Governor Meyer Announces Three New Downtown Development Districts

Millsboro has been designated Delaware’s newest Downtown Development District, making it eligible for state and local incentives aimed at encouraging new housing, businesses and redevelopment in the downtown area. Governor Matt Meyer announced Millsboro along with Claymont and Newport as the state’s three newest districts, bringing the program to all 15 districts allowed under state law. The designation could help spur projects in downtown Millsboro, including redevelopment of the 1930s-era Millstone Theater and potential mixed-use development. Qualifying projects can receive rebates covering up to 20% of eligible capital construction costs.

Additional Information from the Office of Governor Matt Meyer:

Governor Matt Meyer today announced the designation of Claymont,
Newport and Millsboro as Delaware’s three newest Downtown Development Districts,
expanding the program to the full 15 districts allowed under state law. The Cabinet
Committee on State Planning Issues unanimously recommended the three communities
for designation following the 2026 application process.
“The best investments we can make are in the communities, businesses and people
already here in Delaware,” said Governor Matt Meyer. “Downtown Development Districts
give communities another tool to create housing, support local businesses and bring new
life to properties that have been overlooked or underused. By expanding this program to
Claymont, Newport and Millsboro, we’re creating vibrant hubs in the communities
Delawareans already call home and giving private investment a reason to follow.”
“Millsboro is delighted to be selected as a Downtown Development District. Since its
inception in 2014, this program has achieved notable success, and our team is prepared to
advance its goals in downtown Millsboro,” said Jamie Burk, Millsboro Town Manager.
“Our key project, the 1930s-era Millstone Theater, will expand access to the performing
arts for residents and the broader region. This designation provides the catalyst needed for
downtown Millsboro to become a regional destination, supporting local businesses and
creating housing opportunities through mixed-use development. We have already engaged
developers eager to submit concept plans. On behalf of Mayor McKee, the Town Council,
and myself, I thank Governor Meyer and his cabinet secretaries for this selection.”
“We are excited and grateful to be selected as a Downtown Development District,” said
Wendy King, Newport Town Manager. “This is an important first step in the
redevelopment of our downtown. We look forward to working with our community partners
in seeing our collective dream of revitalization come to life.”

“New Castle County is proud and excited to learn that Claymont has been selected for a
Downtown Development District,” said New Castle County Executive Marcus Henry.
“This marks the first time an unincorporated area has received this designation,
recognizing that downtowns exist in a variety of settings, not just traditional towns. New
Castle County has partnered with the Claymont community, including the Claymont
Renaissance Development Corporation, for over 30 years to drive revitalization, and we
look forward to working with the State and all our partners to encourage continued
redevelopment and keep Claymont vibrant. We would like to thank Governor Meyer and
Councilman Cartier for their efforts in Claymont’s growing success.”
The Downtown Development District program is designed to encourage private investment
in Delaware communities by providing state and local incentives for qualifying residential,
commercial, industrial and mixed-use development. Private construction projects within
designated districts can qualify for rebates offsetting up to 20% of eligible capital
construction costs, along with other state and local incentives.

New Downtown Development Districts

Claymont will become Delaware’s newest Downtown Development District in New Castle
County, allowing qualifying investments within the designated district to access Downtown
Development District incentives.

Newport will receive a Downtown Development District designation, expanding the
program’s investment and redevelopment incentives to qualifying projects within the
town’s designated boundaries.

Millsboro will become Sussex County’s newest Downtown Development District, making
qualifying projects within its designated district eligible for state and local development
incentives.

The three communities were selected following a competitive application process opened
by Governor Meyer earlier this year. Five communities submitted applications for the three
available designations. The Cabinet Committee on State Planning Issues reviewed the
applications and unanimously recommended Claymont, Newport and Millsboro to the
Governor.
The program was created in 2014 to spur private capital investment, stimulate job growth,
strengthen commercial districts, improve housing opportunities and help municipalities
revitalize their communities.