Author: Delaware Prosperity Partnership

In the News: Air Liquide inaugurates an Advanced Fabrication Center in Del.

In the News: Air Liquide inaugurates an Advanced Fabrication Center in Del.

29 NOVEMBER, 2018 | LIQUID AIR WEBSITE

Air Liquide and its American subsidiary Airgas inaugurated an Advanced Fabrication Center (AFC) at the Delaware Innovation Campus in Newark, Del. The objective of this center of industrial expertise is to accelerate innovation in order to improve fabrication technologies and help customers meet the challenges of tomorrow.

The AFC is devoted to the joint development of technological solutions in the area of fabrication processes. This center brings together experts from Air Liquide specialized in plasma and electric arc welding and cutting, in laser and additive fabrication, and in robotic and cobotic welding, and is equipped with new state-of-the-art equipment and technology provided by partners for the purpose of carrying out tests.

Promoting a global approach and leveraging the expertise of the teams, the center offers a space designed for collaboration with equipment manufacturers to better meet the needs of end-users. It will enable new research with academic institutions for the purpose of using innovation to develop and optimize new manufacturing technologies.

Air Liquide and its American subsidiary Airgas inaugurated an Advanced Fabrication Center (AFC) at the Delaware Innovation Campus in Newark, Del. The objective of this center of industrial expertise is to accelerate innovation in order to improve fabrication technologies and help customers meet the challenges of tomorrow. The AFC is devoted to the joint development of technological solutions in the area of fabrication processes. This center brings together experts from Air Liquide specialized in plasma and electric arc welding and cutting, in laser and additive fabrication, and in robotic and cobotic welding, and is equipped with new state-of-the-art equipment and technology provided by partners for the purpose of carrying out tests. Promoting a global approach and leveraging the expertise of the teams, the center offers a space designed for collaboration with equipment manufacturers to better meet the needs of end-users. It will enable new research with academic institutions for the purpose of using innovation to develop and optimize new manufacturing technologies.

Kurt Foreman

PRESIDENT & CEO

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JustFoodForDogs Launches National Expansion

JustFoodForDogs launches national expansion, adding jobs in Delaware

WILMINGTON, Del. – JustFoodForDogs (JFFD), a California-based company that invented and launched the fresh, whole-food movement for pets, is coming to Delaware. JFFD opened their first dog kitchen eight years ago in California and is advancing its mission to provide pets a better quality of life, more years and more love through a significant expansion in 2019.

The company, which currently operates more than 70 retail locations, including kitchens, pantries and store-in-store formats within California, as well as provides their food for purchase online and through veterinarian offices, opens across the country in 2019. JustFoodforDogs, the breakthrough innovator in offering highly nutritious pet meals has experienced a 400% increase in sales in the past three years, now serving more than 40 million meals annually.

The CEO of JustFoodForDogs, Carey Tischler, detailed their plans to invest $2m in a 21,000 square foot kitchen in New Castle County. The company’s plans include employing up to 50 employees with an estimated payroll of $2.24M. The first Delaware kitchen is expected to produce 30,000 pounds of food daily to be distributed direct-to-consumer via online sales, as well as to JFFD pantries throughout the United States. The company requested a $170,000 performance-based grant at the November 26 Council on Development Finance meeting.

“JustFoodForDogs continues on a rapid growth trajectory as more pet parents choose fresh, nutritious, whole-food over kibble,” said Carey Tischler, CEO of JustFoodForDogs. “Our expansion across the country requires an East Coast facility to support the demand of our customers and we are thrilled with everything Delaware has to offer. We are thankful for the collaboration from the Delaware Prosperity Partnership for making it so attractive to do business here. We look forward to becoming part of the business community.”

“JustFoodForDogs choosing Delaware reflects our state’s reputation for welcoming innovative businesses of all sizes, as well as Delaware’s solid experience and expertise in the food industry,” said Governor John Carney. “We are proud to be the first East Coast kitchen and we’re excited that their presence will create new jobs in New Castle County.”

“Attracting JustFoodForDogs is the model for how we will win the future through sustainable job creation,” said Matt Meyer, New Castle County Executive. “We are elated that JustFoodForDogs has chosen New Castle County as the place to further their innovation success story.”

About JustFoodForDogs

Established in 2010, JustFoodForDogs, which is headquartered in Irvine, California, emerged as a disrupter in the industry when it debuted its high-quality food. Serial entrepreneur Shawn Buckley founded the company with the idea of developing an alternative to commercial grade kibble, which accounts for most of the nation’s sales of dog food. JFFD offers the only food on the market proven healthy by two independent universities, who conducted year-long trials proving their recipes boost the immune system of dogs in a healthy way. A team of in-house veterinarians formulates the meals using only fresh, whole-food ingredients USDA certified for human consumption, in recipes nutritionally balanced for dogs as well as cats.

JFFD plans to unveil kitchens in flagship retail locations, including New York City, Seattle, Boston and more, as well as open pantries offering the company’s pet food and supplements in hundreds of locations nationwide over the next several years.
To learn more, visit www.justfoodfordogs.com.

About Delaware Prosperity Partnership

Delaware Prosperity Partnership is a nonprofit that leads the state of Delaware’s economic development efforts to attract, grow and retain businesses; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting and developing talent in the state of Delaware.

For Further Information

Michele Schiavoni
Delaware Prosperity Partnership
External Relations l Marketing
302.576.6573

Maggie Rubenstein
JustFoodForDogs
maggier@justfoodfordogs.com

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Dot Foods Plans to Open $36 Million Bear Distribution Center in Fall 2019

Dot Foods plans to open $36 million Bear distribution center in fall 2019

10 OCTOBER, 2018 | DELAWARE BUSINESS NOW

Dot Foods broke ground Tuesday on its dozenth distribution center and already has a trucking operation in place in Delaware.

The $36 million facility will be constructed on 35 acres in Bear, near Route 1.The 188,000-square-foot facility will be located at 301 American Boulevard, near the intersection of Red Lion and Wrangle Hill Roads.

