Dover City Council unanimously approved a draft resolution of its proposal for a state-sponsored Downtown Development District Monday night.
If selected by the state, the plan would leverage funds provided through the Downtown Development Districts program with city ordinances waiving certain permitting fees and taxes for homeowners and business in the designated area. City officials hope the plan will spur home buying and building in the state capital, reducing the rental rate and improving Dover’s image.
City Councilman Adam Perza questioned if the city would still be obligated to provide its incentives if Dover did not receive Downtown Development District designation.
City Planner Ann Marie Townshend says the council would probably know before they passed the ordinances if state approved its district, but added the incentives may be worth exploring regardless.
"These things even without the designation could help to spur business growth and redevelopment, so I think that’s a another conversation we need to have if we don’t get the designation." said Townshend.
Perza ultimately voted for the proposal.
Councilman David Anderson praised the work of those who prepared the proposal, saying the city should still offer its incentives even if the state does not designate part of Dover’s downtown as a development district.
"No matter what happens, I think what is included in here, the details, the plans, are good for the city regardless of what the state does," said Anderson.
The Downtown Development District program will provide $7 million in its first year for three designated areas throughout the state.
The initiative will provide incentives for developers, including a rebate for up to 20 percent of capital costs.
The state will select one district in each county for the first year of the program.
