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What’s New

September 28, 2020 In In The News

Beebe drops plans for Milton campus

From Delaware Business Times

MILTON — Beebe Healthcare’s plans for a Milton campus were put on pause, as the development group tasked with constructing the building withdrew its application for the project last week.

Earlier this year, Phoenix RHCS Holdings announced a partnership with Beebe on a new campus, tentatively called the Jerry Ann McLamb Medical Pavilion, on 8 acres in downtown Milton. Early plans showed two 40,000-square-foot offices, one of which to be leased to Beebe and the other would have been used for complementary medical services.

In January, Beebe’s then-interim president and CEO Rick Schaffner told the Delaware State News that the Milton campus would provide primary care, walk-in care, as well as diagnostic imaging, laboratory services and rehabilitation services.

The office would have been Beebe’s most northern location, continuing a string of recent expansions through Sussex County. This spring, Beebe opened a freestanding emergency department and a cancer center at the Beebe South Coastal Health Campus. Construction work is underway at Beebe’s $124 million surgical hospital on Route 24 near Rehoboth Beach with a target opening in 2022.

The pavilion would have honored McLamb, a Milton native and a dedicated nurse that graduated from Beebe School of Nursing and spent most of her 50-year career at the southern Delaware health system. McLamb, who died in 2018, is the mother-in-law of Phoenix RHCS Holdings chief financial officer Chris Selzer.

The proposal would have also marked a first in Sussex for Phoenix RHCS Holdings, as it has previously developed medical offices in Southeastern Pennsylvania and New Castle County. Most notably, the company developed the Apex Medical Center with its memorable doctor’s bag sculpture in Christiana, according to a company representative.

All five parcels are owned by Lobolly, LLC,  the property management division of Draper Holdings, which owns the WBOC television station. Phoenix RHCS Holdings planned to buy the property from Lobolly, according to a Cape Gazette report, but the land has not changed hands as of Sept. 28.

Read more

September 25, 2020 In In The News

Pandemic forces small Delaware retailers to pivot to survive

From Delaware Business Times

Delaware’s downtown districts strived to rebrand themselves as the place for one-of-a-kind shopping and community experience, but the COVID-19 pandemic has forced dramatic change in the independent retail business model.

For decades, big box stores have been slowly taking market share from small businesses in designated commerce areas like Downtown Districts or Main Streets. Independent stores see less than a quarter of all retail shopping today compared to about half of sales in the 1980s, according to a study completed by the Institute for Local Self-Reliance. But gradually, Main Street Inc. programs and other grassroots efforts have led the way to preserve and revitalize historic commerce corridors.

Nationwide retail and restaurant spending totaled $526.1 billion in August, an increase of 0.6% from the previous month, according to the U.S. Department of Commerce. Spending has been steadily growing over the past four months, but that may falter now that extra federal unemployment benefits have lessened. Clothing and accessory sales skyrocketed 105% in June versus May, when shutdown orders were starting to lift, but now customers have tightened their purse strings again.

Through the pandemic, big-box stores stood to profit more than smaller, independent stores. Giants like Walmart and Target that offer groceries remained open for one-stop shopping in the early days of the crisis while Main Street businesses were not categorized as essential services.

“I hate to see a small business close,” said Jenn Marsh, the owner of Stubborn Soul Boutique in Middletown. “It’s a scary time for sure, and with the overhead with brick and mortar, sometimes I wonder if we would have made it this far. The challenge with Amazon and Walmart is that we’re not them, and we’ll never be them. We have to find another way.”

Read more

September 25, 2020 In Blog

From ABD Founder: Founding A Better Delaware

From The Sword in the Stone Blog

by ABD Founder, Chris Kenny

With my decades long involvement in civic issues affecting Delaware and a constantly growing, deep understanding of their viable solutions, the question became how to use that foundation of knowledge to help improve the state’s concerns that have risen to a critical level. That is what has led me to my next chapter: creating A Better Delaware, our pro-growth, pro-business advocacy group.

One year ago I founded A Better Delaware, a non-partisan grassroots organization to advocate for pro-growth, pro-business policies and greater transparency in government. Now more than ever we need a collective effort to promote policies that will grow our economy, spur sustainable investments and create jobs. Our group routinely communicates key issues in Delaware policy, and here are some very startling facts about the Delaware economy:

With these realities harming Delaware’s growth and success, my statement on A Better Delaware’s official launch last year rings true now more than ever:

“I speak with employers and workers every day who share my concern about Delaware’s business climate and our competitiveness with other states. Too many politicians in Dover are out of touch with the realities of starting and operating a business, and what it takes to create good jobs.”

