Dover develops, even amid COVID-19 pandemic

By Mike Finney
Posted 2/25/21

DOVER — The COVID-19 pandemic that has ravished many different sectors of the economy has bruised — but not beaten — the capital city since its arrival in March 2020.

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Dover develops, even amid COVID-19 pandemic

Posted

DOVER — The COVID-19 pandemic that has ravished many different sectors of the economy has bruised — but not beaten — the capital city since its arrival in March 2020.

While the new-housing market remained stagnant and low throughout Dover for the second consecutive year in 2020, there were several things to be excited about, according to Dave Hugg, the city’s director of planning and inspections.

One just has to look up and down the U.S. 13 corridor through the heart of the city, where new businesses such as a Lidl grocery store, Hobby Lobby, Crab Du Jour, Red Robin and TenderBones Rib Shack have opened their doors, even in the grips of the coronavirus.

Dover also welcomed a Veterans Affairs Outpatient Clinic at the Blue Hen Corporate Center and the House of Hope shelter at 801 W. Division St., along with renovations at the Department of Treasury office at 820 Silver Lake Blvd., among others.

“We’re hoping that, as we begin to move past the COVID crisis, that 2021 will be a better year across the board, and we will start to see signs of an economic recovery,” Mr. Hugg said, in presenting the Department of Planning, Inspections and Community Development’s annual report to Dover City Council on Monday night. “Hopefully, we will begin to see some uptick in residential activity.

“The overall numbers, when it comes to the number of new projects and dollars being spent, could still be down as the economy slowly rebounds. I would expect that downtown Dover will eventually prosper as safety and related issues are addressed (by the Dover Police Department).”

Mr. Hugg pointed to new initiatives in community policing by the Dover police that could help quell some hot areas of criminal activity in the downtown Dover district, such as around South New and Reed streets, which could eventually make the area more business-friendly.

The Downtown Dover Partnership’s “Unlock the Block” initiative is on the verge of helping to open the Black Swamp Artisanal Market this spring at 204 W. Loockerman St., next to Bayard Pharmacy.

Cindy Small, business adviser for the Small Business Development Center — a partner with Unlock the Block — has also provided technical assistance to Justin and Tara Brant, the Felton couple who have taken the lead in opening the market.

“Small businesses are the cornerstone of Delaware’s economy, and this marketplace creates the opportunity not only for Black Swamp Farmstead but for several other small businesses that will make up this cooperative,” Ms. Small said. “It’s a win-win-win situation for the businesses, residents and Dover.”

The coronavirus pandemic definitely had an impact on small businesses in Dover throughout 2020, as the city issued 1,756 business licenses over the past year, as opposed to 2,116 in 2019.

“Many smaller businesses in Dover have been forced to close since the pandemic or just chose not to renew their business licenses until the economy shows signs of improvement,” Mr. Hugg said. “Revenues are down in many areas, as the pace of new projects slowed.

“Some larger projects lost momentum but remain active.”

Mr. Hugg said that last year was a difficult one for everybody but that the pattern of development in any given year is rarely smooth or accurately predictable.

“Development is influenced by many factors outside our control — weather, availability of financing, other projects, workforce, perceptions … and pandemics!” he said.

A glimpse at a promising future

Mr. Hugg said people should look to the southeast quadrant of the POW-MIA Parkway to see signs of an economic infusion coming to the city.

That’s where construction workers and large equipment are currently busy laying down the foundation for Delmarva Corrugated Packaging, a company that produces corrugated cardboard boxes. It’s building what is described as an $80 million “super plant” there.

Mr. Hugg said everything is on course and that ground was broken recently on the 457,000-square-foot manufacturing facility that is expected to add 159 jobs to central Delaware. The facility will sit on a 37.4-acre site at 1601 POW-MIA Parkway.

The box-manufacturing company is just the latest chapter in central Delaware’s developing story as a mid-Atlantic hub of manufacturing.

