Wilmington planning department outlines FY2026 budget, zoning reform and demolition priorities

The Department of Land Use and Planning told the Wilmington City Finance Committee on Monday that its proposed FY2026 operating budget is $4,600,000, an increase of $6,000 from the current year, and that the department is prioritizing zoning reform, demolition of hazardous properties and improvements to permit review and inspection processes.

The department’s director, Elliot Larkin, said the reorganization of land use and planning aimed to increase operational efficiency rather than produce immediate budgetary savings. He told the committee that permit volumes rose after the 2020–2022 construction rebound, inspection staffing had fluctuated with vacancies and injuries, and that the department has reduced some temporary salary lines and eliminated one deputy director position to capture savings. "Our permits have increased," Larkin said, "and our permit turnarounds are much faster."

The budget presentation highlighted several line-item changes: a $125,000 increase for the zoning reform project offset by reductions to ADA self-assessment and completion of consulting work; a net consultant budget of about $555,000 that includes contracted plan-review services and structural engineering; and a demolition line raised to $400,000 (up $50,000) after the department said it exceeded prior-year demolition spending and used ARPA funds to cover emergency demolitions.

Larkin and OMB fiscal analyst Mr. Naheed described demolition and emergency response as recurring needs driven by long-term vacancy and water infiltration; the department provided photographic examples of properties (including 118 North Broom and 1101 Elm Street) where structural failure led to emergency work and, in some cases, cost recoupment when properties later changed hands. Larkin said demolition funding was adjusted because prior reliance on ARPA has decreased and the department expects continued emergency removals.

Council members pressed for more clarity on enforcement levers for long-term vacant properties, how the land bank interacts with code enforcement, and when the city can recover costs or move properties to sheriff’s sale. Council member Bracey asked who owns the hazardous structures shown; Larkin replied they are privately owned and the city intervenes only when properties become public hazards. Council members also sought more active help for Neighborhood Planning Councils (NPCs); several members and public commenters urged restoring a dedicated staff role to help MPCs/NPCs use allocated funds, and Larkin said staff and community engagement specialists would work with councils and MPCs on project support.

Other budget details included the planned addition of a mechanical code enforcement inspector (about $106,000) and travel/consulting shifts to support the zoning reform analysis produced by the University of Delaware and an internal Gartner review of development processes. Larkin said the department is reviewing feasibility for accessory dwelling units (ADUs) and tiny houses but cautioned implementation in Wilmington would need careful study because of density and setback constraints.

The committee and department agreed on follow-up items: provide a clearer breakdown of consultant and contract spend, share a timeline for zoning reform recommendations and scope, and meet to discuss whether additional staff or reallocated resources are needed to support Neighborhood Planning Councils. No formal votes were taken during the hearing.

Wilmington finance chair Hartley closed the session with instructions for further written follow-ups to be submitted to the council clerk.