Kent County leaders consider incentive program to attract jobs

Kent County Levy Court commissioners spent much of the evening of Aug. 17 discussing three proposals for grants intended to bring businesses and jobs to the county.

All six commissioners present — Commissioner at large Richard Ennis was ill and not in attendance — agreed on the need for some sort of incentive program, one that possibly could be used in concert with similar state and municipal efforts.

However, commissioners also agreed on the need for adjustments in the proposal, based on their own examination of the plan and advice offered by Delaware Economic Development Office Business Development Leader Joe Zilcosky and Kent Economic Partnership CEO Dan Wolfensberger.

Under the plan, $500,000 would be transferred from the county’s existing Economic Development Capital Reserve to a strategic development fund. The EDCR currently is funded at $1.5 million.

One proposal would award $10,000 to SLM Corporation, aka Sallie Mae, for each contract the student loan company signs with Kent County businesses after the firm’s eventual move to Delaware. In announcing the move in July, Sallie Mae CEO Albert Lord went on record as saying the company is committed to growing employment in Kent.

However, questions were raised about whether it would be legal to limit proposals to just one company, with Wolfensberger suggesting the program instead be targeted toward a class of businesses.

A second program would provide incentive grants for existing businesses that plan to expand as well as businesses that commit to moving to Kent County. The businesses would have to demonstrate at least $250,000 in infrastructure investments and plans to create or retain jobs.

A pool of $200,000 would be created for the one-time grants, with a maximum of $15,000 given to each successful applicant.

Commissioners debated whether there also should be a requirement businesses must show they will build new facilities in the county, and whether the county could waive some construction permit fees as an additional enticement.

Commissioner Brad Eaby suggested an upper limit on applications, noting the proposed incentives should attract smaller businesses. As an example, he said large retail box store companies probably would not be swayed by the relatively small inducements the county is offering.

Zilcosky said, however, having a national franchise move in doesn’t automatically translate to more jobs.

“Box stores don’t necessarily result in job increases because other jobs are lost as other companies close.”

The third idea would give grants to existing Delaware businesses with expansion plans as well as those who have committed to locating in Delaware and hiring unemployed Kent County residents. Each business would be awarded $3,000 per employee hired to fill a newly created or newly opened job.

Levy Court would set aside $150,000 for this program, which could fund up to 50 individual grants.

Wolfensberger suggested this program be tailored toward companies that would pay a better than average wage. He also felt commissioners should include a provision to require the company to return grant money if new hires leave or if the company folds.

Petit de Mange noted some of the concerns raised during the discussion might not need to be addressed in the rules governing the grants as the commissioners themselves would have enough leeway to make those decisions.

In the end, commissioners agreed to work with Wolfensberger and Zilcosky to present a revised incentive package to Levy Court within the next few weeks.

Registrar of wills fees remain unchanged

In an earlier vote, commissioners turned down a request by Registrar of Wills Thomas Weyandt to increase claim fees charged by his office from $5 to $10.

Weyandt told commissioners his office has lost revenue because many requests for document searches, formerly done by an office clerk at $5 apiece, now are available for free on the county’s website. He suggested the change in claim fees as a way of making up approximately $250 to $300 in lost funding.

The panel disagreed, however, in a 2-4 vote with Commissioner Jody Sweeney arguing using technology should result in less cost to Kent residents, not more.

“We’re not saving the county anything. We’re saving people money by using information technology.”

Email Jeff Brown at jeff.brown@doverpost.com.