Wilmington looks to add developers by cutting red tape

• Wilmington has hired the consultant Econsult Solutions to study the city permitting process.
• The goal is to cut red tape and improve how permits are issued for projects.
• There currently is no central agency tracking the development review process.

Wilmington wants to cut the red tape.

The city is paying Philadelphia consultant Econsult Solutions Inc. $174,000 to improve the notoriously complex permitting system that every project big and small has to go through. The goal is to streamline operations across various departments and make it more predictable and straightforward for those undertaking construction projects, a key economic driver for the city.

“Right now, it is an ancient process,” said Lenny Sophrin, an architect and head of the city Planning and Development Department. “Whether you are a homeowner looking to repair your porch or whether you are a developer coming from the outside to build a larger project, the way in which a city communicates that process to the outside world needs to be transparent.”

For the city, such projects are seen as a critical component on a variety of economic and quality-of-life issues, from providing construction jobs and driving down vacancies to improving homeownership rates, helping the tax base and curbing crime.

A total of 5,791 permits were issued in 2015 in Wilmington, but the city currently has no central authority to oversee the process. The permits cover a variety of health, safety and design rules outlined in city code.

Consultant Karen Black was brought on last year to decipher the structure and ended up creating a seven-page document packed with department names and a ping pong process of approvals before construction projects can begin.

As far as city officials can tell, it’s the first time anyone took a high-level look at the entire organization, and Black identified a series of steps every project, regardless of size, have to clear. It was a surprise, said Black, whose firm has helped other municipalities, including Philadelphia, improve permitting.

“Wilmington currently doesn’t even distinguish the process for a homeowner who wants to put an addition on their home from a $1 million development,” she said.

The rigid and sometimes puzzling setup is well known to builders like Anthony Casale, owner of Casale Construction, a Wilmington residential builder who has worked in the city for decades.

Often, he said, you have to know the right person to speak with and then babysit permits to make sure someone responds. That takes time and can cost money, he said. In Wilmington, the timeline is often unpredictable.

“If you don’t call to check on the status, your application sits,” said Casale.

Black’s document details a process involving numerous city departments located on different floors of the Louis L. Redding City/County Building and little transparent communication. At the start of a project, builders of large developments may be granted a sit-down meeting with staff from the various departments, but otherwise contractors are not given a formal checklist of what approvals they will need before construction can begin. If the project falls under the correct zoning, a builder is given verbal approval to move forward.

STORY: Wilmington's data-led policing helps cut crime

STORY: 20 percent don't file for tax credit that could bring thousands

The Department of License and Inspections can issue a demolition permit if something needs to be torn down. A building permit requires sign-offs from License and Inspections, Department of Public Works and the Fire Marshal's Office. If the project requires a subdivision, the Planning Department gets involved. If it is in a historic area, there is another approval needed.

There dozens of forms, numerous points of contact and fees, ranging from $12 to $1,000

Tim Ratsep, who owns a home in the Highlands neighborhood, said the process is confusing and there’s nothing online indicating what needs a permit. When installing a basement French drain, Ratsep said, he didn’t think he needed to get city approval for the improvement because he wasn’t building an addition or expanding his Riverview Avenue home’s footprint.

“They knocked on our door, came in the house and said everything has to stop,” Ratsep said. “We got that permit in a day, but I was paying for the work that was ongoing and it took two trips down to the City/County Building.”

Ratsep said he hopes that the city will create a clearer way for homeowners to determine if they need a permit, and if they do what information they need to bring with them to be successful.

The archaic system has led many developers to turn away from projects in Wilmington, said Mayor Dennis P. Williams. He said the city should work to make it easy for developers, investors and contractors who aren’t familiar with the process to understand the expectations.

“The good-old-boy network, it’s over,” said Williams, who is seeking a second term as mayor in the fall. “People who want to invest, I don’t care who you are, I don’t care what your last name, and if you want to invest come into the city of Wilmington we want to get you here.”

Neighbors oppose Logan House music plan

Similar efforts happening nationally

The push to streamline comes as the city is working to ramp up new construction and attract investment after a series of losses, including the departure of DuPont Co. from downtown to suburban Chestnut Run and a softening manufacturing base.

