Delaware Economic Development Office (DEDO)

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Section 1.1

Comprehensive Economic Development Strategy (CEDS) Overview

What is a CEDS?

A CEDS is a Comprehensive Economic Development Strategy designed to guide economic growth of an area. The CEDS process will help create jobs, foster more stable and diversified economies, and improve living conditions. It provides a mechanism for coordination among individuals, organizations, local governments, private industry, and other stakeholders concerned with economic development. As a strategic planning endeavor, a CEDS is a collaborative effort that ensures broad-based, diverse community participation and active engagement of committee members.

Why does Delaware need a CEDS?

A statewide CEDS will promote federal and local partnerships to address Delaware's economic development efforts. A CEDS is required to qualify for U.S. Economic Development Administration (EDA) assistance and serves as a prerequisite for Economic Development District (EDD) designation by the federal organization. EDA's policy is to direct its investments in these EDDs on strategies resulting from locally controlled participatory planning processes established to develop and maintain long-term economic development plans.

How does EDA determine area eligibility?

Areas considered by EDA to be distressed may qualify to develop a CEDS. To receive EDA assistance, a region must be distressed based on specific criteria, including unemployment, underemployment, per capita income, and special conditions impacting the economy of a region. According to EDA, all of Kent and Sussex Counties, the City of Wilmington, and several areas in New Castle County are considered distressed.

How is a CEDS developed?

The key to a good strategy is an ongoing, participatory planning process. Therefore, it is essential to establish working committees consisting of enthusiastic, dedicated citizen volunteers who represent diverse interests and perspectives. Committees representing New Castle, Kent, and Sussex Counties will be formed and provide recommendations to a statewide CEDS committee. The Delaware Economic Development Office (DEDO), working with the University of Delaware's Institute for Public Administration (IPA), will oversee the process and provide staff support to each of the working committees.

What does the planning effort involve?

It is anticipated that the development of the Delaware CEDS will take approximately one year. EDA has established inclusive CEDS guidelines to direct the process. The four main elements of a CEDS are: analysis, vision, action plan, and evaluation. At the conclusion of the process, a CEDS document will serve as a strategic plan for the state's economic development activities. Within this document, a list of projects will be proposed that meet EDA investment policy.

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Section 1.2

Economic Development Administration Grant Application Process Fact Sheet

What is EDA?

The Economic Development Administration (EDA) is a federal agency that provides grant assistance to economically distressed communities.

What types of projects can EDA fund?

EDA provides direct grants, on a cost-share basis, for projects that will create and retain private-sector jobs and leverage public and private investments in distressed communities. EDA provides community and regional economic assistance for the following program activities:

Planning and technical assistance to build local capacity for economic development programs and projects. This includes assistance for local, state, and regional planning organizations that target distressed rural and urban communities, and for University centers and other projects that provide technical support for economic development.
Public works and development facilities to support industrial, commercial, and technology-based employment in eligible areas experiencing economic distress. Examples include grants to improve or develop transportation facilities, water and sewer systems for industrial use, industrial parks and buildings, business incubators and technology training centers, telecommunication facilities, and research parks.
Economic-adjustment assistance to address severe economic dislocations, natural disasters, or other special needs. In addition, grants may be used to establish revolving-loan funds for business retention, expansion, or new enterprise development.

How does EDA determine area eligibility?

To receive EDA assistance, a community must be distressed based on at least one of EDA's standards (unemployment, per capita income, or a special situation such as a military base closure, natural disaster, etc.). Based on 2000 Census data, the average per capita income for the U.S. was $30,413. A community is considered distressed if its per capita income is 80 percent or less of the U.S. average (i.e., $24330 or less). All of Sussex County and Kent County are eligible for EDA assistance based on per capita income. Delineated areas of New Castle County are eligible based on per capita income and/or unemployment rates.

A Comprehensive Economic Development Strategy (CEDS) is needed!

In 1998, EDA implemented a planning requirement that must be completed before applicants can apply for EDA grant assistance (except planning grants). Applicants must first develop a CEDS process before EDA will consider an application for assistance.

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Section 1.4

CEDS Checklist

Five Key Elements

Documentation of Planning Process
Analysis
Vision Statement
Action Plan
Evaluation of Process

Documentation of Planning Process

Description of planning process (organization and management)
Identification and description of CEDS committee and interests
Copies of summaries from CEDS committee meetings (Appendix)
Evidence that CEDS has been adopted or endorsed (Letter from chief official, resolution, copy of committee meeting minutes)

Analysis (Where are we now?)

Background information
Economic and demographic data (10-20 years past/present) (5 yrs. into future/updates)
Issues covered
- The state of the regional economy (strengths and weaknesses)
- External trends and forces (opportunities and threats)
- Partners for economic development (Who are the important actors in the region?)
- Resources for economic development

Vision Statement (Where do we want to be in 10-20 years?)

Goals
Objectives (short- and long-term)
Setting priorities (finding the resources, ranking goals)

Action Plan (How do we get there? Who helps us? How long will it take?)

Prioritization of programs and activities
Implementation schedule

Evaluation (How are we doing? What can we do better?)

How did we or how will we determine the effectiveness of the process?
How effective was the process?
How will we improve upon the process?
What are the outcomes?

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Section 1.5

CEDS Committee Structure Chart

CEDS committee structure chart

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Section 1.6

CEDS Committee Framework

Structure & Governance

Structure

To adhere to EDA procedures requiring a representative and participatory CEDS process (see EDA Investment Guidelines), the Delaware CEDS committee structure calls for the appointment of citizen representatives to one statewide CEDS Committee and three jurisdictional (i.e., county/target-area based) committees.

Based on this structure, the statewide CEDS Committee will comprise approximately 27 members representing the diverse cultural and professional interests and socioeconomic backgrounds of the citizens and community groups within Delaware. DEDO-specified industry clusters will also be represented. The three county committees will comprise approximately nineteen members each, some of whom will also serve on the statewide CEDS Committee. Like the statewide CEDS Committee, each county committee will represent a variety of statewide interests and backgrounds but will further represent the specific interests and needs of the three county-based target areas (see Target-Area Map). The total membership of the CEDS committees will be approximately 70 individuals (see CEDS Committee Structure Chart).

Governance

The governance of the CEDS process will reflect a "bottom-up," participatory approach with the three county committees determining target-area priorities and providing recommendations to the statewide CEDS Committee. The statewide CEDS Committee will review the priorities and recommendations presented by the three county committees and make final recommendations of statewide economic development initiatives to the EDA for funding support consideration. The statewide CEDS Committee will also serve as the primary entity responsible for the initial development, continual updating, and long-term facilitation of the Delaware CEDS planning and implementation process.

Recommended Statewide CEDS Committee Members

Recommendations for appointment to the statewide committee were made based on the potential of individuals to broadly represent statewide issues by virtue of their skills, abilities, experiences, and interests (e.g., director/member of an organization or program that personifies all three counties). The statewide CEDS Committee will serve as a permanent decision-making authority in the long-term CEDS process but will be initially appointed for one-year terms. A process will be developed to reappoint the CEDS Committee members to staggered terms ranging from one to five years.

Recommended CEDS County Committee Members

Those recommended for appointment to the three county committees were selected on the basis of their representation of a particular county or target area (e.g., local business owner servicing one county or area within a county) or their particular knowledge base of a local issue (e.g., water and wastewater-treatment alternatives in a particular target area). Those selected to serve on both a county committee and the statewide CEDS Committee were chosen on the basis of their interest or knowledge of a particular county as well as their current and/or potential influence and representation of broader, statewide issues. Based on the committee structure, county committee members will serve for one year with reinstatement to staggered terms ranging from one to five years.

Committee Support & Communications

It will be the primary responsibility of the CEDS Project Planning Team (comprising IPA and DEDO staff) to ensure that those appointed to serve on a CEDS committee are well informed of why a Delaware CEDS is necessary and how the CEDS process will be implemented by each committee. The following components were identified by the CEDS Project Team as necessary to providing reliable and high-quality support to selected committee members throughout the overall CEDS process.

CEDS Committee Member Notebooks

The CEDS Project Team is responsible for developing and distributing project notebooks to each appointed committee member. All individuals selected to serve on a committee (whether statewide or county) will receive the same notebook content. The notebooks will serve as guides to the CEDS process and will outline the CEDS components that will be addressed during committee member tenure (e.g., the current and future economic and demographic status of the state and each county, the utilization of surveys in developing vision statements and action plans, and the methods for prioritizing and recommending economic development projects for funding support).

Communication among the CEDS Project Team and CEDS committee members will take place via telephone, U.S. mail, e-mail, and fax. Committees, with the technical assistance of the CEDS Project Team, may decide to set up e-mail distribution lists and/or other group communication venues to effectively correspond with committee and CEDS Project Team members. CEDS Project Team and committee member contact information is available to all committee members (see Contact Information).

There is also a Delaware CEDS website (www.state.de.us/ceds). The website will help committee members track their work and meeting schedules, review meeting minutes, and obtain citizen feedback about the CEDS process.

Facilitation and Documentation of Committee Work

The CEDS Project Team will be responsible for the facilitation, documentation, and posting of all committee meetings and decisions. The Team will be responsible for recording committee work and ensuring that committee meeting minutes, decisions, or other pertinent information are made public through appropriate publications, notices, and the Delaware CEDS website. The specific roles of all key players participating in committee meetings are discussed in Section IX.

CEDS Committee Meetings

Several committee meetings will be devoted to disseminating background information relative to the CEDS process and state and county economic perspectives. During these meetings, all committee members will be briefed on pertinent policy issues and processes relative to developing a statewide CEDS plan. During county committee meetings, members primarily will address and analyze the needs and interests of each particular target area, which will result in well-documented summaries and recommendations to the statewide CEDS Committee. Statewide CEDS Committee members will review, analyze, and score the priorities and recommendations set forth by the county committees.

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Section 1.7

EDA Investment Guidelines

Investment applications will be competitively evaluated on their ability to meet or exceed the following investment policy guidelines.

Be market-based and results-driven. An investment will capitalize on a region's competitive strengths and will positively move a regional economic indicator measured on EDA's Balanced Scorecard, such as an increased number of higher-skill, higher-wage jobs, increased tax revenue, or increased private-sector investment.

Have strong organizational leadership. An investment will have strong leadership, relevant project-management experience, and a significant commitment of human resources talent to ensure a project's successful execution.

Advance productivity, innovation, and entrepreneurship. An investment will embrace the principles of entrepreneurship, enhance regional clusters, and leverage and link technology innovators and local universities to the private sector to create the conditions for greater productivity, innovation, and job creation.

Look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and regional economy. An investment will be part of an overarching, long-term comprehensive economic development strategy that enhances a region's success in achieving a rising standard of living by supporting existing industry clusters, developing emerging new clusters, or attracting new regional economic drivers.

Demonstrate a high degree of commitment by exhibiting

High levels of local-government or nonprofit matching funds and private-sector leverage.
Clear and unified leadership and support by local elected officials.
Strong cooperation among the business sector, relevant regional partners, and local, state, and federal governments.

For more information visit www.eda.gov/InvestmentsGrants/Inpolguideline.xml

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Section 1.8

Glossary of Terms

To provide CEDS committee members with a better understanding of economic development jargon that may be used during meetings and presentations, a glossary has been prepared of selected economic development terms. Please note that this is not a comprehensive list but provides an understanding of more commonly used concepts and terminology. In some cases, websites will be listed to provide detailed information on a particular term or topic. In addition, because land use and comprehensive plans provide the blueprint for economic development activities, land use planning and policy terms are also defined or summarized.

Economic Development

Best Practices

Strategies or programs that have resulted in economic development successes in other communities, regions, or states. Best practice strategies provide direct economic development benefits to a community as well as indirect benefits, such as increased revenue to existing businesses, support to the local tax base (which funds essential public services), and a sense or actualization of an improved quality of life for community members.

Brownfields

Brownfields are industrial or commercial properties that were previously developed and either abandoned or underutilized due to potential or confirmed hazardous substance contamination. Sustainable economic development strategies encourage the reuse of these sites, although clean-up may be costly. In Delaware, brownfields legislation has provided financial incentives to qualified businesses that wish to conduct and investigation of and/or clean up a certified brownsfield site (see Brownsfields Fact Sheet).

Brownfields Redevelopment

This term refers to the active remediation and redevelopment of a formerly contaminated industrial or commercial property. Brownfields redevelopment projects can promote community revitalization, limit sprawl through site reuse, and improve the quality of the environment.

Business Climate

This hotly contested term refers to how favorably a business or industry views an area when considering a relocation or expansion. Some economic developers assert that public goods, such as proximity to customers and suppliers, availability of skilled labor, the quality of the infrastructure, and the supply of other factors, influence economic development. Therefore, they contend that investments should be directed at education, workforce training, and infrastructure improvement. Other stakeholders in economic development argue that private deals drive economic development and that a good business climate is determined by tax breaks and/or private deals for desirable or newly arriving businesses.

Business Incubators

This economic development tool helps emerging or new businesses in a community by providing support services such as business and marketing plans, building management skills, obtaining financing, and often securing shared work spaces or equipment with other similar businesses.

Business-Improvement Districts

A designated commercial area or central business district that levies a special tax or assessment to allow for the coordination of business-improvement activities, such as facade and streetscape improvements, maintenance agreements, or security agreements.

Business-Retention Strategies

Local economic development stakeholders, such as Main Street Organizations, often adopt business-retention strategies to retain existing and attract new businesses. Initiatives may include direct business support, training, networking, mentoring, and financial assistance.

"Cash Register Chasing"

A phrase coined in the 1990s, this refers to discretionary decisions made by local governments (particularly in California and Utah) to provide massive subsidies or other major incentives to attract malls or "big box" retail stores to increase property-tax revenue. The decision to expand local revenue sources, without regard to a jurisdiction's comprehensive plan, can lead to development in non-designated areas, sprawl, a growth in low-quality jobs, and often negatively impacts a town's central business district and business retention.

CEDS

An acronym for Comprehensive Economic Development Strategy. A CEDS is a local planning process designed to guide the economic growth of an area or region. A CEDS is required to qualify for U.S. Economic Development Administration (EDA) funding assistance and is a prerequisite for designation by EDA as an economic development district (EDD) (see CEDS Fact Sheet).

Central Business District

The major commercial downtown center of a community that may provide a variety of business, office, and/or residential uses.

Cluster Strategy

A collaborative effort involving government, private businesses, industry, and often universities to attract research and development in geographic clusters of related growth industries.

Community Development Block Grants

Grants funded by the U.S. Department of Housing and Urban Development to finance state and local economic development projects.

Community Development Corporations

These entities are local non profit organizations that promote revitalization of a community through affordable housing rehabilitation, promotion of mixed-use development, and neighborhood and central business district renewal.

Cost-Benefit Analysis

The comparison between the costs of an economic development activity and the benefit to the community.

Disinvestment

Corporate disinvestment may occur when cutbacks occur in facility maintenance, number of jobs, manufacturing, wages, and benefits. Public disinvestment of a community may occur when there is a lack of funds invested in the infrastructure, public services, and physical maintenance. Disinvestment can have a spillover effect on the vitality of the community's economy.

Distressed

This is the new, more politically correct term for "blight" used to describe an area that has either/or a high rate of unemployment, low-income households, or underemployment and therefore may be eligible for geographically targeted government subsidies such as an enterprise zone, tax increment financing district (TIF), or EDA economic development district (EDD). EDA-defined distressed areas in Delaware include Sussex County, Kent County, the City of Wilmington, and portions of New Castle County (see map of EDA-defined Distressed Areas in Delaware).

Economic Development

The mobilization of human, financial, capital, physical, and natural resources to generate marketable goods and services.

Economic Development Administration (EDA)

An agency of the U.S. Department of Commerce that provides grants and investment programs to state and local entities for technical assistance, public works, economic-adjustment assistance and other activities to support economic development efforts. For more information visit www.eda.gov.

Economic Impact Analysis

Relates the total impact of a given activity in a defined geographic area (nation, region, state, county) to a particular economic activity. Impact may be measured in terms such as employment, income, and output.

Employment Multipliers: The total number of jobs that are generated by an activity including direct jobs, indirect jobs, and induced jobs. While an economic development project will provide direct economic benefits to a community, the multiplier effect (also known as the ripple effect) magnifies the initial impact that generates the total impact on the area.

Direct Jobs
Direct economic impacts consist of the jobs and payroll created by the primary producers or activity.

Indirect Jobs
Indirect impacts consist of the additional jobs and payroll created when the primary producing company purchases goods and services from the many diverse businesses that support it. These businesses include equipment suppliers, construction services, transportation services, management services, food services, and many other types of support businesses. The direct impacts include both the payroll of the support businesses themselves, and the additional payroll created when employees of the support businesses spend their wages throughout the local economy.

Induced Jobs
Induced effects consist of the additional payroll created throughout the economy when the employees of the primary producers spend their personal incomes on consumer goods, other property, services, and taxes.

Enterprise Zones (EZ):

Located in specific geographic, economically depressed areas, EZs provide multiple subsidies such as property tax abatements, tax exemptions, and corporate income tax breaks to entice companies to locate within the zone. States may have specific names for their EZ (such as Keystone Opportunity Zones in Pennsylvania or Empire Zones in New York), and federal enterprise zones are generally called empowerment zones.

Entrepreneurial Training: Programs that provide support and instruction on basic business practices to enable an entrepreneurial business a better chance of success.

Greenfield: The opposite of a brownfield, the term refers to a development of farmland or open space. Greenfields are synonymous with sprawl, as development generally occurs in an area that has not been designated for development.

Hard Infrastructure: Tangible investments that are necessary to improve the physical environment to better retain, expand, or recruit businesses and support economic development. Programs and projects may include:

Developing, improving and/or expanding transportation systems, including railway services, airports, ports, and roadways
Developing, improving, and/or expanding industrial sites, commercial districts, and central business districts
Upgrading or expanding water and wastewater systems
Improving and expanding the telecommunications systems
Improving and expanding the energy systems
Preserving and protecting environmentally sensitive areas or systems
Enhancing publicly owned physical systems or services that benefit all community members services (public safety, refuse removal, road maintenance, utility network)

Incentives: Grants, loans, tax breaks or other subsidies provided at the state or local level that are used to retain and attract businesses.

