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Spotlight: Two downtown building sales offer hope for market and two large warehouses planned in New Castle May 26, 2020 | Vol. 7 • No. 11 | $2.00 | DelawareBusinessTimes.com 15, 16 A QUESTION

Governor: Consumer confi dence key to OF TRUST reopening economy 13

Desperation grows for restaurants, retail as Phase 1 nears 4

Small businesses plead their case to Carney Pandemic reinforces need for downstate to loosen rules prior to reopening broadband 6

Dear Governor Carney State business organizations plea for governor to lighten restrictions 10-13 Spotlight: Two downtown building sales offer hope for market and two large warehouses planned in New Castle

To sponsor the Delaware Business Times digital edition, May 26, 2020 | Vol. 7 • No. 11 | $2.00 | DelawareBusinessTimes.com 15, 16 contact: [email protected] A QUESTION

Governor: Consumer OF TRUST confi dence key to reopening economy 13

Desperation grows for restaurants, retail as Phase 1 nears 4

Small businesses plead their case to Carney Pandemic reinforces to loosen rules prior to reopening need for downstate broadband 6

Dear Governor Carney State business organizations plea for governor to lighten restrictions 10-13 Spotlight: Two downtown building sales offer hope for market and two large warehouses planned in New Castle

May 26, 2020 | Vol. 7 • No. 11 | $2.00 | DelawareBusinessTimes.com A QUESTION

Governor: Consumer confi dence key to OF TRUST reopening economy 13

esperation grows for restaurants retail as Phase 1 nears 4

Small businesses plead their case to arney andemic reinforces to loosen rules prior to reopening need for downstate broadband 6

ear overnor arney State business organizations plea for governor to lighten restrictions 18 DOING BUSINESS IN THE NEW NORMAL Rebuilding Operations While Keeping Your Customers And Employees Safe

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2 May 26, 2020 | DelawareBusinessTimes.com EDITORIAL Governor Carney: Give small business Founded 2014 A biweekly newspaper serving Delaware’s business community. a better chance for Phase 1 survival Vol. 7, No. 11 dated May 26, 2020 Copyright © 2020 by Today Media, all rights reserved. This newspaper or its trademarks may not be reproduced “If we don't start trusting our children, how will they letters we’re publishing are loud enough. in whole or in part in any form or by any means electronic ever become trustworthy?” The governor and other state officials have a week or mechanical, including photocopying or recording, or by – John Lithgow, Footloose (1984) after the holiday weekend to make the decision whether any information storage and retrieval system now known they should delay the June 1 targeted start of phase one. or hereafter invent without written permission from the e don’t normally open the newspaper with Publisher. For licensing, reprints, e-prints, plaques, We decided to talk more than most about the fine line an editorial, but we want to demonstrate our e-mail [email protected]. between protecting the public health and just dragging W support for small businesses that have become your feet on opening the state’s economy. Many businesses increasingly frustrated because they believe that Gov. are wondering if there’s much of a benefit to waiting John Carney views them as children who can’t be until a week after the holiday weekend to launch phase Group Publisher Robert F. Martinelli trusted. one. Gov. Carney does have an answer to that (again, Publisher Michael Reath In many cases, they don’t believe that he’s followed see page 13). Meanwhile, more small businesses will fall through on his promise, made during his initial Editor Peter Osborne even further behind the financial 8-ball. And while they coronavirus press conference on March 11, to “keep embrace the importance of testing employees and perhaps Associate Editor Jacob Owens citizens safe in the least restrictive way possible” – customers, they also wonder why there’s no clear plan for Reporter Katie Tabeling at least not as it relates to Delaware businesses. day-to-day workplace testing outside poultry processing If you're a restaurant, you're supposed to be happy Research, Digital, and Mike Rocheleau plants, and whether there’s an actual need for it. Engagement Editor that you can add a few outdoor chairs and tables and One of the big issues you’ll read about in this issue that you can open with 25% capacity, as opposed to Vice President of Charlie Tomlinson has to do with short-term rentals at the beach, where Business Development the 50% other states have already opened with. the restrictions force owners to refund (in most cases) If you’re a hotel, you have to turn away leisure pre-pandemic payments from out-of-state vacationers, Digital Sales & Karen Martinelli travelers while the hotel down the street (but just across Marketing Manager get commissions back from Realtors, and deal with the the Maryland state line) happily accepts the business. impact on mortgage payments. And that doesn’t even Multi Media Account Carol Houseal Unless, of course, you take the attitude that you’re not Executives Scott Comeaux take into account that they can’t even rent out those a cop and you’ll trust guests carrying beach gear who beach houses to in-state residents unless the agreement Programs & Event Coordinator Meaghan Daly say they’re in town on business. was signed prior to April 6. Production Manager Donna Hill If you’re a boutique clothing store that was first forced All of these outstanding issues nearly two months Art Director Chris Johnson to close, then was allowed curbside and appointment-only into the pandemic has led an increasing number of small service, only to see Walmart celebrate record first quarter businesses and industry organizations to ask whether Graphic Designers Eric Bolis earnings, you’re not exactly doing cartwheels when faced Shelby Mills the governor dislikes small business. (you can see a Rosalinda Rocco with being limited to 30% occupancy on June 1. sample beginning on page 10). We wholeheartedly believe in the governor’s mantra The numbers we see indicate we’ve flattened the Director of Digital Strategy Greg Mathias of “flatten the curve.” But we believe that mission should curve, but business owners still fear that the state is Publisher Emeritus Sam Waltz not include flattening the businesses of Delawareans, playing Lucy to our Charlie Brown with that football. Today Media, A Martinelli Holdings LLC some of which will not see 2021. Remember those declining hospitalization rates? Well, President Robert F. Martinelli We believe that he does not need to be as conservative the governor and Division of Public Health Director Dr. Secretary-Treasurer Richard Martinelli with the reopening plan as he's being. We understand Karyl Rattay are confident enough in those trends that In Memoriam that we're "rolling into Phase One" but it feels like last week started allowing hospitals to restart elective Chairman Angelo R. Martinelli (1927-2018) we're doing that with a boot on the tire. surgeries. There are some who think that was insulting Vice President Ralph A. Martinelli (1962-2019) The governor’s key metric for reopening – to small businesses and highlights the lack of a business Advertising Information hospitalization rates – has fallen from a high of 337 influence on decision-making. [email protected] on April 27 to 220 statewide on May 19 (including just It becomes a question of trust. Does Gov. Carney 302.504.1276 51 in the Sussex County hot zone) – and we attribute believe that small businesses can be trusted to do the Subscription Information that to expanded testing and education throughout the right thing (and frankly, if he hasn’t been inside a local DelawareBusinessTimes.com/subscribe-now state. But we’re scratching our heads and wondering Walmart lately, maybe he should be worrying about 800.849.8751 whether the real key decision metric is the strong 73% their commitment to cleanliness)? To submit press releases or story ideas of Delawareans who approve of the governor’s handling The messages of washing our hands, maintaining [email protected] of the pandemic, according to a Survey Monkey poll. safe social distancing, wearing a mask, and protecting Daily Newsletter We suspect that the governor sees small business the most vulnerable has been hammered home. And Sign up for our daily newsletter, delivered to your e-mail owners as part of the 27%, so picking up the pace really we embrace it. Of the other states that have reopened, inbox at DelawareBusinessTimes.com/Newsletter isn’t that big a deal. Maybe he thinks the crumbs he’s only a few have seen things get worse because most Events giving us are sufficient. As you’ll read on page 13, people care about others. The Delaware Business Times hosts a number of events he doesn’t see it that way and feels that he’s given We willl give the government credit where credit is each year. View the schedule and register for events business ample opportunity to provide guidance. due. Its new Covid-19 Customer Protection Standards at DelawareBusinessTimes.com/Events On May 19, we were copied on some letters to the feel like a step in the right direction, giving businesses governor from state legislators and industry associations, following the standards (using the program checklist) begging him to speed up his reopening of the economy a free window cling to put at their front entrance – one Delaware Business Times (USPS 21760, ISSN 2639-8087), before the arrival of Memorial Day weekend. per location – as a way to show customers that they are Vol. 7, No. 11 dated May 26, 2020 is printed 26 times per year by Today Over the past few months, we’ve focused on the working to follow the State’s safety guidelines. Media, 3301 Lancaster Pike Suite 5C, Wilmington DE 19805 and is available by subscription for $39 per year. Periodicals postage paid impact of the pandemic on different industries and The economic contraction will be worse the longer we at Wilmington, DE and additional mailing offices. Single copy/back introduced you to people who are finding ways to pivot. wait. If the governor wants to beef up health inspections issues are available at the cover price of $2 plus $2 shipping and But those pre-Memorial Day pleas for relief got us and heighten monitoring to make sure people are handling. Attention Postmaster: Send address changes to Delaware Business Times, PO Box 460516, Escondido, CA 92046-9808. thinking about whether we were being enough of following the rules, fine. So long as they’re also going to Delaware Business Times cannot be responsible for the return of an advocate for small business. Walmart, Home Depot, Costco, Target, and the many unsolicited material with or without the inclusion of a stamped, self- So, we pivoted even knowing that: more big-box stores that have better weathered the address return envelope. Information in this publication is gathered from sources considered to be reliable, but the accuracy ad completeness of 1. The governor likes to announce things on Friday storm too. the information cannot be guaranteed. No information expressed herein afternoons, and we go to press Thursday. Decisions are being made by people who don’t seem constitutes a solicitation for the purchase or sale of any securities. 2. The governor could issue yet another modification to trust that we can do this safely. If you think we can, let to his executive orders if the voices from the them know at [email protected].

DelawareBusinessTimes.com | May 26, 2020 3 Desperation grows for restaurants, retail as recovery in sight

BY JACOB OWENS easing restrictions on businesses as the lockdown lingers on. This month, he “Desperate times call for desperate has opened Delaware’s public beaches, measures.” community pools, ice cream shops, That’s how Dominic Marino, general and salons and barbershops under manager of Gallucio’s Italian Restaurant, strict limitations, but many of those recalled his decision this week to dress hit hardest, including restaurants, as Santa Claus and walk the streets near small retail shops and hotels, are his Trolley Square-area business to drum still waiting for significant help. up some attention from prospective On Friday, the governor gave them customers. some light at the end of the tunnel, The days at the restaurant are a hit- signaling that restaurants and retail will or-miss experience due to state-imposed be able to reopen June 1 under his phase limitations to takeout or delivery service one plan, but under only 30% capacity only, Marino said. On Mondays, it’s and with significant social distancing. common for the restaurant to ring Restaurants will also be only able to up only $200 in total sales. offer service by reservation. “If we don't open up soon, we will be While many businesses will cheer the forced to shut our doors permanently,” return of some customers, it remains he said. General manager Dominic Marino and chef Julio Tapia wear face masks while working at Gallucio’s Italian to be seen whether the diminished Restaurant in Wilmington on May 14. | DBT PHOTO BY JACOB OWENS Marino isn’t alone. allowable levels, or even consumers’ With Delaware’s economy still willingness once reopened, will keep largely shutdown amid the spread of the them from shutting their doors for good. as all customers stop in quickly. Gallucio’s Marino estimated that his COVID-19 virus, many small business That help is also still two weeks away. “The average customer takes two current sales are about 30% of his typical owners in the state are growing weary of In a May 6 town hall, Colleen minutes to come in, get what they want average, and as a result he’s been able to the lack of customers and fearing that Morrone, president and CEO of and pay,” he said, noting he would be keep only five of his 20 workers on staff. their doors may never reopen. Goodwill Delaware & Delaware willing to limit the number of customers On days when customers are sparse, he’s A late April survey of 285 Delaware County, noted that while secondhand in his stores. “We’re really suffering.” cleaned the establishment and measured businesses found that one in four merchandise shops were included under Meanwhile, small shop owners like it out to plan for how 8-foot spaces believed they only had enough cash to the recent curbside pickup concession, Lauren Helme, owner of Found Antiques could be provided between tables. last another four weeks and more than it wouldn’t help their operation as stock in Centerville, noted the disparity Marino said the days of negotiating 80% of respondents reported declining is in constant flux with donations. between boutique and big-box in the with suppliers, seeking customers and revenues. Workers have already suffered, “I think just in the past few weeks regulations, questioning how a stores like reading the never-ending wave of with the survey by the state’s economic we’ve filled up probably 15 trailers of Walmart with thousands of customers updates are wearing on him. The staff development agency Delaware Prosperity donations that we don't have any ability each day was less of a public health threat has turned to some dark humor to keep Partnership (DPP) and the state’s to sell. Each one of those trailers is a than her shop which might see 10. their spirits up, dressing a plastic skeleton chambers of commerce finding that cost to us to rent on a monthly basis,” “Having our shops closed any longer at the restaurant’s bar with a sign reading, 1,900 workers had been furloughed, laid she said, noting that Goodwills in is a gross hardship for us financially and “Dying for a drink.” off or terminated by respondents amid other states that have reopened have being open is not a threat to the public “It’s tough right now, we’re just trying the pandemic, accounting for about seen “unbelievable demand.” health,” she said. “Although I understand to survive,” he said. 17% of their total workforces. John Wakim, who owns tobacco shops the broader scope of what you're doing, it Gov. John Carney has faced in Wilmington and New Castle, also said doesn't apply to us and somehow we need Contact Jacob Owens at increasing public pressure to begin curbside service didn’t help his businesses to figure out how to make that work.” [email protected]