Several large-scale residential developments have centered on Market Street, developers have announced plans for two hotels on the Riverfront.

It also mirrors efforts in other governments nationally to improve how permits are issued and eliminate bottlenecks.

New Jersey has a task force appointed by Gov. Chris Christie to recommend improvements on a statewide level.

In Los Angeles, several departments consolidated functions to reduce redundancies in the review process. New York City has explored similar measures.

Mark Kleinschmidt, president of the New Castle County Chamber of Commerce, said the situation in Delaware has been an ongoing source of frustration for those in the business community.

"It just takes too long to get things approved and when you do get approval it is inconsistent what is needed to get there," he said. 
"It has become an ongoing battle," Kleinschmidt said. "The elected officials understand the importance of this. It is the bureaucrats that want to drag their feet."

Williams said city officials worry about developers passing up Wilmington because it’s too much of a hassle.

“People are not going to invest their money if they are going to come in and be punished for trying to do something positive and make money,” he said.

Kevin Smith, executive director of Habitat for Humanity of New Castle County, which builds dozens of projects across the region, said Wilmington is known for its challenges.

"We need to have the steps that a developer and a builder have to go through in writing," Smith said. "And the amount of time it will take."

The whole process to get approvals in Wilmington is about a year, he said. By comparison, it takes about nine months in Middletown, where a subcontractor handles reviews, Smith said.

Smith said his organization has shared recommendations with Wilmington officials, like creating a checklist for developers or homeowners.

"We are just hoping to have a consistent, known process so that we can all plan accordingly," he said. "And from what I hear from the people at the city, they want that as well."

Council President Theo Gregory said he supports the work of the consultants because the only way to rid the city of the vacant and abandoned lots that are a magnet for crime in the communities is to put them to good use.

“The process right now creates a burden for people,” Gregory said. “We have to figure out, how do we connect the conversation among various departments?”

Commissioner: Safety needs to take priority 

James “Ray” Rhodes, commissioner of the Department of License and Inspections, agreed that more can be done to make the procedures more transparent, but said any changes should keep in mind that the steps of the process are there for a reason – to ensure the safety of residents.

Rhodes said the department is piloting a program to digitize the building permit process, to allow applicants to follow their permit online as it moves through the different reviews and approvals.

“That way everyone has a clear indication of exactly where it is and what still needs to happen,” Rhodes said.

The pilot will be completed at the end of March and if all goes well, the department hopes to implement the system by July.

The consultants also are scheduled to meet with officials to go over recommendations, with the goal of having a more standard permit process that any developer can understand.

Some of the improvements may come from the Philadelphia government, which Black helped for the past eight years. Philadelphia created a checklist for developers, helping them know what to expect when they bring a project to the city for approval.

“Timing was not the number one complaint, it was the lack of predictability,” Black said. “As long as you have a path forward, folks are comfortable.”

Econsult Solutions is reviewing the development process as part of the company's work with Wilmington to create an effective Land Bank, a tool used by cities to buy up vacant and abandoned properties and package them for redevelopment, renovation or a new purpose.

Black said another change implemented in Philadelphia that may work in Wilmington, is creating different requirements for the redevelopment and restoration of historic buildings. By relaxing building codes for older buildings, the city can encourage the redevelopment of existing homes rather than incentivizing developers to tear them down.

Now Black and her colleagues are planning meetings with individuals from the various city departments that review projects as well as those outside of government to hear suggestions.

“We need to get folks, both the customers and the staff that are serving those customers, in a room to figure out what those things that are politically feasible to change and will have the most impact,” Black said.

Black said how long it will take to implement final recommendations will depend on what suggestions are and if new laws need to be passed.

“There is a moment here, an opportunity to get it right,” Black said. “The city believes in change and they want to get this right to help Wilmington grow and develop.”

Kleinschmidt said it is important that the city make these changes quickly to boost the economy.

"Any new construction is going to help add tax ratables, which is revenue to the city, and create new jobs," he said. "The people in these departments need to understand that they are in the economic development business."

Contact Jenna Pizzi at jpizzi@delawareonline.com or (302) 324-2837. Follow her on Twitter @JennaPizzi.

Wilmington red-light crashes drop � along with revenues

Committee: Council members should disclose debts