CEGO - County Economic Growth Ordinance
COUNTY ECONOMIC GROWTH ORDINANCE
Overview
What is CEGO?
The two issues that are consistently mentioned as barriers to economic growth in New Castle County are the public education system and the land development approval process. Education reform is outside the scope of County government but land use is a major function of the County government. Over the last five years, the Coons Administration has made significant improvements to correct sections of the County Code and the approval process that have hindered economic growth. However, there are still a number of
outstanding problem areas that need to be addressed.
The historic changes in our local, state, federal and global economies require a new way of thinking in order to promote economic growth. Government does not create jobs but it is responsible for creating the environment in which business must operate. Therefore the impact of all government regulations, policies and taxes must be considered as they relate to the ability of the private sector to create jobs. Local and state governments are faced with significant long term financial challenges. Government can not
tax or cut its way out of this situation, it must grow its way out.
CEGO address some outdated provisions of the UDC concerning job creating projects located on commercially zoned land. The ordinance further defines redevelopment and mixed use projects, makes it easier for small businesses to expand and promotes a heightened awareness of the fiscal and economic impact of job creating projects for the New Castle County Government and local economy.
Why do we need it and how will it help?
Theses updates are needed because current provisions of the UDC and the way the UDC has been interpreted have proven to be a barrier to economic growth and job creation. A recent analysis by Moody’s is shown below:
How will CEGO work?
CEGO will address a number of outdated definitions and standards that need to be updated to match current economic conditions in the County. In addition CEGO will implement a more “time certain” process with a less subjective review process that will create universally understood standards and criteria and reduce the potential for litigation. An updated definition of redevelopment will also help encourage small business growth and the renovation of older suburban shopping centers.
1. SECTION 40.03.318 MIXED USE.
Overview
: Clarifies the definition of acceptable mixed use, promotes redevelopment of existing commercial properties and provides relief for changing market conditions.
Specific Changes
:
1)
Allows standalone restaurants.
2)
Reduces the percent of non-residential use in a commercial project from
67% to 33%.
3)
Provides a 5-year extension if market forces prevent the project from meeting
the stated mixed use levels.
2. SECTION 40.04.110 ("DISTRICTS AND BULK STANDARDS)
Overview
: The Open Space Ratios (OSR) and the Floor Area Ratios (FAR) are too restrictive and have become outdated since the UDC was first implemented. Outdated ratios act as a deterrent to redevelopment and, they adversely impact small business. A small adjustment if OSR and FAR will allow construction costs to be spread across a larger project which will help promote new construction and redevelopment.
Specific Changes
:
1)
The OSR for all Development Types in the Non-Residential Zoning districts are
decreased by 10%.
2)
The Maximum Gross FAR and the Maximum Net FAR are increased by 5%.
3. SECTION 40.08.130 ALTERATION/ENLARGEMENT/EXTENSION.
Overview
: The definition of redevelopment is too narrow and, therefore, does not apply to a number of highly desirable potential redevelopment projects, particularly aging shopping centers. The current legislation requires the demolition of potentially reusable structures in order to be considered a redevelopment project.
Specific Changes
:
1)
Removes the requirement that 50% of an existing structure must be demolished
to quality.
2)
Allow approved plans and not just existing facilities to be built out.
4. SECTION 40.31.112 EXPLORATORY SKETCH PLAN REVIEW/CONFERENCE.
Overview
: One area that has slowed down the approval process has been the review of the exploratory sketch plan. The use of the Planning Board during the initial plan review causes scheduling delays and promotes unnecessarily long meetings.
Specific Changes
:
1)
Change the exploratory plan approval process by allowing evening meeting/workshops, rather than a Planning Board Hearing. This will promote a quicker turnaround time while still allowing the public to provide input. It will also place less of a burden on the Planning Board.
5. SECTION 40.31.113 REZONING/PRELIMINARY PLAN APPLICATION.
Overview
: Currently, Council may only vote on a rezoning three times a year. Certain rezoning and land development plans require comments from various state and federal agencies. Both of these issues have caused delays in the approval process.
Specific Changes
:
1) Applications for rezoning can be made at any time during the year and Council may
act upon these and any time during the year.
2)
An applicant may proceed with the record plan approval process, at their own risk,
without DELDOT approval.
3)
Preliminary plans without a rezoning do not require a public meeting/workshop.