Analysts improve elawares fiscal outlook but deficit still lies in

BY JACOB OWENS How that deficit is closed isn’t conference that he was not yet prior to the end of 2020, to which something that DEFAC, a non-partisan considering layoffs or furloughs for state Jackson, of OMB, replied that state DOVER – State fiscal analysts group of business and community employees to help close the budget gap officials were working on a partnership improved their outlook for the end of leaders, academics, and government but conceded that “we’re going to have to share some of the costs of programs fiscal year 2020 on Thursday, revising professionals that sets the state’s official to take whatever measures are necessary put into place. their revenue estimates to finish with revenue estimates, is tasked to consider, to close the gap.” Geisenberger noted that much of the a $39.1 million surplus and leaving but the state does have reserve funds Under state law, Delaware’s operating stimulus funds would be used to bolster Gov. John Carney to fill a deficit of in tow for such an emergency. budget cannot appropriate any more than the state’s Unemployment Trust Fund, $491.6 million in next year’s budget. Delaware Office of Management and 98% of predicted revenue. Meanwhile, which has paid out $91 million in claims While it’s an improved position from during the crisis to May 16 – nearly the April report, which was estimating Budget Director Mike Jackson noted more than 60% of Delaware’s state that the state’s $126.3 million budget expenditure is on core programs like double all of last year’s payments – and a $748.7 million deficit to start the next could be exhausted by the end of June. If stabilization fund, a savings account public education, social services, and fiscal year on July 1, it’s still a stark turn that happens, the state will have to seek created under Carney’s watch as a budget Medicaid. from December when the Delaware a loan from the federal government to stopgap, will likely be a part of the Notably, $1.25 billion in federal Economic and Financial Advisory continue to keep the assistance flowing. solution to fill the FY 2021 deficit. stimulus funds for the state, shared with Council (DEFAC) estimated that the “We obviously don't want to have state would enjoy a $246 million surplus. Jackson previously told DBT that the New Castle County, cannot be used to a huge loan that results in a large tax “We overshot. The behavior of state would avoid drawing from its “rainy replace lost revenue, according to the increase on all Delaware workers at the taxpayers was a little bit different than day” Reserve Fund until all other options terms of the legislation approved by end of this, which is what happened what we thought it would be,” Delaware were exhausted. The coffers of the state’s Congress. The fund can reimburse states after the last Great Recession,” he said. Finance Secretary Rick Geisenberger rainy day fund is one of the factors and municipalities for expenses related “We had to raise taxes at the exact said Thursday. He explained that taken into consideration by bond rating to the pandemic response effort. wrong time.” DEFAC added back about 21% of the agencies, and Delaware currently holds DEFAC Chairman Michael revenue they thought would be lost in the highest rating level at all agencies. Houghton asked how New Castle Contact Jacob Owens at April and March. Carney said in an April press County expected to spend $323 million [email protected]

4 May 26, 2020 | DelawareBusinessTimes.com State manufacturers press on while waiting for regional consortium to get going

BY KATIE TABELING grew fierce. Hospitals' needs changed on a sterilizes rooms since January. partnership, but we’re ready to direct week-by-week basis while they joined the Chris Ungermann, CEO of Halosil, services as needed.” While the agreement for seven fray to buy supplies for their facilities. told DBT that back in January the In Newark, Polymer Technologies Northeast states to buy medical and The state Division of Public Health company was working hard to fill Inc. shifted to face shields in the last few protective equipment from each other and the Office of Management and HaloFogger orders in China and Europe, weeks. The company manufactures noise has been slow to kick off, Delaware Budget's Government Support Services but since March it’s been “running flat reduction materials and molded foam manufacturers are moving full steam (GSS) worked its network of existing out and backordered” due to the domestic products, ranging from insulators in ahead to meet exploding demand. vendors. GSS “aggressively” reached out demand. food blenders to Boeing airplanes. With face masks and other protective to the marketplace to source products “We’ve increased the magnitude of “We literally had the foam, the plastic gear scarce, Gov. John Carney joined and to out-of-state vendors when production by 10 to 20 times because of and the elastic here. The one problem we New York Gov. Andrew Cuomo to opportunities arose. sheer demand here,” Ungermann said. do have is it’s not automated labor. We band together to buy the equipment Delaware also started soliciting “We’re in various states at this point, because have a high-speed cutter, but you have needed to fight coronavirus. The idea donations, and local manufactures have there’s multiple requests to decontaminate to do it by hand,” Prybutok said. is to aggregate orders with seven states, answered the call. Dogfish Head Craft state courthouses, police stations and Still, Polymer can assemble “a few stabilize the supply chain — and identify Brewery is producing up to 200 to 400 first responders’ spaces and prisons.” thousand” face shields per shift with four to suppliers to meet that demand. gallons of hand sanitizer per week, and Right before coronavirus virus six employees. Roughly 6,000 face shields Three weeks later, state officials said that several local distilleries are doing the spread through the East Coast, the have been donated to Bayhealth Hospital. the regional purchasing consortium is just same. Down south, Sound FX Home company added another line to its Fort With the details of the regional beginning its work. But in the meantime, Theater and Car Audio made thousands Washington, Pa., production facility. That purchasing consortium still left to Halosil International and Dover ILC are of face shields for Delaware hospitals. paid off as Halosil had to fill thousands be worked out, Delaware Prosperity focusing on meeting demand across the “As [the need] continues, we will work of orders in the next 15 weeks. Partnership President and CEO country. Others like Polymer Technologies with in-state manufacturers to source,” an ILC Dover in Frederica has hired Kurt Foreman hopes for a chance for Inc. reimagined production on face shields. OMB wrote in an email. “Where locals 50 people to meet the demand for its Delaware to share in the economic “There’s always a new risk with a have been unable to provide requested air-purifying respirator system, since opportunities. When it comes to large- new market and you invest millions items, we’ve looked to the market production has been up 30% since January. scale manufacturing, Delaware has in equipment, and in this case, you’re regionally as well as throughout the The Sentinel XL respirator system limited options in available warehousing competing against China for cheap labor. country for qualified vendors.” requires a hood to connect to a blower without building a new one. But if the We’re a small business, our margins As it stands today, some Delaware and an air filter, but once the supply chain market is shifting for a more regionalized are as small as we can get them,” said companies have ramped up production broke down, ILC Dover designed and approach, that could spur more need. Jarred Prybutok, Polymer executive vice to meet not only the demand in-state engineered a new part to meet it. “It may go that way, and the days of president and chief operating officer. but beyond its borders. “We may not be in the top five to the long supply chain may have faded During the pandemic, the state’s Halosil International, a small 10 things that states struggle to find, as a popular strategy,” Foreman said. “I’d health care systems' stockpile of personal disinfection system manufacturer based but we’re here and willing to help,” said love to see Delaware capitalize on its protective equipment (PPE) and other in New Castle, has exponentially boosted Fran DiNuzzo, CEO of ILC Dover. roots as a manufacturer, and our location medical gear grew smaller and competition production of its fogger machine that “We haven’t heard anything on a state definitely helps that.”

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DelawareBusinessTimes.com | May 26, 2020 5 Pandemic reinforces need for downstate broadband

BY KATIE TABELING

Delaware is accelerating plans to expand high-speed internet to rural parts of the state, including leveraging $566,000 from the CARES Act to reach homes that have gone without it. With coronavirus bringing the “day of reckoning” for teleworking, Delaware Department of Technology and Information CIO James Collins said it’s also seeking innovative ways to use funding sources. His office and the Delaware Department of Education plans to use a portion of Delaware’s estimated $44 million CARES Act aid to continue to bring wireless broadband to rural neighborhoods. About $252,000 will be spent to speed up infrastructure improvements and another $314,000 will be used to bring 250 homes in southern Delaware per month online. Additional funding will be made available to support students in low-income households. The unexpected move to “social- With broadband blackouts becoming more of a concern during pandemic, Delaware has committed at least $566,000 to accelerate plans to expand high-speed internet to Kent distance learning really highlighted and Sussex counties. | PHOTO COURTESY OF PEXELS.COM the gaps so we’re partnering up to accelerate the broadband expansion and create a low-income plan,” Collins video is needed for business meetings, is flexibility and opportunity here, but said. “Leveraging those funds will take also makes it hard for Kent and Sussex we have to think about the right device our program a long way. We live in an County to attract new businesses. But needed for the connectivity. You can’t This has been a huge information age now, from the way with thousands of Delawareans working have one without the other.” kids learn, the way we work and from home, the strength of the internet From an education standpoint, some wake-up call. There’s how business transacts.” connection is more important than ever. of Delaware’s school districts were more challenges with children Last year, Gov. John Carney “This has been a huge wake-up call. prepared than others, according to Dr. announced the state would use $2 million There’s challenges with children being at Kevin Fitzgerald, the Caesar Rodney being at home while you’re to subsidize efforts of private companies home while you’re working but when you School District superintendent and to expand wireless broadband to southern layer not being able to afford access or the president of Delaware Association working but when you layer Delaware by 2020. So far, about $1.4 not being served by something reliable, it of School Administrators. not being able to afford million has been used on equipment stresses the issue,” said Troy Mix, policy Some schools were bolstered by a pre- mounted on seven towers along Route scientist at the University of Delaware ‘s existing coalition of schools that focused access or not being served 113 and 13. Eight towers are still left Institute for Public Administration. on tech in the classrooms and could easily by something reliable, to go in the initiative. “This isn’t a ‘fix it and forget it’ problem,” make the jump, he said. But others may In a world when internet connection he added. “To continue to innovate we not have the right devices or have the it stresses the issue. is essential for online education and need public and private partners to make connectivity to get on Zoom calls. Other teleworking, Delaware is ranked as one of a commitment to make sure we have households may have one device handy, TROY MIX the fastest internet speeds in the nation. the infrastructure in place for this.” so teachers have to learn how to record Policy scientist, University of Delaware ‘s But for businesses or homes south of the Bob Perkins, executive director of lessons to make sure all students can see it. Institute for Public Administration Chesapeake and Delaware Canal, it’s been the Delaware Business Roundtable, “It’s a situation where you build the slow — and expensive — to catch up. said southern Delaware’s internet issues airplane while you’re flying,” Fitzgerald The “last mile” for internet service have been magnified by the coronavirus. said. “What classes will look like next students have the devices needed and providers to make that connection from He called for more federal and state year is the million-dollar question, and making sure there’s tools in place for a home to the fiber can cost between investment as more businesses are we’re prepping for different scenarios. We students to learn even if it’s not a live $12,000 to $50,000, depending on forced to pivot teleworking. may see a hybrid of social distancing and class. The faculty had to be compassionate topography and other factors, according “Now the second issue is how many online classes. But there are some who while we’re pivoting in this process.” to state officials. If there are not enough have access to a stable employment will need that personal contact… I will One area that hasn’t been hurt by lack customers to use it, internet companies base when we’re told to work from say we learned a lot of lessons from this.” of broadband during the pandemic is won’t see a return of investment in home,” Perkins said. “In a world where For colleges, internet accessibility is a telemedicine. With the CARES Act a reasonable timespan. we’re ‘teleworking on steroids,’ this challenge for teachers as well as students. also providing $200 million to expand For example, if an internet company is disenfranchising a good number One Delaware Technical Community telemedicine, Delaware Healthcare lays fiber for a rural Sussex County home of people from working.” College professor has to outfit her van Association President & CEO Wayne with a mile-long driveway for $25,000 Delaware State Chamber of Commerce with lesson materials and drive to her A. Smith said that even without access it would take the company more than President Michael Quaranta said he’s parent’s house to hold class, said Kelly to video, many patients are using it 10 years to recoup the cost. been on many video conferences calls McVeigh, the college’s Vice President for for extreme symptoms not related Since Delaware is not rural enough to where downstate colleagues lag because of Information and Instructional Technology. to COVID-19. qualify for many federal grant programs, the internet service. It’s a game-changer Del Tech has allowed students to “One boon here is that the simplest local officials have tried to come up with for industries across the board, in terms use the computer lab three days a week technology still allows audio, and with other solutions. For example, Sussex of efficiency or even how people work, and recently set up wireless hotspots in the financial support from Medicare County officials partnered with Broad even as the state eases on restrictions. campus parking lots. Classes resumed and Medicaid, we’ve been able to Valley Micro Fiber Networks to bring “Technology disruptions are this week. expand into it,” he said. fiber to the heart of Georgetown. happening more and more frequently “It’s incredible news that the state is The lack of high-speed internet, because of these global events, and it invested in broadband,” McVeigh said. Contact Katie Tabeling at especially in an age where streaming ushers in change,” Quaranta said. “There “There are challenges to make sure [email protected]

6 May 26, 2020 | DelawareBusinessTimes.com All eyes focus on Delaware beaches for holiday weekend

BY KATIE TABELING

After a trial run where visitors followed social distancing courtesies but where few wore masks, the Delaware beaches are now headed to Memorial Day Weekend that could be slower than ever before. Gov. John Carney lifted restrictions on the Delaware beaches starting May 22 at 5 p.m. But many coastal town officials went ahead and reopened access to the beach early in some capacity, with Rehoboth and Bethany Beach officials reopening the boardwalk for exercise days earlier. “Our local economy is ready to move forward, and we have businesses that are chomping at the bit,” Rehoboth Beach Mayor Paul Kuhns told the Delaware Business Times. “They understand what’s being asked of them, and it’s about getting ready to offer service safely.” PHOTO BY ALVIN MATTHEWS Hotels and short-term rentals, the backbone of Delaware’s $3.5 million tourism industry, are still shuttered until essential businesses still doing take-out distancing but not a lot of people were news we’ve had in a long time,” but June 1, and with a 14-day quarantine and restrictions on retail, it won’t be as wearing masks, Kuhns said. said resorts were going to see a hard still in effect, Kuhns doesn’t expect big as it would have been daily. But step “I think that’ll change as more people road back. Memorial Day weekend to be the grand by step, we’re phasing into normalcy.” get used to it and it’s required of them,” “Since we’re a destination, the celebration of summer that it was last Colder weather than expected he said. hospitality industry has been hit hard year. Retailers are now allowed to dampened expectations for crowds for Still, a gradual reopening is better than by this. It’s going to be a longer road,” reopen on appointment basis only. Rehoboth Beach’s first weekend open being closed, said Carol Everhart, the Everhart said. “Without hotels and the travel since March. But Saturday’s sunny skies CEO of the Rehoboth Beach-Dewey It’s been estimated that 70% of advisory, it’s slowed the path of people and the Reopen Delaware rally did bring Beach Chamber of Commerce. She coming to town,” he said. “With non- more people to town. Many were social called reopening the beaches “the best Continued on page 19