Industry Clusters: A geographically based concentration of companies and industries that are engaged in similar activities and interconnected by the markets they serve and products they produce. (See Fact Sheet on Industry Clusters)

Livable Delaware: Initiated by Governor Ruth AnnMinner in March 2001, Livable Delaware is a proactive strategy that seeks to curb sprawl and direct growth to areas where the state, counties, and local governments are prepared in terms of infrastructure investment and thoughtful planning. Guiding principles of the Livable Delaware initiative are:

Guide growth to designated areas.
Preserve farmland and open space.
Promote infill and redevelopment.
Facilitate attractive, affordable housing.
Protect the quality of life while slowing sprawl.

For more information see www.state.de.us/planning/livedel/default.shtml.

Main Street: A downtown or neighborhood shopping area, business, and/or residential district that often has a unique character and attracts patrons.

Main Street Approach: This approach to commercial-district revitalization, advocated by the National Trust for Historic Preservation, is a community-driven, comprehensive methodology used to revitalize older, traditional business districts. The Main Street Four-Point Approach encompasses work in four distinct areas (Design, Economic Restructuring, Promotion, and Organization) to address a commercial district's needs. Delaware's current local Main Street programs are located in Brandywine Village, Delaware City, Dover, Middletown, Newark, Rehoboth Beach, Seaford, Smyrna, and Wilmington.

For more information on the national program see www.mainstreet.org.

For more information on local programs see www.delawaremainstreet.com.

New Economy: A knowledge- and idea-based economy where job creation is driven by ideas, innovation, and technology.

New Economy Initiative: Unveiled by Governor Ruth Ann Minner in February 2004, the New Economy Initiative is a comprehensive plan to direct state and matching private and federal funds to bolster the Delaware economy. The initiative includes

A Competitiveness Fund to spur new investments in existing manufacturing businesses.
Venture capital funding for emerging or expanding Delaware businesses.
Seed funding for technology-based small business start-ups.
Programs to boost Delaware's emerging technologies.
Funding to encourage clean energy research and manufacturers.
Investment aimed at improving research and development, especially in biotechnology.

For more information see http://www.state.de.us/governor/news/2004/02february.

New Urbanism: The creation and restoration of diverse, walkable, compact, and mixed-use communities.

Smart Growth: A term coined by Maryland Governor Parris Glendening in 1997, smart growth refers to policies that encourage development or redevelopment in designated growth areas. Glendening's initiative allowed development anywhere but provided state subsidies for development or redevelopment in areas with existing or planned infrastructure improvements, or "Priority Funding Areas." In Delaware, the comprehensive strategy to encourage smart growth and control sprawl is called "Livable Delaware."

The EPA identifies ten principles of smart growth:

Mixed land uses
Compact building design
Housing opportunities and choices
Walkable neighborhoods
Attractive communities
Directed development
Transportation options
Thoughtful development decisions
Community and stakeholder collaboration in development decisions

Soft Infrastructure: Investments in less-tangible aspects of economic development to improve the commercial environment for businesses, such as education, quality-of-life infrastructure (recreation and leisure services), housing, job training, business support and networking, research and development funding, local-government service provision, social services, and crime-prevention initiatives.

Sprawl: Undesirable development patterns that are characterized by development in greenfields or previously undeveloped areas, reduction of open space areas, development outside an established central business district or designated growth area, increased dependence on car travel, and strict separation of residential from non-residential areas.

Sustainable Development: Economic development that targets knowledge-based industries, enhances the long-term competitiveness of a community or region, provides diverse and high-income jobs, is consistent with the overall vision for the community, and provides long-term benefits and quality-of-life improvements to the community.

SWOT Analysis: The acronym for an assessment tool that examines the Strengths (local assets), Weaknesses (obstacles to growth), Opportunities (favorable external conditions), and Threats (unfavorable external conditions) for economic growth.

Target Industry: An industry (or industries) desirable for recruiting or retaining, based on the overall vision for the community and the SWOT analysis.

Transportation Infrastructure: A critical element in economic development to ensure that companies are able to transport their products to market in a timely, cost-effective, and competitive manner.

Underemployment: Occurs when a portion of the labor force works in jobs below their earning potential (low-paying jobs).

Workforce Development: Community efforts to train individuals for specific jobs or industries that are in line with the "new economy" and provide higher-level wages for skilled workers.

Planning

Capital Improvement Plans: A long-range financial plan used by local governments that includes a capital program with an implementation schedule and projected budget for future capital improvements such as roads, infrastructure upgrades, and other public facilities.

Comprehensive Plan: The blueprint for a community's growth, development, and preservation plans that outlines a community's vision for the future and identifies specific policies that can be implemented in order to achieve that vision. House Bill 255, enacted in Delaware in 2001, requires local governments to adopt comprehensive plans showing future growth areas before they can annex and requires that zoning codes be consistent with the future land use portion of the comprehensive plan. The Office of State Planning Coordination is responsible for certifying all comprehensive plans.

Conditional Use: A use that may be allowed in a zoning district after a review hearing is held and any necessary conditions are imposed, so that the use is made compatible with other uses in the vicinity.

Conservation Easements: A legal agreement between a private landowner and an organization, such as a private land trust, which allows the property owner to maintain ownership but restricts development of the property in order to conserve the natural resources, viewsheds, habitat, or farmland.

Designated Growth Areas: Describes land already developed or appropriate for future growth.

Geographic Information Systems (GIS): A spatial database system that has become an important tool for local planning and mapping of a jurisdiction's land use, infrastructure, and key assets.

Historic District: An area designated as having aesthetic, architectural, historical, cultural, or archaeological attributes that is worthy of protection, enhancement, and investment.

Historic Preservation: The protection and maintenance of places of historical significance to a community. Historic preservation investment can maximize use of existing infrastructure, curb sprawl, boost tourism and promote a unique local identity, and stimulate new reinvestment in older communities.

Impact Fees: Financial payments made to a municipality by a developer to provide some or all of the physical improvements needed by a proposed development and its impact on the surrounding community. Many smaller municipalities are growing rapidly and are not able to fund costs to expand or maintain existing infrastructure and, therefore, must levy impact fees for capital improvements such as sewers, water lines, parks, or schools.

Improved Land: Raw land that has been improved with infrastructure such as roads and utilities and is ready for development.

Infill Development: The recycling of vacant or underutilized lands within previously developed districts.

Land Use Regulation: Adopted by ordinance, these laws regulate any aspect of land use and community-resource protection and include zoning, subdivision, and environmental protection regulations.

Mixed Use: To promote economic viability of an area, some zoning districts permit multiple land uses within a particular district. For example, many central business districts provide for mixed uses by allowing the placement of residential units above commercial properties.

Open Space: Undeveloped land that is intentionally preserved in its natural state for ecological, historical, or recreational purposes or in its cultivated state for agricultural, forested, or greenbelt purposes.

Overlay Zone: An area for which standards above those in the base zoning district apply. Overlay zones are often created in order to foster context-sensitive development in areas with unique characteristics and may be found in historic, downtown, or environmentally sensitive locations.

Permitted Use: A use permitted "by right" in a zoning district. This means that property owners have the right to engage in these land uses as long as they meet all of the requirements and standards in the applicable zoning ordinance.

Rezoning: A zoning map amendment that allows for a different set of permitted and conditional uses to take place on a parcel of land.

Subdivision: The legal division of a parcel of land into smaller lots, as permitted by the zoning code, for the purpose of development.

Transfer of Development Rights (TDR): A voluntary process where the development rights of an owner of environmentally sensitive or prime agriculture land are transferred to community-designated growth areas. A TDR enables a landowner to sell the development rights of protected land to developers building in growth areas. Benefits include the preservation of open space and agriculture areas, continued property ownership, incentives to build in designated growth areas, and adequate compensation for land owners who transfer development rights.

Zoning Code: The body of zoning laws or ordinances that are adopted by communities to regulate the use of land and to implement policies set forth in a community's land use plan. A zoning ordinance consists of two parts: a map that shows how the community is divided into zoning districts and text that provides a narrative description of the permitted uses and provides a blueprint for the future development of the community.

Zoning District: An area within a community designated for certain kinds of uses, according to the local zoning code

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Section 1.9

Section 1.9 is a detailed chart showing CEDS Timelines.

Please download the CEDS timelines as a Excel Spreadsheet.

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Section 2

COMMITTEE INFORMATION

To see a list of CEDS committees, please visit the committees page.

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Section 3.1

STATE STRATEGIES EXECUTIVE SUMMARY

This is an Executive Summary of the 2004 update of the Strategies for State Policies and Spending document.

Purpose

The purpose of this document, as with the original Strategies for State Policies and Spending document, is to coordinate land-use decision-making with the provision of infrastructure and services in a manner that makes best use of our natural and fiscal resources. The importance of such coordination lies in the fact that land-use decisions are made at the local level while the bulk of infrastructure (e.g., roads and schools) and services (e.g., emergency services and social services) that support land-use decisions are funded by the state.

Thus, the cooperative development of this document with local governments and citizens helps to create a unified view toward growth and preservation priorities that all governments can use to allocate resources. To demonstrate the state's commitment to the principles of this document, state agencies are directed to fund only those projects that are in compliance with these strategies.

In essence, there are two fundamental policies that guide the State Strategies:

State spending should promote quality, efficiency, and compact growth.
State Policies should foster order and resource protection, not degradation.

It is important to note that none of the maps contained within this document are "parcel-based," so it is still necessary to thoroughly investigate the constraints of a particular land parcel with the local jurisdiction that controls the land-use decision. Thus, any land development activity must meet all of the relevant local codes and ordinances.

This document is intended for a diverse audience including state agencies, local governments, developers, and citizens. The various chapters are organized around topic areas and tabbed for ease of use.

Following is a brief discussion of the contents of each section of this document.

Introduction

In 1999, the Cabinet Committee on State Planning Issues approved the first State Strategies. The first document was developed to guide state investment decisions to promote efficient development patterns, protect agriculture and open space, discourage sprawl, and communicate with local governments on land-use matters. This document is a scheduled five-year update to the original document.

During the update process, the Office of State Planning Coordination consulted state agencies, county governments, metropolitan planning organizations, and local governments for comments. State-certified municipal and county comprehensive plans were also referred to during the data-gathering process.

In addition, the Office of State Planning Coordination held a total of seven public meetings, two in each of Delaware's three counties and one in the City of Wilmington to solicit the public's comments on the State Strategies text and maps. Comments were also accepted in writing, through e-mail, and via an online form.

Coordinating Government

Governor Minner developed her Livable Delaware agenda to enhance efforts to implement the State Strategies. To do this, she focused her administration's efforts on administrative and legislative initiatives to strengthen land-use planning efforts at the state and local levels. Key initiatives included

The issuance of Executive Order 14 - directing State agencies to develop Livable Delaware plans
House Bill 255 - a far reaching piece of legislation that created a plan-certification process and reformed the annexation process, among other things
Senate Bill 65 - Preliminary Land Use Services (PLUS) for the review of development projects early in the development process.

Directing Growth

In this update, the map designations have been changed from names, such as "Community," "Developing," and "Rural" to Levels 1 - 4 and "Out-of-Play" to avoid confusion caused by misinterpreting names. Levels 1 through 3 identify which areas of the state are most prepared for growth and where the state can make the most cost-effective infrastructure investments, for the likes of schools, roads, and public safety. In the Level 4 areas where development is not currently preferred, the state will make investments that will help preserve a rural character, such as investments to promote open space and agriculture. Out-of-Play lands are those that generally cannot be developed for reasons including they are federal- or state-owned protected lands or parkland, the development rights have been purchased, or state or local regulations prohibit development on them.

Investing Effectively

The state makes significant investments depending on where and how growth occurs. For instance, 201 schools receive nearly two-thirds of their funding from the state, DelDOT is responsible for maintaining nearly 90 percent of the more than 12,000 lane miles in Delaware (the nationwide average for states is approximately 20 percent), and the state also funds 14 State Service Centers that deliver more than 160 programs and services to accommodate approximately 600,000 visits annually. Thus, the need to coordinate with those making land-use decisions cannot be stressed enough.

In part, the State Strategies are meant to act as a guide for adequate infrastructure provision throughout Delaware while minimizing the burden on the state's taxpayers. Thus, the three general strategies are

Towns, counties, and the state are collectively involved in the infrastructure-planning process.
Existing infrastructure should be utilized before new infrastructure is constructed.
When it is necessary to expand new infrastructure, it should be expanded in a logical manner that aims to serve first those areas closest to existing services.

Improving Housing Choice

Various house-siting techniques can provide a great deal of cost savings, which ultimately can open up housing choices for many more people. In particular, use of properly designed compact development can significantly reduce housing costs. Besides the decrease in infrastructure costs (on average, about 32 percent), compact development produces a more diverse range of transportation options, a more economical extension of services and utilities, and the location near existing developed areas and higher densities enable natural qualities and agriculture areas to be preserved and protected.

Preserving Delaware

Just as "built" infrastructure such as roads, water, sewer, and electric are always carefully planned, so should "green infrastructure" be planned, designed, and fiscally supported. The state has allocated and continues to allocate significant resources for land preservation. Since 1990, the state's Open Space program has invested more than $209 million to preserve more than 43,000 acres of land. In addition, more than 76,000 acres of agriculture land have been permanently protected with more than $90 million spent for the purchase of preservation easements. Planning is essential, because much of this activity requires contiguous parcels to be effective. The Livable Delaware Advisory Council's Green Infrastructure Subcommittee was charged with recommending strategies for conservation and management of natural resources, recreational lands, and working lands. They were also asked to work towards creating an interconnected network of green spaces, which this chapter reviews.

Involving Citizens

The best opportunity for citizens to get involved with the land-use decision-making process is to attend local government public hearings and workshops for local planning commissions and boards of adjustments. The development of a Comprehensive Plan is perhaps the most important step for the town or county. This document sets the overall pattern of land use. Additionally, all land-use regulations are based on this document. Many jurisdictions conduct extensive public participation efforts to gauge citizen input on these documents.

Promoting Sustainable Jobs

Quality jobs located in areas that can support them and enhance Delaware's quality of life is the focus of Delaware's economic development programs. Some of the key issues in promoting sustainable jobs include promoting infill and redevelopment, especially of brownfield sites. Making the redevelopment of brownfields easier and more financially attractive has been a key goal of Livable Delaware. Other considerations are promoting cleaner, high-paying jobs of the future to replace jobs in the manufacturing sector and helping Delaware's cities and towns attract entrepreneurs who will help fuel the New Economy.

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Section 3.2

AN OVERVIEW OF LIVABLE DELAWARE

Livable Delaware is a positive, proactive strategy to curb sprawl and direct growth to areas where the state, county, and local governments are most prepared for it in terms of infrastructure investment and thoughtful planning. It builds on the foundation laid by the Strategies for State Policies and Spending, first approved in 1999 and comprehensively updated in 2004.

Livable Delaware is not anti-growth. It uses "carrots" rather than "sticks" to guide growth.

What is the state's role in land use?

Delaware's population is projected to grow by more than 200,000 people between now and 2030. The state of Delaware has a stake in how and where growth occurs. Unlike most other states, Delaware provides most services and infrastructure throughout the state-social services, prisons, roads and transit, the largest police force in the state, about 70 percent of school funding, 50 percent of library construction funding, and 60 percent of paramedic funding.

Governor Minner believes that state government's responsibility is to provide these services and infrastructure efficiently, not haphazardly. Sprawl wastes taxpayers' money.

What is wrong with sprawl?

A 2001 Centers for Disease Control study defines sprawl as "uncontrolled, poorly planned, low-density and single-use community growth." Besides wasting taxpayers' money, sprawl damages our quality of life in Delaware by

contributing to the loss of about 3,500 acres of farmland a year (Source: Delaware Department of Agriculture).
exacerbating traffic congestion and air pollution.
lengthening response times for emergency responders.
destroying natural habitat and contributing to groundwater depletion and pollution.
contributing to flooding and drought problems because of the increase in impervious surfaces (buildings, roads, parking lots).
contributing to a sedentary and unhealthy lifestyle (Source: 2001 Centers for Disease Control study)

Accomplishments

Under the Livable Delaware agenda, the Governor has established a Livable Delaware Advisory Council, provided assistance for local governments to support Comprehensive Land Use Plans at all levels of government, overseen a careful review of state laws to improve land-use planning and growth management, among other initiatives.

The Livable Delaware agenda centers on the Strategies for State Policies and Spending document, first developed in 1999 and comprehensively updated in 2004. In September 2004, Governor Minner signed Executive Order #59, directing state agencies to use the Strategies to help guide their efforts to implement the Livable Delaware agenda.

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Section 3.3

Governor Ruth Ann Minner's New Economy Initiative

"The era of opportunity we are entering presents us with the chance to diversify and fortify the Delaware economy. In February, I will unveil the details of an economic- development package. The New Economy Initiative will be a comprehensive plan to put more than $46 million in state and matching private and federal funds to work bolstering the Delaware economy."

- From Gov. Minner's State of the State Address, January 22, 2004

Components of the New Economy Initiative

Delaware Competitiveness Fund

The Delaware Competitiveness Fund will make one-time investments to preserve jobs at existing Delaware companies in the face of global competition. The fund will ensure capital investments are made in research and development as well as production. The fund is designed to:

Provide a matching grant program to induce manufacturers to modernize their facilities, thus keeping traditionally high-wage jobs.
Assist existing manufacturers in transforming to newer processes and products that will keep the facility in operation.
Bring in or diversify new product lines.
Find buyers for idled facilities (such as VPI Mirrex) that have an available workforce and the capability to produce products.
Bring research and development operations related to existing manufacturing, abate taxes, provide specific training for new processes, provide low-interest loans, etc.

Thousands of jobs could be preserved with the Delaware Competitiveness Fund. A facility must not have any unresolved environmental violations in order to receive funding.

Gov. Minner's Fiscal Year 2005 budget proposal included $12.5 million from the capital budget to create the Delaware Competitiveness Fund.