The complex includes offices; dry, refrigerated and frozen warehouse space; and a truck yard and garage to service Dot’s fleet.

“A lot of work has been done to get us to this day,” said Dick Tracy, Dot Foods president, “And we are excited to move this project into the next phase. Dot Foods Delaware joins our other two East Coast locations, in Maryland and New York and will allow us to even better serve our customers in eastern Pennsylvania, New Jersey, New York, and Connecticut. We look forward to building relationships with many more people in the region as we become part of the Bear community.”

Dot Foods leadership were joined by state and county leaders to mark the occasion. Lieutenant Governor Bethany Hall-Long, U.S. Rep. Lisa Blunt Rochester, and Director Damian DeStefano of the Delaware Division of Small Business attended the groundbreaking ceremony, along with State Sen. Nicole Poore and New Castle County Executive Matt Meyer.

Dot will begin work on the Bear distribution center next month, with an estimated completion date of fall 2019.

Dot will hire up to 125 people in the first year, starting with truck drivers. The company has established a terminal location in nearby New Castle for its transportation operations at 194 S. DuPont Highway.

Dot Transportation offers career opportunities for both experienced and new drivers at the New Castle terminal.

Drivers’ salaries are guaranteed in writing; experienced drivers who handle freight are guaranteed to earn $75,000 their first year, and those who do not touch freight are guaranteed $71,800. Experienced drivers also receive an assigned tractor on day one, vacation time match and health insurance gap coverage.

Dot will also have career opportunities for warehouse and support staff. Hiring will get underway next spring. Dot plans to employ 200 people by 2022.

“The best part of moving into a new community and establishing a new distribution center is building our team,” Tracy explained. “We’re so happy to be at the point that we can start meeting with potential employees in New Castle County and the surrounding area. These are the people who are going to drive our success in Delaware. Today marks a big moment in our company’s history.”

Dot’s Class A Regional Driver positions are currently posted on DriveforDot.com. Dot will employ 50 drivers by the time the Bear distribution center opens in late 2019. As additional positions in the warehouse and office become available, they will be posted at DotFoods.com/careers. Dot Foods and Dot Transportation offer competitive wages and a benefit package worth $20,000 that includes health insurance, prescription drug insurance, dental, vision, life insurance, 401(k) with company match, profit sharing and college tuition reimbursement.

Dot Foods Delaware will be led by general manager Joe Little. Little will celebrate his 30thanniversary with the company in 2019. He began his career at Dot’s corporate headquarters in Mt. Sterling, Illinois. After spending 13 years there, he moved to Dot’s Maryland location, before transferring to Idaho to open that distribution center. For the last five years, Little has served as the general manager of Dot Foods New York in Liverpool. Little and his wife Janna are in the process of relocating to Delaware.

Dot Foods Inc. carries 127,000 products from 930 food industry manufacturers making it the largest food industry redistributor in North America. Redistribution involves breaking down truckloads of food products into smaller loads that are delivered to customers.

Through Dot Transportation Inc., an affiliate of Dot Foods, the family owned company distributes foodservice, convenience, retail and vending products to distributors in all 50 states and more than 35 countries.

Dot Foods operates 11 U. S. distribution centers in Modesto, CA; Vidalia, GA; Burley, ID; Mt. Sterling, IL ; Cambridge City, IND; Williamsport, MD; Liverpool, NY; Ardmore, OK; Dyersburg, TN; University Park, IL; and Bullhead City, AZ. Dot Foods’ Canadian operations are located in Toronto and Calgary. For information, visit dotfoods.com.

This article was originally posted on the Delaware Business Times at: https://delawarebusinessnow.com/2018/10/101651/

Kurt Foreman

PRESIDENT & CEO

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Hey Baltimore Millennials: Wilmington, Delaware Wants You.

Hey Baltimore millennials: Wilmington, Delaware wants you.

27 SEPTEMBER, 2018 

Attention Baltimore millennials, Wilmington wants you.

That’s in Delaware, not quite 75 miles north on Interstate 95. You know, on the way to Philadelphia.

Business and civic leaders understand that people might not be familiar with the city, so they’re launching a campaign Friday to attract people from here up there, for a job at the chemical conglomerate DuPont or to live in an urban loft along the revitalized riverfront.

“Nothing against Baltimore; we have very good friends there and it’s a wonderful city,” said Jim Stewart, a longtime Wilmington businessman who is chairing the new effort. “But I’ll make the case for Wilmington. It’s something of a hidden jewel.”

The idea is to send out a cohesive marketing message about Wilmington with a positive spin to Baltimore and beyond, Stewart said, though the message sent earlier this month to the media was somewhat harder-edged: “Wilmington trying to steal Baltimore millennials.”

That might elicit a snicker or a huff from some, but if Baltimore’s top cheerleaders were bothered, they didn’t let on. They said things like that there are enough young professionals to go around — which might be because some of them do their own advertising to the people of Washington.

“We’re confident that Baltimore stands on its own merits, and we wish Wilmington success in its revitalization efforts,” said Annie Milli, executive director Live Baltimore, which showcases the city and helps people find housing.

Milli also said she’s happy to share ideas. She’s been doing that with other cities that have lost population recently, even helping start up a Live Detroit.

“There is no reason to be upset” about the Wilmington pitch, she said. “What’s good for one urban area is ultimately good for all of us.”

Agreed, said Kirby Fowler, president of the Downtown Partnership, which has promoted the transformation of the city center into a vibrant residential neighborhood.

“We’re fans of revitalizing urban cores,” said Fowler, before touting downtown Baltimore’s “endless variety of ways to engage a youthful spirit.”

“If Wilmington, in spite of its small size, can create a similar environment for urban-minded millennials, the entire Mid-Atlantic region will benefit,” Fowler said.

Bernard C. “Jack” Young, president of the Baltimore City Council, was more dismissive of Wilmington’s chances. He suggested officials might have to pay people to move there from here.

“I don’t think cheap rent would be enough,” he said. “Baltimore is a destination. I’m happy to give anyone a tour. In fact, I might go there and offer to do that.”

