Delmar seeks funding to expand infrastructure
The Town of Delmar has big plans for expansion along Route 13, anchored by the global headquarters of Perdue Agribusiness, which would bring 200 corporate jobs to the area.
The company would move from its current location in Salisbury, Md.
The project requires $480,000 to provide town water and sewer to a 17-acre parcel. Town officials are seeking a $150,000 grant from Sussex County. Delmar Mayor Michael Houlihan made the request during county council's June 12 meeting.
Houlihan said five more commercially zoned parcels could be developed once water and sewer infrastructure is in place.
Houlihan said Delmar town officials have budgeted $125,000 for the project and have requested $205,000 more from the state.
“The governor has given us a verbal agreement. It's a priority,” Rep. Tim Dukes, R-Laurel, told council.
Councilman George Cole, R-Ocean View, asked Sussex County Finance Director Gina Jennings if the county had previously provided infrastructure funding to towns.
She said the county made a $250,000 loan to the City of Seaford but had not made any grants at that level.
Cole asked the mayor how a loan would fit in with funding for the project. “Once we do a grant for Delmar, the dominoes will start to fall. Is a loan doable?” he asked.
“No, we did not discuss a loan,” the mayor replied, adding town officials are trying to fast-track funding so they don't hold up Perdue's plans to start construction at the end the summer.
County Administrator Todd Lawson said the final decision will be up to county council. “Whether it's a loan or grant is still to be determined. Council will give direction,” he said. “This is very unique and a significant investment in Delmar and the county. Given the magnitude of this, council will likely help out.”
He said having the global headquarters in Sussex County would be a strong marketing tool.
He noted that no funding is included in the just-adopted fiscal year 2019 budget, but money could come from the county contingency fund. Lawson said the county can't use its own sewer funds.
The county is obligated to retain enterprise funds in sewer district accounts, he said. “They are under lock and key for our sewer customers. All money collected is used to run and expand the systems. We can't mix the money to use it for economic development, even with sewer infrastructure,” he said.
This is the second request for a substantial grant made to council this year.
In February, Sussex County Council denied a grant request to Sussex Sports Center Foundation, but did approve a $1.5 million, zero interest loan to the foundation toward construction of a $4 million sports complex in Georgetown.