Another recent manufacturing location is the joint venture of Shoreline Vinyl Systems and Duratec, which purchased the former PPG paint plant and its surrounding 51 acres in Cheswold last year for $4.25 million. Maryland-based Shoreline is a PVC-fencing fabricator, and Utah-based Duratec focuses on PVC extrusion.

Mr. Hugg said that recent success in attracting manufacturing jobs to central Delaware, including Dover, comes down to one key thing — partnerships.

Throughout its consideration and decision-making processes, Delmarva Corrugated Packaging leaders said they worked closely with the city of Dover, the state of Delaware, the Kent Economic Partnership, the Delaware Prosperity Partnership, the Delmarva Central Railroad and many other community partners.

“The key word that everybody is using that is really important is that what we’re doing is a partnership,” Mr. Hugg said. “It’s probably the first time in my history that I can remember that the various levels of government have worked this closely together with each other, and the second thing is that we have developed really close and trusting relationships with the commercial brokers, the (real estate agents) and a lot of the property owners — so we’re getting leads. We’re getting information.

“When one of us gets a phone call, it’s kind of like a scattergun goes off because, all of a sudden, we’re talking to the brokers and to each other in the various departments, and (we’re) able to make a concerted approach.”

Another new addition to the Dover scenery opening next summer is the 21,000-square-foot Dover post office at 350 S. Queen St., currently being built by Delmarva Veteran Builders.

Dover Mayor Robin Christiansen is very pleased that the new postal center is being constructed downtown.

“I think this is a great location. It’s going to be a great project,” he said. “Once again, Dover’s moving dirt. Dover is on the move. Not only do we have this project that’s going to be located in downtown Dover, but we also have the Family Court project that’s going to come along here soon.

“So Dover’s on the move. We continue to grow, and this is going to be a place that serves our citizens better, as well as bringing (people) downtown to see our historic buildings and our retail area.”

In addition, Avalon Industries Inc. and International Container Co. purchased a $1.4 million building on 8 acres at 1196 S. Little Creek Road to relocate from Baltimore last year. Avalon Industries makes bags, totes and cases for the Department of Defense, first responders, schools, cities, towns and youth leagues. International Container makes disposable containers.

“Our city and the region it is part of is growing,” Mr. Hugg said, “and Dover is the center point of that growth.”

Linda Parkowski, executive director of the Kent Economic Partnership, noted the magnetic attraction that Dover and Kent County seem to have on businesses recently.

“Central Delaware is the perfect location for an advanced manufacturing facility, such as (Delmarva Corrugated),” said Ms. Parkowski. “With our strong manufacturing base and skilled workforce, we are looking forward to more manufacturers locating to the area.”

Trying to overcome a crisis

Mr. Hugg said that while there is promise and hope on the horizon, there are still obstacles left by the pandemic to overcome.

He said revenues are down in many areas as the pace of new projects has slowed. There were only 48 new homes built in Dover in 2020, which was actually an increase of one from 2019 but a decrease of 121 from the 169 houses that were built in 2018.

The pandemic also led to fewer code and life safety inspections by city staff, along with deferrals of dangerous-building actions.

The city issued 3,176 rental permits in 2020, down 73 from the 3,249 permits that were issued the previous year.

Mr. Hugg said he expected many of the economic indicators to be down in 2020, due to the many safeguards that were put into place for COVID-19.

There were access limitations established by the city of Dover with appropriate Centers for Disease Control and Prevention restrictions; virtual meetings were held for boards, commissions and applicants; employees worked flexible schedules, sometimes from home; online application and permit processes picked up steam; and there was only a drive-by approach to code enforcements.

Mr. Hugg said there are still challenges ahead, but he believes the city is ready for them.

“We are striving for a vibrant, balanced and sustainable economy with a wide range of goods, services and employment opportunities to meet the needs of our citizens now and into the future,” he said. “We want to enhance Dover’s economy — promote a viable, balanced local economy supporting employment, housing opportunity and entrepreneurialism.

“Overall, 2020 was an unusual year filled with challenges, opportunities and accomplishments. 2021 will likely be very different.”

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