The numbers appear to be on Young and Baltimore’s side.

It is cheaper to find a place to live in Wilmington than Baltimore, but not by much, according to an analysis by RentCafe. But it’s a lot cheaper to live in Baltimore than Washington. Monthly rent in Wilmington, averages $1,111, and has gone up just $63 from 2014 to 2018. Average rent in Baltimore is $1,234, and in Washington is $2,086.

Baltimore also has the edge over Wilmington in median household income, suggesting millennials might expect higher wages here. Wilmington’s was $35,963 last year, compared with Baltimore’s at $47,131. Washington’s was $82,372.

Population could also be an issue for those looking for diversity in housing, jobs, nightlife and people — Young cited diversity as Baltimore’s greatest strength.

Washington has been growing and now leads with about 694,000 residents in the city. Baltimore’s population overall has dipped slightly to about 612,000, according to the most recent census estimate, even as the downtown has added thousands of apartment units. Wilmington has about 71,000 residents.

There are no big league sports in Wilmington, while Baltimore has the Ravens and the Orioles playing football and baseball in downtown stadiums. Washington has the Redskins, the Nationals and the Wizards.

But for those who love soccer, the Philadelphia Union’s Talen Energy Stadium is just 15 minutes from downtown Wilmington, across the state line. And Philadephia’s Eagles, Phillies and 76ers are just 30 minutes away.

Delaware also has no sales tax. Score one for Wilmington.

Given Delaware’s pro-business legal and financial structure, Wilmington has become home to Fortune 500 headquarters, including DuPont, Chemours and Navient. Also in the plus column, according to the campaign, is its proximity to Philadelphia.

Baltimore no longer has a Fortune 500 headquarters as big local firms were sold to outsiders, but McCormick & Co. and Under Armour are just outside the ranking. And the city is home to two prestigious academic research institutions, the Johns Hopkins University and the University of Maryland, and an art school, Maryland Institute College of Art.

Baltimore likely has the edge on quirkiness. Homegrown moviemaker John Waters famously said, “Come to Baltimore and be shocked.”

Just looking at the fundamental numbers to make a decision, as financial types do, “Wilmington might be out of luck,” said Joel Anderson, a personal finance writer for GoBankingRates.com, a personal finance website.

“Aside from the significant difference in population size, there are a lot more similarities than differences” between Wilmington and Baltimore, he said. “Wilmington is actually slightly more expensive in terms of overall cost of living but not by an especially large margin. Median housing prices and median rents are pretty close, with Wilmington a little cheaper but not by the gap you might expect.”

He noted Wilmington had a lower unemployment rate, 4.2 percent to Baltimore’s 4.6 percent, but it has a higher poverty rate with 1 in 4 people living below the poverty line, compared with 1 in 5 in Baltimore.

Crime remains an issue for both cities.

As for the Wilmington campaign, Anderson said he’d never been to either city and moving is really a personal decision. But, he suggested, Wilmington officials might try to sell the place as a cheaper alternative to Philly and not Baltimore.

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Could the Air Cargo Ramp Initiative Take off This Time?

Could the air cargo ramp initiative take off this time?

22 SEPTEMBER, 2018

One unfulfilled economic development idea always seems to resurface in Kent County.

“When I bring this up, people are going to snicker,” said Linda Parkowski Tuesday at the Kent Economic Summit at Delaware Technical Community College.

“We’re looking at the air cargo ramp. This has been around and discussed for 30 years.”

The air cargo ramp idea utilizes Dover Air Force Base for private carriers’ cargo flights, related to what currently is used in support of the base and potentially what could be in support of commerce in the area.

Ms. Parkowski, just a few months into her new role as executive director of the Kent Economic Partnership, outlined the priorities of the office during a 25-minute presentation.

Largely, the new public-private ideas are building off insights obtained in Rockport Analytics’ research about the county. One of the immediate hopes, she said, is to boost Kent County’s role in warehousing, distribution and logistics – areas the researchers said would be great possibilities for the county.

The air cargo ramp might just be a great tie-in, she said.

When you go back to some of the original discussion and initiatives outlined in the past few decades, the air cargo ramp largely was pitched as a place to “park” and service private cargo planes in what was formerly called the “Civil Air Terminal” area at Dover Air Force Base. Cargo outfits such Evergreen and Atlas would fly in to the base, but not be able to stay so the planes would be flown to Philadelphia and costs amounted to tens of thousands of dollars each time.

“I see this as, hopefully, a Port of Wilmington for Kent County if we can get this working,” said Ms. Parkowski.

With two fingers slightly apart, she said, “DelDOT has done an amazing job and we’re this close to signing a joint use agreement.”

One big difference, she noted, was that previous discussions of a Joint Use Agreement between the state and the Air Force only called for two-year agreements. The new agreement calls for a 50-year agreement.”

Nothing has been signed at this point, Ms. Parkowski said.

One of the next steps, she said, would be to issue a request for information to find out what its potential uses could be.

The prospects of it working also relate to available land in the adjacent Kent County Aeropark where there are several available acres.

The Kent Economic Partnership is a nonprofit organization that was restructured earlier this year with a collaborative agreement of Kent County Levy Court and the Greater Kent Committee, a group of business leaders.

The air cargo ramp would be what formerly was called the Civil Air Terminal at the end of Horsepond Road in Dover. Currently, the terminal is most used on NASCAR weekends when drivers and crews arrive and depart in private planes.

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Port of Wilmington Privatization Deal Promises More Jobs, Stable Economic Future

Port of Wilmington privatization deal promises more jobs, stable economic future

18 SEPTEMBER, 2018

Delaware officials on Tuesday signed a final agreement with Emirati port operator Gulftainer to privatize the Port of Wilmington.

Gov. John Carney and Gulftainer officials signed a document commemorating the agreement in front of a crowd of state and local government officials.

Badr Jafar, chairman of Gulftainer’s executive board, said the deal and accompanying growth in the state’s port business will “firmly establish Wilmington as the largest logistics facility on the Delaware River and the leading food gateway on the East Coast.”