Our non-partisan group offers year-round communication to promote policies benefiting Delaware’s economy, and our grassroots success is evidenced in our group’s engaged online community (click here to visit our Facebook page). Almost 10,000 followers, over 13,000 email subscribers, and over a dozen distinct advocacy campaigns later, A Better Delaware celebrates one year of working with and for the Delaware people.

In addition to the ABD group, this year we have launched A Better Delaware’s PAC. To supplement our group’s efforts, the A Better Delaware PAC was created to apply the necessary pressure to affect political change and educate our state legislators. The ABD PAC will offer significant support for specific candidates who mirror our group’s pro-growth, pro-Delaware policy goals. As this year’s election cycle culminates with important elections at the local, state and federal level, the creation of our political action committee will allow us to make real change when it is needed most.

We will continue to attack the issues at all levels from the grassroots community level to holding our state’s politicians and policymakers accountable. I explained the need for transparency at all leadership levels at ABD’s founding:

“A major reason Delaware is losing ground is because few are holding the politicians accountable. A Better Delaware will make sure taxpayers understand what is at stake and who in Dover is working for them.”

OUR GOVERNMENT OPERATES BEST WHEN THERE IS AN EFFECTIVE SYSTEM OF CHECKS AND BALANCES IN PLACE. OUR GROUP WILL SERVE THAT GOAL.

A Better Delaware and the A Better Delaware PAC were created to provide educational communication informing our community and voters on the issues and policies that will most benefit our state and economy. This project will be an ongoing conversation around policy changes that will benefit our state. As for my personal political aspirations? That’s a topic I’ve been asked about quite a lot recently. My answer? I’ll save that for the next post.

September 24, 2020 In In The News

University of Delaware announces layoffs, other measures as budget deficit grows

From Delaware Online

The University of Delaware said it is facing a budget deficit of about $250 million this year, as significant revenue loss and increased expenses from the COVID-19 pandemic strain the university’s finances.

On Thursday, the university announced another round of cost-saving measures that included layoffs, a voluntary retirement program and voluntary staff hour reductions.

There will also be unpaid leave and temporary reductions to retirement contributions.

Thursday’s round of cuts apply to university staff members only, not faculty members. UD administrators have begun talks with the faculty union. Those negotiations will be dependent on how many staff members choose to take the voluntary retirement or reduced hours, university spokesperson Andrea Boyle Tippett said.

Staff who choose the voluntary retirement option must notify the university by Oct. 5. The incentive payment would equal five months of base salary, plus payment for any unused vacation days.

“Given that we will have eliminated almost all discretionary expenses for this year, we have no choice but to turn to personnel actions,” Assanis said in a letter to faculty and staff on Thursday.

Campus departments are also being asked to scale back spending. Non-academic units are being asked to cut budgets by 25% to 35%, while academic units must cut by 15% in an effort to “preserve the academic core of the institution,” Boyle Tippett said.

Read more

September 23, 2020 In In The News

New project at former paint factory near Cheswold expected to bring 130 jobs

From Delaware Online

A 173,000-square-foot former paint manufacturing plant near Cheswold is seeing new life and new jobs thanks to a joint effort of the Kent Economic Partnership, the state and Kent County.

The building at 1886 Lynnbury Woods Road was purchased for $4.25 million, part of a total investment of $17.2 million to develop manufacturing and warehouse jobs at the site.

Nephi, Utah-based National Vinyl Products is an extruder of PVC fence and rail products sold across North America. This new state-of-the-art extrusion plant will employ 80 workers as equipment operators, quality control and plant/equipment maintenance personnel while allowing the company access to customers across the Eastern U.S.

USA Fulfillment Services, a Chestertown, Maryland-based logistics company, is leasing space at the building and will use it for warehousing. It will employ between 30 and 40 workers, bringing the total number of people working at the building to as many as 130.

Formerly occupied by PPG, the building has been vacant since 2019 when the company closed its paint factory there.

“This is a real win for Delaware and for Kent County,” Gov. John Carney said. “This brings back to the area many of what I call the ‘new old’ jobs that for years have helped Delaware families put food on the table, pay the mortgage and send their kids to college.”

Read more

September 22, 2020 In In The News

Stimulus checks, jobless benefits not reviving the hospitality sector

From Delaware Business Now

Recent releases from the office of the Delaware State Treasurer and the Delaware Department of Labor contain some eyepopping numbers.

