Scott Goss

The News Journal

Revitalization efforts in three municipalities just got another boost from the state.

Gov. Jack Markell on Tuesday announced 11 commercial, residential and mixed-used projects will share $4 million in state-provided funds through the Downtown Development Districts program.

“More Delawareans want to live and work in urban areas, so this kind of revitalization of our cities will drive future economic growth,” Markell said in release announcing the latest round of grant awards.

Created in 2014, the initiative seeks to revitalize central corridors blighted by crime, vacant buildings and economic stagnation.

Wilmington, Dover and Seaford were the first districts chosen for the program last year.

Markell announces first Downtown Development Districts

Private investors in those districts can receive up to 20 percent of eligible construction costs in the form of rebates awarded after their projects are completed. The grants are administered by the Delaware State Housing Authority.

State officials expect this round of funding to leverage more than $45 million in private investment.

Five projects were approved for rebates in Wilmington, five more in Dover and one in Seaford.

Projects to be awarded money include:

A $4.8 million renovation plan backed by the Buccini/Pollin Group to rehabilitate 829 N. Market St. and five properties in the 400 block for a mix of commercial and residential uses will receive nearly $885,000.

BPG will get another $500,000 rebate for a $4.8 million project just south of the planned Residences at Midtown Park, a 230-unit complex in the 800 block of Shipley and Orange streets.

A $2.1 million project by Interfaith Community Housing of Delaware that will redevelop six houses in the Quaker Hill neighborhood into a dozen affordable homes for artists along West Fifth, West Sixth and North Washington streets will get a $311,000 rebate.

A nearly $9.5 million effort by Faithwork LLC to build a group home and medical office building at 655 W. North St. in Dover will get a combined $674,000 in rebates.

Central Delaware Habitat for Humanity will receive an $85,000 rebate after spending nearly $810,000 to build five single-family homes on North New Street.

The Residences at River Place, an expansive development of new apartments, offices and commercial space in Seaford, will get a $700,000 rebate to help facilitate its third and fourth phases, including two four-story apartment buildings and a clubhouse.

Dover Mayor Robin Christiansen noted the more than $1.5 million in state grant funding supplied this round to projects in his city will help create jobs, along with owner-occupied homes in an area dominated by rental units.

"These are big investments that will have a great impact on Dover," he said. "And as others see the success of these projects and other in the pipeline, our hope is they will want to invest, as well."

Gary Pollio, executive director of Interfaith Community Housing, said the redevelopment his organization has taken on likely would not have been possible without the rebates and other state support. The group also received about $743,000 from DSHA’s Strong Neighborhoods Fund last year.

$2.7 million tapped for Delaware housing projects

“We were facing a significant funding gap because these are properties with structural issues located in the historic district, all of which makes this an expensive undertaking,” he said. “The Downtown Development District funding was absolutely critical to filling that gap.”

The first condominium completed by the group is set to be available this spring, he said.

A total of 18 applications were received this year collectively seeking $7 million in state support.

In general, some projects may be denied because they are located outside the designated districts or don't meet other eligibility criteria, according to DSHA spokesman Jon Starkey.

Ineligible expenses include appraisals, engineering work, property acquisition, loan fees, permitting, utilities and equipment.

The General Assembly approved $8.5 million for this year’s projects. A second round of funding to disperse the remaining $4.5 million will be held later this year.

Another $1 million also was made available for smaller projects. To date, $111,000 of those funds have been approved.

Last year, $5.6 million in state rebates were awarded to 13 projects in the Downtown Development Districts.

Those funds were expected to leverage $114 million in private investment.

Contact business reporter Scott Goss at (302) 324-2281, sgoss@delawareonline.com or on Twitter @ScottGossDel.

$5.6 million in downtown grants set for 13 projects