Author: Delaware Prosperity Partnership

Delaware Economic Development Working Group Recommends Plan for Public-Private Partnership

Delaware Economic Development Working Group Recommends Plan for Public-Private Partnership

Governor Carney created the working group with Executive Order #1

7 APRIL, 2017

The Delaware Economic Development Working Group submitted its report to Governor John Carney on Friday, recommending a plan to implement a public-private partnership – the Delaware Prosperity Partnership – that would restructure Delaware’s economic development efforts.

The nonprofit partnership, as recommended by the working group, would leverage private resources to enhance business recruitment, promote entrepreneurship and innovation, support workforce development and provide market analysis on Delaware’s economy.

On January 18, his first full day in office, Governor Carney signed Executive Order #1, creating the working group to recommend a plan for implementing a public-private partnership to improve Delaware’s system of economic development.

Governor Carney is reviewing the working group’s recommendations.

“Delaware’s economy continues to undergo substantial change, and we should do everything we can to ensure Delaware is competing for the good-paying jobs of the future, preparing our workforce for those jobs, supporting our entrepreneurs and promoting innovation,” said Governor Carney. “It makes sense to ask the business sector to partner in those efforts. Thank you to the members of the working group for their attention to this important issue. I am committed to working with the General Assembly as we explore a path forward.”

A new partnership, as recommended Friday by the working group, would be designed as a forward-looking entity to anticipate economic trends – with success of the initiative defined by a set of metrics to include new job creation, higher wages, expanding Delaware’s high-quality talent base, growing Delaware’s tax base, and new business formation.

The working group’s plan does not call for a full replacement of the Delaware Economic Development Office. Under the group’s recommendations, DEDO would remain responsible for administering the Delaware Strategic Fund, Delaware’s Tourism office, business development initiatives and various additional functions.

The Delaware Prosperity Partnership would be led by a Chief Executive Officer and governed by a 15-member board with members from the public and private sectors. Friday’s report anticipates a total annual budget of $2.5 million – with the private sector funding a target of 40-60 percent of the nonprofit’s operational costs.

“The members of the working group were honored to serve the Governor on this project and brought a lot of energy, commitment and great thinking to the process of developing the final report,” said Mark Brainard, President of Delaware Technical Community College, and co-chair of the Economic Development Working Group. “The literature shows that states that want to bring additional resources and talent to their economic development initiatives in the future utilize public-private partnerships as a mechanism for generating these additional resources and this proposed model is a very solid start for the Governor’s team and the General Assembly to build upon during the weeks and months ahead.”

“I want to thank all the working group members for their active and thoughtful participation,” said Rod Ward, President of Corporation Service Company, and co-chair of the Economic Development Working Group. “Our report outlines a wonderful opportunity for the business community to work more closely with the state on economic development through a public-private partnership. It can be a game changer for economic growth.”

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Governor Carney Announces Economic Development Working Group Members

Governor Carney Announces Economic Development Working Group Members

Membership guidelines outlined in executive order

9 FEBRUARY, 2017

Governor John Carney announced Wednesday the members of the Economic Development Working Group who will develop recommendations for implementing a public-private partnership at the Delaware Economic Development Office.

The working group will explore how state government can work with the private sector to improve economic development efforts in Delaware, including ways to attract new, growing companies to the state, build a stronger entrepreneurial community, and support innovation.

“Over the next several weeks, the working group will explore how we can best position Delaware to be at the top of the list for businesses looking to start-up, grow or relocate,” said Governor Carney. “We will work with private industry to help grow our economy so that Delaware can compete for good-paying jobs.”

The Economic Development Working Group members include:

  • Mark Brainard – President, Delaware Technical Community College (Co-Chair)
  • Doneene Damon – Executive Vice President, Richards, Layton & Finger, P.A.
  • Mark Kleinschmidt – President, New Castle County Chamber of Commerce
  • Nick Lambrow – President, M&T Bank, Delaware Region
  • Jim Maravelias – President, Delaware AFL-CIO
  • Terry Murphy – President, Bayhealth Medical Center & Chairman of the Delaware Business Roundtable
  • Mona Parikh – Community Engagement Liaison, UD Horn Program in Entrepreneurship
  • Sen. Brian Pettyjohn – Senate Republican Caucus
  • Albert Shields – Policy Director, Office of Governor Carney
  • Rep. Bryon Short – House Democratic Caucus
  • Richelle Vible – Executive Director, Catholic Charities
  • Sen. Jack Walsh – Senate Democratic Caucus
  • Rod Ward – President, Corporation Service Company (Co-Chair)
  • Bernice Whaley – Director, Delaware Economic Development Office
  • Rep. Lyndon Yearick – House Republican Caucus

The working group will begin its work in February and report back to Governor Carney by April 7, 2017. The group includes a member from each of the General Assembly’s four caucuses; four representatives from the business community; the Director of the Delaware Economic Development Office; the Governor’s Policy Director; and representatives from the nonprofit sector, higher education, labor and the public.