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DelawareBusinessTimes.com | May 26, 2020 7 As pandemic lingers, PPP slows to a trickle 10 tips

BY JACOB OWENS

It was the program heralded by the to ensure federal government to save America’s small businesses, but as the pandemic and its associated economic lockdowns linger, PPP loan the flow of the U.S. Small Business Administration’s Paycheck Protection Program loans has slowed to a trickle. forgiveness Through the 13-day run of the $349 billion first round of the program in April, Delaware businesses obtained BY JACOB OWENS 5,171 loans worth nearly $1.1 billion. The first week of the $310 billion More than 10,500 small businesses second round saw 4,872 state businesses in Delaware have received a U.S. Small get loans worth about $366.3 million. Business Administration loan through In its second week, however, only the Paycheck Protection Program, the 795 Delaware businesses obtained federal government’s attempt to bolster loans worth about $29.6 million. That the nation’s shaken small business class represented about an 83% drop in amid the coronavirus pandemic that is threatening many to close forever. recipients between the first two Participation in the SBA’s Paycheck Protection Program (PPP) has slowed dramatically, with many businesses weeks of the program. saying its restrictions don’t help them prepare for the future. | PHOTO COURTESY OF CREATIVE COMMONS “We’ve never seen this before,” said By the third week, the SBA wasn’t John Fleming, director of the SBA breaking out weekly state figures as Delaware District office, noting that the fund only saw $6.2 billion in loans costs of pivoting a business’s operations weeks covered under the PPP. the PPP is an extension of the SBA’s nationwide – or less than half of what to address the challenges of the pandemic Falling short of the 75% threshold traditional 7(a) loan. “We've never it loaned in the second week. Delaware may be more important. turns the shortfall into a two-year loan, done a loan program like this with saw roughly 361 new loans approved in Bob Older, president of the Delaware a term window that no restaurant would no personal guarantee.” the third week, but its total allocation Small Business Chamber, said the take on right now, Martuscelli added. The PPP, which still has about $147 dropped roughly $30 million to about program was problematic from the “If you're asking us as a business to billion in available funds as of May 20, $1.45 billion, indicating some recipients start, because the funds weren’t so only open up at 30% capacity or only was created in a matter of weeks as had decided to return the funds. much financial aid as added debt. dining outdoors, there's no way we can Congress and the White House sought The reasons for the slowing of the “Not only does it put businesses in bring back the same amount of people to to stem the financial havoc wrought program are threefold. more debt, but it puts them in more debt run that operation at a lesser capacity,” by the pandemic that has required First, the program has likely met in a very short period of time,” he said, he explained. “That means there's no lockdowns across the country. market demands, as one economic study referring to its two-year term on non- way for us to get the forgiveness because The loans, typically worth tens of pegged the costs of reaching every forgivable expenses. “I think that's a you're putting us at a disadvantage.” thousands of dollars but ranging up to eligible American small business at about big problem for a lot of businesses.” Martuscelli’s criticisms, echoed by $10 million, are convertible to forgivable $750 billion. As of May 19, nearly Older, who also owns and operates many other small businesses, were grants if at least 75% of the funds are $513 billion of the total $659 billion the travel agency Creative Travel, said he backed up by a May 8 report by the used for payroll expenses over eight allocation has been disseminated. doesn’t need money for payroll, but rather Office of the Inspector General for the weeks. The remaining 25% can be A late April survey of 285 Delaware for rent and expenses, noting that he SBA. It called into question some of the forgiven if used for fixed costs like businesses found that 61% of respondents expects to lose upward of a year’s income guidelines of the program, which were rent, utilities, and mortgage interest. had applied for a PPP loan, of which in trip cancellations and refunds. With decided by administration officials and While the foundation of the program 48% had received funds and 44% were such a large anticipated deficit, Older are not written into the congressional is rather simple, the environment in still awaiting application review. An which employers operate isn’t. Here said the PPP’s limit of two-and-a-half- bill authorizing the PPP. Those rules analysis by Bloomberg News found that are 10 tips about PPP loans to ensure times monthly payroll would be a drop in included the 75% threshold and the nearly 57% of eligible Delaware small two-year loan term – Congress that the funds are forgiven. the bucket to help him. He said lenders businesses had received PPP loans, allowed up to 10-year terms. They were provided during a May were encouraging him to look not at covering nearly 75% of the eligible "It may be important to consider 8 webinar attended by more than 470 the PPP, but a 10-year business loan workforce. that many small businesses have more people and presented by Delaware at 5.25% interest. Another factor is the increased scrutiny operational expenses than employee Business Times, the Delaware Small “The problem with the PPP is that it of recipients, following media reports expenses," the SBA Inspector General Business Development Center and the was designed for payroll, not for helping of publicly traded companies and those wrote. "Our review of data from the SBA and sponsored by BNY Mellon the small businesses where they need with relatively easy access to other first round found that tens of thousands Wealth Management, Harvey Hanna it the most,” he said. capital obtaining PPP loans. Some of of borrowers would not meet the & Associates, and Union Park Volvo. Gianmarco Martuscelli, owner of those companies, like Ruth’s Chris Steak 75% payroll cost threshold and would 1. Keep detailed records and open Martuscelli Restaurant Group which House and Shake Shack, have returned therefore have to repay the amount of a new deposit account for the loan. operates Klondike Kate’s and La Casa the loans, but others have not. non-payroll costs in excess of 25% in Because banks were rallied to expedite Pasta in Newark, and the Chesapeake After the outcry over those loans, less than two years." the processing work on PPP loans, Inn in Chesapeake City, Md., agreed the U.S. Department of the Treasury Asked during a May 19 Congressional applications varied among lenders. reported that all loans of $2 million or with Older. He obtained a PPP loan in hearing about whether he was open to Officials advised to keep copies of all more would be audited, but those under the first round of funding but believes changing the rules of the PPP, however, pertinent forms close at hand. Because an that threshold will be deemed to have he will end up returning some of the Treasury Secretary Steve Mnuchin accounting of the loan proceeds will be been made “in good faith” – meaning funds because his restaurants, operating downplayed adjusting either the 75% forthcoming for recipients, officials also they won’t be audited. as takeout-only until June 1, don’t need rule or the eight-week window. The U.S. encourage recipients to open a checking Perhaps the most notable reason for the to reach prior staffing levels. While House of Representatives voted to extend or savings account specifically for the slowdown in lending, however, has been the his restaurant group routinely employs the eight-week period to 24 weeks as monies to keep clear divisions as to growing wariness of businesses to take the upward of 500 people, Martuscelli part of a $3 trillion coronavirus relief how it was spent. money now and start the program’s eight- said that he currently has only about bill lawmakers passed May 15, but week window, especially as a substantial 50 working. Senate leaders say they have no 2. Recipients will have to apply for number of customers in Delaware may not “We’re in no man's land right now intent of taking up the bill. forgiveness. A recipient receives funds return for weeks or even months. Others and we’re down to three more paychecks from their lender, which will only recoup have chafed at the requirement to spend covered,” he said, noting sit-down service Contact Jacob Owens at its monies from the SBA after a recipient 75% of the funds on payroll, even though will be allowed for only two of the eight [email protected] applies for forgiveness. A process for

8 May 26, 2020 | DelawareBusinessTimes.com applying for forgiveness has not yet been entire forgiveness offer. The SBA will that limit only refers to cash payments. established as the earliest recipients haven’t prorate out the amount you fell short, for Benefits to such employees are not yet reached the end of their eight-week example 1% of proceeds will be converted counted into the calculations. An employee that declines period. However, officials encouraged at to a two-year loan if an employer spends minimum that employers keep copies of 74% on payroll over eight weeks. 8. An EIDL grant must be subtracted to be rehired under Internal Revenue Service payroll tax filings; from the forgivable portion of the PPP. the terms of the PPP state income, payroll, and unemployment 5. Receipt of loan proceeds starts the The Economic Injury and Disaster insurance filings; documents covering clock. The day that you receive PPP loan Loan (EIDL), or 7(b) loan, is the SBA’s will be excluded from proceeds, the program’s eight-week clock mortgage, lease and utility payments; and other prime loan program to assisted begins. Many businesses may not yet written notification of any employees affected businesses. To date, more than loan forgiveness be ready to fully serve the public due to who declined rehiring offers. 7,500 Delaware businesses have received reduction calculations. differing degrees of lockdown amid the those loans, with more than $27 million 3. A laid-off or furloughed employee pandemic, but unfortunately the program disseminated in cash advances. Both can decline an offer to be rehired under doesn’t allow for any leeway in the programs cannot be used for the same the PPP without impacting a loan spending of funds. Congress has talked purpose though. If EIDL funds aren’t recipient. An employee that declines to about altering the time provision of the used for payroll, your PPP eligibility will be rehired under the terms of the PPP program due to these concerns, but for not be affected. With a $10,000 advance excluded from payroll costs under will be excluded from loan forgiveness now officials advise that recipients plan forgiven grant, however, the EIDL funds the statute. reduction calculations. An employer to spend the money right away. must be declared when applying for the needs to keep a record of the refusal 6. The money can be returned. Much PPP and subtracted from the PPP’s 10. Don’t use funds on expenses not in writing though, officials warned. has been made about large employers forgivable amount. specifically approved. Officials advised Many workers are reportedly turning and publicly traded companies that recipients to stick to the eligible expenses 9. Employee payroll taxes can be down such offers because they may be are returning PPP loans after public as provided by the SBA and U.S. counted toward payroll expenses, but earning more than their prior wages on criticism, but more importantly any Department of Treasury. The agencies We have the right mixnot to the employer’s solve taxes. Payroll costs the federally subsidized unemployment recipient can return unspent funds. If published a guide of frequently asked are not reduced by taxes imposed on an stimulus program. The SBA warned loaned funds are not spent by the end questions that is routinely updated to employee and required to be withheld that such employees turning down of the eight-week forgiveness period, provide clarifications on many specific by the employer, but payroll costs do a rehire offer may be ineligibleyour to bankingthe money can be returned to the SBAneeds questions. While some businesses have not include the employer’s share of continue receiving unemployment without penalty. Any amount that inquired about using PPP proceeds to payroll tax. For example, an employee benefits, Yasou employers don’t have are instructed to be a big companyis determined to get to notthe be perfect forgiven mix of first-class financial products cover interest costs on vehicle loans, to inform state unemployment offices who earned $4,000 per month in gross only mortgage interest is covered under and services. Artisans’ Bankis specializes converted into in a meetingtwo-year loan the needs of local businesses, and of such offers. with a 1% interest rate. wages, from which $500 in federal taxes federal guidance to date. Any funds spent we can provide a total financial service solution for you. When you bewascome withheld, our wouldclient, count we asget $4,000 on ineligible expenses are converted into 4. Fallingto know short you,of 75% your target business doesn’t and your7. The goals. $100,000 And limit you for get employees to know whatin payroll an advantage costs. The employee it is to would a two-year loan at 1% interest at the cancel the forgiveness. If a business falls does not include benefits. Congress receive $3,500, and $500 would be paid conclusion of the eight-week window. short of thehave goal ofa spendingrelationship 75% of with the a localplaced bank an income that limitcares of a $100,000s much perabout yourto the success federal government.as you do. However, loan on payroll costs, an employer doesn’tVisit our websiteemployee into order see towhat limit we the canfollow do for you.the employer-side federal payroll taxes Contact Jacob Owens at have to worry about losing out on the of funds to high-wealth workers, but imposed on the $4,000 in wages are [email protected] www.artisansbank.com

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DelawareBusinessTimes.com | May 26, 2020 9 DEAR GOVERNOR CARNEY GOP lawmakers to Gov. Carney: ‘Enough is Enough’