Carney said the deal would secure and grow the state’s current maritime workforce and blunt Delaware’s loss of “blue-collar jobs” over recent years.

“I come here with a big smile … knowing that what we are going to do here today is to secure the jobs of the people and the families who work here at the port and those who are going to work in the years to come,” Carney said.

Under terms of the 50-year deal, a U.S. subsidiary of Gulftainer will take over operations of the existing port of Wilmington at the confluence of the Christina and Delaware rivers.

It will invest some $600 million in upgrades and build a new container-handling terminal on the Delaware at Edgemoor, officials have said.

State officials estimate the takeover could double the 5,700 port and maritime-related jobs in Delaware.

A spokesman for Carney declined to provide a copy of the agreement but said it will be made available after a legal review.

The agreement takes effect in the coming two weeks, officials said. The state will continue to own the existing port property as well as the Edgemoor property, which was once DuPont Co.’s Edge Moor chemical production facility. The state bought that property for $10 million in 2016.

Per the agreement, the state will receive concession payments from Gulftainer totaling about $10 million a year in the coming decades.

The company, based in the United Arab Emirates, opened its first U.S. container facility in Cape Canaveral, Florida, in 2015. The company has ports in the UAE, Lebanon, Iraq, Saudi Arabia and Brazil and is a subsidiary of the Crescent Enterprises, a privately held UAE conglomerate.

“The underlying potential of the north American market has long been an aspiration for Gulftainer,” Jafar, the company chairman, said.

Jafar said the company will double the container throughout of the current port to “underpin” the development at Edgemoor.

The agreement sets a goal for a 75 percent increase in traffic for non-containerized goods like liquids and automobiles, officials have said.

Secretary of State Jeffrey Bullock, who chairs the port’s operating board, said the kind of jobs created will “secure the state’s future.”

“You can still get big things done in our state,” Bullock said.

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These Sites No Longer Make Goods. Now They’ll Get Them to You Faster.

These Sites No Longer Make Goods. Now They’ll Get Them to You Faster.

18 SEPTEMBER, 2018

As the United States economy continues its shift away from manufacturing, locations that once housed industries such as automobiles or chemicals are being remade as distribution hubs for the millions of items bought by consumers online.

Developers are trying to meet growing demand by modifying industrial buildings to meet the requirements of the logistics business or, more likely, demolishing them to make way for facilities built for the distribution industry. These sites offer many benefits ideal for distribution, including easy access to highways, ports and rail links and a proximity to major markets.

“Logistics and fulfillment is really the segment of the industrial world that has backfilled the void that manufacturing has left in terms of employment and economic activity,” said Thomas J. Hanna, president of Harvey Hanna & Associates, which plans to tear down a former General Motors assembly plant at Newport, Del., to create a three-million-square-foot complex for distribution companies.

Plans are in place to redevelop other former manufacturing sites across the nation, including a former plastics factory in Piscataway, N.J., and an old Ford plant in Lorain, Ohio.

E-commerce is driving strong growth in demand for industrial sites, according to a report from Newmark Knight Frank, a global commercial real estate company. “As consumers across economic and demographic spectrums continue to demand more rapid product delivery, developers have had to innovate their product and offer more highly efficient space in the largest urban markets,” the report said.

In coming weeks, crews in Delaware will begin to raze G.M.’s giant Boxwood Road factory, which was built in 1945 and once employed as many as 8,000 people but has been empty since the automaker’s bankruptcy in 2009. A $250 million project will replace it with four dividable buildings designed for the logistics industry, including a 40-foot-high ceiling and 600 feet between truck entry and exit points.

Fisker Automotive had planned to revive the plant by making luxury cars there before it went bankrupt in 2013, and demolition was not the first option for Mr. Hanna, a Newport native with ties to the 142-acre site. His father worked there as a plant engineer, and his uncle, who is now his business partner, had summer jobs mowing lawns as a teenager.

Mr. Hanna wanted to reconfigure the factory for today’s manufacturers, but after a year of trying, he was unable to generate enough interest. He concluded that the costs of manufacturing in the United States, especially the Northeast, were too high to find enough tenants to fill the plant’s 1.1 million square feet.

“Manufacturing is not entirely dead, but it’s nowhere near as robust as it once was in terms of our economy,” Mr. Hanna said during a tour of the building.

Despite a rebound from the depth of the recession, the United States has lost about 640,000 manufacturing jobs over the last decade, with data showing 12.7 million in August, according to the Bureau of Labor Statistics.

Within an eight-hour drive of some 50 million inhabitants in the Northeast and Mid-Atlantic, and close to highways, rail and the soon-to-be upgraded Port of Wilmington, the site is well situated for the logistics industry.

“This plant has sat dormant for almost a decade, and it is time for it to be put back into a higher and better use,” Mr. Hanna said.

Developers of older industrial sites face risks, including the cost of demolition or refurbishment, environmental cleanup and the need to retain a local work force that can transfer its skills to logistics, said Robert J. Vodinelic, the national practice leader for industrial and logistics real estate at Newmark Knight Frank.

But many are willing to take them on because of the strong demand from the logistics industry, Mr. Vodinelic said.

“If they are able to buy these properties for a fraction of the replacement cost, then they can make the numbers work,” he said. “Even with the huge cost of building a manufacturing facility, new construction may end up being the best route.”

Older sites such as Boxwood Road are desirable because newly developed land is more likely to be farther from major consumer markets, Mr. Vodinelic said.

“In many markets, there is a lack of adequate development sites that have the proximity to employment base and highway access that a lot of these former manufacturing plants have,” he said.

The large size of older manufacturing sites also draws logistics companies, which now demand 600,000 to one million square feet, about twice the area they typically occupied 10 years ago, Mr. Vodinelic said.

In Piscataway, the Rockefeller Group, a commercial real estate developer, is remaking a 228-acre site once occupied by a Dow Chemical plastics factory, and building five structures totaling 2.1 million square feet primarily for the distribution industry.

