Cheswold News

Our governor is tax-happy. So far, the middle class is up to its chin and soon it will drown.

CHESWOLD, Del. - Authorities say a fire has caused $100,000 in damage to a two-story house in Cheswold.

A Dover City Council committee voted Monday to commit $6 million of city money for infrastructure around the site of a proposed natural-gas power plant. The money would cover half of an estimated $12 million in improvements proposed by Calpine Corp., the firm that plans to build a 300-megawatt plant on 37 acres in the city-owned Garrison industrial park east of Del. 1. The action will have to be ratified by Council at its next regular meeting in two weeks. Calpine and city officials are trying to obtain the remaining $6 million from the state's New Jobs Infrastructure Fund -- $55 million set aside to spur employment by helping businesses defray development costs. City Manager Scott Koenig said Calpine, which operates five natural-gas-fired power plants in Delaware, needs sewer and water service as well as access roads at the site. To fuel the turbines at the proposed Garrison Energy Center, the company needs a 16-inch underground natural-gas pipeline to the site from Cheswold, about 7 miles away. Koenig told the city's Utility Committee on Monday evening that the Calpine project could create 250 construction jobs and 15 full-time jobs, and generate more than $2 million in annual revenue for the city in taxes, land-lease payments and utility charges. Koenig also said the city's $6 million commitment comes due only if the project comes to fruition. 'We are not obligated to build any of this if the project does not go forward,' he said. Calpine's board of directors has yet to sign off on the plant, Koenig said, although plans are for a June 2015 startup date. A preliminary site plan has been submitted to the city's planning office and is slated for review next month. The state funding, if approved, would fulfill an agreement struck last year with Kent County lawmakers to replace deauthorized bond funding for the unrealized Dover Civic Center project with money for another local economic development endeavor. Koenig said state officials told him and Calpine planners that, in order for the state funding to come through, the city needs to have 'skin in the game.' Several Council members indicated their support for the project at the committee meeting, but stressed funding is contingent on Calpine's commitment to the project. 'This is merely an authorization,' said Councilman David Bonar, who chairs the committee. Councilman Sean Lynn was not ready to endorse the power plant, based on some concerns expressed by residents of the Wild Meadows neighborhood, which borders the Garrison site. 'They have not rendered an opinion one way or another. I think they're going to end up being opposed,' said Lynn, who voted against the proposal.