6. SECTION 40.31.114 RECORD PLAN SUBMISSION.
Overview
: During the approval process several non-county government agencies provide comments and approvals. Quite often the approval process is delayed because the comments or approvals are late.
Specific Changes
:
1)
An applicant may move the project forward to County Council for final approval even if non-county government approvals are missing. The applicant does this at their own risk and no building permit is issued until all approvals are obtained.
7. SECTION 40.31.330 DEPARTMENT RESPONSE TIMES.
Overview
: Many aspects of the UDC are open to interpretation by the Land Use Department. From time to time, there have been conflicting or inconsistent interpretations that have delayed the approval process. The Land Use Department is required to give the applicant written responses to explain their interpretations.
Specific Changes
:
1)
Written responses from the Land Use Department shall contain specific references to the applicable section of the County Code.
2)
Any comment not supported by the UDC or Delaware Erosion and Sediment Control Handbook are not mandatory and may be considered optional.
3)
Any section of the UDC not identified in the response letter shall be considered to be waived.
8. SECTION 40.31.530 INTEPRETATIONS.
Overview
: Various aspects of the UDC are unclear and open for interpretation. There have been prolonged debates between the Land Use Department and an applicant concerning a mutually acceptable interpretation, which has caused a delay in the approval process.
Specific Changes
:
1)
When there is uncertainty in the UDC the Land Use Department shall strictly construe its interpretation in favor of the applicant.
2)
This is in keeping with property rights standards and Delaware Law (Cardille vs. Council of South Bethany, 1991 WL 113627 (Delaware Superior Court)).
9. SECTION 40.31.820 LAND DEVELOPMENT IMPROVEMENT AGREEMENT (LDIA).
Overview
: A final piece of the approval process is the preparation and signing of the Land Development Improvement Agreement (LDIA). From time to time, the completion of the LDIA has been delayed due to questions about cost and unspecified administrative reasons.
Specific Changes
:
1)
The County will sign and return the LDIA to the applicant within 20 days of receipt of the LDIA and corresponding cost estimates.
2)
The applicant shall return the signed LDIA to the County in 20 days.
10. SECTION 40.33.240 (“COMMERCIAL USES)
Mixed use.
Overview
: It is highly desirable to promote mixed use development. However, the existing definition of mixed use has proven to be confusing and unclear.
Specific Changes
:
1)
Remove the words “oriented to a” and replace them with the word “with.” This will allow a non-residential use to be included in a mixed use project without being directly in the pedestrian precinct.
11. SECTION 40.33.300 (General Definitions)
Riparian buffer area
.
Overview
: The development of highly desirable commercial and job-creating projects have been disallowed due to an outdated and over restrictive buffer requirement relating to streams, lakes and tidal wetlands.
Specific Changes
:
1)
Make the buffer requirement on either side of a perennial and intermittent stream, lake or tidal wetland 50 feet instead of 100 feet.
12. SECTION 40.33.300 (General Definitions)
Slope, Steep
Overview
: The steep slop provisions of the UDC are outdated, unreasonable and are not in step with acceptable development practices in the United States. In addition, they have acted as a deterrent to many job-creating projects.
Specific Changes
:
1) Change the definition of prohibitive slope from 25% to 50%.
2) Change the definition of precautionary slope from 15% to 25%.
13. SECTION 40. APPENDIX 1 (Application and Plan Requirements)
Statement of Economic Impact
Overview
: At this time, the County is confronted with a significant financial crisis that will last for many years unless a new sustainable source of revenue is established. The County gets the bulk of its revenue from property taxes. There is little or no consideration concerning the economic impacts (jobs and property tax) of a commercial project. In addition, the total amount of fees paid to the County (review, building and impact) for a project are generally not fully understood.
Specific Changes
:
1)
Add a new item to Appendix 1 that outlines the process to create a Statement of Economic Impact. The purpose of the Statement is to heighten the awareness of the economic value of a commercial project. This can be done with little additional effort on the part of the applicant and the County. Data to be considered will consist of the following:
a)
Amount of new square footage to be constructed
b)
Amount of square footage to be renovated
c)
Estimated total construction cost
d)
Estimated number of new full-time jobs and number of existing jobs
e)
Current property tax
f)
Projected property tax
g)
Projected fee income to New Castle County