Delmar Council approves new tax incentive for commercial development

April’s Mayor and Council Meeting pressed forward on updates and multiple resolutions to impact town infrastructure, commerce and community-building. The effects of last Monday evening’s discussions and voting will be felt in both the short and long term for residents as the town seeks progress.

Not initially contained in the original agenda for the evening, Mayor Bauer brought to the council a proposal regarding Delmar Pizza – long-time local business – making plans for a new development. He explained that the projected investment into the town is being estimated by owners at $20 million and that this poses some questions of tax incentives at that high capacity.

Presently, Delmar’s tax incentive addresses up to $1 million only, which brought the mayor to ask for a custom tax incentive for this new venture. He reported that multiple members of the council agreed to consider the rate of 15 years at six and two-thirds percent increments during a recent budget meeting. He proposed another consideration for 10 years at five percent increments and the last five years would see 10 percent increments.

Jeff Fleetwood, the manager of the town of Delmar, clarified that when the first improvement on the land was made, the owner would then begin to see the impact of the tax incentive. Two Council members, Todd Lanier and Mike McClure, raised questions on the proposed rate with McClure in agreement to the originally discussed amount, and Lanier concerned about the importance of balancing both local business support and town budgeting.

When the motion was made and all considerations were taken, the Mayor’s proposal passed, 3-2. 

All other votes held on new business and planning and zoning topics would see unanimous approval amongst the council. Fleetwood, in conjunction with a representative from Davis Bowen and Friedel, brought ongoing projects and previously discussed town improvements back to the meeting for final approval.

Phase three of the Inflow and Infiltration (I and I) project is now moving forward after a successful RFP bidding process when the initial bidding resulted in low response. With the project for slip lining and pipe replacement being separated into two jobs, the slip lining (introducing internal structure to already existing pipes that are viable) will be funded through the state of Delaware’s provision of a 20-year, two percent interest loan to the town for $983,203. This is expected to take around two months to complete, and the piping is rated for 75 years longevity.

The replacement of piping that cannot be repaired with slip lining – construction of which is a roughly 60 day process – will cost $377,313, with the funds coming from the town’s Utility Commission budget pending approval from the commission after receiving approval from both state’s councils. Fleetwood reminded the council and public that this large project will reduce the 51 percent infiltration into the water that is processed at the water treatment plant. The aim is to meet the adequate public facilities ordinance developed with Maryland to reduce a previous fine and improve the town’s infrastructure functioning for all.

Also addressing the water supply will be the purchase of a new water tower. Fleetwood stated, “We are seeking funding through the state of Delaware to install a new water tower on the (former) Perdue property.” He explained the town is currently within requirements for fresh water capacity when the water treatment plant’s current functional level is maintained, but should that be disrupted there would not be enough water reserved in the current water tower. That capacity is without consideration for the growth of the town as development continues. Funding will be at the same loan rate as the piping replacement.

Fleetwood also brought to the council a resolution that would bring an area of North Second Street under the management of the town following discussions with DelDOT. This is an area that the town has been repairing and looking after for years, thus the resolution would only be a clerical move to make it official. The ongoing maintenance will continue without change.

As previously discussed in earlier meetings this year, the purchase of the property adjacent to town hall – 24 East State Street – was officially brought to the council for a vote. Fleetwood says, “Staff is of the opinion that it is a good idea,” to purchase the property for $175,000, which is below the appraisal value and split the cost between the two state sides equally. It presents the opportunity to create better, more plentiful and more accessible parking for the public use.

Future plans for tree removal, property demolition, and asphalt paving could cost a total estimate of around $75,000 in the future but at this time the council is approving only the property purchase, another unanimous decision.

Moving to committee and department reports, Chief Barkley shared that locking up vehicles has been increasing within the town, successfully thwarting thefts. One unfortunate occurrence of theft was caught on camera, so when the stolen vehicle appeared in New Jersey, the two juveniles and one adult were identified and arrested with additional charges stemming from a stolen vehicle from Dover appearing in Delmar. If linked to a sawed-off shotgun found in a backpack in Delmar, further charges will apply.

In regards to the growth of the police department, the chief says, “Last week we processed new applicants for the upcoming academy class. Out of 14 applicants, 11 failed to complete the application itself. We had three for testing and out of those three, one had already been eliminated.” 

Notable updates from student advisor Rylin Nichols include the stellar record of the softball team, which is 4-0, and some major achievements following the Future Farmers of America team’s trip to convention. Two students received their proficiency and one will take on an officer position. The talent show and art show will be held on April 17 with prom on May 1.

Discussed earlier this year within council meetings, Council Member Lanier reports that the authorization of the bypass pump purchase has been passed by the Utility Commission at the cost of just under $20,000. Lanier asserts that if it had been purchased previously it would have likely paid for itself in recent years. On Monday, April 13, the utility commission was to discuss data centers and their impact on local economic development and invites the public to attend.

Three new constructions in the Stillwater development were approved along with some expansions for local C3 church campus. While these new updates were planned, an older, ongoing project is resurfacing according to Fleetwood. The lead and copper piping project will resume with upcoming grant funding from Maryland to utilize a machine called Swordfish which can use electrical currents to identify the material a hard to access pipe is made from. “You’ll be seeing a lot of activity,” at meters around town.

The federally funded, no-cost town storm water mapping project with the Alliance Group is now being scheduled, adding to town activity. The areas of Colonial Mill and Gateway Mobile Home Park have unfortunately been found to have PFAS, dangerous forever chemicals, in their water supplies and both state and federal funding has been secured to tie these communities into the town water supply at the out-of-town rate.

Moving away from the town-wide news and into town hall, April is a month of celebration for milestone benchmarks of the service town employees have dedicated. Fleetwood reminds the public of May’s milkshake day that takes place in the PD building.