The following letter was sent today running a business, and to no one’s be. If there is a discrepancy in the data, (May 19) to Gov. Carney from 15 surprise, the results have been disastrous. it is in everyone’s interest to find out. Kent and Sussex County legislators. The state needs to adopt a new decision In the end, we all want In the end, we all want what is best Dear Governor Carney: framework – one that prioritizes opening for the people of Delaware. But the We write today with extreme concern those businesses that can be opened. Our what is best for the time has come to express our opinion over the impact of the decisions that have small businesses know how to operate on how to reach the best outcome. We been made so far by your administration safely. They know that the ultimate judge people of Delaware. urge you in the strongest possible terms of their success will be public confidence. in an attempt to combat the coronavirus. to give people and business owners They just want a fair playing field in We have watched as your administration back their freedom and let them assume order to compete. It’s time to give them favored large and powerful business responsibility for themselves and their the chance to do so. It’s time to trust interests over our local merchants. We communities. This virus will be with have seen businesses shut down and their Delawareans to know what is best, decisions for their congregations. They us for some time. It is up to all of us to owners threatened with criminal charges. and to act accordingly. know the heavy weight of the risks, adjust to its existence. We believe in And we have listened as mixed messages Specifically: and they will do the right thing. the people of the state of Delaware. and confusion have caused panic and • Move the start date for Phase • Allow daycares, youth sports and fear to spread far and wide. One to Friday, May 22. Memorial Day We hope you will join us. We have fought tirelessly behind the weekend is one of the largest weekends children’s activities to return to normal. scenes to impact the decisions you have of the year for many businesses, especially No one can go to work if they have Sincerely, made, largely because we believed that those at the beach. To cut that flow of young children at home. Children have Sen. Gerald Hocker (Senate Minority we needed to all be on the same team business off in favor of an arbitrary June been proven to be less susceptible to Leader) in combatting this virus. Unfortunately, 1 date, despite evidence that the virus is the virus, and there are questions about Rep. Danny Short (House Minority our concerns have not been heeded and receding in Delaware is a major mistake their likelihood to be spreaders, as well. Leader) our suggestions have been adopted too that will have devastating consequences Give people the choice in whether or not Rep. Tim Dukes (House Minority to send their kids to daycare or camp. late, if at all. for Sussex County, especially. Whip) Outdoor play is good for the body and It is time to say, “Enough is enough.” • Remove the restriction on short- Sen. Dave Lawson mind, and there is strong evidence that Your Phase One “re-opening” of the term lodging, and the blockage of Sen. Brian Pettyjohn visitors from other areas. Hotels, motels, outdoor transmission of the virus is Delaware economy is too little, and too Sen. Bryant Richardson late. Delawareans and the businesses campgrounds and rental housing add very rare. Sen. Dave Wilson they love have given so much during this to the ability of people to properly • Audit hospitalizations and deaths. Rep. Rich Collins time, in order to flatten the curve and to distance themselves. With delivery and There are many doubts and concerns that Rep. Ron Gray give our medical system time to prepare innovation, we can boost our economy have been raised anecdotally about the for the long haul. We have met that and keep people safe. People want to quality of the data that is being reported. Rep. Ruth Briggs King goal, and hospitalizations are declining. spend money here. Nearby locations like While we do not question the intent of Rep. Shannon Morris Meanwhile, we have decisions over the Ocean City are safely doing so. We need the hospitals, DPH and DHSS, there Rep. Charles Postles future of thousands of Delaware small to do the same. is a great deal of chatter in the medical Rep. Jeff Spiegelman businesses being made by a group of • Open the churches. Church leaders community about deaths being classified Rep. Jesse Vanderwende people who have little to no experience need to have the leeway to make as COVID-19 that perhaps should not Rep. Lyndon Yearick

Reconsider ban on short-term rentals, leisure travel for non-Delawareans

Dear Governor Carney: business during this State of Emergency. businesses. term rental ban and allow the short-term We are writing on behalf of the • Among the core rights of property • The Delaware lodging and tourism rental market and tourism industry to owners is the right to lease or rent. This industries are well equipped with the Delaware Association of REALTORS®, resume in Delaware before Memorial right has long been recognized by the proper personal protective equipment the New Castle County Board of Day weekend. courts. Protecting the private property and safe operating guidelines necessary REALTORS®, the rights of all property owners is our to keep guests safe and to lessen the Kent County Association of Sincerely, number one priority and a service vital spread of COVID-19. For example, REALTORS®, and the Sussex County to the industry and communities. we initiated drive-thru check-in and Beau Zebley, 2020 President Association of REALTORS®, and each • Many Delaware families invest are disinfecting keys. Delaware Association of Realtors organization’s Board of Directors to ask in property for short-term rentals to • More than 3,900 REALTORS®, the you to reconsider the ban on short-term increase their financial worth, and use real estate market, our legal vacation- Monica LeBlanc, 2020 President rentals and leisure travel for out-of-state the rental income to pay that mortgage. rental industry worth more than one Kent County Association of residents. Our request is based on, but • Short-term vacation rentals billion dollars, and the state’s economy REALTORS® not limited to, the following: positively impact the economies of are all feeling the negative effects of • The Delaware Association of the local beach towns in several ways. this situation. In addition, the ban could Carl Wahlig, 2020 President REALTORS® has worked with the Most importantly, their engagement further fuel the illegal vacation-rental New Castle County Board of Realtors Division of Small Business since March with the many amenities our beach black market and negatively impact 11 to develop guidelines and procedural towns offer—restaurants, shopping, and our local housing market. Sandi Bisgood, 2020 President measures. REALTORS® have been entertainment—provide a much-needed, We respectfully ask that you seriously Sussex County Association of using those guidelines to safely conduct though seasonal, boost for our small consider our request to lift the short- REALTORS®

10 May 26, 2020 | DelawareBusinessTimes.com DEAR GOVERNOR CARNEY Small businesses deserve better from leaders

Delaware Small Business Chamber what we have done since then is not the “show” he was doing something. Instead to move to a loan instead of the help President Bob Older submitted this to the right answer. of saying those that qualified could open which put small business owners in more Delaware Business Times as an “open letter The industries with the best lobbyist the next day, he made them wait four debt. It’s time for our Governor to do to small business owners in Delaware.” get to do things that others could not do. more days. At the same time, he then what he is supposed to – GOVERN. Do The governor has said when trends go pushed the opening of Phase One two what is right for small business. Start I want to apologize to all small downward, we will start the processes of more weeks - absolutely contradicting opening now, not in three weeks, with business owners in Delaware. I’ve said reopening. Which Governor should we his own statements, charts, actions etc. STRONG limitations and restrictions. before that I don’t believe Delaware is listen to and which is running our state? THAT makes little to no sense at all. We are in a world today that if someone very small business friendly. I have tried Seems like Governor Cuomo is making In most areas, numbers are dropping. is abusing that system EVERYONE to make people understand business in more decisions than the one we elected In all areas, hospitals are doing well, will know about it. Some businesses may Delaware better and in some cases, we is doing. The one we elected says that as are the people in the state. So why open, some may choose to stay closed. have made great strides. However, with hospitals are at half of the capacity which push it further away? Some customers may start to come top-level people, it doesn’t appear we we expected. That is great. Numbers in Let’s all be realistic here. There are back, some may choose not to yet. But have made an impact yet. New Castle and Kent Counties have had many people that want to go out and eat, if gun stores can have one person at a I understand we are in difficult times. significant drops. That too is great. We support business and start doing “normal” time in their business or Walmart can I understand it’s a fine line between have allowed dollar stores, big box stores, things. There are probably just as many sell anything and everything, then most health and economy and that no matter gun stores and the like to open up and that want to stay home some more and of our stores, offices, businesses can do which direction we all take there may sell more than food. Reasons? Either be and feel safer. Neither side is wrong. something similar and honestly, because be no right answer. We care about our police enforcement would have been too But shouldn’t we be trying to help both we are small, it would be much easier loved ones just as much as we care about costly or lobbyists threatened potential sides? Many business owners that I have to maintain and enforce. making a living and putting food on lawsuits. Is that what we as a state need talked to don’t want to open up right This letter is to all of you -- not to a our tables. It’s not an easy decision and to do? Sue? away either. Many do. Those with rents person who is listening to other states to I think we all understand that and the Over the last few weeks, thousands and costs above a house mortgage need dictate what happens here -- but to each ramifications that come with it. of people, small business owners, to start bringing in money. The federal and every one of the business owners My personal issue is that our small legislators, and most of the chambers government’s attempt of a stimulus and the public who has a voice. Use it business owners deserve better. We of commerce in Delaware have reached package was the largest bait & switch legally. Use it smartly. Use it where it deserve better leadership at the very out to key people to offer options, make scam in our country’s history. counts. This is not a political statement. top. I agree that things needed to be some suggestions and in some cases, I own a small business too and applied It is a statement in support of our done to prevent our hospitals from demand the state reopen. Last week, the April 1st for EIDL. To date, no answers, small business community. being overwhelmed and to protect the Governor opened up a few industries, no communications, no money. Most most vulnerable of our population. mostly curbside, to help start up the of the businesses that need it the most Bob Older is president and founder of On a personal level, in my opinion, economy -- the bare-bones basics to didn’t get help. Many were convinced the Delaware Small Business Chamber.

DelawareBusinessTimes.com | May 26, 2020 11 DEAR GOVERNOR CARNEY Hotels losing business to other states could cause 'irreparable loss'

Dear Governor Carney, travelers to enjoy their beaches and staff, and critical guests who use our the CDC. A comprehensive set of these On behalf of the Delaware Hotel and attractions. Losing this business to other facilities as a home away from home. We standards has been provided to your Lodging Association (DHLA), the over states like Maryland or New Jersey are proud to continue to support the vital office for review, and we hope to hear 17,000 hotel employees, and the 44,000 will cause irreparable financial loss to businesses! We feel strongly that we are something soon to discuss these plans. jobs that tourism supports in the state, the hotels who rely on the seasonal prepared to reopen to leisure business • DHLA has worked with the I am respectfully requesting that you vacationers to support their business and would like this considered based American Hotel and Lodging strongly reconsider your phase one plan and the other industries that hospitality on the following points: Association (AHLA) and their Safe Stay as it relates to the restrictions you supports. • Hotels have implemented standards initiative, which is recognized worldwide have in place for leisure travel. The hotels in Delaware have prepared within the properties to promote social as an industry leading program to address As you have seen, several other and continue to prepare for the “new distancing and increased sanitation, to this current pandemic, and continues neighboring states have “opened for normal”. Many hotels have been open protect guests and associates alike. These to provide resources to ensure safety business” welcoming vacation/leisure supporting the essential workers, medical are in line with guidelines provided by standards are updated based on CDC guidelines and safe hotel operations. • Most of the hotels in Delaware are small businesses, and many have taken on PPP loans to provide a short bridge to keep their hotels ready for the summer. Hotels will not be able to sustain cashflow under the current restrictions as these loans come to an end. This will result in closures and losses of many hotels, unable to recover from missing a key part of the “tourist” season. • Like many industries that have already opened (or who are opening as a part of phase one) hotels have the capability to reduce their occupancy and set up their public areas to promote social distancing. Guests can check in to many hotels without visiting the desk (through keyless check-in or prearrival check- ins) and can also be blocked in areas of the building to provide separation as necessary. Watching cars drive through our state to visit our neighbors is deflating to the business owners and employees who are prepared to service the guests who would prefer to visit Delaware. Having Delawareans vacation in Ocean City, Maryland or New Jersey does not help stop the spread. Watching our employees go work in other states so they can feed their families, when we could provide them with jobs is disheartening to say the least. As a proud representative of the hospitality community in Delaware, I hope you reconsider the current restrictions and allow hotels to open for all business. We respectfully request a conversation with you and your team to discuss the current challenges and future opportunities. We firmly believe that a phased-in approach to leisure travel is necessary and would help support the hospitality industry which represents the fourth largest employment segment in the state. Help us stop the tourism dollars from literally driving through our state and support Delawareans and their businesses.

Yours in hospitality, Bill Silva

Bill Silva is chairman of the Delaware Hotel and Lodging Association

12 May 26, 2020 | DelawareBusinessTimes.com DEAR GOVERNOR CARNEY Allow Phase 1 leisure in-state travel, overnight visitation

Dear Governor Carney, time. Hotel guests are able to limit their from the CDC, and each establishment As the county’s destination marketing interaction with staff and other guests is using those parameters to protect On behalf of Southern Delaware organization, Southern Delaware by separating themselves in guest rooms, employees and guests from any form Tourism is working with the local Tourism (SDT), the Convention and utilizing mobile check in options, and by of viral spread. chambers of commerce and the Delaware Visitors Bureau for Sussex County adhering to strict cleanliness guidelines • Allowing for this activity now Tourism Office to market Delaware Delaware, and its Board of Directors, in place at each establishment. (among Delaware residents) can serve accommodations in a safe, responsible I am writing this letter to ask for your • The Delaware lodging industry, as a public “stress-test” concerning manner to the millions of guests who are consideration to allow for leisure in- including but not limited to hotels and CDC Requirements. State officials, law waiting to revisit here. The more that we state travel and overnight visitation short-term rentals, is well equipped with enforcement, and local businesses will can do this with a consistent message in Phase One of your reopening plan. the proper personal protective equipment have more time to make observations and consistent public policies in place, This request is based on but not and standard operating procedures and adjustments with lower numbers of the safer and faster our economic limited to the following: necessary to keep guests safe and to people frequenting their accommodations recovery will be. • Hotels and motels are better eliminate the transfer of COVID-19. now versus a higher number when equipped to practice social distancing • The current standard operating travel restrictions are gradually lifted Benjamin Gray is chairman of Southern than several large retailers that have procedures in place at each establishment throughout Phases 2 and 3 of Delaware Tourism. He is also general manager been accepting customers during this correlate directly with guidelines issued Delaware’s recovery plan. of the Bellmoor Inn & Spa in Rehoboth Beach Six Questions: Gov. John Carney