Venture Capital

Venture capital is generally used by firms with an established viable business that requires funding for future growth. Investments range from $300,000 into the millions and are made with an expected rate of return. This proposal by Gov. Minner will:

Provide $3 million in capital to a Delaware-focused private-sector venture fund for investment in emerging businesses.
Potentially leverage up to an additional $6 million in federal funds from the Small Business Administration through this investment.
Continue an initiative begun in the mid-1990s by providing a new one-time investment in venture funding.

DEDO has already provided some funding for venture capital, leading to investments in companies like Foxfire Printing in Newark (growing Foxfire from 15 to 65 jobs) and Solstice Systems in North Wilmington (from 5 to 17 jobs). The $3 million for venture- capital investments would come from the FY05 capital budget. This proposal fulfills a major recommendation of the Governor's Strategic Economic Council.

Technology-Based Small-Business Seed Funds

Seed money has been cited by many business leaders, nationally and locally, as a critical need in Delaware. Small businesses are a critical piece of our state's economy, comprising 98 percent of the businesses in Delaware and employing two-thirds of the state's workers. Recognizing the need and the opportunity to foster high-wage small businesses in technology fields, Gov. Minner proposes the creation of Technology-Based Small-Business Seed Funds, to be used to:

Fund technology-based small-business start-ups from Delaware's bright minds, including entrepreneurial engineers and scientists from local companies, including those that have been downsized (such as DuPont, Invista, Playtex, etc.), as well as researchers from higher education institutions or scientists from research labs.
Provide equity or grants up to $50,000 for start-up expenses such as lab equipment, working capital, lab and office space, patent filings, or prototyping, with competitive grant awards recommended to the Delaware Economic Development Office from an outside team of experts.
Ensure a commitment from the recipient to grow the company in Delaware.

Technology-Based Small-Business Seed Funds will help stimulate an entrepreneurial spirit in Delaware using one-time money. This proposal fulfills a recommendation of the Governor's Strategic Economic Council and would be funded with $1.5 million from the proposed FY05 capital budget.

Virtual Emerging-Technologies Incubator

Traditional business incubators are physical buildings that have support services located on-site to assist start-up firms. The traditional approach is very capital-intensive and can assist a limited number of start-up businesses. Gov. Minner proposes a Virtual Emerging-Technology Incubator that will:

Provide services needed by start-up technology firms-including general legal advice, accounting, marketing, financial, patent and trademark services-via the Internet, through webcasts, interactive sessions, chat rooms, self-paced learning modules, etc.
Be made available to start-up high-technology-based businesses anywhere in Delaware.
Support and encourage scientists, engineers and others with emerging-technology entrepreneurial ideas to start and grow their businesses.
Provide services and education necessary to move an idea to commercialization, as well as assist spin-out efforts from existing companies and higher education research facilities.
Leverage and enhance existing support services for small businesses (such as SBDC, DSU, UD, DTCC, MWUL, private-sector firms, etc.).

The Virtual Emerging-Technology Incubator fulfills a recommendation from the Governor's Strategic Economic Council and would be funded with $1 million from the FY05 capital budget.

Clean-Energy Research Center

Delaware is home to two industry leaders in fuel-cell research and development - DuPont and W.L. Gore. Gov. Minner proposes that Delaware establish a fuel-cell research center in partnership with the private sector and the University of Delaware to:

Establish a goal of making Delaware a center of the evolving fuel-cell industry.
Leverage a $1 million match from the federal government.
Leverage monies invested by DuPont, Gore, and potentially others to create the research and business infrastructure necessary for this emerging industry.
Make Delaware competitive as major automakers look at introducing fuel cells to their automobiles by 2007.

Creation of a Clean-Energy Research Center requires a commitment of $1 million over five years, with an initial $200,000 from the capital budget in Gov. Minner's FY05 proposal. This proposal fulfills a recommendation by the Governor's Energy Task Force for fuel-cell and hydrogen storage research.

Clean-Energy Performance Grants

Clean-Energy Performance Grants will be used to attract manufacturers of clean-energy technology, such as photovoltaic cells, fuel-cells and wind-energy components. The grants will

Be awarded to companies based on their sales of these components.
Attract clean-manufacturing jobs to Delaware.
Be awarded on a first-come, first-served basis.
Complement efforts to build a fuel-cell industry in Delaware.

Gov. Minner's proposed FY05 capital budget includes $800,000 for Clean-Energy Performance Grants. This fulfills a recommendation of the Governor's Energy Task Force.

EPSCoR

The Experimental Program to Stimulate Competitive Research, or EPSCoR, is a National Science Foundation program that provides states with the opportunity to significantly improve their scientific infrastructure, by providing two dollars in federal funds for every dollar in funds committed by a state. This portion of Gov. Minner's New Economy Initiative will:

Enable Delaware's colleges and universities to work together through a statewide partnership to develop a biotechnology-focused research, education, and economic- development project.
Ensure that Delaware's college and university students are prepared for the science and technology jobs of the 21st century, and that Delaware's academic researchers continue to make the scientific discoveries that are the bases for new companies and jobs in the First State.
Result in a two-for-one federal match of $9 million from the National Science Foundation over three years.

EPSCoR will require $4.5 million over three years and is recommended for $1.5 million in Gov. Minner's FY05 capital budget proposal. Bolstering Delaware's R&D efforts is another recommendation of the Governor's Strategic Economic Council.

Strategic Fund

The foundation for Delaware's economic-development efforts, the Strategic Fund is used primarily for job creation, relocation and expansion. Current uses include

Job creation incentives (Palmetto Management & Engineering, Baltimore Air Coil, Newspaper Services, Napro Therapeutics)
Small business innovative research grants for small businesses engaged in research and job creation (Sorportion Technologies and M-Cubed)
Brownfield matching grants for redevelopment and job creation (Cannery Village);
Job retention incentives (M&T Bank/Allfirst, ClientLogic)
Significant re-training programs for large employers (DaimlerChrysler)
Public infrastructure improvement (Bank One, downtown Milford fire recovery, Town of Clayton)

Since January 2001, the Strategic Fund has been used to gain commitments to create or retain more than 11,000 jobs, allowing Delaware to maintain a lower unemployment rate than the rest of the country during the national economic recession. Gov. Minner's FY05 capital budget proposal includes $10 million for the Strategic Fund.

Other Minner Administration Economic-Development Initiatives:

Gov. Minner has recently completed a reorganization of the Delaware Economic Development Office to allow a more proactive focus on growing those industry "clusters" that are the engine of Delaware's economic prosperity and diversity while identifying emerging opportunities. The clusters are

Financial Services
Biotechnology
Automobiles
Chemicals
Tourism
Corporate/Legal Services
Agriculture

This new cluster-based strategy will ensure that DEDO provides expertise in international trade, workforce development, infrastructure requirements and permitting as well as access to the capital needed to grow Delaware businesses.

Gov. Minner's proposed FY05 includes continued emphasis and investment in the Port of Wilmington and the Wilmington Riverfront. The Port, which recently signed a new five-year agreement to import Volkswagen vehicles, will receive $15 million. The Riverfront, soon-to-be home of the new headquarters of AAA Mid-Atlantic, will receive an investment of $9 million.

The Governor will soon announce changes to the Workforce Investment Board process to better direct funding through this board toward sustainable, high-wage, new economy jobs.

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Section 3.4

Online Resources and Contacts

Air Quality

Selected Contacts
Betsy Frey, QA Coordinator, Delaware DNREC Air Surveillance Branch, 302-323-4542

Information Sources
Air Quality Conformity, July 2005
www.wilmapco.org/RTP/RTP.pdf

Air Quality Partnership. About Air Quality, June 2005
www.dvrpc.org/aqpartnership/aboutAir.htm

Delaware Annual Air Quality Report 2003
www.dnrec.state.de.us/air/aqm_page/docs/pdf/anrpt03.pdf

Opening the Door to Change: Regional Transportation Plan 2025, March 2003.
www.wilmapco.org/RTP/RTP.pdf

Brownfields

Selected Contact
Jim Poling, Brownfields Administrator, DNREC, 302-395-2600, jim.poling@state.de.us

Information Sources

DNREC Division of Air and Waste Management Brownfields Home Page and Program Overview
www.dnrec.state.de.us/dnrec2000/Divisions/AWM/sirb/brownfield.asp

EPA's Brownfield Program
www.epa.gov/brownfields/index.html

Energy

Selected Contacts
Mary Paskey, Consumer Energy Education Group, Delaware Public Service Commission, 302-739-3227 ext. 32
Lee Ann Walling, State of Delaware, Special Assistant to Governor
Steve Baccino, Delmarva Power
Charlie Smisson, State Energy Coordinator
John Byrne, Center for Environmental and Energy Policy, University of Delaware
Armetta McRae, Delaware Public Service Commission
Arthur Padmore, Delaware Division of the Public Advocate

Information Sources

Delaware Energy Task Force Report to the Governor
www.state.de.us/planning/livedel/etfminutes/etfinal.pdf

Energy Information Administration, Petroleum Profile: Delaware
www.tonto.eia.doe.gov/oog/info/state/de.html

Delaware Pollution Prevention Program
www.dnrec.state.de.us/dnrec2000/p2/

Delaware Energy Office
www.delaware-energy.com

Delaware Public Service Commission
www.state.de.us/delpsc

Energy Information Administration, Petroleum Profile: Delaware
www.tonto.eia.doe.gov/oog/info/state/de.html

2004 Vital Economy Report
www.vitaleconomy.com

Funding Opportunities

Information Sources

Community Development Block Grants sponsored through U.S. Department of Housing and Urban Development
www.hud.gov/offices/cpd/ommunitydevelopment/programs/index.cfm

Economic Development Agency Investment Programs
www.eda.gov/xp/EDAPublic/AboutEDA/Programs.xml

Environmental Protection Agency's Nonpoint Source Section 319 Grant Program
www.epa.gov/owow/nps/319hfunds.html

Environmental Protection Agency's Wastewater Programs
http://cfpub.epa/fedfund/index.cfm

Federal Brownfield Incentives
www.epa.gov/swerosps/bf/html-doc/taxfs_2.htm

HSCA Policy on Mixed Funding and Brownfield Grants
www.dnrec.state.de.us/dnrec2000/Divisions/ AWM/sirb/docs/pdfs/misc/Mixed%20Funding.pdf

U.S. Department of Agriculture-Rural Development Programs
www.rurdev.usda.gov

U.S. Department of Housing and Urban Development
www.hud.gov/offices/cpd/economicdevelopment/programs/ bedi/bfieldfinance.cfm

Glossary of Terms

Information Sources

A Glossary of Terms-Land Use Planning,
www.sactaqc.org/Resources/primers/Glossary_Land_Use.htm

Delaware Valley Regional Planning Commission, Municipal Implementation Tools #1 - #8, April 2002 - June 2004.
Good Jobs First Research Manual
www.goodjobsfirst.org/research.htm

Land Use Law Center, Pace University School of Law, Universal Glossary of Land Use Terms and Phrases, 1998, www.nymir.org.zoning/Glossary.html

Office of State Planning Coordination
www.state.de.us/planning

The Language of Economic Development, BrandNewFlorida.com

World Bank Urban Development Division, Local Economic Development, Washington, D.C., 2001.

Land Use

Kent County

Selected Contacts
Michael Petit de Mange, AICP, Director, Kent County Department of Planning Services, 302-744-2471
David Edgell, AICP, Circuit-Rider Planner for Kent County, Office of State Planning Coordination, 302-739-3090

Information Sources
Kent County Comprehensive Plan Update, 2002.
www.co.kent.de.us/PlanningDivision/PlanningSection /Documents/CompPlan%20approved%203-23-02.pdf

New Castle County

Selected Contacts
Charles Baker, General Manager, New Castle County Department of Land Use,
302-395-5463
Herb Inden, Circuit-Rider Planner for New Castle County, Office of State Planning Coordination, 302-739-3090

Information Sources

New Castle County Comprehensive Plan Update, 2002.
www.co.new-castle.de.us/LandUse/CompDevelPlan/CompPlan2002.pdf

Sussex County

Selected Contacts
Lawrence Lank, Director, Sussex County Planning and Zoning Department, 302-855-7878
Ann Marie Townshend, AICP, Circuit-Rider Planner for Sussex County, Office of State Planning Coordination, 302-739-3090

Information Sources

Sussex County Comprehensive Plan Update, 2003. www.sussexcounty.net/departments/countycouncil/CompleteCompPlan.pdf

Statewide

Selected Contacts
Connie Holland, AICP, Director, Office of State Planning Coordination, 302-739-3090

Information Sources

Links to municipal comprehensive plans can be found on the Office of State Planning Coordination's website at www.state.de.us/planning/coord/municipal.htm

Delaware Population Consortium Annual Population Projections September 29, 2004.
www.cadsr.udel.edu/demography/consortium.htm

Strategies for State Policies and Spending, 2004.
www.state.de.us/planning/strategies

Recommended Readings
State Economic-Development Strategies

Information Sources

A Governor's Guide to Cluster-Based Economic Development
http://preview.nga.org/Files/pdf/AM02CLUSTER.pdf

A Governor's Guide to Building State Science & Technology Capacity
http://preview.nga.org/Files/pdf/AM02SCIENCETECH.pdf

Innovative State Policy Options to Promote Rural Economic Development
http://preview.nga.org/Files/pdf/0203RURALDEV.pdf

Nurturing Entrepreneurial Growth in State Economies
http://preview.nga.org/Files/pdf/ENTREPRENEUR.PDF

The Role of the Arts in Economic Development
http://preview.nga.org/Files/pdf/062501ARTSDEV.pdf

Enhancing Competitiveness: A Review of State Economic Development Initiatives
www.nga.org/cda/files/0501COMPETITIVENESS.pdf

Rural Economic Development

Information Sources

Entrepreneurship in Rural America
www.ruraleship.org/content/pdf/Article-SRRD%20Center.pdf

Smart Growth at the Frontier: Strategies and Resources for Rural Communities
www.nemw.org/RuralSmartGrowth.pdf

State Entrepreneurship Policies and Programs
www.entreworld.org/Bookstore/PDFs/RE-020.pdf

Promoting Tourism in Rural America
www.nal.usda.gov/ric/ricpubs/tourism.html

Competitiveness in Rural U.S. Regions: Learning and Research Agenda
www.eda.gov/ImageCache/EDAPublic/documents/pdfdocs/ eda_5frural_5fregions_5ffinal_2epdf/v1/eda_5frural_5fregions_5ffinal.pdf

Controlling Sprawl

Information Sources

Big-Box Sprawl (and How to Control It)
www.nationaltrust.org/issues/smartgrowth/big_box_sprawl.pdf

Smart Growth Tools for Main Street
www.nationaltrust.org/issues/smartgrowth/toolkit/index.html

Historic Preservation

Information Sources

Federal Highway Reauthorization Legislation
www.nationaltrust.org/issues/transportation/hwy_reauthorization.pdf

Quality Housing
www.nationaltrust.org/issues/housing/index.html#toolkit

Chain Drugstores Success Stories

www.nationaltrust.org/issues/drugstores/success_index.html

Telecommunications

Information Sources

Connecticut's Broadband Infrastructure: A Distinct Competitive Advantage
www.youbelonginct.com/pupload/12_04%20Print%20version.pdf

Ranking of States' High-Speed Technology Lines
www.youbelonginct.com/pupload/high_speed_%20lines.PDF

Cluster Industries

Information Sources

Cluster-Based Economic Development: A Key to Regional Competitiveness
www.eda.gov/ImageCache/EDAPublic/documents/pdfdocs/ 1g3_5f5_5fcluster_2epdf/v1/1g3_5f5_5fcluster.pdf

Telecommunications

Information Sources

Delaware Department of Technology and Information
www.dti.delaware.gov/

"The Ever-Shifting Internet Population", April 16, 2003
www.pewInternet.org/PPF/r/98/report_display.asp

"Rural Areas and the Internet", February 17, 2004
www.pewinternet.org/PPF/r/153/report_display.asp

International Telecommunications Union
www.itu.int/home/

Utah Telecommunications Open Infrastructure Agency
www.utopianet.org/

Cnet.com News
www.news.com

Governing.com
www.governing.com

Transportation

Kent County

Selected Contacts
Juanita Wieczoreck, Executive Director, Dover/Kent County MPO, 302-760-2713.
David Edgell, AICP, Circuit-Rider Planner for Kent County, Office of State Planning Coordination, 302-739-3090.
Joe Cantalupo, Transportation Planning Supervisor, DelDOT, 302-760-2112.

Information Sources

Getting From Here to There: A Long Range Transportation Plan for 2025. Dover/Kent MPO. July 5, 2001. www.doverkentmpo.org/tip.html

Statewide Long-Range Transportation Plan. DelDOT. September 2002.

New Castle County

Selected Contacts
Herb Inden, AICP, Circuit-Rider Planner for New Castle County, Office of State Planning Coordination, 302-730-3090.
Tigist Zegeye, Executive Director, WILMAPCO, 302-737-6205.
Joe Cantalupo, Transportation Planning Supervisor, DelDOT, 302-760-2112.

Information Sources

Statewide Long-Range Transportation Plan. DelDOT. September 2002.
Regional Transportation Plan (RTP 2025) Opening the Door to Change. WILMAPCO. March 2003. www.wilmapco.org/RTP/RTP.pdf

Sussex County

Selected Contacts
Ann Marie Townshend, AICP, Circuit-Rider Planner for Sussex County, Office of State Planning Coordination, 302-730-3090.
Joe Cantalupo, Transportation Planning Supervisor, DelDOT, 302-760-2112.

Information Sources

Sussex County Long-Range Transportation Plan Update. November, 2001, DelDOT.

Statewide

Selected Contacts
Connie Holland, AICP, Director, Office of State Planning Coordination, 302-730-3090.
Joe Cantalupo, Transportation Planning Supervisor, DelDOT, 302-760-2112.
Ralph Reeb, Director of Planning, DelDOT. 302-760-2111

Information Sources

DelDOT Capital Transportation Program FY 2005-2011. July 1, 2005. www.deldot.net/static/pubs_forms/ctp05-10/final/pdf_toc.html.

