ECONOMIC DEVELOPMENT                                                                                                       

 Statement of Purpose 

To ensure that the county is developed in a sensible and most beneficial way for all the residents and businesses, the Central Delaware Economic Development Council was charged with outlining the county's plans for economic growth to ensure a diversified local economy and an improved quality of life for its residents.  The purpose of this plan is to look at the economic development history, assess the current economic condition, and to provide an economic development blueprint for the future for the County.  To read more about the economic viability within Delaware and Kent County, please refer to <http://www.state.de.us/dedo/> (Delaware Economic Development Office) or <http://www.cdedc.org/index2.html> (Central Delaware Economic Development Council).

Background 

Kent County Employment Trends 1983-2001 

A 15-year review of employment trends in Kent County shows an increase in the number of people employed from 44,800 in 1986 (Central Delaware Economic Development Council) to 71,272 in 2001 or an increase of 59% (Delaware Department of Labor).  This averages about 1,765 new jobs created annually or a 3.9% increase.  A closer look at the industry sectors shows that this growth occurred in all significant employment sectors. Two sectors, Finance, Insurance, and Real Estate and Services more than doubled in the 15-year time frame. 

For the first time in 1995, the Wholesale and Retail Trade became the County’s single largest industry sector, surpassing government that held that distinction since at least 1977.  However, in 1998 government again became the largest industry sector.    

Manufacturing regained some jobs that it had lost between 1977 and 1983.  Losses prior to 1977 were more severe than in the 24 years since. Hundreds of jobs were lost during the 1974-75 oil embargoes and when a poultry processing facility in Felton was destroyed by fire, eliminating several hundred jobs. 

The per capita income, for many years the lowest in the State, has continued to increase over the last few years, but is still below the 1999 State’s per capita personal income of $30,701. The 1999 per capita personal income in Kent County is $22,819 (U.S. Department of Commerce, Bureau of Economic Analysis, Regional Accounts Data).

Table 3.1 Kent County Employment Trends, Annual Average Employment By Sector*                                                                                                                                                                                                                            

*By Place of Work; includes only jobs covered by the Unemployment Insurance System.

** Includes all Government jobs regardless of sector

Source:  Delaware Department of Labor, OOLMI, ES-202 Program. 5/30/2000 

Retail Sales increased from an estimated $450 million in 1977 to $1.3 billion in 1997 (U.S. Dept. of Commerce).  Due to its sales tax-free status and the addition of many new retail outlets, some with very high sales volumes such as Sam's Club and Wal-Mart (2 Locations in Kent County), restaurants and service businesses, Kent County attracts shoppers from all over the Eastern Shore of Maryland and Virginia. 

Historical Economic Development Efforts 

The first major economic development effort was undertaken in the early 1960's when a group of business and community leaders hired the Fantus Corporation to "bring in a large manufacturing company". Funds were raised from the business community and were used to hire Fantus.  Fantus prepared a community analysis and brought General Foods to Dover. Employment at the plant peaked at about 2,000 employees in the early 1970's and has since dropped to 900.  The creation of so many jobs at once kept the local economy humming and provided much of the economic growth until the early 1970's. The mid-seventies also saw the addition of several other major manufacturers such as Scott Paper and PPG Industries, a substantial expansion of Playtex, and in the southern part of the County, the Con-Agra Poultry Plant. A major government contractor, ILC Dover, and its employment base grew and contracted several times over the years and at present is once again experiencing a slowdown in activity.  

Many new small businesses were also started during the 1970’s and 1980’s. A large number of those were the second careers of military personnel retiring in Kent County and starting a business. Overall, 95 % of all employment in Kent County is in the small business community.  

During most of the seventies, there was no specific economic development effort undertaken by either the public or private sector. It was not until 1977, after some prolonged stagnation and economic turmoil, when a serious local attempt to revive economic development was undertaken. The "Forward Central Delaware Committee," a joint venture between the Kent County Levy Court and the Central Delaware Chamber of Commerce, was formed.  The committee was funded with grants from Levy Court and administered through a group of Chamber of Commerce volunteers.  For a while, the committee had a volunteer director. In 1981, the volunteers decided that they needed a full-time, paid director to put economic development into high gear.  The director was to be paid through private sector contributions, which continues to today.  The director was hired in October of 1984.    

Since then, the “Forward Central Delaware Committee” has worked toward job and investment growth in Kent County. The organization was the major force in the development of the Kent County AeroPark and a Property Tax Incentive Program. It has assisted in bringing numerous new companies to the area and has also been involved in the keeping and expansion of local companies. In 1992, the name of the organization was changed to “Central Delaware Economic Development Council” to better reflect the countywide scope and purpose. The membership of the Council is made up of business, government, and community leaders. The council continues its work with an annual comprehensive “Program of Work.”   