The site, close to New York, the New Jersey Turnpike and Interstate 287, offers a rare opportunity, said Brandi Hanback, executive vice president for industrial development at Rockefeller. “It’s very unusual that a site of that size is available in New Jersey,” she said.

The first tenant, Best Buy, has set up a distribution center there, and interest from other companies has been strong enough to accelerate the construction schedule to three years from five, Ms. Hanback said.

In addition to the scarcity of land in northern and central New Jersey, she attributed the demand to the proximity of ports and the availability of labor for logistics companies.

“It’s a good microcosm of what’s happening in the industrial real estate market in general and especially in these gateway markets like northern New Jersey,” she said.

In Lorain, the site of the former Ford plant, which closed in 2006, is being used by distribution companies including Trademark Global and Comprehensive Logistics. Trademark Global receives, packs and ships consumer goods for internet retailers, and Comprehensive Logistics is a third-party provider for a Ford truck plant in Avon, Ohio.

The Industrial Realty Group, which specializes in the adaptive reuse of commercial real estate, demolished part of the 3.8-million-square-foot plant and improved facilities for future tenants in the remaining structure.

In Pontiac, Mich., Industrial Realty converted a former G.M. plant into a center for industrial and logistics companies including Fanuc America, a Japanese robotics company that uses 400,000 square feet of former office space for light assembly, warehousing and distribution.

In reusing such sites, logistics companies are positioning themselves geographically to serve a surging demand for same-day delivery of online purchases.

“Logistics is the fastest-growing segment within the real estate industry,” Mr. Hanna said. “Everyone is trying to figure out how to get their product to the consumer the fastest.”

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The Future of Transportation in the First State

The future of transportation in the First State

28 AUGUST, 2018

How we’ll roll: Trains, Planes and Driverless Cars

Transportation planners and experts are careful about predicting how Delawareans will get around in 30 years, but they’re more certain about how they won’t. Many argue that building more roads, highways and parking lots is a trend in need of reversal.

“Building new roads is not where the country is,” said Jennifer Cohan, secretary of the Delaware Department of Transportation. “We are not building our way out of traffic congestion.”

“If everyone continues to drive their own car, we’ll have problems,” said Bill Swiatek, a principal planner at the Wilmington Area Planning Council, or WILMAPCO, a planning group that coordinates transportation spending. “We have to convince people that roads are finite resources.”

But the gulf between what planners say the state needs and what residents want is wider than ever.

Instead of choosing transit-accessible Wilmington, about half of household growth until 2040 will take place in suburbs along the I-95 corridor, WILMAPCO predicts.

As a result, WILMAPCO projects that 61 percent of transportation spending on new projects in New Castle County over the next two decades will go to eight major roadways south of U.S. 40.

Non-road projects, such as the extension of commuter rail in Maryland from Perryville to Elkton, and major work on a trail linking Wilmington to New Castle, are in the works as well, but most funding will continue to pay for road improvements and construction.

Meanwhile, transit ridership is declining. Delawareans are buying more cars than ever, and Census data shows that more people are choosing to drive alone. Even carpooling has seen major declines since the 1980s.

Whether and how Delaware can reverse this cycle of sprawl and infrastructure spending will be a central question for its business community. Though businesses tend to be agnostic on the question of how people get around, ensuring access to workers, goods and markets is essential, said Kurt Foreman, executive director of the Delaware Prosperity Partnership.

Major questions remain on how to pay for it all. Delaware’s trust fund is projected to grow at an annualized rate of 1.4 percent through 2023. If people buy fewer high-mileage cars, the state will stumble toward a crisis. Another approach, paying by the mile, is unpopular for now but seeing a concerted push from policy experts.

Here is a look at some of the transportation projects and trends coming to Delaware and what they could mean for the state in the years, and even decades, to come.

Infill and redevelopment

As a home to one of the first north-south roads through the Thirteen Colonies, and Native American trails before that, Claymont has long been tied to its infrastructure, said Brett Saddler, a resident who leads a public-private nonprofit called the Claymont Renaissance Development Corp.

Today, that means a connection to mass transit, but the current rail station is “nothing more than a glorified bus shelter,” Saddler said.

In 2013, the closure of Claymont Steel hit the community hard, but the 425-acre site presented an opportunity. A new station is slated to open by the end of 2020. The station serves about 1,200 weekday commuters.

Nearby businesses stand to benefit, too.

“Tri-State Mall is licking their chops,” he said.

What’s happening in Claymont is a good example of what planners call “infill” development, which targets vacant or under-used land within existing communities. It takes advantage of existing infrastructure and avoids sprawl, but it’s often more expensive than building on a blank slate.

In other words, it’s an uphill battle. While greenfield development happens naturally in some places, infill often requires government help.

“I have no doubt that if we and the community did not lobby for the investment, we wouldn’t be looking at what’s potentially going to happen there now,” Saddler said.

Road diets and bottom-up outreach

On DelDOT’s long-range planning website, called “Innovation in Motion,” the department compares two roads: A typical four-lane city street and the road of the future, a two-lane road with dedicated bus and bicycling lanes. Owner-occupied cars are still on the stage of these future roads, but they’re moved to a supporting role.

For an example of how these transformations, often called “road diets,” look, consider Newark’s experience with Cleveland Avenue, a busy four-lane road lined with car dealerships.

A 2001 attempt to put Cleveland on a diet went nowhere, as businesses along the 1.1-mile project route objected to slimming the road to two lanes. So the plan was put on the shelf.

Then it was dusted off in 2015, when the city and state, spurred by accident data showing that Cleveland was a particularly dangerous stretch of road, took another shot at the project. This time, they recruited businesses and other interests in the area to a task force, allowing them to join the process.

During one site visit, Acting City Manager Tom Coleman remembers watching families push strollers across four lanes of traffic.

“I thought, ‘If we don’t do something, someone’s going to get killed out here,’” he said.

After this summer’s project, Cleveland Avenue will be two lanes in each direction, with a center turn lane where needed. There are also bike lanes in each direction and pedestrian “refuge islands” in the middle to make it easier to cross on foot.