Delaware Freight and Goods Movement Plan, Technical Report, June 2004. www.deldot.net/static/pubs_forms/freight_plan

Delaware Population Consortium Annual Population Projections September 29, 2004. Center for Applied Demography and Survey Research. www.cadsr.udel.edu/demography/consortium.htm.

Delaware Transportation Facts, 2004. www.deldot.net/static/pubs_forms/statewide_long_range_trans_plan/

TransportationPlan.pdf. September2002.
Statewide Long-Range Transportation Plan. DelDOT. September 2002.
Transitioning to Transit: Delaware's Long Range Transit Plan for the 21st Century. www.dartfirststate.com/reports/00-25/dtclrp.pdf.

State Strategies for Policies and Sending, 2004. www.state.de.us/planning/strategies/strategies.shtml.

Wastewater

Kent County

Selected Contacts
Reinhold Betschel, Assistant Director of Kent County Department of Public Works/Wastewater Facilities Division, 139 Milford Neck Road, Milford, DE 19963.

Information Sources

Kent County Department of Public Works, Wastewater Facilities Division website, www.kentcountydpw.com.

New Castle

Selected Contacts
Dave Hokuf, New Castle County Department of Special Services, Wastewater Section, Airport Road, New Castle, Delaware

Information Sources

Wastewater Management Facility Plan for the Southern Sewer Service Area, Tatman and Lee, June 1999.

Sussex

Selected Contacts
Heather L. Sheridan, Director of Operations, Sussex County Engineering Department, P.O. Box 589, Georgetown, DE 19947.

Information Sources

Heather Sheridan, Sussex County Engineering Department, 302-855-7718

Water Quality

Kent County

Selected Contacts
Kevin Donnelly, Director, Delaware Division of Natural Resources and Environmental Control, Division of Water Resources, 89 Kings Highway, Dover, DE 19901.

Information Sources

Delaware Source Water Assessment Program Susceptibility Reports, 2003 and 2004, see www.wr.udel.edu/swaphome.

New Castle

Selected Contacts
Kevin Donnelly, Director, Delaware Division of Natural Resources and Environmental Control, Division of Water Resources, 89 Kings Highway, Dover, DE 19901.

Information Sources

A Watershed Restoration Action Strategy (WRAS) for the Delaware Portion of the Christina Basin: A Clean Water Strategy to Protect and Restore the Watersheds of the Brandywine, Red Clay, and White Clay Creeks and Christina River in Delaware. University of Delaware, Institute for Public Administration, Water Resources Agency for the Christina Basin Clean Water Partnership. June 2003.
Delaware Source Water Assessment Program Susceptibility Reports, 2003 and 2004, see www.wr.udel.edu/swaphome.

Sussex

Selected Contacts
Kevin Donnelly, Director, Delaware Division of Natural Resources and Environmental Control, Division of Water Resources, 89 King's highway
Ed Lewandowski, Exec Director, Center for the Inland Bays.

Information Sources

Source Water Susceptibility Reports for Sussex County, 2003 - 2005, see www.wr.udel.edu/swaphome.

Inland Bays TMDL Pollution Control Strategy, see www.dnrec.state.de.us/water2000/Sections/ Watershed/ws/ib_pcs_draft.htm.

Water Supply

Kent County

Selected Contacts
Kevin Donnelly, Director, Delaware Division of Natural Resources and Environmental Control, Division of Water Resources, 89 Kings Highway, Dover, DE 19901.

Information Sources

Delaware Source Water Susceptibility Reports for Kent County, 2003 and 2004. see www.wr.udel.edu/swaphome.

New Castle

Selected Contacts
Kevin Donnelly, Director, Delaware Division of Natural Resources and Environmental Control, Division of Water Resources, 89 Kings Highway, Dover, DE 19901.

Information Sources

First through Seventh Reports to the Governor and General Assembly Regarding the Progress of the Delaware Water Supply Coordinating Council, 2000 - 2005.
Estimates of Water Supply and Demand in Southern New Castle County, Delaware. University of Delaware, Institute for Public Administration, Water Resources Agency for the Delaware Water Supply Coordinating Council, draft June 2005.

Sussex

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Section 4.1

AIR QUALITY

Relationship of Air Quality to Economic Development

Delaware's air quality is a key factor in protecting public health, especially for sensitive populations such as children, the elderly, and asthmatics.
Proper air-quality levels are needed to protect the public against decreased visibility, damage to crops, vegetation, and buildings.
Delaware must develop and implement adequate plans to meet air-quality standards, or else millions of dollars in federal transportation funding will be unavailable to fund certain types of projects.

Existing Trends & Conditions

In 1970 Congress passed the Clean Air Act that authorized the Environmental Protection Agency (EPA) to launch National Ambient Air Quality Standards (NAAQS) for pollutants shown to threaten human health and welfare.
Delaware fails to meet federal standards for PM2.5 and ground-level ozone, which occurs when sunlight mixes with nitrogen oxides and volatile organic compounds.

DNREC Air Quality Chart

Currently, New Castle and Kent County are classified by the EPA as in "severe non-attainment" for meeting the one-hour NAAQS for ozone.
New Castle County exceeds the annual average standard for PM2.5, while Kent and Sussex counties meet the standard.

Projections & Plans

The State of Delaware has established an air-monitoring network to determine the ambient levels of pollutants for which NAAQS have been established. Currently, monitoring takes place statewide at the following locations:
- Brandywine
- Bellefonte
- Wilmington - MLK Blvd.
- Ommelanden
- Newark
- Delaware City
- Summit Bridge
- Dover
- Felton
- Seaford
- Lewes
The Clean Air Act Amendments of 1990 required EPA, states, and cities to implement a series of programs that would further reduce emissions of VOCs and NOx from cars, fuels, industrial and chemical facilities, power plants, and consumer and commercial products, among other sources.
The EPA has required DNREC to submit "Rate-of-Progress Plans" every three years to show that the region is making progress towards achieving the standard.
A great deal of improvement in our air quality as been achieved through addressing "point sources," such as power plants, solid-waste landfills, refineries, and emissions from automobiles.

Below is a chart that forecasts the region's air quality.

WILMAPCO Air Quality Prediction Chard

IV. Identified Opportunities & Constraints

Opportunities

The main goal is to conserve energy and use alternative forms of transportation.
Air Pollution can be reduced in the following manner:

Limit single passenger trips and form a car pool
Increase use and availability of public transportation
Enforce stricter air quality standards
Promote growth in less sprawled land use patterns

Constraints

Air pollutants spread rapidly, almost instantaneously, for that reason polluters rarely feel affected by their decision to pollute.
Trends in ozone concentrations are difficult to discern due to the effect of meteorology.
Standardized monitoring methods are relatively new, especially for one of Delaware's criteria pollutants PM2.5, therefore more data still needs to be collected before accurate comparisons can be made.

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Section 4.2

BROWNFIELDS

Relationship of Brownfields to Economic Development

Delaware's Hazardous Substance Cleanup Act (HSCA) defines a brownfield as "any vacant, abandoned, or underutilized real property, the development of which has been hindered by the reasonably held belief that the real property is environmentally contaminated." These areas include former industrial sites, gas stations, dry cleaners, tanneries, and salvage yards.

Sustainable economic-development strategies encourage the beneficial re-use of brownfield sites. Many states have developed programs to encourage the reclamation and re-use of brownfields as a smart-growth strategy to prevent sprawl and the spread of new development to open-space areas. "Infill" development projects, which target development to vacant or underutilized parcels of land that already have infrastructure, may occur within existing brownfield sites.

The revitalization of brownfields is compatible with Governor Minner's Livable Delaware Initiative, a comprehensive strategy which directs growth to areas most prepared for new development in terms of infrastructure, services, and thoughtful planning. In recent years, the state of Delaware has expanded state programs and adopted new brownfield legislation to provide incentives for brownfield site cleanup and redevelopment.

Existing Programs and Trends

Existing Programs

In 2002, the Delaware Department of Natural Resources and Environmental Control (DNREC) adopted regulations that establish a formal process for certifying a property as a brownfield. To be certified as a brownfield, a property must be marginally contaminated, cannot be of NPL caliber, cannot be subject to an ongoing enforcement action of another branch/agency, and must carry a presumption that redevelopment is hindered by a fear of contamination. Property certified as a brownfield may qualify for financial/technical assistance under programs offered by DNREC and the Delaware Economic Development Office (DEDO). State of Delaware financial/technical assistance programs include

Hazardous Substance Cleanup Act Brownfield Grants, which provide direct pay or reimbursement of allowable environmental-activities expenses.

Brownfields Assistance Program, (DEDO), which provides matching grants to conduct investigations of Brownfield Certification properties that meet eligibility criteria.

Hazardous Substance Cleanup Act (HSCA) Loan Fund, (DNREC), provides low-interest loans to businesses for environmental investigations and remediation activities.

First Fund, (DNREC), which provides financial assistance for the removal of abandoned storage tanks and site cleanup.

Program Loans for Underground Storage (PLUS) Tanks Systems, (DNREC), which provides low-interest loans for the removal of UST systems and related site-remediation activities.

Brownfields Development Program (BDP), which provides extensive liability protections to brownfield developers who enter into a Brownfields Development Agreement (BDA) to remove risks at a brownfield site prior to redevelopment.

Voluntary Cleanup Program (VCP), DNREC, which sets the standards for a site investigation, provides review of the adequacy of site investigations, oversees cleanup plans, and provides assurances that EPA will not intervene conditionally in the cleanup process.

Delaware Brownfield Tax Credit Program (DEDO), which provides tax credits to taxpayers/employers in a qualified brownfield facility and new companies that locate in a brownfield and provides enhanced tax credits for businesses located in a targeted area.

Brownfields Environmental Assessment Program (DNREC), is administered by the DNREC Site Investigation and Restoration Branch (SIRB) and provides Phase I and Phase II site investigations for brownfield properties.

Trends

More local governments are developing creative approaches to redeveloping brownfield properties. Public/private partnerships are often formed between local governments and private investors to help fund and initiate brownfields revitalization projects. Citizen involvement is also deemed critical to the success of a brownfield-revitalization project. DNREC provides a checklist to consider when enlisting community involvement in a project. Brownfield authorities, consisting of local residents and other economic-development stakeholders, are being formed by local governments to establish brownfield-redevelopment plans, apply for project funding, and use captured tax revenues to reimburse project investors and finance future remediation projects.

Local governments are also developing innovative strategies to address vacant and deteriorated properties that may not meet the criteria of a brownfield property. Local governments are adopting stricter code enforcement measures to allow for court-ordered demolition of vacant and unsecured properties and the criminal prosecution of repeat code violators. Other local governments have institutionalized interdepartmental cooperation and coordination, both within and among municipal/county governments, to respond to and seek prosecution for violations related to public-nuisance buildings. In 2003, a coalition of smart growth and local government organizations began a National Vacant Properties Campaign (www.vacantproperties.org) to make vacant-property revitalization a national priority and smart-growth strategy.

Identified Opportunities and Constraints

Opportunities

There are approximately 5,000 brownfield or potential brownfield sites of various sizes within the state of Delaware, most of which are located within New Castle County. Many brownfield properties have ideal business locations, near existing employment centers and transportation corridors. In most cases, costly infrastructure is already in place, which makes the site ready for purchase, remediation, and development. The market value of brownfield sites may be substantially less than that of other comparable development sites. Once the site is remediated, the market value of the property often rebounds, and the value of surrounding properties may escalate.

Brownfield cleanup and redevelopment can promote economic-development goals of a community through job creation, commercial and retail development, and neighborhood revitalization. In addition, brownfield redevelopment results in the productive re-use of an abandoned property and contributes to a community's financial stability and increases in a local government's property-tax revenue. Often brownfield properties are located within a town's central business district, and redevelopment of these properties can promote overall community revitalization. The Livable Delaware initiative encourages infill and redevelopment within targeted areas, such as central business districts, that are designated for growth or renewal.

Constraints

Because a property may have been contaminated and abandoned by a previous occupant, investors and redevelopers often fear becoming entangled with cleanup liabilities. The state of Delaware has enacted changes in brownfield-liability laws to encourage redevelopment. Senate Bill 328 amended Delaware's Hazardous Substance Cleanup Act to create the Brownfields Development Program to entice prospective purchasers to enter into Brownfield Development Agreements with DNREC for recycling brownfield sites. The Voluntary Cleanup Program likewise offers streamlined cleanup agreements, greater flexibility to facilitate remediation, and limits liability fears of otherwise potentially legally responsible parties that did not cause or contribute to the contamination and that voluntarily agree to remediate a contaminated site under DNREC's purview.

In addition to liability concerns, primary obstacles to brownfield redevelopment include the availability of greenfields (undeveloped property), uncertainty in the cleanup process, types, and amounts of contamination; time involved in completing the environmental process; and cost of investigation/remediation. The cleanup of hazardous substance contamination often makes the purchase and redevelopment of brownfield sites cost-prohibitive. To offset costs, the federal government and the state of Delaware offer grants and incentive programs to encourage the re-use and redevelopment of these properties.

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Section 4.3

ENERGY

I. Relationship of Energy and Energy Use to Economic Development

General Importance of Energy to Economic Development

Reliability--dependable sources and services
Affordability--reasonable costs of services
Sustainability--reliable, long-term sources and services; low negative impact on environment
Efficiency--maximized use of resources and costs compared to benefits gained

Major Energy-Related Factors that Affect Economic Development

Increasing demand for services resulting from statewide population growth puts pressure on infrastructure and environment.
Deregulation is coming to fruition May 2006; delivery costs are likely to rise as a result of electric policies and regulatory issues.
Environmental prosperity is at risk by increasing demand for services, potentially jeopardizing air and land.

Significant Energy-Related Considerations Impacting Economic Development

Current use and consumption profiles (sources and services)
Projected use and consumption profiles (sources and services)
Available and efficient options and incentives for alternative sources

Energy Policies Impacting Economic Development

Federal legislation (Energy Bill signed by President Bush on August 8, 2005)
Executive-appointed Energy Task Force (through Governor Ruth Ann Minner's Executive Order 31, 2002)
Prioritized strategies for sustainability and diversity (Delaware Energy Task Force Report)
Incentive programs for sustainable energy options (e.g., Green Energy Program)
Statewide planning and environmental initiatives (e.g., Livable Delaware)
State legislation (e.g., SB 74 Renewable Energy Portfolio Standards)

Impact of these Policies on Economic-Development Considerations

Quality of life for citizens and Delaware communities
Potential for existing businesses and services to survive and/or expand
Ability to attract new businesses and services to state

II. Existing Conditions and Trends

Consumption of Energy Compared Nationally

Total energy consumption: 0.3 quadrillion Btu (2001), Delaware ranked 46th
Per capita energy consumption: 368 million Btu (2001), Delaware ranked 21st

Consumption of Energy Within State (i.e., who uses and how much)

Industrial 39%
Transportation 25%
Residential 20%
Commercial 16% (fastest growing energy sector)

Energy Sources (i.e., where our energy comes from)

Petroleum 50%-required to use reformulated gasoline throughout entire state
Natural Gas 21 %-accounts for the largest share of home-heating market
Imported Electricity 15 %
Coal 13 %
Other 1%

Consumption Projections(by year 2010)

18.5% growth in electricity consumption
18% increase in peak electricity demand
8.8% growth in natural gas consumption
6.1% increase in total fuel-oil consumption for residential, commercial, and industrial use
23% increase in gasoline and other motor fuel consumption

Identified Options for Alternative Energy Sources

Renewable resources: solar, wind, biomass, small hydropower, and fuel cells
Natural gas: potential for additional availability, feasibility of additional pipelines
Transportation fuels: bio-diesel, ethanol

III. Strategies, Incentives, Initiatives

Delaware Energy Task Force

Addresses four major goals relative to expanding diversity of sources and promoting market for clean air technologies.
Provides prioritized strategies and recommendations for reaching goals and lists actions in progress relative to the strategies, recommendations, and working-group objectives.
Strategies and recommendations most relevant to statewide and county-specific economic development:
- Kent: Promote alternative transportation fuels (e.g., bio-diesel, ethanol to help promote agricultural sector).
- Kent & Sussex: Small businesses need reliable, efficient sources.
- Statewide: Encourage advanced energy technology development (e.g., recruit advanced-technology companies to help attract high-paying jobs).
Developed Economic Development Working Group, which has developed these objectives:
Expand market renewable energy technologies in Delaware (e.g., promote alternative transportation fuels such as bio-diesel and ethanol).
Increase the number of producers and developers of clean technologies located in Delaware.

Incentive Programs

Green Energy Program - provided by state to electric customers of Delmarva Power who are engaged in energy-efficient programs / projects
Delaware Municipal Electric Utility Survey - an overview of each utility including description of service, interconnection and net metering policies, and existing energy efficiency or renewable energy programs

Relative Statewide Initiatives

Livable Delaware - addresses important environmental and planning issues affecting the state's future; basis for Energy Task Force goals, strategies, recommendations
Renewable Energy Standards Portfolio Standards (SB 74 bill passed June 30, 2005) - establishes standards for electricity suppliers in the state so that suppliers, consumers, and the public might realize the benefits of electricity produced from renewable energy resources; requires suppliers to supply a percentage of their total annual electricity sales in the state from renewable energy resources

IV. Identified Economic-Development Opportunities and Constraints

Opportunities

Research, Education, and Training-Renewable energy and technology research as well as incentive programs allow for educational and training opportunities within public schools while providing applied research on the effects of such programs.
- Green Plains Energy
  - Sussex Central Middle School project
  - Part of Environmental Incentive Fund
Creation of new or enhancement of existing economic industries-Research and development of alternative fuel sources has the potential to create new or enhance existing economic industries (e.g., bio-diesel, ethanol in agricultural sector).
Policy-making and legislation-Continued research and legislation help formulate long-term, concrete public policies on renewable energy.