So far, the combination of the stimulus checks and jobless benefits since the Covid-19 pandemic took hold in mid-March totals $1.7 billion or more than $1,700 for every man, woman, and child in the state.

The stimulus checks amount to a little less than half of the total, based on figures from the state Treasurer’s office. For any number of reasons, a sizable number of Delawareans still have not received the checks that amount to $2,400 for a couple,

The pandemic benefits included the Pandemic Assistance checks of $600 a week. Businesspeople complained the payment led many workers to stay on the sidelines after their establishments began to reopen.Others said the program boosted the economy at a critical time.

The Pandemic payments ended in late July and were recently replaced by a $300 a week Lost Wages payment that will last for a limited time with current funding.

We do know that unemployment checks typically go back into groceries and other necessities.

Stimulus checks have more of an indirect impact since many people who held on to their jobs banked the proceeds. That is good news when it comes to an abysmal savings rate in Delaware and elsewhere, but it may not do much to jump-start the economy

As a recent article in The Atlantic noted, many consumers have been squirreling away a lot of money this year or paying down their credit card balances.

The reason? The pandemic means many people are not traveling or frequenting restaurants, especially establishments with higher price points that attract an older and often more cautious clientele.

The spending slump is reflected in recent unemployment figures from the state Department of Labor. On Friday, the department reported an 8.9 percent jobless rate. (Many economists believe that rate is far higher).

The subdued spending has hammered the state’s travel-hospitality industry, a big recipient of travel and dining spending.

The Delaware jobless figures showed the hospitality sector accounting for nearly 14,000 of the more than 41,000 jobs that have been lost in 2020.

Read more

September 19, 2020 In In The News

As state steps up enforcement, businesses work to meet COVID-19 regulations

From Delaware State News

DOVER — After promising to step up enforcement in August and September to stem the spread of COVID-19, the Delaware Division of Public Health has issued a total of six administrative penalties and one short-term closure to businesses for noncompliance with regulations.

The most notable actions were taken against Rancho El 24 in Bridgeville and Mexican Folkloric Dance Society of New York in early September for a rodeo that drew about 1,500 people and did not require mask-wearing or social-distancing.

DPH spokeswoman Jen Brestel said the agency assessed a $21,000 administrative penalty due to “severe noncompliance of the Governor’s State of Emergency order” ($10,000 each for face covering and social distancing violations, $1,000 for failure to secure proper approval). The DPH did inform the event organizers that penalties issued by the agency may be reduced if actions were taken to assist any potential contact tracing efforts within seven days of receipt of the enforcement notice.

In Kent County, only one business has been fined for violations thus far.

The Green Stinger in Woodside was assessed a $1,000 administrative penalty ($500 per violation) for continued noncompliance of COVID-19 requirements, according to the DPH.

In Sussex County, there has been one smaller violation in addition to the incident at Rancho El 24.

Bethany Auto Parts and Marine Supplies in Ocean View was assessed a $100 administrative penalty for continued noncompliance of COVID-19 requirements, according to the DPH.

The other three administration penalties were issued in New Castle County, including the only closure.

Ms. Brestel said DPH inspectors observed multiple violations during an inspection at Mad Mac’s in Newark on Friday, Aug. 28. The establishment agreed to close to address the compliance issues and reopened the following day.

No fine was issued to Mad Mac’s, Ms. Brestel said, but repeat violations could result in closure, fines or other actions.

Read more

September 19, 2020 In In The News

Wilmington joins national program aimed at accelerating growth of young businesses

From Delaware Business Now

Wilmington Mayor Mike Purzycki and City Council President Hanifa Shabazz announced a partnership with the Pete du Pont Freedom Foundation, and Wilmington Alliance to participate in the National League of Cities (NLC) City Innovation Ecosystems program.

The City Innovation Ecosystems program asks city leaders to commit one year to creating policies, programs, and practices to ensure their communities can thrive in the global economy. I

In the program’s inaugural year, 50 cities ranging from rural townships, to college towns, to major metros and linked with over 200 local partners to deploy over $100 million in regional and national resources to support young business, leverage technology, and expand STEM education for everyone.

Entrepreneurs come from every background and are growing businesses in every industry. While they all have the potential to succeed, many do not have access to the resources or support they need, a release stated.

Wilmington Alliance and the Pete du Pont Freedom Foundation will lead the project through the Equitable Entrepreneurial Ecosystem Wilmington (E3, Wilmington). E3 Wilmington’s mission is to build a citywide strategic coalition of partners designed to identify, vet, incubate and accelerate the launch of new businesses, with targeted focus on Black and Brown entrepreneurs.

