Delaware Market Report

Public and private funds are flowing into the first state

By Sheila Bacon

A surge of private sector investment in Delaware has the building community breathing a sigh of relief. From increased residential projects in Wilmington's core to a multi-million dollar bridge project on the state's shore, construction is on the upswing.

It seems the days of wary developers and scaled-back public projects are over in Delaware. Recent months have seen considerable activity in the state, with particular growth in the private sector.

Completion of the $50 million Renaissance Centre in downtown Wilmington at the former Wilmington Dry Goods site will be complete in March 2007. Image courtesy of Tevebaugh and Associates

Private developers are showing strongest interest in Wilmington, where office, retail and residential are all taking root. The downtown area is experiencing a comeback of sorts from earlier decades of growth and activity, said John Rago, communications director for the office of Wilmington Mayor James Baker.

"Now we've got our downtown back like it was many years ago with lots of people strolling the streets and lots of retail outlets," Rago said.

One important link between the riverfront district and Wilmington's central business district is The Renaissance Centre, an office, retail, and residential complex at the former Wilmington Dry Goods site between Market and King streets and Fourth and Fifth streets. Pile driving began in mid-May and completion is expected by March 2007.

The $50 million Renaissance Centre will join the emerging Ship's Tavern District, another link in the chain of renovated downtown neighborhoods. Here, two city blocks of historic buildings have been restored for residential and retail use.

The Renaissance Centre's site, sold by the city to developer Renaissance Centre LLC, will include 140,000-sq.-ft.of office space and a 325-car parking garage with residential, retail and office space in the redeveloped existing buildings bordering the office tower.

This type of development activity in Wilmington's riverfront and central districts serves as proof that recent efforts by the mayor's office and private developers to breathe life back into the area are working, Rago said.

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"There are two trends underway," Rago said. "One, people are coming back to the city to live, and two, private investors really have little hesitation anymore. Four years ago, the discussions were, 'Is the city going to make it?' Now, the (developers) coming into town with money are just figuring out how they're going to fit into the area."

The area's activity is a much-needed shot in the arm for the area's private sector, according to Edward Capodanno, president of the Delaware Associated Builders and Contractors.

"The past two years have seen hardly any private construction," said Capodanno. "It's nice to see the private side start up again."

Residential Resurgence

The Renaissance Centre - in this rendering, the fourth high-rise building counting back from the waterfront with small, blue tinted windows - will include 140,000-sq.-ft.of office space and a 325-car parking garage with residential, retail and office space in the redeveloped existing buildings bordering the office tower. The project is located in downtown Wilmington and completion is scheduled for March 2007. Image courtesy of Tevebaugh and Associates

Residential development is also growing in Delaware, a sign that more and more people are showing an interest in moving to the state.

"The Riverfront District is experiencing some tremendous growth," said Judy McKinney-Cherry, director of the Delaware Economic Development Office. "There's quite a bit of interest from people who want to live downtown."

Perhaps most surprising is the interest shown in The Residences at Christina Landing, residential development that includes a 23-story apartment tower, 63 town homes and a 23-story condominium tower. The $100 million project is located on the south side of the Christina River - an area previously home to aging warehouses and dilapidated buildings that were considered largely undesirable. The residential project - the first on the river's south side - is expected to spur similar development in the area. While the north side of the river has seen a decade of growth resulting in considerable retail development, restaurants, office buildings and a river trail, the opposite side of the river had - until recently - remained largely undeveloped.

While no additional projects on the river's south side are currently in the works, activity there is expected to continue.

"We view the south side (of the Christina River) as having much greater potential than anyone envisioned, but it definitely lags a little from what's going on on the north side," said Michael Purzycki, executive director of the Riverfront Development Corp. of Delaware, a group formed by the state in 1995 to foster economic development.

The Buccini/Pollin Group of Wilmington, developers of The Residences at Christina Landing, was recently awarded a mixed-use project on a 15-acre site owned by the city along the north shore of the river. The hotel, with 400 to 500 residential units and 7,500-sq.-ft. of retail space, is expected to break ground by the end of this year.

Assuring developers that building in Wilmington was a smart move used to be difficult, said Purzycki.

"Now they are confident their dollar is safe," he said. "Those hurdles we used to have to deal with are non-existent."

Public Sector Pushes Forward

Delaware's public sector is healthy and is expected to continue to thrive with the approval of more than $700 million for schools, roads and other public projects throughout the state.

Just north of Wilmington, a $130 million Delaware Department of Transportation project that is revamping US 202 and surrounding roadways is testament to the public sector's activity level. The five-year project, with completion planned in 2007, also includes the addition of 150 acres of park space, an expanded golf course, new playfields and a renovation of the property's historic Blue Ball Dairy Farm barn. The multi-faceted project was launched by the state in 1999, partly in response to the merger of pharmaceutical manufacturing companies Astra and Zeneca. The partnership resulted in a doubling of Zeneca's existing 88-acre campus at the corner of US 202 and SR 141 at the north end of the Blue Ball property site. The Blue Ball project seeks to accommodate AstraZeneca's expanded operations while boosting economic development and improving the overall area for the surrounding community.

"Things are moving quickly and positively," said Mark Tudor, Blue Ball Properties' project manager with DelDOT. Crews are continuing to build two underpasses beneath US 202 which has necessitated the shifting of traffic from the highway to a six-lane, mile-long bypass road just west of US 202. Traffic is expected to be rerouted back onto US 202 this fall, said Tudor.

Upcoming phases include reconfiguration of the new bypass road for use within the new park, construction of an SR 141 spur near the AstraZeneca campus, various improvements along US 202 and reconstruction of the Interstate 95/US 202 interchange. Work already completed includes construction of a two-acre wetland mitigation site and a regional stormwater management system to address drainage issues.

Bridging Delaware

Other DelDOT projects underway include the rehabilitation of the Reilly Bridge on South Market Street in Wilmington, a $4.5 million job; as well as the $15 million widening of Churchman's Road Bridge over Interstate 95.

The new $220 million Indian River Inlet Bridge on U.S. 1 in Sussex County will span 1,000 ft. across the inlet, replacing the existing bridge. Once complete, the single concrete arch cable-supported bridge will be the longest bridge of its kind in the world. Image courtesy of Figg Engineering Group

DelDOT's largest project in its history, however, is the new $220 million Indian River Inlet Bridge on SR 1, with construction on the four-year project starting in July. The single concrete arch cable-supported bridge will span 1,000 ft. across the inlet, replacing the existing bridge. The result will be the longest bridge of its kind in the world.

"The community played a large part in designing the bridge," said Darrel Cole, DelDOT's public relations manager. "It has a look and feel that reminds people of the coast."

The bridge provides a critical link on the eastern seaboard between Bethany Beach and Dewey Brach in Sussex County.

Concerns over recurring scour to the existing bridge piers caused by high velocity inlet flow at the site led DelDOT to seek a solution that would span the entire inlet and eliminate having piers in the water.

The new bridge will be built slightly west of the existing bridge and will be completely finished before the existing bridge is removed. It will have two, 12-ft. lanes for travel in each direction, along with shoulders on each side and a protected sidewalk.

Approximately $40 million of the project's budget will be used for park land, which includes a series of trails where visitors will be able to stroll, bike or bird-watch along the shoreline.

Delaware's numerous construction projects - both public and private - are encouraging to industry leaders.

"Right now, the picture of construction is a lot better than it was this time last year," said Delaware ABC's Capodanno, "and it looks like it's going to continue for awhile."