Constraints

Costs of renewable energy/ability to entice large, technologically advanced businesses to locate in Delaware
Ability for small businesses to take advantage of benefits of locating in Delaware
Initial implications for large and industrial customers (e.g., rate fluctuations resulting from deregulation initiatives)

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Section 4.4

LAND USE

Statewide

Relationship of Land Use to Economic Development

Land-Use Policies Impacting Economic-Development Considerations

Zoning ordinances at the municipal and county level set forth the permitted uses and intensities of uses in Delaware.
State-certified comprehensive plans adopted by the counties and municipalities establish future land uses across Delaware. Zoning must reflect the future land-use designation in the comprehensive plan.
The Strategies for State Policies and Spending prioritizes the investment of state funds across Delaware.

Impact of these Policies on Economic-Development Considerations

Location: State, county, and municipal land-use policies make certain areas of the state more or less desirable targets for economic-development efforts.
Character: The desired character of economic-development efforts is often determined through the planning process by considering environmental, infrastructure, and public-opinion conditions with implementation occurring through the formal adoption of land-use policies.

Existing Conditions and Trends

With over 470,000 acres in harvested cropland, agriculture continues to be the dominant land use in Delaware. As development pressures have increased, other uses have been growing. From 1992 to 1997, Delaware's residential uses increased in area by just over 15%. Commercial and industrial uses increased in area by approximately 8% over the same time-period.
307 Delaware farms, comprising 64,830 acres, have been permanently protected through the Delaware Agricultural Lands Preservation Program.
Permitted land uses and intensities of use across Delaware are established by both municipal and county zoning ordinances.

Projections and Plans

Population Prediction Chart

Plans

All the counties and nearly all of the municipalities in Delaware are involved in some stage of the comprehensive planning process. These plans set forth future land uses for these jurisdictions.
The Strategies for State Policies and Spending document serves as a guide for state investments with the aim of coordinating land-use decision-making and the provision of infrastructure and services in a manner that makes best use of Delaware's natural and fiscal resources. Two fundamental policies guide the State Strategies:
- State spending should promote quality, efficiency, and compact growth.
- State policies should foster order and resource protection, not degradation.
To identify and prioritize where the State intends to make certain types of investments, the State Strategies designates areas as Levels 1-4 and Out-of-Play.
- Levels 1 through 3 identify those areas of the state most prepared for growth and where the state can make the most cost-effective infrastructure investments.
- Development is not currently preferred in Level 4 areas, and the state intends to make investments, such as open space and agricultural preservation, to preserve the rural character of these areas.
- Out-of-Play lands are those that generally cannot be developed for a variety of reasons. These lands may be federal- or state-owned and protected, parkland, lands the development rights of which have been purchased, lands on which development may be prohibited due to state or local regulations.

Identified Opportunities and Constraints

Opportunities

Development and redevelopment-The state is generally supportive of development and redevelopment efforts within areas designated as either Level 1, 2, or 3. Many of these areas have ready access to infrastructure and labor, making them suitable for economic development efforts.
Agriculture-Agriculture is the largest industry in Delaware. The state is committed to making investments that preserve the rural character of agricultural areas, creating opportunities for the development of expanded and spin-off agriculture-related industries.

Constraints

Out of Play Areas-Due to the presence of sensitive natural resources, large areas of Delaware are not suitable for intense economic development efforts.

LAND USE

Kent

Relationship of Land Use to Economic Development

Land-Use Policies Impacting Economic-Development Considerations

Zoning ordinances at the municipal and county level set forth the permitted uses and intensities of uses for Kent County.
State-certified comprehensive plans adopted by the county and municipalities establish future land uses for these jurisdictions. Zoning must reflect the future land-use designation in the comprehensive plan.
The Strategies for State Policies and Spending prioritizes the investment of state funds across Kent County.

Impact of these Policies on Economic Development Considerations

Location: State, county, and municipal land-use policies make certain areas of the county more or less desirable targets for economic-development efforts.
Character: The desired character of economic-development efforts is often determined through the planning process by considering environmental, infrastructure, and public-opinion conditions with implementation occurring through the formal adoption of land-use policies.

Existing Conditions and Trends

Agriculture has historically been the dominant land use in Kent County and accounted for nearly 49% of Kent County's total area in 1997. Nearly 51% of the land area in Kent County was used for agricultural purposes in 1992.
Kent County farms account for 156 of the 307 Delaware farms permanently protected through the Delaware Agricultural Lands Preservation Program, comprising approximately 55% of the 64,830 acres preserved in Delaware.
Permitted land uses and intensities of use across Kent County are established by both municipal and county zoning ordinances.

Projections and Plans

Population Prediction Chart

Based on the volume of recent building-permit and certificate-of-occupancy issuances, Kent County believes its population is increasing at a rate exceeding that projected by the Delaware Population Consortium.

Plans

Kent County's 2002 Comprehensive Plan Update established a growth zone generally bounded on the east by State Route 1, running north to south from Smyrna to Milford, and extending east to west from Felton to Frederica. This zone includes most of the municipalities in Kent County. Kent County would like to see growth focused in this area, since infrastructure to support growth is either already in place or can be relatively easily provided for.
Kent County's plan designates the areas outside the growth zone for either low-density development or open-space preservation. The adoption of Kent County's Transfer-of-Development Rights (TDR) program allows for development at higher densities within the growth zone in exchange for the preservation of lands outside the growth zone.
The Strategies for State Policies and Spending generally prioritizes the most- intense state investments (level 1 and 2 investments) within those areas included in the county's growth zone and in and around municipalities. The vast majority of other areas in the county are classified as either the least-intense investment area (level 4) or as Out of Play for development.
State-certified comprehensive plans, laying the groundwork for future growth and development, have been adopted by the majority of the Kent County municipalities.

Identified Opportunities and Constraints

Opportunities

Growth Zone-Kent County and the state have targeted areas generally within the county's growth zone for development and investment.
Municipalities-Municipalities have outlined their growth plans in comprehensive plans and the state has generally promoted investment in existing communities through the Livable Delaware Program. Many municipalities have land appropriately zoned for economic-development purposes.
Agriculture-Agriculture is the largest industry in Kent County. The existing agriculture sector creates opportunities for the development of expanded and spin-off agriculture-related industries.

Constraints

Areas east of State Route 1: The environmentally sensitive nature of areas east of State Route 1 and policy decisions to discourage development in this area inhibit intense economic development efforts in much of the eastern portion of Kent County.

LAND USE

New Castle

Relationship of Land Use to Economic Development

Land-Use Policies Impacting Economic-Development Considerations

Zoning ordinances at the municipal and county level set forth the permitted uses and intensities of uses for New Castle County.
State-certified comprehensive plans adopted by the County and municipalities establish future land uses for these jurisdictions. Zoning must reflect the future land-use designation in the comprehensive plan.
The Strategies for State Policies and Spending prioritizes the investment of state funds across New Castle County.

Impact of these Policies on Economic-Development Considerations

Location: State, county, and municipal land-use policies make certain areas of the county more or less desirable targets for economic-development efforts.
Character: The desired character of economic-development efforts is often determined through the planning process by considering environmental, infrastructure, and public-opinion conditions with implementation occurring through the formal adoption of land-use policies.

Existing Conditions and Trends

Agricultural and Residential/Urban uses each accounted for approximately 30% of New Castle County's land area in 1997. With strong residential growth continuing, particularly south of the Chesapeake & Delaware Canal, it is highly likely that residential land uses now account for the largest area of any land use in New Castle County.
New Castle County is home to two of Delaware's three largest cities (Newark and Wilmington), long-established suburbs in northern New Castle County, and rapidly growing incorporated and unincorporated areas in southern New Castle County.
Permitted land uses and intensities of use across New Castle County are established by both municipal zoning ordinances and the county's Unified Development Code (UDC).

Projections and Plans

Population Prediction Chart

Plans

New Castle County's 2002 Comprehensive Plan Update generally calls for medium- to high-density residential and commercial development along major roadways and within existing developments in northern New Castle County. Pockets of Industrial and Office uses are planned for across the northern part of the county. Low and very-low density residential development is planned for in most of the remaining areas in the county, with the area south of the Middletown-Odessa-Townsend (MOT) region nearly entirely slated for very-low density residential development.
The Strategies for State Policies and Spending generally prioritizes the most intense state investments (level 1 and 2 investments) for areas north of the Chesapeake & Delaware Canal, south of the canal along routes 301, 13, and 1, and in and around municipalities. Large areas along the Delaware Bay, Chesapeake & Delaware Canal, and throughout the county are designated as "Out of Play" due to a variety of environmental constraints and protections. The majority of the level 4 areas (the least intense investment level) in New Castle County are found south of the MOT region.
State-certified comprehensive plans, laying the groundwork for future growth and development, have been adopted by the majority of the New Castle County municipalities.

Identified Opportunities and Constraints

Opportunities

Infill and Redevelopment-As the most heavily developed county in Delaware, New Castle County has large areas of existing commercial and industrial uses. This characteristic creates the opportunity for the development of additional complementary uses and the revitalization of underutilized sites.
Municipalities-Municipalities have outlined their growth plans in comprehensive plans and the state has generally promoted investment in existing communities through the Livable Delaware program. Many municipalities have land appropriately zoned for economic-development purposes.

Constraints

Critical Natural Resources-Due to environmentally sensitive features, nearly 200,000 acres in New Castle County are either completely or partially protected from development by the UDC. These protections inhibit certain economic-development efforts in these areas.
Growth-Management Strategies-Intense economic-development efforts are inhibited in the area generally south of the MOT region due to the lack of public sewer provision in the area and land-use policies allowing for only very-low- density residential development in the area.

LAND USE

Sussex

Relationship of Land Use to Economic Development

Land-Use Policies Impacting Economic-Development Considerations

Zoning ordinances at the municipal and county level set forth the permitted uses and intensities of uses in Sussex County.
State-certified comprehensive plans adopted by the County and municipalities establish future land uses for these jurisdictions. Zoning must reflect the future land-use designation in the comprehensive plan.
The Strategies for State Policies and Spending prioritizes the investment of state funds across Sussex County.

Impact of these Policies on Economic-Development Considerations

Location: State, county, and municipal land-use policies make certain areas of the county more or less desirable targets for economic-development efforts.
Character: The desired character of economic-development efforts is often determined through the planning process by considering environmental, infrastructure, and public-opinion conditions with implementation occurring through the formal adoption of land-use policies.

Trends and Existing Conditions

Agriculture has historically been the dominant land use in Sussex County and accounted for nearly 44% of Sussex County's total area in 1997. From 1992 to 1997, just over 10,000 acres of land in Sussex County were converted from agricultural to residential use.
Sussex County farms account for 109 of the 307 Delaware farms permanently protected through the Delaware Agricultural Lands Preservation Program, comprising approximately 32% of the 64,830 acres preserved in Delaware.
Permitted land uses and intensities of use across Sussex County are established by both municipal and county zoning ordinances.

Projections and Plans

Population Prediction Chart

Plans

Sussex County's 2003 Comprehensive Plan Update calls for low-density development throughout the vast majority of the county with some agriculture-related industries permitted in these areas. Higher-density development is planned for most of the municipal areas in the county. The Seaford and Georgetown regions are designated as Employment Centers within the county.
The area along the Atlantic coast and surrounding the Inland Bays region is designated in the 2003 Sussex County Comprehensive Plan Update as an "Environmentally Sensitive Developing Area." The plan acknowledges both the heavy development pressure and sensitive natural resources in this area. Development proposals meeting certain thresholds in this area must be accompanied by an environmental-assessment report.
The Strategies for State Policies and Spending generally prioritizes the most intense state investments (Level 1 and 2) for those areas in and around Sussex County municipalities. The vast majority of other areas in the county are classified as either the least-intense investment area (Level 4) or as Out of Play for development.
Nearly all of the municipalities in Sussex County are involved in some stage of the comprehensive-planning process. These plans set forth future land uses for municipalities.

Identified Opportunities and Constraints

Opportunities

Municipalities-Municipalities have outlined their growth plans in comprehensive plans, the state has generally promoted investment in existing communities through the Livable Delaware program, the county has generally targeted higher-density development for municipal areas, and many municipalities have actively reserved appropriately zoned locations for economic-development purposes.
Agriculture-Agriculture is the largest industry in Sussex County. The existing agriculture sector creates opportunities for the development of expanded and spin-off agriculture-related industries.

Constraints

Sensitive Natural Resources-The environmentally sensitive nature of much of Sussex County inhibits certain intense economic-development efforts in sensitive areas including, but not limited to, the Inland Bays region and the Nanticoke River region.

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Section 4.5

TRANSPORTATION

Statewide

I. Relationship of Transportation to Economic Development

Quality transportation infrastructure is a vital component of economic development.
The movement of people and goods are served by transportation infrastructure.
Modes of movement include road, air, rail, pedestrian, water, bicycle.
Key characteristics are efficiency, capacity, and integration of modes.
Transportation infrastructure impacts quality-of-life factors, including the environment, employment opportunities, and tax base.
Transportation infrastructure is related to the implementation of state, regional, county, and municipal comprehensive plans and growth strategies.

II. Trends and Existing Conditions

Transportation chart

Vehicle miles traveled (in billions) was 9.01 in the year 2003.
Dart First State bus ridership for 2004 was 7,792,570.
Amtrak provided 753,775 passenger trips in FY 2004.
Ridership for the Septa R2 Line: 783,663 in 2004.
Cape May-Lewes Ferry ridership: 1,050,050 in 2003.
Flight activity at public airports: 282,736 flights in 2003.
Waterborne shipments originating in Delaware, 2003: 18,831,372 tons.

Projections and Plans

Transportation chart

Direct programs, services, and facilities to support Livable Delaware.
Maximize travel opportunity and choice for all Delawareans.
Use cost-effectiveness as one of our fundamental principles.
Continue to emphasize quality of life as our foundation.
Provide transportation opportunities that support economic development and growth.
Maintain planning and coordination as an integral part of our activities.

Identified Opportunities and Constraints

Opportunities

DelDOT to become more accessible, responsive, and efficient.
DelDOT will focus on fixing transportation problems, providing for orderly economic growth, and preserving as much green space as possible.

Constraints

A rapidly growing Delaware, a "graying" population, and an aging infrastructure
Delaware does not meet federal standards for ozone as defined in the Clean Air Act. All new transportation projects in Delaware must be tested to make sure that they do not worsen pollution.
Timing and extent of project financing
Managing the rate, timing, and character of growth

TRANSPORTATION

Kent

I. Relationship of Transportation to Economic Development

Quality transportation infrastructure is a vital component of economic development.
The movement of people and goods are served by transportation infrastructure.
Modes of movement include road, air, rail, pedestrian, water, bicycle.
Key characteristics are efficiency, capacity, and integration of modes.
Transportation infrastructure impacts quality-of-life factors, including the environment, employment opportunities, and tax base.
Transportation infrastructure is related to the implementation of state, regional, county, and municipal comprehensive plans and growth strategies.

II. Trends and Existing Conditions

Transportation chart

Inner-city bus service passenger trips in 2004 were 115,130.
Active freight rail lines in 2004 totalled 56 miles
Currently, seven aviation facilities are available for public use.

Projections and Plans

Transportation chart

Getting From Here to There: A Long Range Transportation Plan for 2025. Dover/Kent MPO, July 5, 2001.

Themes: economic development, quality of life, growth management/land use, access/safety/mobility, and transportation network (Infrastructure).
Fundamental strategies are
preserve and maintain the existing transportation system.
improve the management of existing transportation system.
develop and expand other modes of transportation.
provide additional roadway-system capacity.
focus transportation investments.
Recommended Roadway Construction Projects: SR 1 and Garrison Tract, Crawford Carroll Avenue south to University and US 13, Clarence Street from North Street to Lockerman Street, US 13 from Scarborough Road and South Smyrna SR Interchange, and DE 15.

Identified Opportunities and Constraints

Opportunities

Planning Studies: e.g., West Dover Connector, Carter Preservation-east-west route, locational study for intermodal freight-transfer facilities, needs analysis for a west Dover bypass
Increasing intermodal travel opportunities
Promoting "walkable communities"
Enhance intergovernmental coordination

Constraints

Kent County does not meet federal standards for ozone as defined in the Clean Air Act. All new transportation projects in Kent County must be tested to make sure that they do not worsen pollution.
Timing and extent of project financing
Managing the rate timing and character of growth

TRANSPORTATION

New Castle

I. Relationship of Transportation to Economic Development

Quality transportation infrastructure is a vital component of economic development.
The movement of people and goods are served by transportation infrastructure.
Modes of movement include road, air, rail, pedestrian, water, bicycle.
Key characteristics are efficiency, capacity, and integration of modes.
Transportation infrastructure impacts quality-of-life factors, including the environment, employment opportunities, and tax base.
Transportation infrastructure is related to the implementation of state, regional, county, and municipal comprehensive plans and growth strategies.

II. Trends and Existing Conditions

Transportation chart

Two aviation facilities are available for public use.
The two major rail companies are CSX and Norfolk Southern.
Port of Wilmington annual tonnage in 2004 was 4,499,000.

Projections and Plans

Transportation chart

Goals are improve quality of life, transport people and goods, support economic activity and growth.
Objectives are protect the public health, safety, and welfare; preserve our natural, historic, and cultural resources; support existing municipalities and communities; provide transportation opportunity and choice; improve transportation system performance; promote accessibility, mobility, and transportation alternatives; ensure a predictable and adequate public investment program to guide private sector investment decisions; and plan and invest to promote the attractiveness of the region.
Regional Transportation Investments include US Route 40 corridor, Wilmington corridor, Newark/Elkton area, Churchman's Crossing, and transit investments.

Identified Opportunities and Constraints

Opportunities

Increasing intermodal travel opportunities
Promoting "walkable communities"
Enhancing intergovernmental coordination
Setting investment priorities
Pursuing transit visions for the region
Developing additional funding sources
Addressing transportation equity
Managing congestion

Constraints

New Castle County does not meet federal standards for ozone as defined in the Clean Air Act. All new transportation projects in New Castle County must be tested to make sure that they do not worsen pollution.
Timing and extent of project financing
Managing the rate, timing, and character of growth

TRANSPORTATION

Sussex

I. Relationship of Transportation to Economic Development

Quality transportation infrastructure is a vital component of economic development.
The movement of people and goods are served by transportation infrastructure.
Modes of movement include road, air, rail, pedestrian, water, bicycle.
Key characteristics are efficiency, capacity, and integration of modes.
Transportation infrastructure impacts quality-of-life factors, including the environment, employment opportunities, and tax base.
Transportation infrastructure is related to the implementation of state, regional, county, and municipal comprehensive plans and growth strategies.