Road diets will likely be a bigger part of Delaware’s transportation network over the coming decades, according to Coleman. His advice is to engage a wide mix of interests early on.

“I think you’re going to have trouble with a top-down approach to implementing these just because [removing driving lanes] can be so counterintuitive,” he said.

Making transit ‘sexy’

An estimated 17 percent of people in the area depend on transit, but many view it with skepticism, said Dave Gula, a principal planner at WILMAPCO.

But if the future is going to become more transit-oriented, planners say bus travel will have to appeal to people who don’t have to take it.

“What you’re seeing us focus on now is trying to make transit sexy,” said Cohan, the DelDOT leader. That means adding amenities like free wireless internet and phone-charging stations.

Delaware bus riders can now track the location of their bus in real-time and pay via mobile app for summer beach buses. Adults older than 65 were the top downloaders for the beach bus app, Cohan said.

Allowing older adults to remain independent even if they can’t drive — along with young people who prefer not to —is an important part of transit’s role, said Heather Dunigan, also a principal planner at WILMAPCO.

But the viability of transit is limited by sprawl; the farther buses have to travel, the longer routes become, and the more transfers are necessary.

“The disconnect between land-use planning and transportation infrastructure has been part of the uphill battle,” Cohan said. “Of course, more development is great, but if transportation infrastructure doesn’t keep pace, you end up with a situation like you see at the beach.”

Getting dense

In 1920, three out of every four New Castle County residents lived in Wilmington. Today, about one in eight do. As the car made it possible to live farther afield, infrastructure spending struggled to catch up.

“A lot of New Castle County was built in a way that will never pay for itself,” Coleman said. Expanding roads simply leads to more demand for housing, more drivers and eventually more demand for roads.

A 2014 WILMAPCO survey found that 71 percent of respondents thought development should occur in existing towns and growth areas, while only 29 percent thought it should happen where developers choose.

But restrictions on property rights are a tough sell in America. Foreman noted that the term “sprawl” has negative connotations that presuppose “there’s something wrong with people developing their land where they’d like to.”

That said, Foreman said the transition toward denser spaces won’t need to be led by regulators. Instead, as people demand different places, developers will respond.

“They’re thinking about the quality of place now, and what value proposition that a resident of their community gets, whether it’s a riverfront or a ballpark or a walking trail,” he said.

A self-driven future

Generally, experts talk about self-driving or autonomous vehicles on a continuum, with Level 0 being entirely driver-controlled and Level 5 being entirely automated, with no steering wheel, pedals or breaks. Vehicles from Levels 1 through 4 have varying levels of automation, but a driver needs to take the wheel in certain situations.

Level 2 vehicles, which can brake, steer and accelerate on their own but need a driver, are already on the road. How long before we see a Level 5 vehicle — and the full promise of driverless vehicles — is not yet clear, said Ken Grant, public and government affairs manager for AAA Mid-Atlantic.

“I think it’s coming faster than most people would expect,” he said. “Does that mean next year? No. Within 10 years? Maybe. Within 20 years? Probably.”

Imagine a car that is competent enough to drive itself, but still needs a human driver to step in every once in a while. Expecting drivers to react quickly, especially when a car can drive itself most of the time, may be too much to expect.

“That’s kind of dicey,” Grant said of these Level 3 and 4 vehicles. “That’s one area of transition that’s going to be tricky.”

For this reason, some automakers, including Ford, have said they intend to skip over this level.

Technology, though, tends to change more quickly than behavior. It’s one thing to pick up an iPhone and another to change how you get to work every day. Even when self-driving cars are common, will ride-sharing follow suit?

DelDOT has asked the University of Delaware to investigate the state’s readiness for autonomous vehicles. The university’s April 2017 report is largely positive, suggesting the state already has an extensive telecom network and is planning new efforts to prepare the state for driverless vehicles.

Still, long-distance commutes are likely to increase, triggering more sprawl and environmental degradation, said Philip Barnes, a co-author of the report and an associate policy scientist in UD’s Institute for Public Administration.

“The real, real question here is how’re we going to pay for all this,” he said. “This is not going to be cheap.”

Paying by the mile

As drivers move to more fuel-efficient vehicles, hybrids and electrics, they save gas money but cut down on the Delaware’s 23-cents-a-gallon gas tax.

Delaware is one of many states part of a “huge policy discussion around implementation of mileage-based user fee,” said Barnes of UD.

Grant, with AAA, is a part of DelDOT’s trial run to charge residents based on how many miles they drive instead of how much gas they use. At the end of the month, the device tells him how many miles in each state he drove and receives an informational “bill” (the pilot is not actually collecting money) that deducts the gas taxes he paid.

“It doesn’t say exactly how many trips I’ve taken to Dunkin Donuts, which I’m glad of because my wife doesn’t get to see that,” Grant said, joking.

A 2018 WILMAPCO survey found that 74 percent of residents of Cecil and New Castle counties did not support paying by the mile.

Cohan said there are two major misunderstandings about a mileage-based fee. First, people think their location is being tracked in real time, though the state merely collects information once a month. Second, people think the tax will be in addition to the gas tax, rather than instead of it.

Robert Perkins, a Wilmington business executive who leads the Delaware Business Roundtable, said it’s too early to tell whether the mileage-based tax is the right answer.

“I think most people believe the gas tax is an equitable way to fund transportation, but it’s very wise for the state to look at other ways to pay for infrastructure needs,” he said.

Barnes thinks most people will support a mileage-based fee if it’s explained clearly to them, but there is always a Plan B.

“When our potholes don’t get filled, when bridges crumble,” he said, people will take notice.

That said, predictions about new taxes or automated vehicles should be taken with skepticism, Barnes said. “It’s crystal ball gazing and anyone who says they know for certain is not being honest with themselves.”

Regardless of whether drivers can be persuaded to adopt new ways of getting around, Foreman, the business leader, said there will be opportunities.

“What I like about Delaware is that we’re small enough that I don’t think the solutions will daunt us,” he said. “Our small scale gives us connectedness and an ability to dialogue that bodes well for our future.”