The Economic Development Working Group was established by Executive Order Number One, which Governor Carney issued on his first day in office.


Text of Executive Order

EXECUTIVE ORDER NUMBER ONE

TO: HEADS OF ALL STATE DEPARTMENTS AND AGENCIES

RE: CREATING A WORKING GROUP TO CONSIDER A PUBLIC-PRIVATE PARTNERSHIP BETWEEN THE DELAWARE ECONOMIC DEVELOPMENT OFFICE AND DELAWARE’S BUSINESS COMMUNITY

WHEREAS, Delaware’s economy is undergoing a fundamental shift toward industries and employment that require innovation and higher levels of skill.

WHEREAS, Delaware must embrace this change and focus its economic development efforts on making investments that result in jobs for Delaware workers, maintaining a business climate and infrastructure that supports economic growth, and developing a culture of entrepreneurship to grow the industries and jobs of the future.

WHEREAS, Delaware’s business community has valuable information about emerging markets, the skills needed in a modern workforce, and resources to invest in new opportunities.

WHEREAS, the strength of Delaware’s economy will increasingly rely on identifying opportunities for growth and developing a well-trained workforce to meet the needs of existing and potential Delaware companies.

WHEREAS, allowing the Delaware Economic Development Office to work in partnership with Delaware’s business community will enhance the resources available for job creation and economic growth.

NOW, THEREFORE, I JOHN C. CARNEY, by virtue of the authority vested in me as Governor of the State of Delaware, do hereby declare and order the following:

1. A working group is hereby established to study how Delaware’s public and private sectors can work together to improve the process of economic development in Delaware, including, in particular, to attract more growing and fledgling companies to the state and to build a stronger entrepreneurial community (the “Working Group”).

2. The Working Group shall consist of no fewer than 14 members to include:

a. Four members of the General Assembly, to include one member from each of the House Majority and Minority caucuses, who shall be appointed by the Speaker of the House, and one member from each of the Senate Majority and Minority caucuses, who shall be appointed by the President Pro Tempore of the Senate;

b. The Director of the Delaware Economic Development Office (DEDO);

c. Four members of Delaware’s business community, to be recommended by the Delaware State d. Chamber of Commerce;

e. The Governor’s Policy Director; and

f. Representatives from the higher education, non-profit and labor union communities, and one member of the public, to be appointed by the Governor.

3. The Governor may appoint a chair and vice-chair, or two co-chairs, one each from the public and private sectors.

4. The Governor may increase the size of the Working Group and appoint additional members at his pleasure.

5. The Working Group shall convene in February and shall consider at least the following matters:

a. All duties and responsibilities of DEDO mandated by the Delaware Code and other applicable Delaware law;

b. All additional duties and responsibilities currently being undertaken by DEDO;

c. Current DEDO staffing and funding levels;

d. The extent to which other states in the United States have used public-private partnerships (PPPs) as a tool to promote innovation and build an entrepreneurial community, the significant features of those partnerships and the degree to which they have achieved measurable results; and

e. The conditions necessary to making effective use of a PPP to foster economic development in Delaware.

6. No later than April 7, 2017, the Working Group shall produce a report to the Governor that includes at least the following:

a. Policy recommendations regarding the use of a PPP to foster economic development in Delaware, particularly in the area of strengthening the environment for entrepreneurs;

b. The features essential to the success of any recommended PPP, including but not limited to a proposed governance structure and an estimate of necessary appropriations from the General Assembly;

c. A proposed process and timeline for implementing any policy recommendation; and

d. A draft of any necessary implementing legislation.

7. The Working Group shall dissolve on April 7, 2017 unless reconstituted by further executive order.

APPROVED this 18th date of January 2017.

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Governor Carney Signs Executive Order to Explore Public-Private Partnership at DEDO

Governor Carney Signs Executive Order to Explore Public-Private Partnership at DEDO

Working group will issue report by April 7

18 JANUARY, 2017

Governor John Carney signed his first Executive Order on Wednesday, establishing a 14-member working group to develop recommendations for implementing a public-private partnership at the Delaware Economic Development Office.

The group will explore how state government can work with the private sector to improve economic development efforts in Delaware, including ways to attract new, growing companies to the state, build a stronger entrepreneurial community, and support innovation.

“We are getting started immediately to make sure Delaware is positioned to secure new, good-paying jobs of the future. This is job one,” said Governor Carney. “Delaware’s economy is in a period of significant transition, and we must adjust our efforts to compete with other states and countries for jobs and talent. Over the next several months, we will work with members of the General Assembly in both parties, and the business community on behalf of the people of Delaware.”

Bernice Whaley, Director of the Delaware Economic Development Office, will continue in her role while the working group completes its work.