II. Trends and Existing Conditions

Transportation chart

Vehicle miles traveled (in millions) was approximately 1,700 in the year 1999.
The Delaware Transit Corporation/DART provides seasonal transit services; for example, South District Resort Transit provides services between Georgetown, Lewes, Rehoboth Beach, Dewey Beach, and Fenwick Island.
Approximately 25 percent of the households in Sussex municipalities have no automobile, and are transit-dependent.
There are two aviation facilities available for public use: the Sussex County Airport and the Laurel Airport.
The Delaware River and Bay Authority operates the Cape May-Lewes Ferry Service.

Projections and Plans

Transportation chart

Sussex County Long-Range Transportation Plan Update. DelDOT, November, 2001.

Preserve and increase capacity on existing major north-south routes while pursing plans for a north-south limited-access highway on existing or new alignment.
Complete recommended improvements to major east-west connector routes, consider bypasses for towns most affected by tourist or heavy truck traffic, and determine areas and roads suitable for an alternative local-road network.
Identify, improve, and market roads in the areas of significant seasonal congestion that could provide an alternative local-road network.
Provide safe and efficient evacuation routes by implementing the recommendations of the Evacuation Route Study currently underway.
Expand travel alternatives beyond the automobile, where feasible and appropriate, to provide a comprehensive transportation system throughout Sussex County, which includes bus and rail transit, ride-sharing, bicycling and walking.
Strengthen communication and coordination among municipal, county, state, and federal governments in order to maintain an efficient transportation infrastructure necessary for responsible development and economic vitality.

Identified Opportunities and Constraints

Opportunities

Enhanced intergovernmental coordination can ensure that growth is accommodated and directed in a manner that reinforces and builds upon the current quality of life that brought it about.

Constraints

Sussex County does not meet federal standards for Ozone as defined in the Clean Air Act. All new transportation projects in Sussex County must be tested to make sure that they do not worsen pollution.
Timing and extent of project financing
Managing the rate timing and character of growth

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Section 4.6

WASTEWATER

Kent

Relationship of Wastewater to Economic Development

Sufficient wastewater-management capacity and infrastructure is necessary to support Delaware's residential, commercial, and industrial sectors.

Existing Conditions and Trends

The Kent County Public Works maintains a Sewage Disposal District No. 1, with 40 miles of sewer pipes, that delivers wastewater to a treatment plant along the Murderkill River for treatment prior to discharge to the Delaware Bay.

Wastewater chart

Projections and Plans

The Kent County Department of Public Works plans to expand the sewer service area and wastewater-treatment plant for additional sewer capacity.

Identified Opportunities and Constraints

Economic growth in Kent County will depend on future plans to expand the regional wastewater systems to add public-sewer capacity to the service area around greater Dover.

WASTEWATER

New Castle

I. Relationship of Wastewater to Economic Development

Sufficient wastewater-management capacity and infrastructure is necessary to support Delaware's residential, commercial, and industrial sectors.

II. Existing Conditions and Trends

The New Castle County Department of Special Services operates the regional wastewater-collection system. In northern New Castle County, the regional wastewater system delivers wastewater to the City of Wilmington wastewater- treatment plant for discharge to the Delaware River. In southern New Castle County, the regional wastewater system contributes flows to an existing spray-irrigation system (Water Farm No. 1 with plans to expand capacity with construction of Water Farm No. 2 north of Middletown and Odessa.

Wastewater chart

III. Projections and Plans

The City of Wilmington is rehabilitating the wastewater system principally by reducing the combined sewer overflows to the Christina River and Brandywine Creek. New Castle County is expanding the southern NCCo wastewater service area between the C&D Canal and Middletown-Odessa by adding 6 mgd of additional treatment capacity at Water Farm No. 2.

IV. Identified Opportunities and Constraints

Opportunities

Northern New Castle County has 10 mgd of additional sewer capacity, which provides opportunity for new businesses.

Constraints

Economic growth in southern New Castle County will depend on New Castle County future plans to build Water Farm No. 2 to provide public sewer capacity (6 mgd) to the southern service area.

WASTEWATER

Sussex

Relationship of Wastewater to Economic Development

Sufficient wastewater-management capacity and infrastructure is necessary to support Delaware's residential, commercial, and industrial sectors.

II. Existing Conditions and Trends

Presently there are four wastewater systems operated by the Sussex County Engineering Department.

Wastewater chart

III. Projections and Plans

The Sussex County Engineering Department is currently expanding the capacity of the South Coastal Regional Wastewater Facility from its current 6 mgd to 9 mgd in 2007, a 3 mgd increase in additional sewer capacity.

IV. Identified Opportunities and Constraints

Economic growth in Sussex County depends on future plans to expand the regional wastewater systems to add public-sewer capacity to the service area around the Inland Bays region while adequately treating the wastewater discharge to protect the bay water quality.

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Section 4.7

WATER QUALITY

Kent

Summary of Topic's Relationship to Economic Development

Clean and healthy surface water and groundwater is paramount to sustain Delaware's commercial, manufacturing, agriculture, recreation, and tourism industries.

Existing Conditions and Trends

Streams such as the Murderkill River experience exceedances of Delaware stream water-quality standards for bacteria, nitrogen, and phosphorus as per Total Maximum Daily Loads set by the Federal Clean Water Act. Groundwater wells in Kent County experience exceedances for nitrogen, iron, manganese, and pesticides. All public water supply wells have water-treatment systems that remove pollutants to meet the Delaware drinking-water standards.

Projections and Plans

The Delaware Source Water Protection Program is mandated by the Federal Safe Drinking Water Act and is designed to identify and detect sources of pollution in the watersheds and aquifer that provide a drinking-water supply.

Identified Opportunities and Constraints

The State of Delaware is developing a Pollution Control Strategy for the Murderkill River using a Tributary Action Team approach to restore the waters to fishable and swimmable status. The Delaware Source Water Protection Program presents the opportunity to protect the quality of public drinking water wells in Kent County. Clean drinking-water supplies provide an opportunity for economic growth provided the drinking-water intakes are fitted with water-treatment plants that remove pollutants in accordance with the Delaware drinking-water standards.

WATER QUALITY

New Castle

Summary of Topic's Relationship to Economic Development

Clean and healthy surface water and groundwater is paramount to sustain Delaware's commercial, manufacturing, agriculture, recreation, and tourism industries.

Trends and Existing Conditions

Streams in the Christina Basin of northern New Castle County sometimes do not meet Delaware surface-water quality standards for bacteria, sediment, nitrogen and phosphorus, and some metals that could lower the recreational use of these streams. However, these streams do meet drinking-water standards for organic chemicals. Surface-water intakes that draw water from these streams for the City of Wilmington, City of Newark, and United Water Delaware have water-treatment plants that remove pollutants to meet the Delaware drinking-water standards.
Groundwater wells in southern New Castle County sometimes experience exceedances for naturally occurring substances such as iron and manganese and for land-based sources such as nitrogen, and pesticides. The public water-supply wells have water-treatment systems that remove pollutants to meet the Delaware drinking-water standards

Projections and Plans

The State of Delaware sponsors two watershed-based programs designed to improve the water quality of the streams and wells in New Castle County. The Christina Basin Clean Water Partnership, a program between Delaware and Pennsylvania, is designed to restore the streams to fishable and swimmable status in accordance with the Total Maximum Daily Load provisions of the Clean Water Act. The Delaware Source Water Protection Program is mandated by the Federal Safe Drinking Water Act and is designed to identify and detect sources of pollution in the watersheds and aquifer that provide a drinking-water supply.

Identified Opportunities and Constraints

Clean drinking-water supplies provide an opportunity for economic growth provided the drinking-water intakes are fitted with water-treatment plants that remove pollutants in accordance with the Delaware drinking-water standards. Implementation of the Christina Basin Clean Water Partnership and the Delaware Source Water Protection Program presents the opportunity to improve water quality in New Castle County watersheds and along streams, such as the Christina River and Brandywine Creek at the Wilmington riverfront renaissance.

WATER QUALITY

Sussex

Summary of Topic's Relationship to Economic Development

Clean and healthy surface water and groundwater is paramount to sustain Delaware's commercial, manufacturing, agriculture, recreation, and tourism industries.

Trends and Existing Conditions

Groundwater wells in Sussex County experience exceedances for nitrogen, iron, manganese, and pesticides. All wells have water-treatment systems that remove pollutants to meet the Delaware drinking-water standards. The Inland Bays region, near the ocean coast of Delaware, experiences periodic exceedances of nitrogen and phosphorus that lead to algae blooms during the warmer months.

Projections and Plans

The Delaware Source Water Protection Program is mandated by the Federal Safe Drinking Water Act and is designed to identify and detect sources of pollution in the aquifers that provide a drinking-water supply. DNREC and the Center for the Inland Bays are implementing a pollution-control strategy in accordance with the TMDL provisions of the Clean Water Act to clean up the sources of nitrogen and phosphorus to the Inland Bays region.

Identified Opportunities and Constraints

Clean drinking-water supplies provide an opportunity for economic growth if the drinking-water intakes are fitted with water-treatment plants that remove pollutants in accordance with the Delaware Drinking Water standards. The Inland Bay Pollution Control Strategy is designed to protect and restore the quality of the bays, thus continuing to sustain the tourism economy along Delaware's oceanfront.

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Section 4.8

WATER SUPPLY

Kent

Relationship of Water Supply to Economic Development

Delaware's residents, businesses, and industries depend on clean and plentiful drinking-water supplies to sustain commerce in the First State.

Existing Conditions and Trends

A network of municipal- and investor-owned water purveyors provide public-water supply to Kent County. Groundwater wells provide all of the drinking-water supply for Kent County.

Water Supply chart

Projections and Plans

As growth occurs, the water purveyors plan to develop additional wells to add to the water supply in Kent County.

Water Supply chart

Identified Opportunities and Constraints

Opportunities exist to develop additional water-supply wells to accommodate planned growth through 2030. The aquifers in Kent County are limited in availability. The estimated availability of ground-water supply in Kent County is to be determined.

WATER SUPPLY

New Castle

Relationship of Water Supply to Economic Development

Delaware's residents, businesses, and industries depend on clean and plentiful drinking-water supplies to sustain commerce in the First State.

Trends and Existing Conditions

A network of municipal- and investor-owned utilities provide public drinking water to New Castle County. North of the C&D Canal, streams in the Christina Basin provide up to 75% of the drinking water. South of the C&D canal, groundwater wells provide all of the drinking water. The following purveyors provide drinking water to New Castle County:

Water Supply chart

Projections and Plans

Since 1999, the Delaware Water Supply Coordinating Council has been working in northern New Castle County to develop over one billion gallons of additional water-supply storage to meet peak water demands as summarized below during the drought of record.

Water Supply chart

In southern New Castle County, the three water purveyors are drilling new wells to meet peak demands in the Middletown, Odessa, and Townsend area.

Water Supply chart

Identified Opportunities and Constraints

With additional reserve water supplies being implemented in northern New Castle County, supplies should be sufficient to meet projected demands by 2020. In southern New Castle County, industries requiring more than 3 to 5 mgd of water would be required to develop additional water supplies from wells.

WATER SUPPLY

Sussex

Relationship of Water Supply to Economic Development

Delaware's residents, businesses, and industries depend on clean and plentiful drinking-water supplies to sustain commerce in the First State.

Existing Conditions and Trends

Water Supply chart

Projections and Plans

As growth occurs, the water purveyors plan to develop additional wells to add to the water supply in Sussex County.

Identified Opportunities and Constraints

Opportunities exist to develop additional water-supply wells to accommodate planned growth through 2030. The aquifers in Sussex County are limited in availability. The estimated maximum availability of groundwater supply in Sussex County is to be determined.

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Section 5.1

DEMOGRAPHICS

Statewide

Delaware's population as of July 1, 2005, is 840,368, which is an increase of 53,927 since 2000. In the previous five-year period (1995-2000), the population increased by 56,707. Delaware is expected to have a population of 1,031,087 by 2030.
The population is currently growing by 1.3% per year, compared to 1.5% per year in the period 1995-2000. The long-term annual growth rate since 1790 is 1.2% per year. The U.S. is growing at an annual rate of 1%, and the states in the region (MD, NJ, and PA) are growing 0.6% annually.
Two sources contribute to population growth-natural increase and net migration. Natural increase is the number of births in the state less the number of deaths. Net migration is the number of people who move into the state each year less those that leave the state. Currently, 65% of all population growth in Delaware is from net migration.
Delaware is becoming more diverse, both racially and ethnically. In 1950, the state was 86% white. By 2000 that had fallen to 75% and is expected to fall to 59% by 2030. The state has a rapidly increasing Hispanic population. It has grown from 15,000 in 1990 to more than 43,000 today.
The population of the U.S. is aging, and Delaware is no exception. In 1970, the 0-19 age group represented 39.5% of the state's population, and those 65 and over comprised 8% of the population. By 2000 the youngest age group had grown by roughly 2,000. In contrast, the 65-and-over age group grew by 58,000. The percentages are now 28% and 13% for the 0-19 age group and the 65+ age group, respectively. By 2030, the two groups will be roughly the same size.
As the population ages, the natural increase component of population growth falls, as deaths increase faster than births. Population growth becomes increasingly dependent on net migration, and by 2030 87% of population growth will have to come from net migration if current forecasts are to be realized. In addition, average household size will continue to fall.
Housing has been growing faster than the population for decades. From 1990 to 2000, housing units increased 1.7% annually while the population increased by 1.6% annually. Since 2000, housing continues to increase 1.6% annually while population grows 1.3% per year. Two factors affect this differential-lower household sizes and increased seasonal housing (2nd homes). Since 1970, about 130,000 acres of farmland have been consumed by this growth.
In 1950, an average of 3.52 people occupied each housing unit. By 2000, the number had fallen to 2.54. If household size had remained at 1990 levels (2.61), about 8,000 fewer housing units would have been needed in 2000. Current forecasts suggest a continuing but shallow decline over the next 20 years.
One of the more interesting aspects of household size is the percentage of people who are living alone. In 1970, just over 15% of households contained a single person. This percentage has continued to increase as the population ages and stands at over 25% today. It will continue to increase as the baby-boomers age.
In contrast, married couples with children under the age of 18 now comprise 22% of all households, down from 26% in 1990 and 42% in 1970.
Delaware has a mix of housing. Approximately 72% of homes are single-family dwellings, 18% are multi-family, and 10% are manufactured homes. Over the past 30 years, the largest change has been in manufactured homes, which have doubled from 5%, largely at the expense of single-family housing.
Home ownership has increased steadily, from 68% in 1970 to 72% in 2000. Since 2000, this trend has increased even more rapidly with the favorable interest rates and a lack of new rental units.
The aging of the population also affects the size of the labor force. In 1960, 59% of the 16+ population was in the labor force, in contrast with 68% in 1990 and 66% in 2000. This percentage will continue to fall as more baby-boomers retire. Women have roughly doubled their labor-force participation since 1950, but that has now stabilized at around 60%. In contrast, the rate for men has been steadily declining over the past 50 years and now stands at 72%.
Employment produces income, and Delaware scores reasonably well. In 2004, the state ranked 8th with a per capita income of $35,151-above the U.S. standard of $32,937. Perhaps a more meaningful measure is median household income, where Delaware's $50,451 ranks 9th in the U.S. and well-above the U.S. average of $43,527 in 2003. Delaware's median family income of $61,270 ranked 7th in the country.
The proportion of people falling under the federal poverty guidelines has varied over the past 30 years. Decennial Census measures of poverty have been as low as 8.7% in 1990 and as high as 11.8% in 1980. The most recent estimate (2003) shows Delaware with a poverty rate in 2003 of 7.7%, compared with 12.1% for the U.S. That is the second-lowest poverty rate in the country.
Poverty and income are heavily influenced by employment. Success in the current job market is becoming more and more dependent on the level of education attained by an individual. In 1970, only 13% of adults over the age of 25 had a college education. By 2000, that percentage had nearly doubled to 25%. At the same time, the percentage without a high school diploma fell from 45% to 17% during the same period. The percentage of all jobs that require a college education increased from 25% in 1970 to 35% in 2000. This trend continues.

