Governor Matt Meyer expanded the Downtown Development District program from 12 to 15, opening the application process for additional towns to reap the benefits of the DDD. As of now, Ellendale, Milton and Newark have expressed interest in applying for the designation. The deadline to apply is June 15, 2026.
In New Castle County, Wilmington, New Castle, Delaware City and Middletown have the designation while in Kent County, Dover, Harrington, Milford, Smyrna and Clayton have a DDD. In Sussex County, Seaford, Georgetown and Laurel currently have a Downtown Development District.
Created in 2014, the DDD offers 20 percent rebates and other targeted incentives for projects located within the district. Since it began, more than $47 million in state funds have leveraged $693 million in private investment. This means for every dollar invested by the state, there was a $14.3 million return on that investment.
In order to apply for the designation, a town must have attended a pre-application meeting in February with state planning officials. Each town must identify the boundaries of the proposed district and create local government incentives, such as property tax abatements, permit fee waivers or grants, designed to complement rebates offered by the state. The incentives are designed to encourage real estate investment. The town must also provide details on how it will administer the program, including staff time, municipal funds and in-kind support.
In Milford, the DDD encompasses 170-acres that is centered around the downtown historic district and the Mispillion River. The city offers incentives in the form of waivers to promote investment, adaptive reuse and new housing. Some of the projects that have taken advantage of the DDD include 200 Front Street, a townhouse community that delivered nine affordable townhomes. Using DDD funding, the project was able to keep the cost of the homes affordable while offering other rebate options for first-time homebuyers.
Penny Square was another DDD project, creating a mixed-use project in what was the 48th J.C. Penney store in the United States. The building now offers retail on the first floor with apartments on the upper floors.
Splash Laundromat also took advantage of DDD incentives, turning the former Rite Aid building on Northwest Front Street into a state-of-the-art laundromat with residential units on the second floor.
In addition to large projects, the program frequently supports smaller projects with investments under $250,000, which primarily include the historic renovation of downtown buildings and the construction of new duplexes or single-family homes.
The Cabinet Committee on State Planning Issues will meet in August to consider the applications for new designations and develop recommendations to submit to Governor Meyer, who will designate the three new districts after that date.