affected. Family-owned businesses ‘We were in were seeing that all their work across generations could possibly be for naught. unchartered territory We were in unchartered territory and we were motivated in part by fear. We and were motivated turned to reopening as quickly as we could based on advice from the White in part by fear’ House task force, which provided triggers for reopening by phases. We didn’t close After we decided to publish letters written everything down like some states did. by Delaware business organizations to Gov. We kept construction open but I’d drive John Carney, we gave him the opportunity by work sites and then call Bryan Short to respond to the questions being raised in and Ed Capadanno (from the Delaware these letters and by other business leaders. He Construction Association and the addressed some of those questions on May 21 Associated Builders and Contractors) and tell them people needed to follow with Editor Peter Osborne but did not get to DBT FILE PHOTO others, including plans to support Delaware the rules. Landscaping stayed open. businesses that want to test employees We’ve tried other things, like opening before they return to work. He did not, in by appointment only and curbside. it did because you didn’t want hospitals of signage, focusing on education every case, respond directly to the questions The White House task force said those overwhelmed, anticipating a surge to not enforcement. provided in advance of the interview. things should wait until phase one. We’re the point where you were looking for We are trying to keep the crowds actually rolling into phase one. This virus additional facilities. You’re now allowing down. The more conservative public- 1. Delaware has flattened the curve hasn’t gone away. With all this economic elective surgery to offset their losses. health people would like to keep those with grocery stores, Walmart, Home carnage, the last thing we want to do is Many businesses clearly need Memorial [restrictions] in effect longer. We did Depot, Lowes and other essential waste all that by being too irresponsible. Day weekend to stop the bleeding. Why not issue a travel ban, and there was businesses like construction all open We lifted some of our restrictions – we wait until June 1 to begin phase one? We a difference of opinion on that. You and following CDC guidelines and never closed down the beaches while got into this quickly and dealt with the need to remember that this started in state restrictions. Have they been given others did – and frankly we didn’t have large increase in cases in Sussex County, Delaware with a group of scientists from preferential treatment? The big box a lot of tools to warn Delawareans not notwithstanding some arm wrestling the University of Delaware who went to stores are open because they sell food, to come.. that we had to do with downstate a conference in New Jersey and brought and that’s been more of an enforcement 3. What is it going to take to get poultry plants and the White House. We it back. And that’s how it can happen. question. Early on, we told them they the economy fully open? There’s a increased testing in those communities 6. You created a task force of were doing a terrible job. We told balance that needs to be struck here. and focused on hospitalization rates. educators this past week to come up them to limit customers to 20% of fire You need to focus on inspiring public That gave us a comfort level on other with ways to reopen the schools in code capacity and to establish lines of confidence. If you open and people don’t things we’ve done. We’re doing a rolling September. Why didn’t the state create demarcation. I went into a Walmart and feel comfortable, they’re not going to reopening. You can’t turn on all the lights a similar task force of business leaders they were shoulder to shoulder. It was come. Xavier Teixido said early on that all at once in one weekend and undercut and small businesses to find ways to a disaster, but we came down pretty his workers need to feel safe coming into all the work that went into flattening reopen the economy and help them hard on them and the construction work and his customers need to feel that the curve. feel like they’re being included in the people and it got a lot better. it’s safe to come back into his restaurants. 5. Why can Ocean City hotels be decision process? We’ve been consulting 2. How do you respond to people The decision to reopen has been way open and Delaware beach hotels can’t? on a daily basis with businesses. saying you’re not moving quickly harder than the decision to close. We Why not lift the restrictions on leisure Decisions are being made so fast [snaps enough to reopen based on the data? have to have some level of confidence travelers for hotels or on short-term fingers] with direct input from business Closing businesses was one of the most that we’re not going to undo the progress rentals for owners? We want to keep owners and calls with mayors, legislative difficult parts of this and getting them we’ve made. I don’t want to do that people apart and keep them safe. leaders, nonprofits, and minority reopened has been a big focus. We had one day too late and I don’t want to go Our only mechanism for out-of-state community leaders. We’ve had 11 Zoom to use a blunt instrument to shut down backwards if we call it wrong. And we’re visitors is the 14-day quarantine and the town halls, about half of which were non-essential businesses. Businesses that doing this with lots of input from leaders continued ban on short-term rentals but targeted toward small business. are formed around public gatherings across the state. we felt that was the best way to gradually I just don’t think that a task force like restaurants were the most negatively 4. Delaware took many of the actions reopen the beaches. We’re using lots would have been realistic

DelawareBusinessTimes.com | May 26, 2020 13 Philly Fed chief: Delaware faces uneven recovery

BUILDING BY JACOB OWENS The head of the Federal Reserve Bank of Philadelphia told Delaware business leaders May 12 that he expects the state’s banking and finance sectors Delaware to weather the coronavirus pandemic while manufacturing will “bounce back” as it subsides. But he also said traffic at the Port of Wilmington and the state’s TOGETHER tourism-dependent beaches may be in for a tough year. Patrick T. Harker, president and CEO of the Federal Reserve Bank of Philadelphia and the former president of the University of Delaware, outlined an uneven economic recovery for the First State, where New Castle County will likely endure better than Kent and Sussex counties. Delaware’s travel and hospitality sector – an area where the southern counties are particularly dependent -- may face “a longer and more painful Patrick T. Harker contraction,” Harker said in a conference call with the Delaware State Chamber Asia, and elsewhere once again showing of Commerce. That would be spurred by growth. But that too depends on how businesses reducing corporate travel amid those countries manage the coronavirus the increasing use of teleconferencing and its economic fallout,” he said. software, like Zoom or Skype, and the hesitance of many families to visit Future outlook crowded places such as Delaware’s public beaches. Harker stressed that the economic “There will be demand. People will recession was not purely the result of still, understandably, have cabin fever and government-mandated shutdowns. Data they’ll want to get out on some sort of shows that consumers were curtailing their travel and spending before such vacation, but they may take small steps actions were taken by states, he said. before getting on an airplane or trying “Consumers were voting with their feet to go long distances,” he said. — or at least with their wallets,” he said. One brighter note for the southern “Until the virus itself is under control, counties is that Harker expects even as more states gradually open up, we Delaware Contractors Association, the leading voice of manufacturing to “come back quickly.” can expect the economy to underperform the construction industry in the State of Delaware, is an He noted that regional manufacturers relative to where it was just a couple of were not reporting a lack of orders, but organization of qualified General Contractors, Construction months ago.” only a delay in restarting operations. Managers, Trade Contractors, and Industry related firms Harker stressed the need for an New Castle County Predictions “intelligent” reopening of the economy, dedicated to the principles of skill, integrity and reliability. and offered two possible outcomes for In New Castle County, and 2020, one more optimistic than the other. Wilmington in particular, Harker said If the economy largely opens in June, that he expects banking and finance jobs technology is in place to contain the to continue holding up well – a stark virus’s spread, and there is no second Daniel J. Hahn, Sr., President contrast to the last recession. Heavily wave in the fall, Harker said that he exposed to sectors like commercial real expects a significant economic rebound Bryon Short, Executive Vice President estate, Harker urged banks to “retain in the second half of 2020. That recovery capital as we prepare to enter a tough would fall short of offsetting losses in period.” the first half of 2020, but 2021 would (302) 994-7442┃Fax (302) 994-8185 “In my personal opinion, they probably show better growth, Harker opined. shouldn’t be issuing large dividends at In the less optimistic scenario, where 527 Stanton-Christiana Road the moment,” he said. the economy is opened too quickly and Newark, DE 19713 Perhaps the largest downside of New a significant second wave of the virus Castle County’s economic outlook is the occurs, Harker projected a flat second impact of worldwide trade at the Port half of 2020 and a “painful economic of Wilmington, Harker said. The port contraction of [gross domestic product] has been exposed to the impact of the in 2021 as shutdowns are reintroduced.” pandemic worldwide, with the state’s “Not only would this be a health total exports falling to $335.5 million catastrophe, but it would reverse www.dca.build in March from $711.8 million in the recovery as well,” he said. March 2019. “A pickup in export values is Contact Jacob Owens at dependent on economies in Europe, [email protected]

14 May 26, 2020 | DelawareBusinessTimes.com SPOTLIGHT: COMMERCIAL REAL ESTATE Despite pandemic, Wilmington sees large investments

BY JACOB OWENS to help entice potential tenants that may want to be close to the city’s WILMINGTON – With about court system. one in five Delaware workers filing for The investor said that he was unemployment through the pandemic, impressed by what he was seeing in offices closed as employees work downtown Wilmington, especially remotely, and many industry insiders concerning the increasing number pondering what workplaces of a post- of residential units. pandemic future may look like, it’s easy “We feel there are some really good to think that the state’s largest city sparks taking place in Wilmington,” would be seeing a downturn in its he said. “And when the price is right, commercial real estate market. we want to get in early on that.” For the brokers, investors, and Four blocks to the south, Amtrak economists, however, Wilmington may intends to occupy the currently 70,000 actually be poised to capitalize on the square feet of vacant space at the fallout of the COVID-19 pandemic. Renaissance Centre, employing upward That’s evidenced by two Class A sales of 200 people there. The building is closed amid the crisis in the city’s just minutes from Joseph R. Biden Central Business District (CBD). Wilmington Train Station to the south. On April 8, a New Jersey-based When asked about the purchase, investment firm bought 824 N. Market Amtrak’s plans for current Wilmington- St., a 10-story high-rise that is home based employees, and whether it would to the U.S. Bankruptcy Court for the be leaving any other leases or hiring new District of Delaware, for an estimated employees, an Amtrak spokeswoman $16.5 million. On May 8, Amtrak Amtrak has purchased the Renaissance Centre off King Street, where it will reportedly staff upward of 200 declined to answer, providing only a short bought the Renaissance Centre, an eight- employees. | PHOTO COURTESY OF JLL statement confirming the acquisition. story office building located at 405 N. “This purchase is part of Amtrak’s King St., for an undisclosed price – long-term strategy to reduce costs by the government-backed rail service is exempt from taxes that help the having employees work out of owned public determine true sale values. property,” the rail service stated. The North Market Street office The taxpayer-backed company has building was bought by Chopp Holdings tried to curb its operating losses in recent LLC of Lakewood, N.J. It is the first years, finishing fiscal year 2019 with acquisition outside of New Jersey for a loss of nearly $30 million, a better the investment firm headed by Mark finish than the previous year which saw Chopp, who said they’ve been eyeing the a loss of more than $170 million. A Wilmington market for several years. consolidation of its office workers just a The deal came with a “compelling short walk from the Wilmington station price,” Chopp said, noting his firm’s could help it save long term on its real investments are very price-driven. It has estate costs. Amtrak is currently listing a portfolio of roughly 1.5 million square five jobs online in Wilmington and feet across 19 buildings, split roughly employs about 1,200 in the state at the even between investments and new Wilmington station, two maintenance constructions. shops and offices. Despite the pandemic shelving many Last renovated in 2007, The commercial real estate deals right now Renaissance Centre includes 155,000 due to uncertainty for future employment square feet of office space and a levels, Chopp said his firm wasn’t 190-space parking facility. Amtrak has concerned about their property. occupied about 9,000 square feet of “It wasn’t our game plan when we the building for more than a decade, started looking at this building, but, in an according to county land records. Chopp Holdings LLC purchased 10-story high-rise on King Street for $16.5 million. | PHOTO COURTESY OF JLL unfortunate way, it probably can actually Other tenants include the Delaware benefit from the whole downturn,” he Supreme Court, the Delaware State Bar said, referring to the likely increasing Association, the global accounting firm vacancy rates for Class A space, or the Philadelphia, concurred with Vari’s caseload of bankruptcies for Delaware’s Deloitte, the marketing agency Foundry newest, most-desired offices, around 16% assessment, telling state business leaders millions of corporations. 9, the local ABC affiliate WPVI-TV, in recent months. With average rents in a recent conference call that it is Built in 1982, the roughly and numerous law firm offices. between $26 and $27 per square foot, the possible that the commercial real estate 200,000-square-foot office building The Renaissance Centre is not the area is competitively priced compared to industry sees growth as employers spread is in the heart of the CBD, directly only recent sale in the immediate area surrounding markets such as downtown out their office footprints amid social across from Delaware’s U.S. District of the Amtrak station that sees more Philadelphia, the Lehigh Valley and the distancing guidelines. If that happens, Courthouse. With the federal than 700,000 riders a year. In 2020 Navy Yard, where asking rents reach Wilmington may be well-positioned government signing a 10-year lease alone, CSC purchased the Pennsylvania up to $44 per square foot. to capitalize. worth $20.4 million in 2016, ensuring Railroad Building for an estimated “I see this as an opportunity for “I think that those kinds of ‘second that a major tenant will be around for $4.8 million while New Jersey-based Wilmington to attract investors looking cities,’ like Wilmington, as opposed to at least another six years, Chopp said insurance agency Farmers of Salem for affordable, trophy spaces,” he said. that the large hub cities, could potentially the property was a strong investment. purchased 1 Avenue of the Arts for “While we can’t predict the future of benefit from this,” he said of more With 67% occupancy at the time of more than $4.3 million. the Wilmington market, there’s reason affordable smaller cities with amenities the sale, Chopp said that he planned to JLL Executive Vice President Jamie to be optimistic when looking at recent that could lure employers. begin fit-outs of speculative office space Vari, who facilitated the Amtrak sale transactions.” for the vacant portion of the building, with associate broker Cindy Fleming, Patrick Harker, president and Contact Jacob Owens at adding conference rooms and a gym, said that Wilmington has seen steady CEO of the Federal Reserve Bank of [email protected]

DelawareBusinessTimes.com | May 26, 2020 15 SPOTLIGHT: COMMERCIAL REAL ESTATE Developer seeks to build two huge warehouses near New Castle