DEMOGRAPHICS

Kent

Kent County's population as of July 1, 2005, is 140,968, which is an increase of 13,866 since 2000. In the previous five-year period (1995-2000), the population increased by 6,387. The expected population in 2030 is 180,571.
The population is currently growing by 2.1% per year, compared to 1.0% per year in the period 1995-2000. The long-term annual growth rate since 1790 is 0.9% per year. Delaware is growing at an annual rate of 1.3%, and the states in the region (MD, NJ, and PA) are growing 0.6% annually.
Two sources contribute to population growth-natural increase and net migration. Natural increase is the number of births in the state less the number of deaths. Net migration is the number of people who move into the state each year less those that leave the state. Currently, 69% of all population growth in Kent County is from net migration.
Kent County is becoming more diverse, both racially and ethnically. In 1950, the county was 82% white. By 2000 that had fallen to 74% and is expected to fall to 64% by 2030. The county has an increasing Hispanic population. It has grown from 2,800 in 1990 to more than 4,000 today.
The population of Delaware is aging, and Kent County is no exception. In 1970, the 0-19 age group represented 41% of the county's population, and those 65 and over comprised 7% of the population. By 2000 the youngest age group had grown by roughly 5,000. In contrast, the 65-and-over age group grew by 8,800. The percentages are now 31% and 11.7% for the 0-19 age group, and the 65+ age group, respectively.
As the population ages, the natural increase component of population growth falls, as deaths increase faster than births. Population growth becomes increasingly dependent on net migration, and by 2030 94% of population growth will have to come from net migration if current forecasts are to be realized. In addition, average household size will continue to fall.
Housing has been growing faster than the population for decades. From 1990 to 2000, housing units increased 1.7% annually while the population increased by 1.6% annually. Since 2000, housing continues to increase 1.6% annually while population grows 1.3% per year. Two factors affect this differential-lower household sizes and increased seasonal housing (2nd homes). Since 1970, about 130,000 acres of farmland have been consumed by this growth.
In 1950, an average of 3.27 people occupied each housing unit. By 2000, the number had fallen to 2.61. If household size had remained at 1990 levels (2.7), about 1,600 fewer housing units would have been needed in 2000. Current forecasts suggest a continuing but shallow decline over the next 20 years.
One of the more interesting aspects of household size is the percentage of people who are living alone. In 1970, just under 14% of households contained a single person. This percentage has continued to increase as the population ages and stands at over 23% today. It will continue to increase as the baby-boomers age.
In contrast, married couples with children under the age of 18 now comprise 24% of all households, down from 30% in 1990 and 46% in 1970.
Kent County has a mix of housing. Approximately 68% of homes are single-family dwellings, 14% are multi-family, and 18% are manufactured homes. Over the past 30 years, the largest change has been in manufactured homes, which have increased from 13%, largely at the expense of multi-family housing.
Home ownership has increased steadily, from 63% in 1970 to 70% in 2000. Since 2000, this trend has increased even more rapidly with the favorable interest rates and a lack of new rental units.
The aging of the population also affects the size of the labor force. In 1970, 63% of the 16+ population was in the labor force, in contrast with 69% in 1990 and 71% in 2000. This percentage will fall as more baby-boomers retire. Women have roughly doubled their labor-force participation since 1950, but that has now stabilized at around 60%. In contrast, the rate for men has been steadily declining over the past 50 years and now stands at 69%.
In 2003, Kent County had a per capita income of $26,438, well below the Delaware standard of $34,199 and the U.S. standard of $32,937. Another measure is median household income. In 2002, Kent County's median household income was $41,187, trailing Delaware's $48,096 and the U.S. median of $42,409.
The proportion of people falling under the federal poverty guidelines in Kent County has varied over the past 30 years. Decennial Census measures of poverty have been as low as 10.7% in 1990 and as high as 15.4% in 1970. The most recent estimate (2002) shows Kent County with a poverty rate in 2002 of 11.3% compared with 12.1% for the U.S. and 9.3% for Delaware.
Poverty and income are heavily influenced by employment. Success in the current job market is becoming more and more dependent on the level of education attained by an individual. In 1970, only 10% of adults over the age of 25 had a college education. By 2000, that percentage had nearly doubled to 19%. At the same time, the percentage without a high school diploma fell from 48% to 21% during the same period. The percentage of all jobs that require a college education increased from 25% in 1970 to 35% in 2000. This trend continues.

DEMOGRAPHICS

New Castle

New Castle County's population as of July 1, 2005, is 523,624, which is an increase of 21,758 since 2000. In the previous five-year period (1995-2000), the population increased by 27,431. The expected population in 2030 is 598,924.
New Castle County population is currently growing by 0.9% per year, compared to 1.1% per year in the period 1995-2000. The long-term annual growth rate since 1790 is 1.5% per year. Delaware is growing at an annual rate of 1.3%, and the states in the region (MD, NJ, and PA) are growing 0.6% annually.
Two sources contribute to population growth-natural increase and net migration. Natural increase is the number of births in the state less the number of deaths. Net migration is the number of people who move into the state each year less those that leave the state. Currently, 40% of all population growth in New Castle County is from net migration.
New Castle County is becoming more diverse, both racially and ethnically. In 1950, the county was 88% white. By 2000 that had fallen to 73% and is expected to fall to 66% by 2030. The county has an increasing Hispanic population. It has grown from 12,014 in 1990 to more than 30,000 today.
The population of Delaware is aging, and New Castle County is no exception. In 1970, the 0-19 age group represented 40% of the county's population and those 65 and over comprised 8% of the population. By 2000 the youngest age group had fallen by roughly 12,000. In contrast, the 65-and-over age group grew by 29,000. The percentages are now 28% and 11.6% for the 0-19 age group and the 65+ age group respectively.
As the population ages, the natural increase component of population growth falls, as deaths increase faster than births. In addition, net migration will slow as the need for jobs falls with an aging population and available land is consumed for building additional housing. Average household size will continue to fall. Natural increase will likely be the primary source of growth.
Housing has been growing faster than the population for decades. From 1990 to 2000, housing units increased 1.7% annually while the population increased by 1.6% annually. Since 2000, housing continues to increase 1.6% annually while population grows 1.3% per year. Two factors affect this differential-lower household sizes and increased seasonal housing (2nd homes).
In 1950, an average of 3.46 people occupied each housing unit. By 2000, the number had fallen to 2.56. If household size had remained at 1990 levels (2.6), about 4,000 fewer housing units would have been needed in 2000. Current forecasts suggest a continuing but shallow decline over the next 20 years.
One of the more interesting aspects of household size is the percentage of people who are living alone. In 1970, just over 15% of households contained a single person. This percentage has continued to increase as the population ages and stands at nearly 26% today. It will continue to increase as the baby-boomers age.
In contrast, married couples with children under the age of 18 now comprise 23% of all households, down from 26% in 1990 and 43% in 1970.
New Castle County has a mix of housing. Approximately 75% of homes are single-family dwellings, 23% are multi-family, and 2% are manufactured homes. Over the past 30 years, the distribution has hardly changed.
Home ownership has increased slightly, from 68% in 1970 to 70% in 2000. Since 2000, this trend has increased even more rapidly with the favorable interest rates and a lack of new rental units.
The aging of the population also affects the size of the labor force. In 1970, 60% of the 16+ population was in the labor force, in contrast with 70% in 1990 and 71% in 2000. This percentage will fall as more baby-boomers retire. Women have roughly doubled their labor-force participation since 1950, but that has now stabilized at around 62%. In contrast, the rate for men has been steadily declining over the past 50 years and now stands at 73%.
Employment produces income, and New Castle County scores very well. In 2003, the county had a per capita income of $38,636 above the Delaware standard of $34,199 and the U.S. standard of $32,937. Perhaps a more meaningful measure is median household income, where New Castle County's $53,377 exceeded Delaware's $48,096 and the U.S. average of $42,409 in 2002.
The proportion of people falling under the federal poverty guidelines in New Castle County has varied over the past 30 years. Decennial Census measures of poverty have been as low as 7.5% in 1990 and as high as 11% in 1980. The most recent estimate (2002) shows New Castle County with a poverty rate in 2002 of 8.1% compared with 12.1% for the U.S. and 9.3% for Delaware.
Poverty and income are heavily influenced by employment. Success in the current job market is becoming more and more dependent on the level of education attained by an individual. In 1970, only 15% of adults over the age of 25 had a college education. By 2000, that percentage had nearly doubled to 30%. At the same time, the percentage without a high school diploma fell from 42% to 15% during the same period. The percentage of all jobs that require a college education increased from 25% in 1970 to 35% in 2000. This trend continues.

DEMOGRAPHICS

Sussex

Sussex County's population as of July 1, 2005 is 175,775, which is an increase of 18,302 since 2000. In the previous five-year period (1995-2000), the population increased by 22,889. The expected population in 2030 is 252,376.
The population is currently growing by 2.2% per year, as compared to 3.2% per year in the period 1995-2000. The long-term annual growth rate since 1790 is 1.0% per year. Delaware is growing at an annual rate of 1.3%, and the states in the region (MD, NJ, and PA) are growing 0.6% annually.
Two sources contribute to population growth-natural increase and net migration. Natural increase is the number of births in the state less the number of deaths. Net migration is the number of people who move into the state each year less those that leave the state. Currently, 92% of all population growth in Sussex County is from net migration.
Sussex County is becoming more diverse, both racially and ethnically. In 1950, the county was 81% white. By 2000 that had fallen only to 80% and is expected to fall only to 78% by 2030. The county has an increasing Hispanic population. It has grown from 1,491 in 1990 to more than 8,400 today.
The population of Delaware is aging, and Sussex County is no exception. In 1970, the 0-19 age group represented 38% of the county's population and those 65 and over comprised 11% of the population. By 2000 the youngest age group had grown by roughly 8,500. In contrast, the 65-and-over age group grew by 20,100. The percentages are now 25% and 18.5% for the 0-19 age group and the 65+ age group, respectively.
As the population ages, the natural increase component of population growth falls, as deaths increase faster than births. Population growth becomes increasingly dependent on net migration, and by 2030 100% of population growth will have to come from net migration if current forecasts are to be realized. In addition, average household size will continue to fall.
Population has been growing faster than housing units in Sussex County. From 1990 to 2000, housing units increased 2.3% annually while the population increased by 3.3% annually. This is possible in Sussex, because many of the new arrivals move into an existing vacation home. This, in turn, creates a demand to add new vacation homes for seasonal rentals.
In 1950, an average of 3.27 people occupied each housing unit. By 2000, the number had fallen to 2.45. If household size had remained at 1990 levels (2.6), about 2,500 fewer housing units would have been needed in 2000. Current forecasts suggest a continuing but shallow decline over the next 20 years.
One of the more interesting aspects of household size is the percentage of people who are living alone. In 1970, just over 17% of households contained a single person. This percentage has continued to increase as the population ages and stands at over 24% today. It will continue to increase as the baby-boomers age.
In contrast, married couples with children under the age of 18 now comprise 18% of all households, down from 24% in 1990 and 37% in 1970.
Sussex County has a mix of housing. Approximately 68% of homes are single-family dwellings, 7% are multi-family, and 24% are manufactured homes. Over the past 30 years, the largest change has been in manufactured homes, which have increased from 9%, largely at the expense of multi-family housing. This trend is influenced by seasonal housing.
Home ownership has increased steadily, from 72% in 1970 to 81% in 2000. Since 2000, this trend has increased even more rapidly with the favorable interest rates and a lack of new rental units.
The aging of the population also affects the size of the labor force. In 1970, 61% of the 16+ population was in the labor force, in contrast with 62% in 1990 and 61% in 2000. The reason for the stability in this rate is a rapidly falling participation rate for males (77.7% in 1970 and 65% in 2000), while the female rate increased from 45% to 53%.
In 2003, Sussex County's had a per capita income of $26,832, well below the Delaware standard of $34,199 and the U.S. standard of $32,937. Another measure is median household income, where Sussex County's $37,896 also trailed Delaware's $48,096 and the U.S. average of $42,409 in 2002.
The proportion of people falling under the federal poverty guidelines in Sussex County has varied over the past 30 years. Decennial Census measures of poverty have been as low as 10.5% in 2000 and as high as 15.8% in 1970. The most recent estimate (2002) shows Sussex County with a poverty rate in 2002 of 11.3%, compared with 12.1% for the U.S. and 9.3% for Delaware.
Poverty and income are heavily influenced by employment. Success in the current job market is becoming more and more dependent on the level of education attained by an individual. In 1970, only 7% of adults over the age of 25 had a college education. By 2000, that percentage more than doubled to 18%. At the same time, the percentage without a high school diploma fell from 43% to 23% during the same period. The percentage of all jobs that require a college education increased from 25% in 1970 to 35% in 2000. This trend continues.

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Section 5.2

ECONOMY

Statewide

Delaware's job growth is again positive after a period of negative growth. This weakness took the form of declining payrolls in 2001 and 2002 and zero growth in 2003. Positive growth returned in 2004 with 10,000 jobs added. The number of jobs in the state has now surpassed its pre-recession level.
The current establishment survey from the BLS indicates that non-farm jobs are 22% higher now than in 1990. Trends in Delaware's non-farm jobs track the nation relatively closely. Nationally, the number of non-farm jobs is 19% higher than in 1990.
Between 1990 and 2004, Delaware added 77,000 jobs (BLS CES). All major industries experienced positive employment growth between 1990 and 2004, save manufacturing.
The period 1990-2004 was not one of unbroken job growth, however. During the 1990-1991 and 2001 recessions [1], job growth stalled and turned negative in a number of Delaware industries. For example, the trade, transportation, and utilities industries lost jobs in 1991, 1992, and 2001. The same is true for professional and business services, which shed almost 5,000 jobs during the period 2000-2004 that encompasses the 2001 recession. Further, manufacturing and information each recorded double-digit negative growth between 2000 and 2004.
The state's unemployment rate has been consistently lower than the national rate since 1990. The margin between the national unemployment rate and the state's rate over this period has been as great as 2.2% (1992) and as small as 0.1% (2000).
Delaware's employment is more heavily concentrated than the nation in three industries: construction (7% of total employment versus 6% nationally), financial activities (13% of total employment versus 7% nationally), and professional and business services (17% versus 15% nationally).
Three of every four establishments in the state employ fewer than ten workers. This equates to 18,176 establishments of the 24,000 in the state having fewer than ten employees [2]. The distribution of firms by establishment size varies by industry.
Delaware's nominal Gross State Product (the total value of goods and services produced in the state-GSP) has risen consistently between 1977 and 2002. In 1977, the total value of goods and services produced in the state was $6 billion. In 2002, Delaware GSP exceeds $47 billion.
In 1977, the state's largest industry was manufacturing, which accounted for 34% of total state product. The single largest manufacturing output industry in the state was chemicals production, which accounted for 16% of total GSP. By 2002, the relative share of GSP by industry was radically different. Manufacturing's share had receded from 34% to 9%. Simultaneously, financial, insurance, and real estate's (FIRE) share of GSP grew rapidly. In 2002, FIRE's share of GSP is the single largest in the state, comprising 44%.
Employment volatility [3] for Delaware is highly related to employment volatility at the national level. This implies that the state's employment is relatively sensitive to national economic fluctuations.
Delaware's identified economic clusters include financial services and insurance, life science and biotechnology (including agriculture), automobile manufacturing, chemical manufacturing, and tourism. These clusters vary in size and wages. The chemical industry, finance and insurance, and life sciences clusters have been shedding jobs. The average annual pay for these positions is high (approximately $70,000 average annual salary).
The following clusters are posting positive employment growth: transportation- equipment manufacturing (autos) and leisure and hospitality, though auto-manufacturing employment remains below its previous high. The average wages of each of these industries is $65,296 and $16,209, respectively.
Outside of these economic clusters, trade, transportation, utilities, and educational and health services are among the primary drivers of job growth. However, the average annual pay falls below the salaries of Delaware's strategic clusters. The average annual pay for trade, transportation, and utilities is $32,174, and $38,697 for educational and health services. Therefore, there is evidence that aggregate positive job growth in the economy is masking a substitution of lower paying jobs for higher paying jobs.
Delaware has a relatively low cost of doing business. While there are less expensive states across the nation in which to operate, within the northeast, Delaware's cost of doing business is among the lowest.

ECONOMY

Kent

Kent County's job growth is again positive after a period of stagnation. This weakness took the form of flat payroll growth between 1999 and 2001. This period included the 2001 recession. Positive growth returned in mid-2002, and 10,000 jobs have been added since January 2000. Kent County weathered the recession with little net job losses and has posted strong growth in the post-recession period.
The current employment statistics from the Bureau of Labor Statistics (BLS) indicate that the number of non-farm jobs is 31% higher now than in 1993 [4]. Trends in Kent County's non-farm jobs have tracked national trends relatively closely up to 2001 but have outperformed the nation more recently. Nationally, the number of non-farm jobs is 19% higher than in 1993 (based on 2004 annual data).
Between 1993 and 2004, Kent County added 15,000 jobs (BLS). All major industries experienced positive employment growth between 1993 and 2004, save manufacturing (negative growth) and information (flat growth). Among the fastest growing industries are educational and health services, financial activities, trade, transportation and utilities, and leisure and hospitality.
Leisure and hospitality industries posted the fastest growth-66%, or 2,900 jobs. The next fastest growth industry was educational and health services. Financial activities grew 56%. Manufacturing posted negative growth of 22% during the period. This equates to approximately one in every four manufacturing jobs in 1993 being eliminated by 2004.
The period 1993-2004 was not one of unbroken job growth, however. During the 2001 recession [5], job growth stalled in a number of Kent County industries. For example, the information industry lost 100 jobs between 2000 and 2004. Professional and business services added only 100 positions during the period.
Kent County employment base has shifted away from manufacturing towards services--echoing the national trend. In 1970, 20% of the county's employment was in manufacturing. By 2000, this figure had fallen to 9%. Simultaneously, the share of Kent County's total employment in services rose from 11% 1970 to 25% in 2000. Government employment's share of total employment fell from 37% in 1970 to 28% in 2000 [6].
Net commuting for Kent County is -728. [7] This reflects the commuting patterns wherein more Kent County residents leave the county for their work than non-Kent County residents enter the county for work. This figure is expected to increase over time.
Per capita personal income is $26,438 (BEA 2003), compared to $34,199 for the state and $31,472 for the nation.
Kent County's unemployment rate has been consistently lower than the national rate since 1990. The margin between the national unemployment rate and the county's rate over this period has been as great as 2.2% (2003) and as small as 0.1% (2002).
Kent County's employment is more heavily concentrated than the nation in four industries: construction (7% of total employment versus 6% nationally), trade, transportation and utilities (25% of total private employment versus 23% nationally), educational and health services (15% of total private employment versus 14% nationally), and leisure and hospitality industries (16% of total private employment versus 11% nationally).
Three of every four establishments in Kent County employ fewer than ten workers. This equates to 1,533 establishments of the 2,991 in the county having fewer than ten employees. [8]
Employment volatility [9] for Kent County is somewhat highly related to employment volatility at the national level. This implies that the county's employment is relatively sensitive to national economic fluctuations.
Agriculture in the county comprises 721 farms with 185,000 total acres. The number of farms is falling, but quite slowly. Farm employment is relatively steady. Currently, 1,500 jobs are in agriculture, below the high of 2,000 in 1970, but up from 1990 figure of 1,264.