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Top Trending: INC 5000 List Includes 12 Delaware Companies

Top Trending: INC 5000 List Includes 12 Delaware Companies

23 AUGUST, 2018

A dozen companies in Delaware made the annual INC 5000 list of the nation’s fastest growing small companies.

The closely watched list ranks companies based on their three-year sales performance. The list was expanded to 5,000 companies from 500 several years ago by the small business magazine and website.

HomeStar Remodeling, Wilmington, topped the list at No. 53. The company posted $5.3 million in annual sales was the top-ranked construction company on the entire INC 5000 and was listed as the fastest growing company in the Philadelphia region.

According to INC, companies must be U.S.-based, privately held, for-profit, and independent – not subsidiaries or divisions of other companies — as of December 31, 2017.

The list features a high turnover of companies in Delaware and elsewhere year to year. Many fast-growing companies are acquired by competitors and a few move on to become publicly traded corporations.

Other small companies ranked by growth were:

  • 418: TECSPLUS, Newark, Information technology, $3.3 million.
  • 583: Empire Flippers, Wilmington, sales of online enterprises, $16.5 million.
  • 604: Extreme Scale Solutions, Newark, information technology, $16.5 million.
  • 864: Shipsound, Wilmington, online retail, $4.2 million.
  • 2, 060: Placers, Newark, human resources, Newark, $9.3 million.
  • 2,325: Tangentia, Wilmington, information technology, $2.1 million.
  • 2,363: Careerminds, Wilmington, outplacement and related services, $2 million.
  • 2,697: Chesapeake Plumbing and Heating, Frankford, construction,$26.1 million.
  • 4,127: Karins and Associates, Newark, engineering services, $6.4 million.
  • 4,217: The Siegfried Group, Wilmington, accounting $177 million.
  • 4,863: Biomedical Research Laboratories, Wilmington, Food and Beverage $4.9 million.

Click here to explore the 2018 list.

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Christiana Care Listed by U.S. News as ‘Best Hospital’

Christiana Care listed by U.S. News as ‘Best Hospital’

16 AUGUST, 2018

For the third year in a row, Christiana Care Health System has been rated a Best Hospital by U.S. News & World Report.

Out of more than 4,500 hospitals in the U.S., New Castle-based Christiana Care was one of only 29 to achieve the highest ratings in every common condition or procedure.

Christiana Care was also recognized as the best hospital in Delaware and was ranked No. 3 among the 90-plus hospitals in the Philadelphia region, a release stated.

“At Christiana Care, we serve together to make a positive impact on the health of our community,” said Janice E. Nevin, Christiana Care president CEO. “That impact starts with the high-quality, safe care that we provide in our hospitals. This recognition by U.S. News & World Report affirms that we’re exceptional today—and we remain committed to do all that we can to be even better tomorrow.”

The conditions and procedures ranked are:

  • Colon cancer surgery
  • Lung cancer surgery
  • Chronic obstructive pulmonary disease
  • Heart failure
  • Heart bypass surgery
  • Aortic valve surgery
  • Abdominal aortic aneurysm repair
  • Knee replacement
  • Hip replacement

These procedures and surgeries represent a high level of achievement across the board and is a testament to our organization’s culture,” said Ken L. Silverstein, chief clinical officer and executive vice president at Christiana Care.

“We know that in order to deliver the very best care, doctors, nurses and other health care professionals need to be able to experience joy in their work,” he said. “We focus on supporting and partnering with our caregivers to create that positive experience.”

U.S. News & World Report measures procedure and condition ratings based on three elements: structures, the resources devoted to patient care; process, whether the practices that help patients are woven into hospital routine; and outcomes, the results of care as measured by five years of claims data and other sources.

It ranks hospitals in nine conditions and procedures as either high performing, average or below average. The procedures and conditions measured were selected based on patient volumes, the availability of comparison data and the presence of risk or complexity.

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Every Delawarean Deserves Access to High-Speed Internet

Every Delawarean deserves access to high-speed internet

9 AUGUST, 2018

Applying for a job, or recruiting talented employees for your business. Taking a college course. Reading a book. Helping your kids with math homework.

More and more, these are tasks that Delawareans are completing online — to further their education, acquire new skills, and compete in an economy that is evolving every day.

My most important job as governor is to make sure that Delaware has a strong, growing, and competitive economy. That’s why it’s so important for us to expand access to high-speed broadband service across our state — especially in areas where service is spotty or unavailable today.

Over the next two years, working with partners in the private sector, we plan to eliminate broadband deserts and ensure that every Delaware citizen and business has access to high-speed broadband service.

Delaware has consistently been recognized for having among the fastest internet speeds in the country. Ensuring reliable access to the internet for even more Delawareans will help prepare our young people for the economy of the future, and it will help our existing workforce do their jobs even better.

Recently, during a tour of Delaware Electric Cooperative in Greenwood, we saw how important broadband access is to the delivery of electricity across Kent and Sussex counties.

One night at 11 p.m., Josh Wharton, a Delaware Electric Cooperative operations supervisor, received a call about a fire on another company’s power line. The company asked Josh to redirect power to 5,000 customers before their service was impacted. From his home in Gumboro, Josh used an iPad to keep the lights on for 5,000 Delawareans.

How was that possible? A high-speed, remote internet connection.

Businesses need to reach their customers, and so they set up shop in locations that enable them to communicate efficiently. High-speed broadband is critical for companies of all sizes, and it’s why we’re working to ensure businesses have access to quality internet service statewide.

We also heard from R.C. and Brent Willin of Willin Farms on how their fifth-generation family farm uses the internet to make adjustments to planting, monitor equipment, and manage business operations.

We want all of Delaware’s farms to have access to this type of technology. Expanding access to high-speed broadband is essential for Delaware’s agriculture sector to remain competitive.

Here’s how we plan to expand high-speed broadband access in Delaware: In August, we will release a request for proposals (RFP) to improve broadband availability in rural areas throughout Delaware by creating opportunity for the private sector to develop and offer that service wirelessly.