With the passage of an additional 1% tax on lodging in 1989, Kent County became involved in promoting itself as a tourism destination, adding to the economy by attracting conventions and tourists.  Tourism has rapidly become one of the largest industries in Delaware and, with the addition of slot machine gambling in Dover in 1995 and in Harrington in 1996, will continue to play a substantial role in the economic growth of Kent County.   

TABLE 3.2 Population Growth 1986-2000 

 The Kent County population increased at an average annual rate of 1.5% per year over the last 14 years for a total of 21 %.  

The Kent County Economy in 2000 

Kent County's economy has improved over the last 15 years.  There are more people working in Kent County than at any time in history.  The unemployment rate has declined substantially. The rate was at 3.0% in December 2000 (Delaware Department of Labor), compared to 4.2% in 1998 and 5.1% in 1990.  The area's economy has diversified somewhat in the last 10 years.  One industry sector experiencing growth is the financial services sector.  Some of the well-known, major companies that have located and/or expanded in Kent County within the last five years are seen in Table 3.3.  Mortgage rates are very competitive (as of 5-17-01 the interest rate was listed at approximately 7.7%) which is contributing to a steady demand for newly built homes. Other interest rates generally are stable and inflation is running at about 3.0% annually. 

TABLE 3.3 Kent County Major Employers 

*1998 Figures

Source: Kent County Major Employers, Central Delaware Economic Development, 6/2000 

Dover Air Force Base 

The Dover Air Force Base, as the single largest employer, has its own place in the economic development scenario. Its annual economic impact is well above the half billion-dollar mark. In the past, some efforts have been made to try to increase the missions at the base, therefore increasing employment and economic activity. There are now efforts underway for either mission expansion or mission realignment. The base’s future seems to be relatively safe, having gone through the Base Realignment and Closure Commission without any significant cutbacks or realignments.  The Federal Government is making considerable appropriations for housing rehabilitation and improvements to the infrastructure of the base, further enhancing its future.  

State of Delaware/Government 

All forms of government in Kent County constitute the largest industry sector. State Government employs thousands in Kent County. The State also owns and leases many buildings throughout the County. As the State Capital, Dover has the largest concentration of state offices.   

City of Dover 

The City of Dover grew through annexation of residential subdivisions as well as commercial strips and industrial parks. The population of Dover (approximately 32,000) together with the surrounding suburban unincorporated areas qualified the city to be named a Metropolitan Statistical Area (MSA) in 1994 with an aggregate population of over 50,000. Dover also invested heavily into public works infrastructure and its own power plant to be ready to accommodate new development. Commercial development is heaviest along the major thoroughfare (Route 13).  New development includes Target, Safeway, and a planned 11-story hotel at Dover Downs.  The city actively promotes the reuse and renovation of older buildings. In 1996, the city expanded its tax incentive program to further encourage new investment and job creation.

New subdivisions, principally on the west side of Dover, will provide housing for thousands of new residents.  New apartment complexes, such as Silver Mill Apartments, will also create additional housing.  

Dover Civic Center 

Within the City of Dover, there have been efforts spanning several decades to develop a Civic Center. This Center would add much in quality of life value to Kent County and Delaware by providing entertainment of all types: concerts, sports, conventions, trade shows, and many other events which would bring people into Kent County.   

City of Milford

 The City of Milford also annexed land. These annexations were a combination of commercial/industrial properties located in the Kent County section of the City.    Residential development has occurred both inside and outside the corporate limits.  Commercial development has increased within the northwestern quadrant of the City. The City hired a Main Street director in 1995, and in 1996, added a Director of Economic Development to generate tax base, investment, and employment.  Milford later withdrew from the Main Street Program.  A new WalMart Superstore has encouraged additional strip shops in the area.

 Harrington - Smyrna - Camden/Wyoming

 The towns of Harrington, Smyrna, and Camden also experienced growth, although on a smaller scale. Both CT Films and Rand/Whitney Packaging in Harrington increased their production facilities. In the greater Smyrna area, Metal Masters grew significantly. In 1995, Smyrna received State of Delaware funding for the development of a publicly owned industrial park. Smyrna is also a member of the Main Street Program and is renovating the Opera House.  In Camden, Camdel Metals relocated to a new manufacturing facility at the VEP Industrial Park.  In Wyoming, the Foreign Trade Zone established in 1984 was rezoned to R-1 thereby permitting the construction of a housing development with a small shopping center with a gas station.  The town anticipates that construction on the property will commence within the next 12 months.  The one existing Trade Zone tenant, Quality Kitchens processes fruit juices from Brazil for institutional uses, and will continue to operate at its current location.

Harrington, home of the Delaware State Fair added a new building, Midway Slots and Simulcast, to house 500 slot machines and is in the process of adding more. This will result in substantial new employment that will positively affect the community.  They are also improving and renovating other areas such as the exhibit halls and livestock buildings.