ECONOMY

New Castle

The number of wage and salary jobs in New Castle County in 2003 was 301,864. [10] This equates to 49% more jobs than in 1980. By contrast, national job creation added 39% over the same period. Recent job growth has turned positive after two years of losses. However, the number of jobs in the county is still less than the pre-recession level.
The number of employed persons in New Castle County is 11% higher now than in 1990. However, this rate of growth trails the national rate of 17% for the same period. [11]
Net commuting for New Castle County is +25,508. [12] This reflects the commuting patterns wherein fewer New Castle County residents leave the county for their work than non-New Castle County residents enter the county for work. This figure is expected to increase over time.
New Castle County's employment base has shifted away from manufacturing towards finance and services--echoing the national trend. In 1970, 28% of the county's employment was in manufacturing. By 2000, this figure had fallen to 12%. Simultaneously, the share of New Castle County's total employment in finance and service industries rose from 7% and 18%, respectively, in 1970 to 16% and 31% in 2000.
Almost two-thirds of the state's employed persons are located in New Castle County. [13]
Finance and financial services has surpassed chemicals as the single-largest industry with MBNA and J.P. Morgan Chase & Co. employing over 16,000 workers. Nevertheless, the chemical industry remains an important part of the economy. The acquisition of MBNA by Bank of America casts doubt over the future of MBNA employment in the state. The company is expected to shed 6,000 jobs, a portion of which is likely to be Delaware-based.
Per capita personal income is $38,636 (BEA 2003), compared to $34,199 for the state and $31,472 for the nation.
Between 2001 and 2004, New Castle County lost 1,833 jobs. [14] Among the industries shedding jobs were manufacturing, trade, transportation and utilities, information, financial activities, and other services. Employment growth in leisure and hospitality and education and health services partially offset these losses.
New Castle County's unemployment rate has been consistently lower than the national rate since 1990. The margin between the national unemployment rate and the county's rate over this period has been as great as 2% (1993) and as small as 0.1% (2001).
New Castle County's employment is more heavily concentrated than the nation in two industries: financial activities (15% of total employment versus 7.3% nationally), professional and business services (21% of total private employment versus 15% nationally).
Employment volatility [15] for New Castle County is highly related to employment volatility at the national level. This implies that the county's employment is relatively sensitive to national economic fluctuations. This contrasts with Sussex County, whose employment fluctuations are not explained in large degree by fluctuations in the national economy.
Delaware's identified economic clusters include financial services and insurance, life science and biotechnology (including agriculture), automobile manufacturing, chemical manufacturing, and tourism. These clusters vary in size and wages.
In New Castle County, the chemical industry, finance and insurance, and life sciences industry clusters have been shedding jobs. The average annual pay for these positions is high (over $70,000 average annual salary).
The following clusters are posting positive employment growth:# transportation equipment manufacturing (autos), and arts, entertainment and recreation, though auto manufacturing employment remains below its previous high. The average wages of each of these industries is $66,696 and $22,818, respectively. Therefore, there is evidence that aggregate positive job growth in the economy is masking a substitution of lower paying jobs for higher paying jobs.

ECONOMY

Sussex

Growth in the number of employed persons in Sussex County has outpaced the nation since 1990. Resident employment is 37% higher now than in 1990, compared to 17% for the nation. [16]
The largest industry in the county economy is tourism. The tourism industry encompasses retail trade and leisure and hospitality industries. Leisure and hospitality alone comprises over 16% of the county's private employment. Retail trade comprises 18% of private employment.
The number of wage and salary jobs in Sussex County in 2003 was 69,280. [17] This equates to 85% more jobs than in 1980. By contrast, national job creation rose 39% over the same period.
Agriculture remains a vital part of the economy, although its role is diminishing. Sussex still boasts the largest number of farms in the state (1,312) though this number has decreased sharply (24% since 1987). The average farm size in Sussex County is growing (216 acres), and the total farming acreage is still high at 284,000 (down just 10% since 1987). The implication is that smaller farms are being sold, leaving the larger farms in operation. Farm employment is also trending downward; this is a reflection of both a reduction on the number of farms and increased automation of farming activities (which raises productivity).
The market value of Sussex County agricultural products sold is $462 million, of which $389 million are poultry and their products. The number of broiler and other meat-type chickens sold is 224 million. [18] The county's manufacturing centers around food processing (which is tied to the poultry industry) and textiles (Invista/Koch Industries).
Net commuting for Sussex County is -7,291. [19] This reflects the commuting patterns wherein more Sussex residents leave the county for their work than non-Sussex residents enter the county for work. This figure is expected to increase over time. Per capita personal income is $26,832 (BEA 2003), compared to $34,199 for the state and $31,472 for the nation.
Sussex County's population growth rate is the fastest in the state. This growth is fuelled in large part by migration. The overarching trend is retiree migration into the county. However, there is solid growth of the non-retiree age group. Collectively, these population trends will dictate the pace of development in the county. With additional population comes additional demand for goods and services, which will be a catalyst for future growth in the county.
The rapid growth in house prices threatens to impede the growth in the county. The rising population creates demand for service-sector jobs but may be insufficiently compensated to afford the area housing prices.
Sussex County's employment base has shifted away from manufacturing towards finance and services--echoing the national trend. In 1970, 27% of the county's employment was in manufacturing. By 2000, this figure had fallen to 14%. Simultaneously, the share of Sussex County's employment in finance and service industries rose from 6% and 14%, respectively, in 1970 to 11% and 24% in 2000.
Some industries in Sussex County have been relatively resistant to the national recession. Industries contributing to private employment growth include construction, trade, transportation and utilities, educational and health services, leisure and hospitality, and other services.
The recent performance of Sussex County's economic clusters is mixed. Tourism is expanding. Average pay for these positions is $14,662. However, high paying jobs in chemical manufacturing and finance and insurance are being eliminated, whose average salaries are $55,374, and $37,551, respectively.
Employment volatility [20] for Sussex County is not highly related to employment volatility at the national level. This implies that the county's employment is relatively insensitive to national economic fluctuations. This contrasts with New Castle County and the state, whose employment fluctuations correlate in large degree with fluctuations in the national economy.
Sussex County's wages are generally lower than the statewide average. The mean (average) hourly wage for all occupations is $14.20 in Sussex County compared to $18.38 statewide. The wage differential between county and statewide entry-level wages is much narrower than at the mean ($7.54 for all occupations in Sussex versus $8.45 for all occupations statewide). The differential between county and statewide is greatest for hourly wages of experienced workers ($17.54 for all occupations in Sussex versus $23.34 for all occupations statewide).

Economy Section Endnotes

www.nber.org/cycles.html
County Business Patterns, 2002.
Formula modified from "Assessing Regional Economic Stability: A portfolio approach," Economic Review (Federal Reserve Bank of San Francisco), Winter 1990.
Based on BLS Current Employment Statistics data extracted August 12, 2005.
www.nber.org/cycles.html
These data are based on Bureau of Economic Analysis employment series. The data provide time series starting in 1969. The data are SIC based.
Delaware Population Consortium, 2004.
County Business Patterns, 2002.
Formula modified from "Assessing Regional Economic Stability: A portfolio approach," Economic Review (Federal Reserve Bank of San Francisco), Winter 1990.
Bureau of Economic Analysis. BEA reports county-level employment from 1969-2003. The data are not as current as other series but provide a longer series of individual county data. BEA jobs are typically higher than BLS-reported jobs, because the BEA makes additions for groups excluded by state unemployment insurance programs, for farm employment, private households, and other excluded groups. See www.bea.gov/bea/regional/articles/lapi2001/alternative_measures.cfm for a complete description.
Local area unemployment statistics. This series reports the number of persons with jobs by residence. No adjustment is made for multiple job holding. Comparably, wage and salary job growth is reported for this period by the Bureau of Economic Analysis.
Estimated net commuting for 2005, Delaware Population Consortium, 2004.
Local Area Unemployment Statistics, Bureau of Labor Statistics.
Bureau of Labor Statistics Covered Employment and Wages.
Formula modified from "Assessing Regional Economic Stability: A portfolio approach," Economic Review (Federal Reserve Bank of San Francisco), Winter 1990.
Local area unemployment statistics. This series reports number of persons with jobs by residence. No adjustment is made for multiple job holding. Non-seasonally adjusted employment.
Bureau of Economic Analysis. BEA reports county-level employment from 1969-2003. The data are not as current as other series but provide a longer series of individual county data. BEA jobs are typically higher than BLS-reported jobs, because the BEA makes additions for groups excluded by state unemployment insurance programs, for farm employment, proprietors employment, private households, and other excluded groups. See www.bea.gov/bea/regional/articles/lapi2001/alternative_measures.cfm for a complete description.
2002 Census of Agriculture. www.nass.usda.gov/census/
Delaware Population Consortium.
Formula modified from "Assessing Regional Economic Stability: A portfolio approach," Economic Review (Federal Reserve Bank of San Francisco), Winter 1990.

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Section 5.3

INDUSTRY CLUSTERS

Relationship of Industry Clusters and Economic Development

Dr. Michael E. Porter, a Harvard Business School professor, championed the concept of "Industry Clusters" and first recognized power of clusters to boost regional economic development. An industry cluster is defined as a geographically-concentrated group of industries and institutions that are interconnected by the markets they serve and the products they produce. Industries in a cluster share buyers, suppliers, processes, and technology. Successful industry clusters foster a business environment where collaboration and cooperation is encouraged among government, private businesses, industry, and universities. These entities develop mutually beneficial relationships to sustain economic growth, attract new business, promote research activity, and enhance economic-development opportunities within related growth industries of a geographic region.
Cluster industries help drive a region's economic growth by concentrating, or clustering, businesses to enhance access to business markets and improve innovation. The premise of cluster-based economic-development initiatives is that nurturing key industries will improve the competitiveness of businesses within these industries and enhance the economy. The old adage that there's "strength in numbers" describes the industry-cluster concept. Clusters of industry, in a supportive business environment, gain greater access to resources and a comprehensive "economic infrastructure." This economic infrastructure includes more experienced and skilled labor pools, accessible technology, ease of communication, available infrastructure, access to specialized suppliers and services, tailored support from financial and academic institutions, and technical knowledge.
Industry clusters are regarded as the key to competitiveness in the New Economy. Clusters enhance competitiveness by
- Improving Productivity - Access to specialized suppliers, skills, knowledge, technology, and training promotes a collaborative advantage in a competitive business climate.
- Fostering Innovation - A concentration of related industries and institutions stimulates research and innovation.
- Facilitating the Commercialization of Innovation - As the industry cluster strengthens and awareness increases, a framework for regional economic development provides sustained competitiveness and new opportunities for start-up and spin-off businesses.
Successful clusters cut across traditional industry classifications. For example, the California wine industry is traditionally classified under the California Agricultural Cluster. Yet products of the wine industry also support California's Tourism Cluster, Food Cluster, as well as educational, research, and trade organizations that support growers, wineries, and processing facilities.

Existing Programs and Trends

Delaware's Industry Clusters

Five industry areas have been identified as key to Delaware's economic competitiveness: automobiles, chemicals, financial services and insurance, life sciences/biotechnology, and tourism. Delaware's focus has been to foster public- and private-sector business relationships and to create a business environment in which clusters can grow and prosper. Governor Minner's New Economy initiatives have helped to establish programs and policies that support cluster-based economic development.

Industry-Cluster Trends

States are increasingly adopting cluster-directed policies to boost cluster-based economic development. Examples of cluster-directed policies include programs and investments to support the concentration and specialization of business and industry, the development of more responsive and efficient government operations, and legislation directed at the regulatory and tax environment.

Identified Opportunities and Constraints

Opportunities

Since the industry cluster concept was first introduced as an economic development strategy in 1990, follow up studies have demonstrated how clusters can be an effective organizing principle in economic development. One study found that a worker in a rural cluster firm earned 13% more, on average than a worker in a rural non-cluster business. Another study also demonstrated a positive correlation between the extent of clustering and income growth in a rural region.
Industry-cluster analysis is beneficial in that it promotes informed decision- making on strategies to better prepare the workforce, support cluster growth, and increase wealth in a region.

Constraints

While researchers agree that economic growth can be enhanced by cluster-based economic-development initiatives, they also caution against focusing on a limited number of clusters within a region. Case studies have shown that businesses that are dependent on one industry cluster can become distressed as a result of a recession, an economic downturn, or collapse of an industry.
One of the limitations of cluster analysis is that there are no official guidelines or conventional approaches to identifying or defining clusters. However, a consensus among researchers is beginning to emerge, leading to the development of a more standardized approach to cluster analysis. Several recent cluster-based analysis studies have used three factors common to all clusters for defining what constitutes a cluster. Those three factors are some measure of employment concentration, cluster dependency, and economic prosperity.
An objective way to identify industry clusters is by using the North American Industrial Classification System (NAICS). The NAICS groups establishments and jobs that are related by their primary product or function. The Bureau of Labor Statistics and the Bureau of Economic Analysis use NAICS for their industry-reporting convention. The economic analysis portion of the CEDS, conducted by the University of Delaware's Center for Applied Demography and Survey Research (CADSR), has adopted the NAICS industry groups to guide their research and aid comparability of cluster measures between Delaware and other states.

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Section 6

VISION STATEMENT

The community's vision and goals, together with an appraisal of the region's competitive advantage, should set the strategic direction for the action plan.

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Section 7

ACTION PLAN

The Action Plan should establish program priorities, including tasks and projects for implementation. This plan of action should advance the goals and objectives of the Vision element and list projects critical to the area.

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Section 8

EVALUATION

Each CEDS should contain criteria and performance measures for evaluation of the process.

The information gathered from the CEDS meetings and CEDS process will be evaluated and the results will be published as the Final CEDS Summary.

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Section 9.1

CEDS Committee Meeting Structure

Meeting Roles and Responsibilities

Role of the Committees

Committee work and meetings will follow the bottom-up approach previously described in Section I. Work performed by county committee members will be provided to the statewide CEDS Committee. In turn, the statewide committee will review project recommendations of each county committee and make final recommendations to the EDA for funding support.

Role of the Committee Chairs

Committee chairs will serve as consensus-builders and team leaders among committee members. Chairs will provide information and advice to the committees based on their experience in and expertise of county- and state-wide issues. While it might be very appropriate for chairs to guide discussions and assessments of issues, these individuals should rely on the assigned facilitators to lead the meeting agenda and activities.

Role of the Project Planning Team

The Project Planning Team will be responsible for the preparation and organization of each scheduled committee meeting. This includes posting meeting dates/times, contacting the media (when appropriate), corresponding with meeting facility staff, and publicizing decisions made by the committees. The CEDS Project Team will also be responsible for the facilitation and analysis of surveys and evaluations conducted by the committees. The team will meet before and after each scheduled committee meeting to prepare, debrief, and post relative information on the Delaware CEDS website.

Role of the Facilitators and Recorders

Each meeting will be organized and documented by a CEDS Project Team. Presentation and guidance from outside experts or community contacts may be necessary, depending on specified topic areas. Facilitators, who will remain neutral while guiding meeting activities, from the University of Delaware will provide and employ meeting agendas, ground rules, and decision-making strategies to allow committees members to effectively complete specified tasks and activities assigned for each committee meeting.

Meeting Formats and Outcomes

Commencement Event

An initial commencement meeting or "kickoff" will serve as an orientation and networking event to the Delaware CEDS process, formally charge the committees with their roles and responsibilities, and provide committee members with general state and local economic perspectives and demographic information. Meetings thereafter will address and facilitate specific issues and outcomes consistent with the procedures and processes developed by the CEDS Project Team.

Statewide CEDS Committee Meetings

Statewide CEDS Committee meetings will reflect an executive process, with committee members reviewing county committee priorities and voting on projects for potential EDA funding. Prior to each Statewide CEDS Committee meeting, committee members should be well informed of the issues and priorities originating from each county committee through participation in or analysis of their respective county committees and careful examination of recommended contacts and resources (e.g., reading materials, fact sheets, Delaware CEDS website).

County CEDS Committee Meetings

County committee meetings will reflect a workshop-style format and include brief presentations, vigorous committee member discussions and activities, and public- comment periods. Committees may be advised and encouraged to break into working groups to promote effective, participatory discussions. Tasks assigned should be completed before moving on to other stages of the CEDS process; therefore, county committee meetings will follow a "lock-step" process.

Want to see more about CEDS committees? Please see the Committees page.

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Section 9.2

Delaware Comprehensive Economic Development Strategy Kickoff Reception

The Schwartz Center for the Arts, Dover

September 7, 2005

3:00 - 5:00 p.m.

3:00 p.m. Welcome

Judy McKinney-Cherry, Director, Delaware Economic Development Office
Governor Ruth Ann Minner

3:30 p.m. Economic and Demographic Overview

Ed Ratledge, Center for Applied Demography and Survey Research

4:15 p.m. Overview of CEDS Process

Terry Deputy, Delaware Economic Development Office

4:30 p.m. Introduction of CEDS Project Team/Announcements

Bernie Dworsky, Institute for Public Administration, University of Delaware

4:45 p.m. Reception

Refreshments
Distribution of Materials to Committee Members

Last Updated: Monday, 12-Feb-2007 13:21:43 EST

Delaware Economic Development Office (DEDO)

The Plan Table of Contents

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Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 1.1

Section 1.2

Section 1.4

Section 1.5

Section 1.6

CEDS Committee Framework

Structure & Governance

Committee Support & Communications

CEDS Committee Meetings

Section 1.7

Section 1.8

Section 1.9

Section 2

COMMITTEE INFORMATION

Section 3.1

STATE STRATEGIES EXECUTIVE SUMMARY

Purpose

Introduction

Coordinating Government

Directing Growth

Investing Effectively

Improving Housing Choice

Preserving Delaware

Involving Citizens

Promoting Sustainable Jobs

Section 3.2

AN OVERVIEW OF LIVABLE DELAWARE

What is the state's role in land use?

What is wrong with sprawl?

Accomplishments

Section 3.3

Governor Ruth Ann Minner's New Economy Initiative

Delaware Competitiveness Fund

Other Minner Administration Economic-Development Initiatives:

Section 3.4

Air Quality

Brownfields

Energy

Funding Opportunities

Glossary of Terms

Land Use

Kent County

New Castle County

Sussex County

Statewide

Rural Economic Development

Controlling Sprawl

Historic Preservation

Chain Drugstores Success Stories

Telecommunications

Cluster Industries

Telecommunications

Transportation

Kent County

New Castle County

Sussex County

Statewide

Wastewater

Kent County

New Castle

Sussex

Water Quality

Kent County

New Castle

Sussex

Water Supply

Kent County

New Castle

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