BY JACOB OWENS sized warehouse at the Delaware plans for redevelopment of the Barley City Logistics Parks being built by Mill plaza. The developer reportedly NEW CASTLE – A Pennsylvania- Northpoint Development. lost $42 million in the sale of that based developer is seeking to build two “It is optimistic that it will be able to land to Pettinaro and Odyssey 1 million-square-foot-plus warehouses, [be leased or sold] in the future. There Charter School in 2015. continuing a boom in distribution space are certainly discussions with different With distribution now in demand, in northern Delaware, according to plans folks about accomplishing that but as evidenced by Amazon’s leasing of a Stoltz Real Estate Partners plans on building a more submitted to New Castle County. currently there is nothing in writing, 3.8 million-square-foot facility under than 1 million-square-foot warehouse off Churchmans Keith Stoltz, of Bala Cynwyd-based and there's no agreement, verbal construction at the former General Road, but a tenant has not yet been found, according Stoltz Real Estate Partners, is seeking or written regarding a tenant, or Motors Boxwood plant, Stoltz turned to the company. | PHOTO COURTESY OF NCC to build a roughly 1.2 million-square- a buyer for this property,” he said. its attention to a new focus. The foot warehouse off Churchmans Road, Stoltz purchased the roughly 59-acre Churchmans Road project measures adjoining the New Castle County parcel near the intersection of Route 273 653,000 square feet on its ground floor, center at 765 Hamburg Road as well Airport, as well as a roughly 1.3 million- as the former Blue Diamond Park square-foot warehouse off Hamburg and U.S. Route 13 for an estimated $6.9 with the remaining space found in a amusement park would reportedly be Road to the south. With proposed sizes million in 2012 from Parkway Gravel mezzanine. It will feature 615 employee razed under the development plan, which of more than 1 million square feet, the Inc., the real estate subsidiary of the parking spaces, 267 tractor-trailer would build a warehouse with a roughly facilities would be among the largest New Castle-based construction firm parking spots and 121 loading docks. 1.1 million-square-foot footprint and a warehouses in Delaware. Greggo & Ferrara. It has been trying Meanwhile, about 3 miles to the south, When reached by Delaware Business to develop the land ever since. Stoltz and Parkway Gravel are working roughly 250,000-square-foot mezzanine. Times, Stoltz declined to discuss the The project has shifted in concept on another facility. According to plans While it’s not yet known whether a projects. in recent years, after a failed attempt to filed with the state in April, the facility tenant has signed on for that project, a In a May 19 meeting of the New develop the former gravel pit into a retail would be a “non-sort” facility anticipated UPS spokeswoman confirmed that the Castle County’s Land Use Committee, site anchored by Walmart. That project to be completed by 2021. It’s unclear company is not involved. UPS opened its representatives for the Churchmans Road was scuttled by then-County Executive whether the COVID-19 pandemic new sortation facility near the proposed project said that no tenant had signed to Tom Gordon, who pulled support for has slowed progress on the facility and Stoltz warehouse in August. lease the building nor was a buyer lined a state grant connected to the project potentially delayed that timeline. Neither Stoltz project is reportedly up for when the project was completed. in 2013 after learning of Walmart’s To accommodate the sheer size of the seeking a rezoning, helping to smooth Shawn Tucker, legal counsel for Stoltz’s involvement, saying it would hurt distribution center, Parkway Gravel, the the permitting path from any potential limited liability corporation Churchmans “mom-and-pop” businesses. property’s owner, plans to utilize two opposition. 273 LLC, said that they estimated It was the second retail project foiled parcels totaling about 125 acres to the east the project could create upward of for Stoltz in New Castle County, after of Route 13 north of Hamburg Road. Contact Jacob Owens at 800 jobs, based on a comparatively public opposition over many years halted The former UPS customer service [email protected]

In the midst of the COVID-19 crisis the CIRC Board is keenly aware of how this is impacting our Delaware business community. While we alter the way we live and work to protect ourselves, our together families, our friends, and our businesses, we all need to remember, we are stronger together, even if “together” for a while means just connecting online or on the phone. we build homes, community & hope offer a hand-up to When this is all over, we WILL be back! Keep an eye out for updates on hardworking families our events, which will be rescheduled once things return to normal. Make your gift at In the meantime, be safe everyone and remember we are all in this habitatncc.org TOGETHER! Robert Stenta, CIRC President as we shelter in place, we understand that home is the key to our health, safety & security. Habitat NCC revitalizes neighborhoods, provides critical home repairs and creates aordable housing solutions.

Our Restores and Headquarters are temporarily closed to the public. Volunteer events are suspended. & For additional information, “Alone we can do so little…together we can do so much!" please go to habitatncc.org / email [email protected] www.circdelaware.org Be safe, stay well …we will get through this, together!

16 May 26, 2020 | DelawareBusinessTimes.com SPOTLIGHT: COMMERCIAL REAL ESTATE

Construction has continued in Delaware throughout the pandemic for companies willing to follow CDC and state guidelines.

Dermody has started the 3.7 million-square-foot Amazon fulfillment center at the former GM Boxwood plant site in The Galleria, a new $40 million mixed-use project at 2000 Pennsylvania Ave. in Wilmington by Tsionas Management, Newport. The project, costing upward of $300 million, is scheduled to open by Q4 2021. PHOTO BY JACOB OWENS will once again the home of Santa Fe Mexican restaurant as work is winding down. | PHOTO BY JACOB OWENS

Beebe Healthcare is moving ahead with building a 135,000-square-foot-speciality care center along Warrington Road The Delaware Transit Corporation opened the Wilmington Transit Center on May 19. The $10 million project was in Lewes. The $125 million building will have four operating rooms and anesthesia rooms with space for expansion, a public-private partnership between DelDOT, DTC, Colonial Parking, EDiS Company, and Emory Hill Real Estate and 12 private inpatient rooms with space for another 12 rooms. | PHOTO COURTESY OF BEEBE HEALTHCARE Services Inc. The covered transfer station can serve 10 buses at a time. | PHOTO COURTESY OF DTC

The Delaware City Logistics Park, being built by Kansas City-based NorthPoint Development, is taking shape off U.S. Route 13 in Bear. This is one of four warehouses being built on 190 acres. | PHOTO BY JACOB OWENS

DelawareBusinessTimes.com | May 26, 2020 17 IN MY OWN WORDS SoDel’s Scott Kammerer stays focused on company’s core principles

BY PETER OSBORNE

Scott Kammerer is president of SoDel Concepts, which owns 12 coastal restaurants from Lewes to Fenwick Island and beyond plus other related businesses and a charitable nonprot foundation called SoDel Cares. He was recently named to Nation’s Restaurant News’ 2020 list of the most in­uential leader in the restaurant industry. He is also the chairman of the Delaware Restaurant Association. SoDel is guided by three core principles. It believes in “cooking beautiful, simple food; developing the people we work with, and making the world a better place.”

e National Restaurant Association thinks that a third of us won’t survive. But I think we have a small and close-knit community of 3,000 independent restaurants in Delaware, and that could work in our favor. We have a good connection to our customer base, and we have received a lot of support from the community.

Half of restaurants close within ­ve years of opening. Restaurants are a labor of love; it’s part of who you are. Sometimes people just decide they don’t want to do it anymore. e biggest reason for an established restaurant closing is that their concepts are outdated, but this particular challenge is tremendous. It saps your energy. e deciding factor will be your appetite for continuing. e time period for reopening will drive the decisions and how much work restaurants have to do to modify their controls and make sure both customers and sta„ are safe.

e restaurant business is unusual because of the variable costs – it’s a cash-†ow business with razor-thin margins. It’s tricky to manage through. At SoDel, we’re a collection of small businesses – 15 to 18 small businesses that we manage under one umbrella, which makes us nimble and able to pivot. A certain percentage of diners may never go back, you’ll only see paper menus. When the shutdown started, the NRA recommended but restaurants are counterpunchers. Twenty years ago, layo„s so that’s what we did at SoDel Concepts. But we there were no-gluten free menus. Now we ask more ompson Island Brewing Company opened in November, started hiring back immediately – 75% within two weeks about allergies. Restaurants serve guests and guests so the closure put us in a unique position. When the – and brought back about 95% of our salaried managers. ask for things. You won’t see the changes right away governor amended his order to allow restaurants to sell because it takes a while to build a consensus – 10 years alcohol to-go, we started selling ompson Island beer at ago everyone had plastics straws and now nearly no every restaurant and sales went up because we primarily We had 750 people working the day before the small restaurant uses them. You can’t jump the gun only sold our brand. We’ll keep that going after this is shutdown. Today we’re in the 650 range. At this time and overreact; but we’ll all slowly adapt. over and keep our distribution network going. of year, we’re supposed to be ramping up to 1,000 and by summer we normally have 2,000. Our elected ošcials are doing the best they can in e best lesson I’ve taken from this is something I’ve developing restaurant-speci­c plans. We have open lines always focused on. Business is very fragile, and life is You can say we’re shut down, but we’re really not. of communication. We’ve all made a commitment to fragile. I’ve always been good at planning and we had a Carryout is a lot of work; restaurants typically †ex up and follow the guidelines, and we’re encouraging everyone well-thought-out plan for something like this. People down on a regular basis during the week. We have a lot of to do the best they can in a challenging situation. inside the company laughed at me. But we were ready part-timers. A lot of teachers – 35 last year – during the to execute when it happened. summer. A lot of single moms, a lot of students getting People want to feel safe and secure. ere is a great their Master’s. We hire a lot of nursing students. We amount of trust between restaurants and guests in good Right now, we’re doing about 50% of our normal volume have so many alumni that now work at Beebe Healthcare times and bad. One of the best things that came out for this time of year. When we get to phase one, we’ll that we had a fundraiser where we donated 100% of the of 9/11 was that people came to restaurants – to feel be at about 60% and Phase 2 will be about 75%. But proceeds to Beebe for personal protective equipment. a sense of togetherness, and I believe that. I don’t think we’ll be back to 100% capacity until next Memorial Day. I see challenges as opportunities. e 2008 ­nancial I think a phased approach is right. It takes a while – two crisis was actually a good opportunity for us. I think a lot to four weeks – to gear back up. We’re two or three phone e most important thing for our company is to stick of restaurants in Delaware will make changes because of calls away from being able to be up and fully running with to our core principles. You can change the forks or what the pandemic in the long run. ey’ll keep carryout in food and supplies. We are a family business, but we’re also you serve, but it’s comforting in times of crisis to have place and be more stringent on health protocols. highly organized and structured with a chain of command core principles that can guide you through the crisis. If and layers. Some small restaurants don’t have that kind of you are not sure about something, you can ask yourself, We all report to about 27 di„erent government agencies support, so it will be an enormous challenge for them does this ­t with who I am? With what our company and that relationship is only going to get stronger. stands for? And that makes decision-making a lot easier. ere will be very strict guidelines in phase one – tables I think we’ll probably switch to a more hybrid model with will be 8 feet apart and we’ll only take reservations. Giving back is a meaningful part of what we do. a combination of dining room and carryout. We used to When we get to Phase 3, there won’t be any restrictions When times are really bad, it gives people a glimmer do 2% carryout; in the future it will be more like 10%. but there may be adjustments. For example, I think of hope when you give back.

18 May 26, 2020 | DelawareBusinessTimes.com BEACHES Continued from page 7 “I don’t think they’ve been given a lot of credit, because it’s been a learning curve in this new normal,” Weaver said. businesses in the Rehoboth Beach- “It’s hard to plan when you’re dealing Dewey Beach Chamber of Commerce with the unknown. A lot of these have been closed under Carney’s stay- small business owners put blood, sweat at-home order issued mid-March. In and tears into this. They want to do addition, survey conducted by Bethany- everything they can to save it.” Fenwick Area Chamber of Commerce This weekend will be a test of the new reported that 40% of the members who normal in Delaware’s resort communities, responded were closed as well during as the weather should be sunny and the shutdown. in the 80s. But at the end of the day, Everhart estimated that some beach Everhart was confident that businesses businesses lost between 50 to 80% of will do everything they can to safely revenue, depending on whether an reopen for business. industry was outright banned under the “At some point, you have to realize state of emergency or allowed to have these are adults and we cannot do limited operations. everything for them. But we can do For Bethany-Fenwick Area Chamber everything in our power to be safe,” she of Commerce Executive Director Lauren said. “If big box stores can do it, so can Weaver, small businesses face additional entrepreneurs and small businesses.” challenges in finding new service vendors and training staff in a social distancing Contact Katie Tabeling at world. [email protected] Southern Delaware’s Commercial Real Estate Lender

The Delaware Business Times Founded and Headquartered in Rehoboth Beach is publishing a regular series of Local Knowledge. Local Decisions. short features on how Delaware Contact us: 302-226-9800 small businesses are responding [email protected] to the COVID-19 coronavirus pandemic. They're pivoting: CountyBankDel.com changing their business models or adding new products, or making it easier for their constituents to serve customers. You can find NMLSR ID 410450 many more at delawarebusinesstimes.com/voices Museum of Natural History exhibits out-of-box thinking

At a time when the doors of cultural [retirement centers are shuttered, Delaware Museum community] on Celebrating of Natural History Executive Director programming as Halsey Spruance advises thinking outside well.” the box to reach patrons. Moving forward, years of helping our clients “It’s always that last bullet in the job Spruance said the description: ‘other duties as needed.’ That lesson he’s taking to succeed. encompasses a lot these days,” he said. away from working “You have to think about what you can Halsey Spruance in the new normal do without barriers in a digital age.” is to be nimble After securing a Paycheck Protection in services offered. For example, staff Program loan from M&T Bank, DMNH in the gift store are now working to Horty & Horty, P.A. Certified Public Accountants & Consultants brought back its staff and started to bring exhibits online. reimagine cultural experiences online. That lesson also extends to DMHN’s Audit & Accounting Consulting The museum had a strong social media $9.8 million capital campaign. While half Tax Financial Accounting Outsourcing presence for marketing, but now it’s been of the funding needed for the museum’s Forensics & Valuation Human Resources Consulting revamped for programing like story renovations has been raised, all additional time and interviews with scientists. fundraising has ground to a halt. But Now the DMHN will take it a step Spruance said that has also helped his further with online paid programming. team prepare for remote opportunities Starting on Fridays, “Sew Classy Princess while out of the building. www.horty.com Parties” will bring children and fairytale “This is like a rehearsal for when we’ll characters together on a Zoom call. be closed down for renovations,” he said. 888.968.7168 “It’s a balance of finding what our “In the end, the goal is still the same: to audience would be willing to pay and what provide a cultural and naturist experience 503 Carr Road, Suite 120 • Wilmington, DE • 19809 programming can work,” Spruance said. for Delawareans. It just looks a little 3702 North DuPont Highway • Dover, DE • 19901 “It’s also about our close relationships, different for now.” as we’re working with Country House -- Katie Tabeling

DelawareBusinessTimes.com | May 26, 2020 19 Simple steps businesses can do to fight cyberattacks

