Committee debates Wilmington annexation, council members press for revenue sharing

The New Castle County Council Land Use Committee heard detailed history and fiscal questions on Ordinance 26081, a proposed annexation by the City of Wilmington intended to enable riverfront redevelopment, including an indoor track and Field House.

Councilman Hollins, sponsor of the ordinance, framed the proposal as the latest in a series of riverfront annexations that transformed previously industrial parcels into active development. "The Riverfront Development ... was an industrial wasteland," Hollins said, and the annexation would allow expansion of the Field House and other redevelopment that has contributed to the local economy and youth programming.

Councilman Carter asked staff how much land the proposal covers and what the county might lose in tax revenue. "I just wanted to know how much land is going to be there and what the potential cash revenue loss might be," Carter said. Land Use staff David Culver said the parcels total about 4.1 acres on the tax rolls and 4.3 acres by survey. Chief Financial Officer Dave Del Grande told the committee the parcels currently generate about $2,200 in annual county tax revenue and estimated that, once built, the site could yield roughly $100,000 in annual county tax based on a $36,000,000 building assumption.

Several council members, including Carter and Koneko, said the county should explore ways to retain or share revenue from the development. Carter noted the county's current fiscal strain: "we are struggling to figure out how we're going to get through and fill a remaining $24,000,000 deficit that was taken out of our tax stabilization reserve," he said, adding that losing revenue could worsen next year's budget outlook.

Councilman Smiley said past annexations and intergovernmental agreements have sometimes left the county without an opportunity to approve terms. "That was the Tom Gordon administration alone ... the county council never even got an opportunity to know about that agreement, vote on it, or anything else," Smiley said, urging attention to fairness and possible revenue arrangements.

Online members including Councilman Cartier voiced support for the project as a regional sports asset, saying the indoor facility would serve local athletes and attract tournament visitors. "This is going to bring it home for our Delaware athletes," Cartier said, praising the sports‑tourism potential.

Sponsor Hollins asked colleagues not to conflate the annexation hearing with separate policy ideas and reminded the committee that the ordinance would be voted on at the upcoming Tuesday meeting. No formal vote on the ordinance occurred in committee; the chair said the matter is scheduled for a vote next Tuesday.

The committee took no further action on the ordinance at this meeting. Public comment was solicited and none was offered in chamber or online. The committee adjourned following routine business.