Author: Delaware Prosperity Partnership

Thank you for Choosing Delaware

Thank you for choosing Delaware

15 DECEMBER, 2018

Whether you live in the city or a small town; whether you work in an office or on a farm; whether you spend your free time in our theatres, state parks or on our beaches — Thank you for choosing Delaware.

Working with our partners throughout the state, our board and investors, the DPP team sees firsthand the impact a robust economy has on the communities we serve. The DPP looks forward to 2019 and telling the good news stories about Delaware businesses and people making a difference.

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The New York Times: The President Steering More Money to ‘Opportunity Zones’

The New York Times: The President Steering More Money to ‘Opportunity Zones’

14 DECEMBER, 2018 | NEW YORK TIMES

President Trump directed federal agencies on Wednesday to steer spending toward certain distressed communities across the country — part of his administration’s push to turn a tax break included in last year’s $1.5 trillion tax package into a broader effort to combat poverty and geographic inequality.

Mr. Trump signed an executive order at the White House to push federal resources to so-called opportunity zones — a small but lucrative provision tucked into his signature tax cut that in recent months has vaulted to prominence among real estate developers and other investors.

Mr. Trump told attendees at the meeting that the zones would receive “massive incentives” for private-sector investment. He said the goal of the order was to help “draw investment into neglected and underserved communities of America so that all Americans regardless of ZIP code have access to the American dream.

”The zones are urban, rural and suburban census tracts, designated by governors and approved by the Treasury Department, that either are high in poverty or border high-poverty areas. They are intended to bolster investment in areas that might otherwise lack interest by offering tax breaks to lure funding for start-ups, housing developments and other economic activity. Investors who fund projects in areas deemed opportunity zones can reduce — and in certain cases eliminate — taxes on investment gains.

This article was originally posted on the New York Times at: https://www.nytimes.com/2018/12/12/us/politics/trump-opportunity-zones-tax-cut.html

Kurt Foreman

PRESIDENT & CEO

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Choose Delaware. The Delaware Prosperity Partnership is Here to Help

Choose Delaware. The Delaware Prosperity Partnership is here to help.

14 DECEMBER, 2018

From our convenient location, to our talented workforce, competitive tax structure, and unparalleled access to decision makers, companies around the world are choosing Delaware.

The Delaware Prosperity Partnership (DPP) connects business leaders to the resources they need to make informed decisions about growing or relocating their business.

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Ben duPont on Creativity and Innovation in Delaware

Ben duPont on Creativity and Innovation in Delaware

11 DECEMBER, 2018

Delaware’s geographic location and unparalleled access to capital, customers and decision-makers creates an ecosystem in which businesses thrive.

Ben duPont, founder of yet2.com and yet2Ventures and co-founder of Chartline Capital and ZipCodeWilmington, talks about why Delaware is ideal for creativity and innovation.

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Expand Your Business in Delaware

Expand Your Business in Delaware

A new online portal for ready access to properties and more

Businesses prospecting for locations in Delaware now have a powerful tool that will help them strike development gold. The Delaware Prosperity Partnership recently unveiled its Zoom Prospector site location tool on its website, www.deprosperitypartnership.com and with direct access by typing delaware.zoomprospector.com. Powered by Geographic Information System (GIS) technology, Becky Harrington, Director of Business Development at DPP said the new microsite helps site selectors drill down on a wide variety of information about sites, buildings, labor force and more.

