PARKS, RECREATION, AND COMMUNITY ENHANCEMENT
The Parks, Recreation, and Community Enhancement Committee Meeting was held on March 1, 2005, at 12:04 p.m. with Chairman Pitts presiding. Members present were Mr. Hogan, Mr. Ruane, and Mr. Truitt. Mr. Anderson was absent. Mayor Speed was also present.
AGENDA ADDITIONS/DELETIONS
Mayor Speed requested the addition of item #1 - “Brief Discussion of the Proposed Civic Center”. Mr. Pitts requested the addition of item #3 - “Community Report”.
Mr. Truitt moved for approval of the agenda, as amended, seconded by Mr. Ruane and unanimously carried.
Civic Center Update
Last year, at the request of the State Bond Bill Committee, the Delaware Civic Center Corporation commissioned C. H. Johnson to perform a Civic Center Economic Impact Study. Mayor Speed reviewed the information provided in the study. He stated that the proposed Civic Center, which would be located in the vicinity of Sam’s Club and Scraborough Road, is a partnership project between the Civic Center Association and Delaware State University. He also noted that no other Civic Center projects are being proposed in Delaware.
Responding to Mr. Ruane, Mayor Speed stated that this is a “Statewide” project and that the City’s anticipated contribution is the land that has already been donated and the relocation of the electric substation, which Council approved for inclusion in the CIP. Mayor Speed noted that the City would benefit from the Civic Center being a significant water, electric, and sewer customer. Another positive impact from this project is an estimated 501 new jobs and approximately $20 million in associated personal income. Mayor Speed stated that the Legislature has not yet voted on the Bond Bill.
Discussion - Ideas of Mayor Speed for Neighborhood Improvements
During the Council Retreat held on January 21, 2005, Mayor Speed proposed consideration of a Homeownership Initiative for the Downtown area, including: monetary incentives; zoning changes to include a new, mixed-use Downtown Zone as specified in the Comprehensive Plan; nuisance property enforcement; transfer tax elimination for first time home buyers; real estate tax abatement in the target area; and, elimination of conversion from Single to Multi-family homes.
Mayor Speed provided a map of the targeted area, from Mary Street to Loockerman Street and Governor’s Avenue to West Street, which he suggested should be concentrated on at this time, and provided information on the following:
A. Monetary Incentives:
1. Extend 1st Time Home Buyer Transfer Tax Exemption to the Seller
Mayor Speed stated that most municipalities currently have a first time home buyer transfer tax exemption in place for the seller and he would like to implement a similar exemption Citywide, for the following reasons: 1) the City of Dover is below the national average Citywide in home ownership; and 2) it would prevent problem areas from surfacing in other areas of the City. Had this program been in place in June 2004, the approximate cost would have been $122,000. Mr. Ruane stated tax exemption for the seller seems like a reward for moving out of the City. Responding, Mayor Speed stated that the loss of revenue assumes a static situation and assumes that the process has no effect. An increase in home ownership within the City will result in increased property values, which will increase tax revenues every three (3) years when the reassessment is completed.
Mayor Speed advised members that although he would prefer that such an incentive be implemented Citywide, rather than having the incentive concept discarded, he would agree to implement it in the target area initially and then have it extended Citywide.
Mr. Ruane moved to recommend extending the first time home buyer transfer tax exemption to the seller in the target area, defined as Mary Street to Loockerman Street and Governors Avenue to West Street, seconded by Mr. Hogan and unanimously carried.
2. Real Estate Tax Abatement for Home Purchasers in the Target Area
Mayor Speed proposed implementing a real estate tax abatement program for anyone purchasing homes in the target area. This could be accomplished by waiving the property taxes the first year and gradually increasing the percentage of the tax due until the property owner is paying 100% of their tax bill. Responding to Mr. Hogan, Mayor Speed stated that this would include the purchase of homes in the target area and would not be limited to rental properties.
Mr. Hogan moved to recommend that staff prepare an ordinance which would phase in tax abatement over a period of time, as follows: No taxes in the first year; 25% in the second year; 50% in the third year; 75% in the fourth year; and 100% the fifth year, with the stipulation that the program only be open for five years, after which time it will automatically expire; it was also stipulated that the homeowner would be required to occupy the home until they are paying 100% of the taxes or that they rebate any taxes that they were exempt from and that the area of exemption be defined as being from Mary Street to Loockerman Street and Governors Avenue to West Street. The motion was seconded by Mr. Ruane and unanimously carried.
3. Partnership to Create Reduced Cost Mortgages in Target Area
Mayor Speed advised members that the Downtown Dover Development Corporation (DDDC) has suggested the creation of a partnership with a mortgage company that would provide for reduced cost mortgages in the target area in an effort to reduce barriers to home ownership, such as qualifying for mortgages.
No further action was taken by the committee at this time.
4. Increase Community Development Downpayment Assistance
Mayor Speed stated that the increase in Community Development downpayment assistance has been implemented.
Mr. Ruane moved to recommended that Council support priority use of the Community Block Development Grant (CDBG) money in its five year goal plan with the focus being: 1) the Community Development Downpayment Assistance Program; and 2) Rehabilitation. The motion was seconded by Mr. Hogan and unanimously carried.
B. Zoning Changes:
1. New Mixed Use Zone
Mayor Speed explained that the City’s Comprehensive Plan, which was originally adopted in 1996 and updated in 2003, states that the City of Dover will have a mixed use zone. The idea of this is to deconcentrate rental properties.
It was noted that the Planning and Inspections Department is planning to include the new zoning classification in the Implementation Chapter of the Comprehensive Plan and will be considered by City Council at that time.
2. Eliminate Single to Multi-Family Conversions in RG-1
Mayor Speed stated that the City’s largest concentration of RG-1 zoning, where conversion from single family homes to multi-family homes is permitted, is located in the downtown area. He suggested eliminating conversion in RG-1 only, not RG-2, in order to prevent correcting a problem in one area only to have it move to another area.
Mr. Ruane moved to recommend that staff prepare an ordinance to eliminate single-family to multi-family conversion in the RG-1 area. The motion was seconded by Mr. Hogan and unanimously carried.
C. Nuisance Property Enforcement:
Mayor Speed advised members that staff is researching State legislation regarding the handling of nuisance properties, such as those with repeated or continued drug, violence, gambling and prostitution activity.
No further action was taken by the committee at this time.
Community Report - Chairman Pitts
Mr. Pitts provided members some history of downtown Dover, explaining that although the City has made great improvements over the years, there are still more improvements to be made.
Ms. Lori James, representing Senator Thomas Carper, advised the committee that approximately two (2) years ago Senator Carper initiated a pilot housing initiative program, which is managed by the Dover Housing Authority. She noted that although Delaware has a very good home ownership rate nationwide, Kent County has a 52% home ownership rate. Mr. Pitts noted that there are approximately twenty (20) lots, some vacant and some with houses, in the target area that will either be rehabilitated or demolished.
It was noted that the Downtown Merchant’s Association recently submitted a request that the City consider the adoption of an ordinance to address vacant buildings in the downtown area. Members felt that vacant buildings are a problem throughout the City.
Mr. Ruane moved to recommend that during the next committee meeting, members have a discussion regarding vacant buildings and that the Downtown Merchants Association be invited to participate. The motion was seconded by Mr. Hogan and unanimously carried.
Mr. Truitt moved for adjournment, seconded by Mr. Ruane and unanimously carried.
Meeting Adjourned at 1:35 P.M.
Respectfully submitted,
John W. Pitts
Chairman
JWP/rfm
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