridor or district effective 1 year from the date of such the
62 determination by the Governor; or Governor.
63 (3) Deny such the application.
64 (c) The initial round of applications shall result in the immediate designation of at least 1 but no more than 3
65 districts. [Repealed.]
66 Section 6. Amend § 1905, Title 22 of the Delaware Code by making deletions as shown by strike through and
67 insertions as shown by underline as follows:
68 § 1905. Designation, renewal, and amendment of corridors or districts.
69 (a) No Not more than 15 districts shall may be designated at any 1 time. Designation of the first 3 districts shall
70 include 1 district in each county. Not more than 1 corridor may be designated for each municipality.
71 (b) Districts shall A corridor or district is to be designated for an initial 10-year period. Upon On recommendation
72 of the Committee, the Governor may renew districts a corridor or district for up to 2 5-year renewal periods.
73 Recommendations for renewals shall must be based on the performance of corridor or district responsibilities by the
74 municipality (or municipality, or county in the case of a district in an unincorporated area); area; the continued need for
75 such a the corridor or district; and its the corridor’s or district’s effectiveness in creating capital investment, increasing
76 population, creating jobs, improving housing stock, providing enhanced retail and entertainment opportunities, and
77 otherwise improving the quality of life within such the corridor or district.
78 (c) Any municipality (or municipality, or county in the case of a district in an unincorporated area) area, having a
79 corridor or district within its borders shall be is responsible for providing the local incentives specified in its application,
80 providing timely submission of reports and evaluations as required by rule or regulation, implementing an active local
81 development corridor or district program within the context of overall economic and community development efforts, and
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82 fulfilling such other responsibilities as may be required by law, rule, or regulation in connection with such the corridor or
83 district.
84 (d) Each corridor or district shall be required to submit regular reports and information to the Office as may be
85 necessary to evaluate such the corridor’s or district’s effectiveness and compliance with this section.
86 Section 7. Amend § 1906, Title 22 of the Delaware Code by making deletions as shown by strike through and
87 insertions as shown by underline as follows:
88 § 1906. Local incentives.
89 (a) Any A municipality or unincorporated area submitting an application applying for district designation, or
90 municipality applying for a corridor designation, shall propose local incentives that address local economic and community
91 conditions, and that will help achieve the purposes set forth in § 1901 of this title. Such The local incentives may include
92 but are not limited to a reduction in fees or taxes. In addition, the application may also contain proposals for regulatory
93 flexibility, which may include but are not limited to permit process reforms, special zoning districts, or exemptions from
94 local ordinances.
95 (b) All incentives proposed in the application shall be binding upon the municipality (or county in the case of an
96 unincorporated area) upon are binding on a municipality or unincorporated area applying for district designation, or
97 municipality applying for a corridor designation, on designation of the corridor or district. The extent and duration of such
98 the incentives shall must be consistent with the requirements of the Delaware Constitution and the United States
99 Constitution.
100 (c) A municipality or county may establish eligibility criteria for local incentives that differ from the criteria
101 required to qualify for the incentives provided in this chapter.
102 Section 8. Amend § 1907, Title 22 of the Delaware Code by making deletions as shown by strike through and
103 insertions as shown by underline as follows:
104 § 1907. Amendments to corridor or district boundaries and incentives.
105 A municipality or county may apply to the Office to amend the boundaries of the a corridor or district or to amend
106 1 or more corridor or district incentives, provided that incentives for a corridor or district designated by the municipality or
107 county, if any revised incentive proposed by the municipality or county shall be is equal or superior to the incentive for
108 which the amendment is sought. All proposed amendments are subject to approval by the Committee.
109 Section 9. Amend § 1908, Title 22 of the Delaware Code by making deletions as shown by strike through and
110 insertions as shown by underline as follows:
111 § 1908. Formal review and termination of corridors or districts.
