Sussex joins with state to back downtown development

Four Sussex County towns have designated downtown development districts opening the door for state grants.

Now, Sussex County is jumping on board to up the ante. At its Nov. 1 meeting, county council voted 3-2 to set aside $100,000 for matching grants to developers taking part in the program.

County Finance Director Gina Jennings said the county would match 50 cents for every $1 in downtown development district state grants up to $10,000 per grant. She said the money would be awarded at the completion of a project.

Jennings said the grant program is modeled after a successful one in Kent County. Towns in the program include Seaford, Georgetown, Laurel and Milford.

Council President Mike Vincent, R-Seaford, said he liked the program. “We are not doing it on the maybe something will happen,” he said.

Jennings said reserve funds from the real estate transfer tax account would be used to pay for the program.

In Seaford, developers David Perlmutter, Faith Perlmutter Diamond and Warren Diamond have started a major downtown revitalization program kicked off by a $9 million project along the Nanticoke River that has qualified for $671,000 in state grants. The Residences at River Place apartment complex will be followed by additional apartments, an office complex, shops and restaurants in the downtown area.

Perlmutter said he is also looking to do the same type of project in Milford.

Councilman Rob Arlett, R-Frankford, who voted against the grant program, questioned if it was the best use of taxpayers' money. “With grants, we pick and winners and losers,” he said. “I'd rather see some type of repay program.”

In addition, he said, county officials should explore ways to benefit more county businesses beyond the gift of a grant.

“If it's successful in Kent County, I'd like to see examples and proof – some real evidence,” Arlett said.

“Without calling them a liar, we can get that information,” Vincent responded.

“I'm not calling anyone a liar. I just want the information,” Arlett said.

Councilman George Cole, R-Ocean View, said the grant program would help the tax base of the towns with downtown development districts. “We collect their tax dollars and do not provide many services to the towns. This is a good way to give something back. It's a good investment,” he said.

Councilman Sam Wilson, R-Georgetown, also voted against the program.