As financial accounts safe. basis. Strong account oversight, including institutions Setup Alerts in Online Banking. One a separation of duties, is absolutely develop innovative of the fastest ways to find out an outside essential to mitigating the risk of A very simple method to ways to protect actor has accessed your account is to set fraud and hacks. the accounts up online banking alerts, which can be Keep One Device for Banking. A protecting your account of businesses set up to notify the account holder when very simple method to protecting your information online is to large and small, wire or book transfers come out of the account information online is to dedicate criminals are account. just one device that will be used for dedicate just one device RAY ABBOTT developing their Think Before You Click. Exposure to online banking. Often times, this will Guest Columnist own strategies. spyware and viruses, let alone malicious seem impractical for small businesses that will be used for According ads that clutter and slow your computer, but we have found this can be an online banking. to Accenture, 45% of cyberattacks are can be detrimental to a company’s effective strategy. aimed at small businesses but only 14% network. Be careful when accessing links IT Controls. Employing a strong are prepared to defend themselves. and attachments, hover over hyperlinks Information Technology team can make Meanwhile, hackers with sophisticated to make sure the web address isn’t part of your work environment far more difficult techniques like keylogging, malware, a fraud scheme. Take these precautions for fraudsters to infiltrate. However, keeping the account safe until further phishing and pharming have become with email but also social media. Twitter, while IT professionals may be up to date measures could be taken. the biggest dangers to bank accounts. Instagram and Facebook direct messages on the latest dangers, this doesn’t mean Stay safe. While these tips provide The caveat used to be “buyer beware,” are popular places for fraudsters to share the rest of your employees are on the a layered approach to account security, but today businesses and the financial links that can allow them to access your same level. Hosting periodic employee it’s just as important for the business institutions who protect their accounts devices and account information. awareness training sessions are an owner to understand the role of must be even more diligent about the Don’t Rely on Email Instructions. important way the Administrator who typically digital dangers lurking across the Web. In fact, don’t rely on email at all when to keep everyone up to speed. is responsible for allowing access According to the same study by working with your financial institution. Dual Control. Dual control is among to business accounts. Accenture, cyberattacks are expected to Instead, make a call to your banker and the most powerful ways to protect an Tech can be hard to keep up with cost businesses $5.2 trillion worldwide verbally validate with the person making account because the process requires two because it constantly changes. Businesses, within five years, and according to the request to ensure it’s from a trusted individuals to complete a transaction, both large and small, must work to catch security software company Symantec, source before sending money solely based which is especially helpful when one up and close the gap between how they 36 percent of all targeted cyberattacks on an email request. The same holds true individual may fall victim to a phishing operated offline prior to the outbreak have been made against businesses with vendors and partners. Confirm any scam. Recently, a CEO of a well-known and how they must operate now and with fewer than 250 employees. and all changes received via email such as company fell victim to a phishing attack, in the post-COVID 19 economy. So how can business owners protect address or account payable information. however, since the company’s account against cyberattacks in 2020? Here Reconcile Daily. I often recommend had dual control, hackers were unable to Ray Abbott is head of cash management are best practices to help keep your customers reconcile accounts on a daily transfer funds or process a transaction, for WSFS Bank in Wilmington.

20 May 26, 2020 | DelawareBusinessTimes.com The Delaware Business Times is publishing a regular series of short features on how Delaware small businesses are responding to the COVID-19 coronavirus pandemic. They're pivoting: changing their business models or adding new products, or making it easier for their constituents to serve customers. You can find many more at delawarebusinesstimes.com/voices Mint and Needle seeks to build trust with customers

As Delaware businesses are poised video call, and seen some success. to reopen, Brandi Gregge at Mint and “It’s surprising and awesome to see Needle is focusing on everything she can that after a virtual visit, we see sales do go do to make her customers feel safe with through for products that’s recommended as limited contact as possible. for care, much like we’d set them up with “I’m a nurse practitioner, so I’ve been the product in an in-store visit,” Gregge following the guidelines very seriously as said. we’re looking to reopen,” Gregge said. “It’s As Mint and Needle is looking to going to look very different than what we re-open, Gregge said the virtual visits were doing before, but it’s important to will continue as consultations. But the keep us all safe.” storefront will eventually reopen, just Gregge opened Mint and Needle, an with more rigorous safety measures. esthetic boutique that designs customized That includes screening clients before skin care, in Middletown in October they come in the building, staggering 2019. Business was steadily picking up appointments to limit contact and throughout the winter, with revenue sanitizing after each one. up 30% from January to February. But now more than ever, Gregge But that all changed when the said it’s important to maximize your coronavirus pandemic hit Delaware. Even digital presence. with a PPP loan, she has concerns about “You need to be willing to limit her fixed costs like the lease and expiring contact as much as possible, whether it’s product sitting on the shelves. appointments or products you can buy, So Gregge turned to social media, not or even contactless purchasing,” she said. only to market her skin care product for “One person sick could shut it down online sales. She’s also debuted virtual all over again.” visits, where she meets with clients over --Katie Tabeling Brandi Gregge of Mint & Needle | PHOTO C/O MINT & NEEDLE

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DelawareBusinessTimes.com | May 26, 2020 21 IN CASE YOU MISSED IT

Support Our Journalism: Every day Delaware Business Times is breaking news online. To Audit: DSU lacked proper controls on purchasing cards in 2018 stay up to date sign-up for our daily newsletter at, Delawarebussinesstimes.com/newsletter. ICYMI (In Case You Missed It) highlights a few of those stories. The full version is available DOVER — An audit of Delaware a “particularly challenging” period when to read at Delawarebusinesstimes.com State University’s use of state purchasing the university had two different board cards during fiscal year 2018 found issues chairs, two presidents, a new provost, ranging from transaction reporting to and three chief financial officers and missing documentation, and card usage additional upheaval in the finance office, Bankruptcy Court high-rise sells for $16M by unauthorized individuals to internal said spokesman Steve Newton. control weaknesses that could increase Many of the issues had reportedly the risk of overspending and fraudulent been addressed prior to the start of the WILMINGTON – A downtown The sale closed April 8, according to charges, the state auditor reported. audit, which was triggered by what State Market Street high-rise that is home to county deed records, but was announced The audit covered the period between Auditor Kathy McGuiness said was a the U.S. Bankruptcy Court for the District Tuesday by CBRE, the seller’s brokerage. July 1, 2017, and June 30, 2018, during complaint to her department’s hotline. of Delaware recently sold for more While a sale price wasn’t disclosed, a than $16 million to a New Jersey-based calculation of the state’s transfer tax commercial real estate investment firm. estimates the sale at $16.5 million. Wilmington University declines CARES Act funding

NEW CASTLE – Wilmington Judge rules outdated Del. tax assessments unconstitutional University is declining $3.1 million in federal stimulus funding earmarked for WILMINGTON – A Delaware while Kent and Sussex counties have response to the coronavirus pandemic Court of Chancery judge ruled Friday not adjusted theirs since 1987 and in favor of providing its own support that the state’s use of long-outdated 1974, respectively. Each of the counties to students. metrics in determining property tax calculates its “base year” from those dates The university also said it is freezing assessments was unconstitutional on which to base its assessments. tuition rates for the 2020-21 academic and directed the parties to begin That valuation doesn’t account for year and waiving late-payment fees deliberations on how to rectify the widely varied changes in condition through December 2020. demographics.” the system. and development over the three or four “We did not have losses that would The decision was not a big surprise Delaware is one of just a handful of decades, however, leaving wide disparities have qualified,” Swain said. “The given that the university has a large states that does not require periodic in how much individual property owners CARES Act is very specific regarding international student population and reassessments of properties and therefore pay each year. Making matters more who is eligible for the funds. There many of its student take online classes enjoys some of the nation’s lowest confusing, Kent and Sussex counties would have been a limited number of from outside of Delaware and are not property tax rates. don’t even use full base-year valuations students eligible for the funds. Our goal paying the room-and-board charges that New Castle County has not adjusted in their assessments, calculating is to support students in need, regardless other Delaware schools are refunding its property tax valuations since 1983, 60% and 50%, respectively. of how they choose to study or their using the funds.

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22 May 26, 2020 | DelawareBusinessTimes.com FOR THE RECORD

NEWS BRIEFS

cost-sharing; deductibles, coinsurance The Delaware Department of Agriculture NONPROFITS Winterthur Garden is one of 10 new and copays, through Sept. 30, an issued guidance to help local 'U-pick' The Jewish Federation of Delaware stamps celebrating the natural beauty extension from their earlier date of May farms safely open to allow residents and received Bronze Stevie® Award honors of American gardens. The U.S. Postal 31. In March, Highmark also made the visitors to pick their own strawberries, in the 18th Annual American Business Service has issued stamps featuring decision to expand coverage of telehealth blueberries, peaches, apples, pumpkins, Awards for its We Grow Stronger gardens ranging from botanical to and to waive deductibles, coinsurance live Christmas trees and more. All TOGETHER entry in the Non-Profit country estate and municipal gardens, all and copayments on all covered telehealth customers 13 years and older are required Communications Campaign of the of which are available now for purchase. services from vendors and providers. to wear face coverings or they will be Year category, and also received an These services and payment deferral denied entry. Picking containers from Award of Excellence in the 26th Annual are also extended through Sept. 30. home will not be permitted. Communicator Awards, earning a top-level Beebe Medical Group is now accepting The State of Delaware has entered into an Award of Excellence for its We Grow patients at its Millsboro, Milton, and agreement with NORC at the University Stronger TOGETHER branding campaign PHILANTHROPY million gift to its COVID-19 Relief Fund Georgetown facilities with the addition of Chicago, a nonpartisan research in the Non-Profit Integrated Campaign from the Ma-Ran Foundation through the of three providers. To ensure access to institution, to build the state's contact category. The grassroots Safe Communities generosity of Peggy and Randall Rollins. healthcare for residents practicing social tracing program to contain COVID-19. Coalition has launched the and physical distancing at home during NORC also has partnered with the State PUBLIC COMPANIES Delaware Immigrant Fund to support The Delaware Breast Cancer Coalition is the COVID-19 pandemic, Beebe Medical of Maryland to perform contact tracing. Corteva Inc. (NYSE: CTVA) announced undocumented Delawareans during the closing its retail stores this summer due Group is offering telemedicine visits Delaware and Maryland will share its new go-to-market structure for seeds coronavirus crisis by providing direct cash to the financial impact of the COVID-19 across all offices. information to more effectively monitor in the U.S. market. These changes are assistance to immigrants affected by the pandemic. GOVERNMENT COVID-19’s spread across state lines. part of Corteva Agriscience's multi- pandemic but are excluded from federal The Lights-On Delaware Strong channel, multi-brand strategy, which New Castle County has started providing U.S. Department of Housing and Urban and state relief programs. You can learn campaign, a neighborhood public safety serves customers based on their buying test kits for county fire fighters in Development Mid-Atlantic Regional more about the Delaware Immigrant and energy efficiency lighting initiative is preferences through a segmented route- Fund at https://immigrantfundde.org/ partnership with LabCorp. NCC has Administrator Joe DeFelice announced contacting over 2,600 previous Lights- to-market approach. suggested guidelines to the fire chiefs the agency will allocate $3,228,336 Highmark is donating nearly 40,000 cloth On clients in low-income communities that responders tested should include in COVID-19 relief funding to help PROFESSIONAL SERVICES face coverings for EMS personnel – 2,500 to inform and educate them about the Delawareans. Grantees may select from anyone in field response since April 1, Delaware's Supreme Court postponed of them inDelaware to help mitigate the importance of getting tested for COVID-19 more than 25 eligible CDBG activities to 2020. the state's annual bar examination by six spread of the coronavirus and preserve and providing information on health shape their local programs to meet their weeks until Sept, 9, coming into line with valuable PPE for direct patient care. resources near them. Governor John Carney has suspended needs. end-of-year evaluations for educators, pandemic-driven changes announced Matt’s Fish Camp, part of the SoDel FINANCIAL INSTITUTIONS professional development requirements The Delaware Department of Agriculture earlier in California, Illinois, New Jersey, Concepts hospitality group, and Fannie Mae announced a payment and assessments due to the suspension (DDA) has issued protocols to help New York, Pennsylvania and other ThinkSecureNet recently teamed up deferral option for homeowners who of the school year caused by COVID-19. farmers’ markets safely begin opening. jurisdictions. to bring lunch to Delaware State Police experienced financial hardship due to Governor Carney’s latest modification The protocols issued by DDA will be in Troop 7 in Lewes. ThinkSecureNet has RETAIL COVID-19 that has been resolved and are holds Delaware’s students and educators place until further notice and are solely also covered the cost of rooms for first ready to resume their monthly mortgage harmless for the shortened school year, intended to allow farmers to sell produce, Free COVID-19 tests are now being offered responders, troopers, firefighters and payments. and waives the required learning hours specialty crops, and other value-added at four Rite Aid locations across the state. nurses and ensured that food and other for students and teacher days. School food items that have been directly grown Tests are available by appointment at 200 items — as well as hotel accommodations HEALTH CARE/INSURANCE districts and charter schools must or raised on a farm or prepared in a Pharmacy Drive in Smyrna, 1999 Pulaski — are available for the health care staff Highmark has announced that customers still complete remote learning plans permitted on-farm kitchen or cottage-food Highway. in Bear. John Williams Highway. if needed. requiring in-network, inpatient hospital submitted to the Delaware Department of kitchen. There will no longer be social in Millsboro and 3801 North Market Street Beebe Healthcare has received a $1 care for COVID-19 will not have to pay Education. events at the farms in Wilmington.