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112 (a) If a municipality (or a county in the case of an unincorporated area) municipality or county fails to fulfill its
113 obligations pursuant to under § 1905 of this title or as otherwise set forth in this chapter, then the Office may recommend
114 to the Committee that the corridor or district be placed under formal review or that its corridor or district designation be
115 terminated.
116 (b) Except in instances where a city, town, or Unless a municipality fails to provide local incentives in accordance
117 with under § 1906 of this title hereunder, the Office may not recommend any of the following:
118 (1) Placing any a corridor or district under formal review for at least 2 years following the initial designation
119 of such district; and the corridor or district.
120 (2) Terminating the designation of any a corridor or district for at least 1 year following the placement of the
121 corridor or district on formal review by the Committee.
122 (c) In no event shall the The Office may not recommend formal review or termination of any a corridor or district
123 without providing sufficient notice and opportunity to be heard to such the corridor or district.
124 (d) The Committee may approve any recommendation by the Office to place a corridor or district under formal
125 review or to terminate a corridor’s or district’s designation upon on the affirmative vote of 3/5 of the members of the
126 Committee.
127 (e) The Office may promulgate regulations to authorize the continuation of previously authorized corridor or
128 district incentives for a reasonable period following termination of the district; provided, however, that no new incentives
129 shall be corridor or district. A new incentive may not be authorized for any entity after the date of termination.
130 Section 10. Chapter 19, Title 22 of the Delaware Code by making deletions as shown by strike through and
131 insertions as shown by underline as follows:
132 Subchapter II. Downtown Development Corridor and District Grants
133 Section 11. Amend § 1921, Title 22 of the Delaware Code by making deletions as shown by strike through and
134 insertions as shown by underline as follows:
135 § 1921. Qualifications for Downtown Development Corridor and Downtown Development District Grants. Grants;
136 definitions.
137 (a) Subject to the limitations set forth in this subchapter, any qualified corridor or district investor making a
138 qualified real property investment in a corridor or district shall be is entitled to a grant in an amount up to 20% of the
139 qualified real property investments made by such the qualified corridor or district investor in excess of the minimum
140 qualified investment threshold.
141 (b) For purposes of this chapter: subchapter:
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142 (1) “DDC Grant”, “DDD Grant” Grant”, or “grant” shall mean means a Downtown Development Corridor or
143 Downtown Development District Grant as set forth in under subsection (a) of this section hereunder. section.
144 (2) “Facility” means a complex of buildings, co-located at a single physical location within a corridor or
145 district, all of which are necessary to facilitate the conduct of the same residential, trade, or business use. This
146 definition applies to new construction as well as to the rehabilitation and expansion of existing structures.
147 (3) “Minimum qualified investment threshold” means the minimum level of qualified real property
148 investments required to be made by a qualified corridor or district investor in a building or facility in order to qualify
149 for a DDD Grant, grant, as determined by DSHA. Notwithstanding the foregoing, for the fiscal year ending June 30,
150 2015, the minimum qualified investment threshold shall be $25,000 with respect to a single residential or mixed-use
151 building or a facility. No Not more often than once per year, DSHA may amend the minimum qualified investment
152 threshold with respect to uses (residential, commercial, industrial, etc.), types of projects (rehabilitation, new
153 construction, etc.), or other criteria determined by DSHA to be necessary or convenient to accomplish the purposes of
154 this chapter.
155 (4) “Qualified corridor or district investor” means an owner or tenant of real property located within a corridor
156 or district who that expands, rehabilitates rehabilitates, or constructs such the real property for residential, commercial,
157 industrial industrial, or mixed use. In the case of For a tenant, the amounts of qualified real property investment
158 specified in this section shall relate relates to the proportion of the building or facility for which the tenant holds a valid
159 lease. In the case of For an owner of an individual unit within a “common interest community,” as such term is defined
160 in § 81-103 of Title 25, the amounts of qualified real property investments specified in this chapter shall relate relates
161 to that proportion of the building for which the owner holds title and not to common elements.