The working group will begin its work in February and report back to Governor Carney by April 7, 2017. The group will include a member from each of the General Assembly’s four caucuses; four representatives from the business community; the Director of the Delaware Economic Development Office; the Governor’s Policy Director; and representatives from the nonprofit sector, higher education, labor and the public.

“A public-private partnership has great potential to open doors for our state’s economic development. We need a collaborative effort to provide the best opportunity for businesses of all sizes to start, grow and thrive,” said House Speaker Pete Schwartzkopf. “Governor Carney is taking the first step by bringing all sides to the table to make this a reality. I am looking forward to taking the next step when the group completes its work.”

“I want to thank Governor Carney for making this his top priority on day one,” said Senate President Pro Tempore David B. McBride. “Delaware has come a long way since the recession, but if we’re going to continue to add jobs faster than any state in the region, we need to stay ahead of them. That means rethinking the way our Economic Development Office engages with our state’s vibrant business and entrepreneurial communities in a way that allows us to leverage resources and be good stewards of taxpayer dollars.”

“The world is never static,” said Delaware House Minority Leader Danny Short, R-Seaford. “I grew up in a community where a single company, the DuPont Nylon plant, employed thousands of people. Now, most of those jobs are gone. Reassessing our state’s strengths and weaknesses, and adopting policies to capitalize on the former, will ultimately help us foster an environment in which Delaware businesses thrive and new employers are drawn here.”

“I’m glad the business community is really asserting themselves more so than they have in the past. I look forward to working with the Roundtable and Governor Carney on this initiative,” said Senate Minority Whip Greg Lavelle, R-Sharpley. “Forming a working group is a good idea and we’ll see what comes out in the end, because as the Governor said, ‘The devil is in the details,’ but anything we can do to strengthen our economic growth and our reach and our impact in state government in working with the private sector, I think we should do.”

“The Business Roundtable and the entire business community welcomes the opportunity to work with Governor Carney, the General Assembly and other stakeholders to help develop a new, collaborative approach to economic development,” said Terry Murphy, President and CEO of Bayhealth and Chairman of the Delaware Business Roundtable. “Properly structured to include leadership and involvement from both the public and private sectors with a focus on emerging business sectors, a new partnership for economic development has the power to be transformative for Delaware.”


EXECUTIVE ORDER NUMBER ONE

TO: HEADS OF ALL STATE DEPARTMENTS AND AGENCIES RE: CREATING A WORKING GROUP TO CONSIDER A PUBLIC-PRIVATE PARTNERSHIP BETWEEN THE DELAWARE ECONOMIC DEVELOPMENT OFFICE AND DELAWARE’S BUSINESS COMMUNITY

WHEREAS, Delaware’s economy is undergoing a fundamental shift toward industries and employment that require innovation and higher levels of skill.

WHEREAS, Delaware must embrace this change and focus its economic development efforts on making investments that result in jobs for Delaware workers, maintaining a business climate and infrastructure that supports economic growth, and developing a culture of entrepreneurship to grow the industries and jobs of the future.

WHEREAS, Delaware’s business community has valuable information about emerging markets, the skills needed in a modern workforce, and resources to invest in new opportunities.

WHEREAS, the strength of Delaware’s economy will increasingly rely on identifying opportunities for growth and developing a well-trained workforce to meet the needs of existing and potential Delaware companies.

WHEREAS, allowing the Delaware Economic Development Office to work in partnership with Delaware’s business community will enhance the resources available for job creation and economic growth.

NOW, THEREFORE, I JOHN C. CARNEY, by virtue of the authority vested in me as Governor of the State of Delaware, do hereby declare and order the following:

1. A working group is hereby established to study how Delaware’s public and private sectors can work together to improve the process of economic development in Delaware, including, in particular, to attract more growing and fledgling companies to the state and to build a stronger entrepreneurial community (the “Working Group”).

2. The Working Group shall consist of no fewer than 14 members to include:

a. Four members of the General Assembly, to include one member from each of the House Majority and Minority caucuses, who shall be appointed by the Speaker of the House, and one member from each of the Senate Majority and Minority caucuses, who shall be appointed by the President Pro Tempore of the Senate;

b. The Director of the Delaware Economic Development Office (DEDO);

c. Four members of Delaware’s business community, to be recommended by the Delaware State Chamber of Commerce;

d. The Governor’s Policy Director; and

e. Representatives from the higher education, non-profit and labor union communities, and one member of the public, to be appointed by the Governor.