Through this RFP and subsequent partnerships, the State will enable wireless service to homes and businesses where broadband service is not readily available, particularly in rural Kent and Sussex counties.

Delaware will find ways to lower the cost of internet service for lower income families. If we want all Delaware families to have a shot at success, they need to be able to apply for a job and complete homework assignments – tasks that become incredibly complicated without access to the internet.

We’ll make it more attractive for private sector internet service providers to bring wireless coverage to Delaware by subsidizing capital costs through a rural broadband grant program, making it possible for providers to invest and develop in rural areas.

This is about increasing opportunity for all Delawareans — and making sure that no one in our state is left behind because they don’t have adequate access to technology.

We are building on earlier work across our state that has achieved results. Delaware has worked diligently to expand broadband access across the state for several years.

Delaware Chief Information Officer James Collins has worked with school district leaders to upgrade digital infrastructure and dramatically increase internet speeds in 48 schools statewide — many in areas that are under-served.

As part of an initiative through the Delaware Department of Technology and Information, a company called Bloosurf launched a pilot project in the City of Seaford, which offered free internet service to customers within 8 miles of wireless access points throughout the city.

That helped Delawareans like Kim Hopkins, a Seaford teacher, who previously had trouble grading papers, preparing lesson plans, and helping her children with their homework because of a slow, spotty internet connection.

The State of Delaware made an initial public investment in increasing our digital infrastructure, which has led to over $30 million in private investment. As a result, we have 700 miles of fiber broadband lines bringing high-speed internet to homes, businesses, and schools statewide.

Delaware’s broadband “backbone” features high capacity fiber-optic lines that run the length of the state from Wilmington to Georgetown, and from Seaford to Lewes, improving internet reliability for consumers and increasing internet access speeds by as much as 10 times since 2009.

Thanks in large part to these efforts, Delaware continuously ranks at, or near, the top of broadband speed rankings across the nation. Yet, we still face the same challenges as many other states when it comes to access and affordability, especially in our rural areas where broadband deserts still exist.

Over the next two years, we will directly confront this issue, eliminate those deserts, and make high-speed internet a reality for all Delawareans. That will help all Delawareans connect and compete in a new economy, and improve economic opportunity across our state.

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Ashland Moving Corporate Headquarters to Delaware by 2020

Ashland moving corporate headquarters to Delaware by 2020

3 AUGUST, 2018

Ashland Inc.’s announcement that it is moving its headquarters and less than 100 jobs to Delaware marks an investment in a state where the company has had a convoluted and, at times, controversial history.

The new headquarters will be located at 500 Hercules Road in Brandywine Springs, where the company already has an office campus with about 235 workers. The move is expected to happen by Jan. 1 2020.

“Ashland has a long history of innovation and success, including right here in Delaware,” Gov. John Carney said via email. “We’re thrilled they have selected Delaware for their corporate headquarters. This is additional proof that Delaware remains a great place for companies of any size to put down roots, grow, and create jobs.”

The move to Delaware will follow a corporate downsizing at the 94-year-old company that recently fell out of the Fortune 500.

Ashland says it will be “significantly downsizing” its current headquarters in Covington, Kentucky, in advance of the relocation with some of the 48 jobs there being eliminated and others being moved to its facility in Dublin, Ohio.

The remainder will be brought to Delaware, along with employees from its offices in Lexington, Kentucky. About 58 people work at that office, although some of those jobs also will be eliminated or relocated to Dublin, while other employees will be asked to work remotely.

The downsizing is part of a plan Ashland CEO William Wulfsohn announced in May to cut $120 million in expenses. Workers at the two Kentucky offices affected by the move were told of the downsizing on Tuesday.

Ashland saw its stock price jump to a 10-year high of $85.60 per share after the announcement, which coincided with a third-quarter earnings report that showed sales up 12 percent and a $66 million positive swing in net revenue compared to last year.

Founded in Kentucky 94 years ago, Ashland first became a household name here when the company purchased former Hercules Inc. for $3.3 billion in 2008.

Hercules was broken out of the DuPont Co. and once employed 1,800 people at the global headquarters it built in downtown Wilmington. But the company began to falter in the early 2000s after a series of questionable business decisions, leading to its eventual sale.

Ashland later moved its new acquisition out of the city, leaving 125,600 square feet of space vacant in Wilmington’s Hercules Plaza.

Despite the move, Delaware agreed in 2012 to provide Ashland with $10 million worth of taxpayer grants in exchange for the company’s promise to add 300 jobs in five years, bringing its total local workforce to more than 800. The deal was one of the largest economic development incentive packages approved under former Gov. Jack Markell.

But just two years later, Ashland sold its Delaware-based water technologies business to a private investment firm, which renamed the new standalone company Solenis. That business is now headquartered at the 21st Century Plaza in Brandywine Hundred.

The remaining company failed to reach its hiring goal and in 2015 was forced to repay nearly $335,000 of the state grant money it had received up to that point.

The same year, the now-defunct Delaware Economic Development Office helped Solenis win a $1.1 million taxpayer grant to help the company add 122 additional jobs by 2017 – a deal that would have brought its total Delaware workforce to 336. The company exceeded that goal by 31 jobs, state officials said Thursday.

No financial incentives have been offered to Ashland in connection with its impending move to New Castle County, according to the Delaware Prosperity Partnership.

The DPP was created by the General Assembly last summer when DEDO was dissolved and its responsibilities split between the new public-private partnership and the Division of Small Business.

Ashland’s impending relocation marks the first major accomplishment for the new organization since its new CEO Kurt Foreman took the helm in April.

“There wasn’t a lot of selling involved because they already were familiar with Delaware,” Foreman said. “It was more about being ready with the information they were looking for to help them make their decision.”

While Foreman said he is happy to have helped Ashland, he stressed that attracting new companies will not be the sole focus of the partnership.

“We want that to be only one part of our strategy,” he said. “There is nothing better than for those companies we want to bring here to see existing companies in the state grow and thrive. That’s a big part of where our focus is.”

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