162 (5)a. “Qualified real property investment” means the amount in excess of the minimum qualified investment
163 threshold that is properly chargeable to a capital account for improvements to rehabilitate, expand expand, or construct
164 depreciable real property placed in service during the calendar year within a corridor or district. Specific inclusions and
165 exclusions from the definition of “qualified real property investments” shall are to be determined by DSHA, but such
166 the definition shall must generally include expenditures associated with all of the following:
167 a.1. Any exterior, interior, structural, mechanical mechanical, or electrical improvements necessary
168 to construct, expand expand, or rehabilitate a building or facility for residential, commercial, industrial, or
169 mixed use;use.
170 b.2. Excavations; Excavations.
171 c.3. Grading and paving; paving.
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172 d.4. Installing driveways; driveways.
173 e.5. Landscaping or land improvements; and improvements.
174 f.6. Demolition.
175 b. Notwithstanding the foregoing, no paragraph (b)(5)a. of this section, an investment in the
176 rehabilitation, expansion, or construction of any building or facility in a corridor or district shall be is not a
177 qualified real property investment unless it is performed in accordance with the corridor plan or district plan.
178 Section 12. Amend § 1922, Title 22 of the Delaware Code by making deletions as shown by strike through and
179 insertions as shown by underline as follows:
180 § 1922. Limitations and conditions.
181 (a) The availability of Downtown Development District Grants grants in any given year shall be is subject to
182 appropriation by the General Assembly.
183 (b) In addition to its other powers and responsibilities hereunder, under this chapter, DSHA is expressly authorized
184 to establish such other limitations and conditions with respect to grants as may be necessary or convenient to accomplish
185 the purposes of this chapter, including but not limited to: all of the following:
186 (1) Amending the minimum qualified investment threshold; threshold.
187 (2) Establishing caps or limits on DDD Grants grants available to any qualified corridor or district investor,
188 alone or in combination with other local, state, or federal incentives for any individual building or facility (including
189 but not limited to facility, including state historic preservation tax credits pursuant to under Chapter 18 of Title 30); 30.
190 (3) Establishing additional qualifying criteria with respect to uses (residential, commercial, industrial, etc.) or
191 types of projects (rehabilitation, new construction, etc.);etc.).
192 (4) Incentivizing particular types of uses or projects in 1 or more districts; and corridors or districts.
193 (5) Establishing such other limitations and conditions in 1 or more corridors or districts as DSHA shall
194 determine from time to time. determines.
195 (c) DSHA may not establish or amend the foregoing limitations and conditions no authorized under this section
196 more often than once per year.
197 Section 13. Amend § 1923, Title 22 of the Delaware Code by making deletions as shown by strike through and
198 insertions as shown by underline as follows:
199 § 1923. Policies and procedures for allocation of Downtown Development Corridor Grants and Downtown
200 Development District Grants.
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201 (a) Qualified corridor or district investors shall be eligible to may receive DDD Grant a grant provided for in this
202 chapter to the extent that they the investors apply for and are approved for grant allocations through DSHA.
203 (b) The accuracy and validity of information on qualified real property investments shall be is subject to
204 verification procedures in accordance with rules promulgated by DSHA on forms supplied by DSHA and in accordance
205 with dates specified by DSHA.
206 Section 14. Amend § 1924, Title 22 of the Delaware Code by making deletions as shown by strike through and
207 insertions as shown by underline as follows:
208 § 1924. Administration.
209 (a) DSHA shall have has the primary responsibility for administering the DDD Grant program. grants program. In
210 connection therewith, with administering the grants program, DHSA’s powers and duties shall include but not be limited to
211 the following: include all of the following:
212 (1) Adopting such rules and procedures as may be necessary or desirable to effectuate the provisions of this
213 chapter; chapter.
214 (2) Administering, enforcing, and interpreting such the rules and procedures; procedures adopted under
215 paragraph (a)(1) of this section.