3. The Governor may appoint a chair and vice-chair, or two co-chairs, one each from the public and private sectors.

4. The Governor may increase the size of the Working Group and appoint additional members at his pleasure.

5. The Working Group shall convene in February and shall consider at least the following matters:

a. All duties and responsibilities of DEDO mandated by the Delaware Code and other applicable Delaware law;

b. All additional duties and responsibilities currently being undertaken by DEDO;

c. Current DEDO staffing and funding levels;

d. The extent to which other states in the United States have used public-private partnerships (PPPs) as a tool to promote innovation and build an entrepreneurial community, the significant features of those partnerships and the degree to which they have achieved measurable results; and

e. The conditions necessary to making effective use of a PPP to foster economic development in Delaware.

6. No later than April 7, 2017, the Working Group shall produce a report to the Governor that includes at least the following:

a. Policy recommendations regarding the use of a PPP to foster economic development in Delaware, particularly in the area of strengthening the environment for entrepreneurs;

b. The features essential to the success of any recommended PPP, including but not limited to a proposed governance structure and an estimate of necessary appropriations from the General Assembly;

c. A proposed process and timeline for implementing any policy recommendation; and

d. A draft of any necessary implementing legislation.

7. The Working Group shall dissolve on April 7, 2017 unless reconstituted by further executive order.

APPROVED this 18th date of January 2017.

John C. Carney Governor

ATTEST: ___________________________________ Secretary of State

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DuPont to Invest $200 Million in Experimental Station

DuPont to Invest $200 Million in Experimental Station

9 JANUARY, 2017

DuPont will spend $200 million to modernize and upgrade the Experimental Station, its 114-year-old research facility in Alapocas, Chief Executive Officer Ed Breen said Monday night.

Renovations will add enhancements to the Experimental Station’s lab space along with the construction of collaboration centers for DuPont customers and suppliers. Breen said DuPont will also set aside space for third-party science companies.

“We really want to use it as an incubation center,” Breen said.

Breen’s remarks came at the Delaware State Chamber of Commerce’s 180th annual dinner, held at the Chase Center on the Riverfront. The evening also included the presentation of the Josiah A. Marvel Cup to healthcare advocate Carroll Carpenter.

DUPONT COVERAGE: Read about what led up to the Dow-DuPont merger

STORY: Chemours to stay in ‘revitalized’ Wilmington HQ

A handful of other companies already occupy some space at the 150-acre facility. Chemours, a DuPont spinoff, and Hygenia, a life sciences company that purchased DuPont’s food safety diagnostics business last month, lease space at the Experimental Station. Breen said the Dow Chemical Co. will also have workers at the research center after it completes a proposed $130 billion merger with DuPont.

 

“It’s a great environment for collaboration,” Breen said, adding DuPont will continue to predominately occupy the Experimental Station.

Once Dow and DuPont consolidate, the newly merged company will split into three separate businesses. Two of those new companies — with focuses on agriculture and specialty products — will be based in Delaware. A third company in the material sciences industry will be based in Dow’s hometown of Midland, Michigan.

 

Breen said the two new companies will have a large presence in the Experimental Station after the spinoffs. Combined, the two Delaware-based spinoffs are expected to generate more revenue than the existing DuPont, according to Securities and Exchange Commission filings. The Agriculture business will have about $20 billion in revenue, while specialty products will produce $13 billion in revenue.

Breen was bullish on the new companies saying they will be “must-own stocks.”

Sen. Tom Carper said DuPont’s investment will encourage research and collaboration in Delaware.

“This site even provides an opportunity for former DuPont researchers and scientists to have a modernized space to do research and build companies of their own,” Carper said.

Built in 1903, the Experimental Station is the birthplace of DuPont’s most profitable products, including Nylon, Kevlar, Tyvek, and the world’s first synthetic rubber, Neoprene. About 2,000 workers are at the site, including some who work in administrative and other functions.

 

Last January, DuPont laid off about 200 scientists at the Experimental Station’s Central Research and Development division. The layoffs were part of a massive round of job cuts at DuPont that totaled about 1,700 Delaware positions.

At the time, Doug Muzyka, senior vice president and chief science and technology officer at DuPont, said the layoffs were “the next step in the evolution of corporately funded R&D at DuPont.”

Separately, Breen announced that DuPont will spend $1.7 billion in research and development in 2017. DuPont spent about $1.6 billion on research in 2016, according to the company’s regulatory filings.

“We are going to inch it up next year,” he said.

Breen said that 2016 was a strong year for DuPont innovation and resulted in a 250 percent improvement in the company’s gross margins compared to 2015’s numbers. The company unveiled 660 new products, including an above-ground insect repellent that Breen said was the most rapid new product launch in the company’s history.

Other innovation investment plans include a $100 million expansion of the company’s probiotics line and the sale of Tyvek at Lowe’s Home Improvement stores nationwide.

“I’m really excited about our plans for 2017,” Breen said. “You are going to see more announcements from DuPont.”

This article was originally posted on the Delaware Business Times at: https://www.delawareonline.com/story/news/2017/01/09/breen-dupont-invest-200m-experimental-station/96372908/

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