“We make it easy for anyone to access key data businesses need to make a decision – everything from demographic data, to utilities, to internet options and other key infrastructure – then we worked to put it in a very intuitive, user-friendly format,” Harrington said. “This will give us a valuable edge because we know that more and more businesses are doing much more of their preliminary exploration online.” With more than 97 percent of site selection research done online, the new tool allows developers to see aerial and street level views of locations as well as information education and income levels, available educational options, which can be vital in workforce training, and data on amenities and spending patterns. The tool allows scouts to look for office space, industrial space, flexible space, and open sites and if they’re for sale or lease. It provides important data on whether sites are brownfields, waiting to be redeveloped, or completely undeveloped. It also offers key data on wetlands and flood plains. Other key data include an area’s:

  • Available transportation options
  • Utility services
  • Business development incentives

Delaware Prosperity Partnership’s Zoom Prospector also allows developers to compare sites within the state in addition to locations outside Delaware. “When employers have ready access to the data and can see Delaware’s value proposition, it will make the business of deciding to locate here a lot easier,” Harrington said. “The way this data can be combined, compared and contrasted, is flashing a well-deserved spotlight on Delaware.”

About Delaware Prosperity Partnership

Created in 2017, Delaware Prosperity Partnership (DPP) leads the state of Delaware’s economic development efforts. This initiative brings together the resources, commitment, and energy of both public and private sectors charged by the Delaware General Assembly to attract, grow and retain companies; 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 more information

Michele A. Schiavoni
mschiavoni@deprosperitypartnership.com
302.576.6573

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Solenis Adding Jobs in Delaware

Option: 1

Solenis Adding Jobs in Delaware

WILMINGTON, Del. – Working with Delaware Prosperity Partnership, Solenis announced its plans to increase capacity and jobs in Delaware today at the meeting of the Council on Development Finance.

The plan presented by Solenis Senior Vice President and Chief Financial Officer, Philip M. Patterson, Jr includes capital improvements; adding 92 new jobs over three years as well as retaining 323 current jobs in Delaware. The requests for performance-based grants includes capital expenditures in the amount of $763,050; a $1,980,000 grant for the retention of 323 jobs and a performance grant in the amount of $1,170,000 to create 92 new jobs within three-years.

“Solenis, a global leader in specialty chemicals, plays an important role in Delaware’s economy and our rich history of innovation,” said Governor John Carney. “Choosing Delaware for their next phase of growth and development benefits our economy, our communities and underscores Delaware’s prominence in the specialty chemical sector. And this confirms again that Delaware remains a great place for companies of any size to put down roots, grow, and create jobs.”

Solenis, a $1.9 billion company headquartered in New Castle County, employs 3,700 professionals in 118 countries spanning five continents. A spin-off of Ashland, Solenis is considered a leader in the specialty chemicals manufacturing sector and traces its roots back 98 years in Delaware. This past spring, Solenis and BASF announced plans to join forces by combining their paper and water chemicals businesses.

Phil Patterson, Solenis’ Chief Financial Officer explained the performance-based grants will support Solenis’s next growth phase. “Solenis is in a growth mode and we are working to retain, recruit and add employees to enhance our value proposition and better serve our customers. Our roots are here in Delaware and we are excited about continuing to grow here.”

“We win the future when entrepreneurs choose to build their businesses in New Castle County and when existing employers like Solenis make new commitments to grow right here. Their success is powered by the talent and skills of our exceptional Delaware workforce,” said New Castle County Executive, Matt Meyer.

About Delaware Prosperity Partnership

Created in 2017, Delaware Prosperity Partnership (DPP) 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.

About Solenis

Solenis is a leading global producer of specialty chemicals for water intensive industries, including the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets. The company’s product portfolio includes a broad array of process, functional and water treatment chemistries as well as state-of-the-art monitoring and control systems. These technologies are used by customers to improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. Headquartered in Wilmington, Delaware, the company has 35 manufacturing facilities strategically located around the globe and employs a team of approximately 3,700 professionals in 118 countries across five continents. For additional information about Solenis, please visit www.solenis.com.

FOR FURTHER INFORMATION

Media Relations

Catherine (Katy) Abernathy
Tel: +1 904 256 0333
cmabernathy@solenis.com

Media Relations

Delaware Prosperity Partnership
Michele A. Schiavoni
302.576.6573
mschiavoni@deprosperitypartnership.com

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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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