216 (3) Allocating grant funds in accordance with the provisions of this chapter; and subchapter.
217 (4) Monitoring the implementation and operation of this subchapter.
218 (b) Beginning no not later than December 31, 2015, DSHA shall issue an annual report to the Governor and the
219 General Assembly Assembly, with a copy to the Director of the Division of Legislative Services evaluating the
220 effectiveness of the grant program established hereunder. under this subchapter.
221 (c) DSHA may delegate to, and receive assistance from, other entities including the Office, the Division of Small
222 Business Business, and other state agencies in carrying out its responsibilities hereunder. under this subchapter.
223 Section 15. Amend § 9101, Title 29 of the Delaware Code by making deletions as shown by strike through and
224 insertions as shown by underline as follows:
225 § 9101. Cabinet Committee on State Planning Issues.
226 (c) The Committee shall consider matters relating to the orderly growth and development of the State, including,
227 but not limited to: including all of the following:
228 (6) Performing such other duties and responsibilities with respect to the Downtown Development Corridors
229 and Districts Act as set forth in Chapter 19 of Title 22.
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230 (h) The Office of State Planning Coordination shall render local planning technical assistance. The Office of State
231 Planning Coordination may serve as the lead agency to engage other state agencies, local governments, and other
232 governmental and nongovernmental organizations for the purposes of coordinating planning activities, promoting liaison
233 between various state agencies and local governments, building capacity through training and sharing of digital and other
234 information, developing infrastructure plans and master plans, addressing specific growth and design issues, and such other
235 actions as are appropriate to achieve the purposes of this chapter. The Office of State Planning Coordination shall develop
236 and promote cooperation and coordination among state agencies and local governments to ensure effective and efficient
237 planning and infrastructure investment. The Office of State Planning Coordination may make grants available to county and
238 municipal governments to assist them in achieving any of the objectives outlined in this section, provided that funded
239 activities and deliverables are in compliance and in harmony with the Strategies for State Policies and Spending. The Office
240 of State Planning Coordination shall further have such authority and responsibility with respect to the Downtown
241 Development Corridors and Districts Act as set forth in Chapter 19 of Title 22.
242 Section 16. Amend § 1812, Title 30 of the Delaware Code by making deletions as shown by strike through and
243 insertions as shown by underline as follows:
244 § 1812. Definitions.
245 The following words, terms and phrases, when used in this subchapter, shall have the meanings ascribed to them
246 herein, except where the context clearly indicates a different meaning (singular includes plural):
247 (6) “Downtown Development Corridor or Downtown Development District” means an area of a city or town
248 municipality or an unincorporated area that has been designated by the Governor as a Downtown Development
249 Corridor or Downtown Development District in accordance with under Chapter 19 of Title 22.
250 Section 17. Amend § 1816, Title 30 of the Delaware Code by making deletions as shown by strike through and
251 insertions as shown by underline as follows:
252 § 1816. Total amount of credits permitted in each fiscal year; allocation of such credits.
253 (a) The maximum amount of credit awards under this chapter in any fiscal year shall not exceed $5,000,000. One
254 hundred thousand dollars of the credit awards in a fiscal year must be reserved for distribution to qualified resident curators.
255 If in any fiscal year there are insufficient qualified resident curators to exhaust this allotment, the unused credit amount will
256 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,
257 $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
258 year, $1,500,000 of tax credits shall be reserved for projects located in Downtown Development Districts, Downtown
259 Development Corridors or Downtown Development Districts of which $500,000 shall be reserved for projects in such
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260 corridors or districts receiving a credit of not more than $300,000. On April 1 of each year, any unused balance of the
261 foregoing pools of tax credits shall be available to any eligible project. However, should a credit award exceed the actual
262 credit claimed, the amount of the excess credit award shall not be available for a subsequent award.
263 Section 18. The initial round of applications for Downtown Development Corridors under this Act must result in
264 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
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