 Kent County - Unincorporated Areas 

Housing is the most prevalent type of growth occurring in the unincorporated areas of the County.  “Strip development” with single-family stick built and manufactured homes occurs on many county roads. In addition, there have been major housing subdivisions, particularly in the areas surrounding Dover and Woodside corporate limits.  Since 1996, 64 subdivisions have been recorded.     

 Rt. 13 Bypass (Delaware Rt. 1) 

Late in 1993, the long awaited opening of SR 1, or the "Rt. 13 Bypass" took place. Residential construction has increased as a result of the expanded commutershed, which now makes it possible to live in Kent County and commute easily to Wilmington and points north.  Route 1 construction is complete in Kent County.  The final SR 1 phase at the Dover Air Force Base (DAFB), called DAFB Section II was completed in the spring of 2000.  

SR 1 will have a positive impact on the future of tourism within the county. Attractions, museums, motels, restaurants, and shopping are within an easy day trip from surrounding states.  DelDOT has recently completed a feasibility study in Sussex County to provide a limited access north/south route through Sussex County with connections to SR1 in Kent County and US 113 in Maryland.  If such a connection is made, Kent County will have greater commercial pressure as SR1 becomes more regionally significant as a transportation corridor.

Commercial/Retail  

Despite the fact that the retail industry is one of the county’s largest employment sectors, many older retail spaces suffer from years of neglect and are losing tenants to the new shopping centers.  New major retail players in the area such as Target have brought additional shoppers and retail developments to the middle and southern part of the County. Several existing retailers have moved or expanded their buildings, such as Lowe’s, the Milford Wal-Mart Superstore, and Food Lion. The Dover Mall completed renovations to its food court and a new movie theatre.  The multi-million dollar expansion of the Sheraton Inn into a conference center has attracted local and regional conventions and become a major resource in the hospitality industry.  A new Hampton Inn Motel as well as a Holiday Inn Express Motel, both in Dover, have added rooms and revenue to the area.  

Industrial/Office Parks and Sites 

Kent County has an inventory of more than 1,000 acres of industrially zoned land. This land is located throughout the County in the form of private and public industrial parks and sites. This inventory of industrial land is sufficient for at least the next 20 years. A process of in-filling existing properly zoned land as well as the adaptive reuse of existing buildings would yield many years of sustained growth without the pressure to rezone new land.  There are new as well as established office parks and sites that can accommodate even the largest potential office space user. Buildings such as the Blue Hen Corporate Center, with an existing and competitively priced supply of office space, offer years of supply of space and land.  Kent County Levy Court also recognizes the benefit of redeveloping existing abandoned industrial sites.  The County will continue to review and consider the development of such brownfield sites.

 Downtown Redevelopment 

In line with the concept of ‘sustainability’ are the efforts of downtown economic development programs.  Dover and Smyrna both have instituted the very successful “Main Street” program and both have seen renewed investment and interest in their downtown.  Dover also has the Downtown Development Corporation.  

Housing 

The housing stock in Kent County has changed significantly in the last decade. After 1982, manufactured home purchases fell 20%.  However, between 1996 and 1997 sales almost doubled from 354 to 667, or 88%.  This proliferation of manufactured homes indicates lower family incomes. It also points to lower industrialization coupled with lower wages.  The need for affordable housing has been increasing steadily. Several affordable housing communities have been started in Milford and Dover with more in the planning stages.  

In the last few years, several upscale housing developments have been started throughout the county.   As shown in Table 2.1 in the Populations, Trends, and Projections Chapter of this plan, a total of 20,062 permits were issued between 1990 and 2000.  

Culture 

An ever increasing, culturally and ethnically diversified population will require that more efforts be made to improve the cultural offerings in Kent County.  Arts festivals, symphony performances, ethnic festivals and other events satisfy citizens’ cultural needs and appeal to new companies studying Kent County’s quality of life.  Several renovation projects will provide locations for cultural events.  These programs include the Schwartz Center for the Arts (Capital Theatre) and the Smyrna Opera House.  

Infrastructure Status in 2000 

Kent County's population and therefore the demands on its infrastructure (Transportation, Sewer, Water) will increase indefinitely.  The major cities, towns and the County have seen the need to accelerate expansions and improvements to their major systems. While some communities decided that a proactive way is the best way to accommodate this growth, others have declared a reactive or no-growth posture.  The availability, or lack, of infrastructure is crucial in locating new industrial, commercial, and housing developments.  The jurisdictions that have them will be the ones that will grow.  Conversely, by providing this infrastructure, Kent County can direct where development is going to take place.  By far, the largest single infrastructure system is in place in and around the City of Dover.  Dover is the dominant community in Kent County and is a designated Metropolitan Statistical Area (MSA).  This status positions Dover and the surrounding area as the predominant growth center in the County. The two other communities of Smyrna and Milford with their surrounding areas also are well positioned to accommodate future growth. Kent County finished the construction of a new sewer line between Smyrna and Dover. This new line allows new sewer hook-ups and has encouraged new development in this corridor.  

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