Gov. Jack Markell checked off another one of his 2014 goals by signing legislation aimed at boosting urban redevelopment efforts.
Dubbed Downtown Redevelopment Districts, the program will offer grants of up to 20 percent of construction costs in certain areas of cities designated by the governor. The Delaware State Housing Authority will also set aside incentives to renovate vacant and abandoned homes within the districts.
Municipalities will apply for the designation and each county is required to get one of the first three areas selected.
A pitfall facing the program is the state’s Bond Bill Committee hasn’t committed any money to the initiative. Markell called for $7 million in his proposed budget.
It’s an amount that some lawmakers say doesn’t go far enough and the governor agrees.
“$7 million was what, in what also started as a tight budget year, what we felt like we could do and so it is certainly my expectation is that this is something that’s going to continue over time and that’ll require additional investment,” said Markell.
Markell added that should state lawmakers choose cut a portion of that money, Markell says it would limit the program’s effect during the pilot year.
“You would certainly do fewer districts and I think we’re not really going to know until we see the applications," said Markell. "I think you’re going to get better and higher quality applications if the municipalities have some confidence that there is, money will be there.”
Markell immediately received support for full funding from Wilmington mayor and former co-chair of the Joint Finance Committee Dennis p. Williams.
"The Downtown Development Districts initiative will not only strengthen the various communities, but also, the entire state's quality of life and economic well-being; therefore I urge members of the capital budget committee to fully fund the initiative," said Williams in a statement. "Governor Markell's Downtown Development Districts initiative looks to directly improve communities suffering from urban blight, crime, and a lack of economic growth."
The Bond Bill Committee will begin its hearings June 16th.