Milton misses out on downtown development initiative

Milton has lost its chance to establish a Downtown Development District in the new state program's first round. State officials disqualified Milton's application.

Milton was one of 10 municipalities applying for the new $7 million program, intended to spur construction, renovations and economic growth throughout Delaware. The initiative is expected to create up to three Downtown Development Districts in 2015, one in each county.

Connie Holland, director of Delaware Office of State Planning Coordination, said Milton's application was disqualified because Milton Mayor and Town Council failed to pass a resolution to create the district, one requirement of the lengthy application process.

“They did a good job, but we had to look at every application and make sure everything was included,” she said. The resolution would have demonstrated the Town of Milton's intention to be involved in the program, she said.

“I think somehow there was miscommunication there,” she said.

Milton Mayor Marion Jones said she was unaware the town had to pass a resolution until it was too late, even though the requirement was listed in the state's application form and checklist, which were presented to council July 24.

Jones said Milton's Town Clerk supplied a "letter of support," including the dates council heard and supported the initiative, as part of its application.

“But I think at that point, that letter wasn't going to mean anything. They needed a resolution,” she said. “It was a component of the application that failed to be completed. I'm not going to point the finger at who failed to complete it.”

Milton was competing against Milford and Seaford for the Sussex County designation. Other towns under consideration were Clayton, Dover, Middletown, New Castle County, Newark, Smyrna and Wilmington. Milton's application was the only one that was disqualified. The remaining nine applications were reviewed by the Cabinet Committee on State Planning Issues, which recommended Seaford, Dover and Wilmington for the governor's consideration.

Markell's office announced Jan. 11 that Seaford, Dover and Wilmington were selected as the state's first Downtown Development Districts.

Chief Legal Counsel Andy Lippstone said the applications that didn't make the cut will be held at the Office of State Planning for up to four years; future development districts are dependent on the state's budget. This year's initiative is supported by Senate Bill 191 and funded by FY 2015 Bond Bill.

The three newly designated districts will offer incentives for developers, who upon completion of projects within the district, could receive up to 20 percent of construction costs in the form of rebates from the State Housing Authority, Lippstone said. The district designation lasts for 10 years, provided the town or city that applied for the district meets its obligations under the program, which include offering local incentives such as expediting permits and waiving or reducing fees.

Even though Milton is not eligible for the program this year, Holland said the town's updated comprehensive plan could help support an application next year. Milton will have to resubmit an application, including the required resolution, to be considered in the future.

“I think they'll probably be ready to hit the ground running,” she said.

While the application was submitted on behalf of the Town of Milton, it was Chamber of Commerce Executive Director Lisa Sumstine and Planning and Zoning Chairman Barry Goodinson who prepared the application.

Milton's application requested that 85 acres of the Milton Historic District be considered as one of the state's first Downtown Development Districts. Goodinson said Milton's application was clear, straight-forward and focused on improving walkability, opening vistas and creating access to the river, infilling vacant properties in downtown Milton and addressing the facades of the Milton Theatre and Milton Mercantile.

“We were really pleased with the application we submitted,” Goodinson said, adding that town officials were aware a resolution was needed in order for the application to be fully considered.

"We told them we needed a resolution coming from the town, and they moved forward and produced a document that, as far as we understood, was the document that was required," he said. "While I now understand that the town did not produce the document that was required, I suspect there's probably something else that happened to get it disqualified..."

Jones said she didn't want to speculate about how the town failed to pass a resolution alongside the application.

“Me personally, I relied on the person carrying the application forward to advise exactly what was needed and when it was needed,” she said. “I don't know it was a matter of oversight... It was put into the hands of the person who chose to carry that forward, and that's where I personally expected to take my direction.”

The program and the state's draft application form were presented by Sumstine to mayor and council July 24. Council voted to actively move forward with the application, with the help of Sumstine and a grant writer, on Aug. 4. The issue never came back before council.

“The subject was never brought up again until information was asked for and most of that information was channeled through [the Town Clerk],” Jones said. “There was support on the town's part at that point. There continued to be support, but what wasn't known is that the support had to come in the form of a resolution.”

Sumstine said the experience of going through the application process will better prepare Milton for next year's opportunity.

“Just because we lost, we're not going to quit,” she said. “This is still a magnificent place, and we're still looking for ways to make it better.”