Dewey accepts funding plan for new town hall

February 21, 2025 1

Dewey Beach Town Council unanimously voted to accept a funding plan for the new town hall and public safety facility. Accounting and HR Manager Sheena Hall presented a draft of the plan at council’s Feb. 14 meeting.

The plan breaks down the sources of the $11.4 million that has already been secured for the project and lists about $3.32 million in possible additional sources to reduce the town’s loan. It also breaks down the uses and allocation of funds and lists project modifications that council has adopted to reduce the overall cost.

“I would like to thank the town for putting together this much more specific proposal,” said Commissioner Gary Persinger. “It certainly makes me feel a lot more comfortable with what we’re proposing to do here. I commented several times at the last meeting that the numbers were quite fuzzy for me, and this provides a lot more clarity.”

The $11.4 million that has already been secured includes $3 million in state grant unearned revenue, $1 million in state grant money through the Bond Bill, $1 million in Sussex County EMS grant money, $2.2 million in capital improvements for a new town hall, $1.2 million in assigned funds, $2.8 million in loan proceeds and $200,000 in committed donations.

Sources of the $3.32 million in possible additional funding, $2 million of which Mayor Bill Stevens said he’s confident the town will receive, include more donations, additional Sussex County EMS grant money, federal grants and a state grant through the 2026 Bond Bill.

Even if the town receives none of that additional funding, though, it will still be able to fund the project, Stevens said.

Now that council has approved a funding plan for the project, Stevens said they will sign a contract with Costello Construction, making the company the official vendor for both project phases of the project.

According to Stevens, council no longer intends to negotiate with Costello to incorporate a deadline into the contract by which they would need to decide whether they wish to continue with phase two of the project with the same vendor. Council discussed such a deadline at its last meeting but has since decided it isn’t necessary.

Once council signs the contract, the town will be all-in for both phases with Costello.

Also at the Feb. 14 meeting, council discussed the draft FY2026 budget, which after extensive work, including raising the town parking ticket fees from $30 to $60 and raising the parking rate to $4 per hour, is now balanced and lists a net positive balance of $601.