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DelawareBusinessTimes.com | May 26, 2020 23 FOR THE RECORD PEOPLE ON THE MOVE

Tom Porth, Elizabeth Luk has Economic and Financial Advisory Council Debbie Hudson. and approval process, and as a DNREC- been named head (“DEFAC”). Mike is a former member executive vice Joseph Latina, certified Sediment and Stormwater of BNY Mellon of, and now serves as counsel to, the president and a principal at Management Certified Construction Trust of Delaware, Board of the Delaware State Chamber of chief financial Patterson-Woods, Reviewer, he is experienced in inspecting which administers Commerce. He also serves on the Board officer (CFO) at has received erosion and sediment control practices trusts for fiduciary of the Delaware Public Policy Institute, CSC will retire in the Five Star and reviewing stormwater management clients where the Pete du Pont Freedom Foundation, early July 2020. EJ Professional Real plans. Craig is proficient in New Castle BNY Mellon Trust Artesian Resources Corporation and the Dealy, executive Estate Agent County Drainage Code and the Delaware of Delaware Rockefeller Trust Company of Delaware. vice president Award for the 10th serves as sole trustee, co-trustee, or In his legal practice, he represents state Sediment and Stormwater Regulations and head of consecutive year! directed trustee. Elizabeth will be based entities and agencies as well as utilities, where he served on the Standard Corporate Five Star Professional conducts market in Greenville. Elizabeth brings nearly 15 banks and various other entities in state Plan Regulatory Technical Advisory Development, research to define and promote excellence years of trust experience to this new and local regulatory matters. Subcommittee in 2018. in several professional industries. has succeeded role, with 10 years working specifically Karl Stukis has • Matthew J. Porth as CFO, in the Delaware trust administration Landmark Science & Engineering has joined Diamond Spagnuolo, E.I.T. reporting industry. In addition to overseeing the announced two new hires for its Newark Technologies has joined the to President and expansion of the Delaware trust team, team as chief office. CEO Rod Ward. she will participate in discretionary trust firm as a Civil experience officer. • Craig M. Lynch, decision making, including the review of Engineering • Jennifer He joins Diamond E.I.T., has joined trust structures and instruments, and will Designer. He Kenton has been with more than the firm as a manage BNY Mellon Trust of Delaware has earned the promoted to 18 years of civil engineering fiduciary appointments. Prior to joining designation executive vice experience across designer. He BNY Mellon, she held the position of of Engineer in president and multiple industries: Insurance, Federal is close to Executive Director and Trust Officer for Training and is working toward the goal head of marketing Government and Technology Services. achieving his J.P. Morgan Trust Company of Delaware. at CSC in addition Karl is leading Diamond Edge Managed goal of becoming of becoming a licensed Professional to continuing in Michael Services business. a licensed Engineer. He most recently worked for the planning and engineering department her role as head of Houghton, a Hank McCann, retired Army General Professional in Bergen County (N.J.). Matt is providing Global Sales and Customer Development partner with and incumbent Kent County Chair for Engineer. He most recently worked for teams for its Corporate and Legal Morris, Nichols, the Delaware Republican Party, was the New Castle County Department of site design for Landmark’s New Castle Solutions (CLS) business unit. Arsht & Tunnell elected National Committeeman, while Land Use. Over the past five years, he was County-based projects, including layout, LLP, has been Dr. Mary McCrossan, a family medicine assigned to over 230 land development grading, traffic signal design, traffic signal • Mark Calandra appointed chair of practitioner and party volunteer was applications, gaining invaluable insight timings, and signing and striping, and has also been the new Uniform elected National Commiteewoman, edging into the land development plan review roadway alignment. promoted to Law Commission executive vice (ULC) Study president from Committee on Mitigation of Public Health general manager Emergency Business Disruptions. He is Insperity’s Unique HR Outsourcing Solution a past president of the Delaware State of CSC’s Digital Helps Small Businesses Reduce Costs & Mitigate Risk Related to Being an Employer. Brand Services Bar Association and member of the Find out how your small business can run better, grow faster, and make more money! (DBS) division. board of the Delaware Bar Foundation. Both Kenton and Calandra will join CSC’s He was appointed in 2017 by Gov. John Call Carolyn Natrin @ 267-940-6957 Executive Management Committee. Carney to serve as chair of the Delaware

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24 May 26, 2020 | DelawareBusinessTimes.com FOR THE RECORD CELEBRATING A+ ®

WEBINARS years

Unless otherwise noted, webinar access details (including more. Speakers are Michele Schiavoni from the Delaware Build it Better. Build it Faster. dial-in information) will be e-mailed to registrants. Prosperity Partnership; Vicki Newton from Mitchell Associates; and Cheryl Ecton from Elite Business MAY 28 | 10 – 11 AM Services. For more information and to register » Pre-Fabricated Framing Systems visit, delawarebusinesstimes.com/sbdc/. Virtual NCC Chamber Open House » Roof Panel Systems Jumpstart or re-start your experience with the New » Wall Panel Systems Castle County Chamber with an overview of the JUNE 9 | 9 – 11 AM We’d like to thank our clients for chamber and information on how best to leverage their loyalty» andBuilding referrals Components and Rebar the benefits and networking opportunities to DSBC 60 Second Networking Event help you and your organization be strategic and Committed to excellent customer service successful while making business connections. 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Whether you work in a corner office The Delaware Small Business Development Center with a view of the city, a corner of the guest room, or and Delaware Business Times are hosting a free live anywhere in between, this workshop will instruct you webinar on the ins-and-outs of reopening your business on how to structure your workspace for optimal in this unique time. Learn about marketing strategies, productivity. More information is available at physical adjustments, cleaning initiatives and much dsbchamber.com.

DelawareBusinessTimes.com | May 26, 2020 25 Local restaurants and our healthcare community are both facing extraordinary challenges. Here’s an opportunity to support both of them.

Delaware Delivers for Heroes is an initiative to raise money to purchase gift cards from restaurants open for takeout and delivery and distribute them to healthcare profes- sionals on the front lines of this battle.

All the money raised will be spent at local restaurants, and gift cards will go to health care providers and first responders.

For more information, to donate or nominate a hero visit, DelawareDeliversForHeroes.com

26 May 26, 2020 | DelawareBusinessTimes.com VIEWPOINTS el. estaurants preparing to welcome back guests friends

Restaurants their safety top of mind and executing part-time and who depend on these and it will take a community of support across Delaware the highest degree of hospitality that opportunities to grow and develop the to ensure that many of our favorite local are preparing Delawareans have always experienced. upward mobility that a first time job eateries survive. We are committed to to re-open and With your support, we will continue helps to create. The support you give adhering to guidelines for the safety of welcome back to serve you as the cornerstones of to restaurants as we begin opening up our guests and workers, and will make all our guests for our communities as Delaware’s most will have a ripple effect on the overall necessary changes at each phase of the both dine in and beloved small business employer. economy by helping those individuals reopening with robust enthusiasm. outdoor seating as The hospitality industry’s core who have been most vulnerable and need We ask that our guests have patience as SCOTT KAMMERER of Monday, June values are deeply rooted in making to get back to work! These incredible we work through the coming weeks and Guest Columnist 1, after more than people happy. I believe I speak for all people are looking forward to welcoming the many temporary changes ahead. The restaurant community will soon be open two months of hospitality professions when I say that you into their establishments-- to create to serve you, and never has it been more Delaware’s mandated closures. Working in we are enthusiastic about welcoming the magic that we have all come to apparent to those of us in the industry partnership with the Delaware Restaurant and serving our guests once more! As depend upon coming from your local, that it is our collective need to do just neighborhood restaurant. Association and following the direction of operators of almost 2,000 restaurants, we that. We are here to welcome you back the Delaware Division of Public Health, are also in the process of bringing back It is the very nature of people in in a safe and respectful way, and look phase one guidelines for restaurants’ the 10% of Delawareans who choose the hospitality industry to embrace forward to seeing you soon. reopening are now in place. Restaurants to work in our establishments as career challenge and our businesses and industry have reopening plans prepared that will operators, servers, chefs, hosts, bussers, professionals have been dealt a tremendous Scott Kammerer is president of SoDel Concepts help provide the confidence and level of sommeliers and managers as well as for blow. As we prepare for June 1, restaurants and chairman of the board of the Delaware service that customers expect by keeping those students and individuals who work will work hard to meet this new challenge Restaurant Association. hile difficult today consider a postpandemic rainyday strategy

Lessons are which Murphy’s Law tells us it will. ’at Recently, I’d shown an early-stage Some other suggestions: abundant from bucket should contain a balance equal entrepreneur a way to leverage a $1 • If you have high COGS, > 50% of the pandemic for to about three months of overhead or million small-business purchase to the product’s price is in its Cost of Goods entrepreneurs and operating costs. accelerate his growth into a new Sold (COGS), invoice and ideally receive small business Bucket No. 2 is “the Investment tech business segment. He is very a front-end retainer or deposit payment. owners. Reserve” really is your own pre-funded entrepreneurial, with a great professional • Shorten your terms, even for your But the rst Line of Credit, the destiny-creating track record. Momma is not, however, creditworthy customers. It’s not unusual one, the most bucket that gives you the means to invest and she’s pregnant with the rst young today to see 20-day terms, even 15-day SAM WALTZ fundamental one, when the need occurs or the opportunity one on the way. With the business terms. it seems to me arises, whether it’s the “front end” down launched, and without the time for him • If you’re buying on behalf of your is the one that most could have learned payment in an M&A scenario or a cap- to have built the capital reserves, her customers or clients, don’t capitalize their in the cradle, from Depression-raised ex implosion that requires replacement. reluctance to put the equity in the family purchases yourself. Rather, have them parents, or grandparents. Goal for that, I counsel, is also about home at risk all of a sudden meant her direct billed and nd some way to Frankly, for many of us, it became an three months of operating costs, at least as husband had little or no discretion in mark up via your own fees. 11th Commandment, one that didn’t an aspirational benchmark. In e˜ect, you acquiring a business that could have • Have your Small Business General need an M.B.A.: “fund” your own Line of Credit, and, after accelerated their family wealth-building. Counsel (SBGC) attorney review all your “Put something back for a rainy day.” you draw it down, you then replenish it ’at’s the “opportunity cost.” contracts, including vendor, sales and Or, as we used to say on the Illinois back to your target level, without the need But, even at its more basic, it means employment, to make certain that they’ve sharecropper’s farm where I was raised, to impact your Rainy-Day Reserve. not having to pay the steep capital costs been reviewed with an eye to managing “you don’t eat your seed corn!” For a $1 million revenue self- of factoring your accounts receivable your own risk. In my own strategic business advisory employment sized small business, Bucket or jumping through hoops for your • Finally, as businesses are learning practice that I set up in 1993, after I took No. 1 means putting back $250,000, as lender when the house is on re. in the Commonwealth of Pennsylvania an early out from the DuPont Company, does Bucket No. 2, for an optimal reserve (None of this is a criticism of where Gov. Wolf is threatening to revoke I’ve counseled government, higher of $500,000. If it’s a $10 million revenue lenders. I’m generally a big fan of our business licenses for family-owned small education and big companies. I’ve also business, the standard increases nearly area commercial lenders, and their business entrepreneurs who disobey his worked with community-based non- 10x then, at least to the $2.5 million representatives with whom I interact reopening ats, review your business pro ts and small businesses. range to $4 million to $5 million. regularly. Rather, this really is about insurance(s) coverage. My rst counsel to the latter, smaller Turn to your accounting professionals being proactive and aspirational in your organizations and family-owned and / or personal family wealth managers business’ own capital management, Sam Waltz is Publisher Emeritus businesses, is always similar. as to whether you should carry that which bankers prefer and admire.) of the Delaware Business Times. “Build a capital reserve. Fund your liquidity on your business’ balance sheet or own ‘working capital’.” in your personal accounts. It’s a personal I’m not trained as a nance decision, and circumstances vary. But that’s elaware usiness imes reader commentary policies professional, but I’ve worked with, and the nancial “oxygen” for your business. ow to each s around, nance professionals and capital Yeah, no problem, you can have a etters to the ditor issues for decades. Just for the “working great relationship with your banker, your We welcome your comments and opinions [email protected] capital” portion, it’s intuitive for most commercial lender, and she or he has told on topics related to Delaware business and Delaware Business Times 3301 Lancaster Pike, Suite 5C businesses that about 10% of their annual you just how much you have available in economic trends. Letters must be signed and Wilmington, Delaware 19805 revenues is “money on the street,” at a Line of Credit. Get it. Get that Line of inclde contact infomation fo eification. any given point. For many businesses, Credit approved now. But recognize, as p d olumns orrections olicy if not most, that represents the year’s thousands of businesses learned during If you believe that we have made an error “net pro tability,” its free cash Œow. the pandemic-driven downturn, that Line We also welcome guest columns on topics of interest to our readers. Columns should be in a story we publish, please email us at I encourage the organizations’ leaders to of Credit can “go away” in a heartbeat. no longer than 700 words, and concern topics [email protected] think in terms of a two-bucket strategy. Bottom line is that it increases your of interest to our readers. Bucket No. 1 is “the Rainy-Day entrepreneurial discretion, your freedom, Reserve,” for when it all goes wrong, even within your own home.

DelawareBusinessTimes.com | May 26, 2020 27 Leslie R., Bank of America Consumer Bank Team

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My teammates and I in Delaware are deeply grateful to those working on the front lines to fight a global health crisis — the health care providers, first responders and essential service workers. This includes many across Bank of America who are working around the clock in financial and service centers to provide guidance and support to our clients.

We’re committed to our teammates’ safety and well-being, providing new and enhanced benefits, including free access to virtual health care and emotional wellness programs, support for child and adult care, and meals for those in the office. Our extensive workplace health and safety measures adhere to the latest CDC guidelines. Eligible teammates are paid based on their regular schedules, even if hours are reduced. We also increased our minimum hourly wage to $20, one year ahead of schedule, and have committed to no layoffs in 2020.

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Chip Rossi Delaware Market President

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28 May 26, 2020 | DelawareBusinessTimes.com