Entrepreneurs will receive a comprehensive needs assessment and will receive a customized acceleration plan with coaching and guidance in business planning, marketing, and promotion, technology infrastructure as well as optimizing space planning (virtual offices, co-working space, or dedicated offices). Finally, when appropriate, the E3 ecosystem partners will help increase access to funding opportunities.

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September 18, 2020 In In The News

Milford signs incentive deal for Wellness Village

From Delaware Business Times

MILFORD — With the long game in sight, the Milford City Council approved a short-term economic incentive deal with Nationwide Healthcare Services for its $30 million Milford Wellness Village and its anticipated 150 to 200 jobs.

The Milford Wellness Village aims to bring an array of health care, social services, physical therapy and childcare services within a campus setting to the former Milford Memorial Hospital. At the heart of it all is Polaris Healthcare & Rehabilitation Center, a 150-bed skilled nursing facility, which started accepting patients this year.

“The repurposing of this property has been a partnership with the city of Milford since inception and we are very encouraged by the city’s support. We look forward to welcoming many more businesses and partners to the Milford Wellness Village,” Nationwide Healthcare Services CEO Meir Gelley told Delaware Business Times.

Under the deal, the city entered into an electric agreement for set rates for the next five years as well as waiving water and sewer impact fees if renovation work is complete within three years. But if the COVID-19 pandemic delays that work, Milford officials could offer an extension.

In addition, Milford signed off on a 10-year real estate tax abatement. In exchange, Nationwide will withdraw its appeal on the assessed 2019 tax value of the property.

For the first two years, Nationwide will receive a tax break on the assessed value of the hospital building and not on any other ancillary properties included in the sale from Bayhealth to Nationwide last year. After the second year, the abatement rate will gradually drop each year based on the square feet of space occupied in the 266,000-square-foot facility by the previous year.

For example, if 100,000 square feet of the Milford Wellness Village is used by the end of the second year then the tax abatement would be 62.4% in the third year.

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September 17, 2020 In Blog

A Better Delaware celebrates one year

A Better Delaware celebrates one year today!

A weakened economy, poor business climate, high tax rates, and questionable practices in state governance all lead to the decision to form an issue advocacy organization that would work for Delaware taxpayers and businesses. One year ago today, A Better Delaware was finally launched to the public to tackle these issues.

“Delaware needed to tackle these issues and since lawmakers and leadership in the state weren’t making the effort, Chris Kenny and Ben duPont did. Thanks to them, every day I get to wake up and work to make my home state a better place.” — Zoe Callaway, Executive Director

When we launched on September 17, 2019, we were ready to fight for you. The response we received after launch let us know that Delaware was ready too, and thankful for our presence and advocacy. You let us know that you too are tired of the over taxation and regulation, the back room deals in Dover, and being left behind by your elected officials.

Facebook recommendations and messages, emails, phone calls, and more started to come in that thanked us for what we were doing and encouraged us to keep on, so we did. We ramped it up with a weekly blog, A Better Discussion webinars, and professional videos addressing key issues in the state. Our public advocacy campaigns, where constituents had an outlet to speak out against bad legislation directly with their legislators, resulted in hundreds of emails sent during the 2020 Legislative Session.

“The Delaware Small Business Chamber is not a political chamber but we advocate for issues that affect the Small Business Community and we think A Better Delaware is helping to make Delaware a more small business friendly state. Congratulations on one year.” — Bob Older, Founder and President of the Delaware Small Business Chamber

That wasn’t enough for us. We came to fight for you, and that meant helping keep Dover business and taxpayer friendly. Last month, ABD formed a PAC to begin electioneering in order to expand our cause.

A Better Delaware has done a lot to advocate for you, but we could not have done it without you. Your support and willingness to share ABD and our message has really resonated and has allowed us to do everything that we have so far.

“For our inaugural year, we are very fortunate to have our Executive Director Zoe Callaway as the heart and soul of ABD working tirelessly everyday researching, writing, posting, calling and discussing the mission critical issues for all Delawareans.” — Chris Kenny, Founder and Co-Chairman

Almost 10,000 followers, over 13,000 email subscribers, and over a dozen distinct advocacy campaigns later, A Better Delaware celebrates one year of working with and for you.

What does the next year hold? We hope you’ll stick with us to find out! For now, we continue to work to improve the following statistics:

Delaware deserves better. Together, let’s make A Better Delaware.