Xerxes Wilson

The News Journal

DuPont sought property tax reductions for 3 sites in New Castle County.

Similar reductions have been requested since 2012.

The chemical giant has about two dozen properties in the county.

New Castle County Executive Thomas P. Gordon said DuPont Co. has asked him to use his authority to lower its property tax bills, adding another concern for government officials fearing what the company's Delaware footprint will be following a $130 billion merger with Dow Chemical.

Gordon said representatives for the company contacted his office last month to discuss a request to fast-track a reduction of property values on three sites – Chestnut Run Plaza off Del. 141 near Wilmington, the Stine Haskell Research Center outside Newark, and the Experimental Station in Alapocas.

Property valuations, which are used used to calculate a property owner's annual tax bills for schools and county government, are typically appealed to the 13-citizen Board of Assessment for review and approval, but Gordon has administrative authority to negotiate a reassessment without consent from the panel.

DuPont since 2012 has applied for reductions on the three sites, although the requests to the Board of Assessment were never granted, records show.

Gordon did not comment on the exact amount the company was looking to save through reassessment.

"Not knowing their plan or negotiating with them, I was not in a position to take action," Gordon said.

DuPont spokesman Dan Turner would not respond to questions regarding the correspondence with the county. In a statement, the company said it annually reviews property tax assessments and files appeals when "we believe the value and resulting taxes do not reflect a fair assessment."

"An appeals process can take months or years to conclude," the statement said. "We previously initiated an appeals process with New Castle County and we continue to work through that process as an ordinary course of business."

Board of Assessment member Vikki Bandy, a retired appraiser, said DuPont was scheduled to have its application heard by the board in January, but the hearing was cancelled in the days leading up to the meeting and no reason given. She was asked to keep supporting documentation as the issue could come back to the board at a future meeting, she said.

Bandy, who has been on the board for several years, said it would have been the first time she can recall DuPont reaching that stage of the process and could not comment on the content of the application. She said it is not uncommon for commercial property owners to apply for a reassessment because they feel the value of their property is different than it was in 1983.

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DuPont, in its most recent tax filing, listed about two dozen properties in New Castle County, ranging from the Chestnut Run headquarters site and DuPont Country Club to several small office buildings.

Added together, the company paid a total of $1.8 million in property taxes to the county and $5.3 million to the four school districts last year. About 80 percent of the county bill came from the three sites where reductions have been requested:

Chestnut Run Plaza had a $1.8 million total tax bill, with properties and buildings assessed at $71 million. DuPont asked the Board of Assessment to cut it by $26 million, according to the most recent application filed with the panel. About 3,000 employees currently work there.

The Experimental Station on Powder Mill Road in Wilmington has a valuation of $114.5 million, leading to a tax bill of $3 million last year. The company asked the Board of Assessment to reduce that valuation by $44.5 million.

The Stine Haskell Research Center on Elkton Road near Newark listed a valuation of $41 million, generating a $1.2 million tax bill. DuPont's appeal asks that valuation to be reduced by $16 million.

Because Delaware has not conducted a blanket property reassessment since 1983, property values are based on that year's fair market value and don't reflect changes.

DuPont also has the ability to demolish buildings to prompt a lowering of its tax bill, Gordon said. No permits for such demolitions have been filed and a DuPont spokesman declined to comment when asked about that potential.

Gordon said he relayed the latest property tax information to Gov. Jack Markell's office, who he said is in ongoing discussions with the company to keep as many employees as possible in Delaware through the merger.

The merged company, called DowDuPont, is expected to separate into three independent units – agriculture and chemicals, material sciences and specialty products. The specialty products business will be based in Delaware, but an exact location and name has not been revealed.

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DuPont in June also spun off its performance chemical division into a new entity, called Chemours, then relocated its headquarters from downtown Wilmington to Chestnut Run.

Markell's office would not elaborate on what incentives could be offered to DuPont.

"The governor remains in discussion with DuPont about keeping the headquarters of the planned agricultural spinoff company here in Delaware. The workforce of DuPont has always been of the highest quality, and Delaware is best served when as much of that workforce remains here as possible," Markell spokesman Jonathon Dworkin said in an email. "To that end, the governor is working not only on retaining as much of the existing/future businesses here, but also on creating new opportunities for workers affected by the already announced downsizing."

Before the merger, DuPont had already reduced its workforce in Delaware from about 7,000 in early 2014 to about 4,400 in early 2016 – a decline of about 37 percent. An additional 1,700 are losing their jobs between Feb. 29 and March 31.

The company last month said merit raises and bonuses would be halted in 2016. DuPont in January also reported its first quarterly loss since 2008, of $253 million. CEO Ed Breen told analysts cuts of $730 million are expected this year through global layoffs and consolidated operations.

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com. Follow @Ber_Xerxes on Twitter.