Healthy and vibrant downtowns are critical components of Delaware’s economic well-being and quality of life. The purpose of this chapter is to leverage the resources of state government in a limited number of designated areas in Delaware’s cities, towns, and unincorporated areas in a multifaceted effort to:

(1) Spur private capital investment in commercial business districts and surrounding neighborhoods;

(2) Stimulate job growth and improve the commercial vitality of such districts and neighborhoods;

(3) Help build a stable community of long-term residents in such districts and neighborhoods by improving housing opportunities for persons of all incomes and backgrounds; increasing homeownership rates; building a diverse array of successful businesses; and reducing the number of vacant houses; and

(4) Help strengthen neighborhoods, while harnessing the attraction that vibrant downtowns hold for talented young people, innovative small businesses, and residents from all walks of life.

79 Del. Laws, c. 240, §  1; 

As used in this chapter:

(1) “Committee” means the Cabinet Committee on State Planning Issues established under § 9101 of Title 29.

(2) “Corridor plan” or “district plan” means the strategic plan or other detailed description of the overall strategy for the development of a proposed corridor or district submitted by the municipality or unincorporated area as part of its application for corridor or district designation.

(3) “Downtown” means that portion of a city, town, or unincorporated area that traditionally comprises its downtown or central business district, as determined by such city, town, or unincorporated area in accordance with guidelines promulgated by the Office.

(4) “Downtown Development Corridor” or “corridor” means an area within a municipality with a population of 30,000 or more based on the 2020 federal census that is designated as a Downtown Development Corridor under this chapter.

(5) “Downtown Development District” or “district” means an area within a municipality or unincorporated area designated as a Downtown Development District under this chapter.

(6) “DSHA” means the Delaware State Housing Authority.

(7) “Municipality” means any incorporated town or city of this State.

(8) “Office” means the Office of State Planning Coordination.

(9) “Unincorporated area” means an area of this State having a concentration of population that is not a municipality and that is eligible to apply for and receive district designation in accordance with rules promulgated by the Office.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 3; 

(a) At the request of the Governor, the Office shall solicit applications from municipalities and unincorporated areas to have an area designated as a Downtown Development Corridor or Downtown Development District. Such application shall include a description of the area to be included; the need for corridor or district incentives; the corridor plan or district plan; local incentives offered; and such other information as may be required by the Office.

(b) The Office shall administer the application process and establish criteria to determine what areas qualify as Downtown Development Corridors and Downtown Development Districts. The Office is authorized to take such actions as may be necessary or convenient to fulfill its responsibilities under this chapter, including promulgating rules and regulations relating to the establishment, amendment, and termination of corridors and districts and providing assistance to municipalities and unincorporated areas in connection with the application process.

(c) The criteria for designating an area as a Downtown Development Corridor or Downtown Development District must include all of the following:

(1) The need and impact of the designation for the area, including income, unemployment rate, homeownership rate, and prevalence of vacant or abandoned housing units in the municipality or unincorporated area. Need and impact factors must account for at least 50 percent of the consideration given to applications for corridor or district designation.

(2) The quality of the municipality’s or unincorporated area’s corridor plan or district plan.

(3) The quality of the local incentives offered.

(4) Such other criteria as may be determined by the Office.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 4; 

(a) Applications for corridor or district designation must be evaluated by the Cabinet Committee on State Planning Issues, which shall recommend to the Governor those applications with the greatest potential for accomplishing the purposes of this chapter.

(b) On receipt from the Committee of any recommended application, the Governor may do any of the following

(1) Designate immediately the recommended area as a corridor or district.

(2) Designate the recommended area as a corridor or district effective 1 year from the date of the determination by the Governor.

(3) Deny the application.

(c) [Repealed.]

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 5; 

(a) Not more than 15 districts may be designated at any 1 time. Not more than 1 corridor may be designated for each municipality.

(b) A corridor or district is to be designated for an initial 10-year period. On recommendation of the Committee, the Governor may renew a corridor or district for up to 2 5-year renewal periods. Recommendations for renewals must be based on the performance of corridor or district responsibilities by the municipality, or county in the case of a district in an unincorporated area; the continued need for the corridor or district; and the corridor’s or district’s effectiveness in creating capital investment, increasing population, creating jobs, improving housing stock, providing enhanced retail and entertainment opportunities, and otherwise improving the quality of life within the corridor or district.

(c) Any municipality, or county in the case of a district in an unincorporated area, having a corridor or district within its borders is responsible for providing the local incentives specified in its application, providing timely submission of reports and evaluations as required by rule or regulation, implementing an active local development corridor or district program within the context of overall economic and community development efforts, and fulfilling such other responsibilities as may be required by law, rule, or regulation in connection with the corridor or district.

(d) Each corridor or district shall submit regular reports and information to the Office as may be necessary to evaluate the corridor’s or district’s effectiveness and compliance with this section.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 6; 

(a) A municipality or unincorporated area applying for district designation, or municipality applying for a corridor designation, shall propose local incentives that address local economic and community conditions, and that will help achieve the purposes set forth in § 1901 of this title. The local incentives may include a reduction in fees or taxes. In addition, the application may also contain proposals for regulatory flexibility, which may include permit process reforms, special zoning districts, or exemptions from local ordinances.

(b) All incentives proposed in the application are binding on a municipality or unincorporated area applying for district designation, or municipality applying for a corridor designation, on designation of the corridor or district. The extent and duration of the incentives must be consistent with the requirements of the Delaware Constitution and the United States Constitution.

(c) A municipality or county may establish eligibility criteria for local incentives that differ from the criteria required to qualify for the incentives provided in this chapter.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 7; 

A municipality or county may apply to the Office to amend the boundaries of a corridor or district or to amend 1 or more corridor or district incentives for a corridor or district designated by the municipality or county, if any revised incentive proposed by the municipality or county is equal or superior to the incentive for which the amendment is sought. All proposed amendments are subject to approval by the Committee.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 8; 

(a) If a municipality or county fails to fulfill its obligations under § 1905 of this title or as otherwise set forth in this chapter, the Office may recommend to the Committee that the corridor or district be placed under formal review or that its corridor or district designation be terminated.

(b) Unless a municipality fails to provide local incentives under § 1906 of this title, the Office may not recommend any of the following:

(1) Placing a corridor or district under formal review for at least 2 years following the initial designation of the corridor or district.

(2) Terminating the designation of a corridor or district for at least 1 year following the placement of the corridor or district on formal review by the Committee.

(c) The Office may not recommend formal review or termination of a corridor or district without providing sufficient notice and opportunity to be heard to the corridor or district.

(d) The Committee may approve any recommendation by the Office to place a corridor or district under formal review or to terminate a corridor’s or district’s designation on the affirmative vote of ⅗ of the members of the Committee.

(e) The Office may promulgate regulations to authorize the continuation of previously authorized corridor or district incentives for a reasonable period following termination of the corridor or district. A new incentive may not be authorized for any entity after the date of termination.

79 Del. Laws, c. 240, §  1;  85 Del. Laws, c. 200, § 9;