Delaware is behind on historic tax credits, which already are in use in many states, including Maryland. The Ships Tavern District is located in six square blocks in the oldest part of Wilmington, comprising the blocks on either side of the lower portion of the Market Street. It is where the city began. Phase One of the project, the west side of the 200 block of Market Street, is scheduled to produce 85 loft style apartments over 15 to 20 boutique shops in renovated old buildings that are historically significant. If the tax credit bill is not approved, it won't happen.
Historic preservation is very expensive.
The Ships Tavern District could be built from scratch for half the cost. The problem for developers like the Wilmington Renaissance Corp. is that they must fill a financial gap between what a preservation project actually costs and what financial institutions are willing to lend them. Tax credits for historic preservation are worth immediate cash to rehabilitation developers. The credits are sold to banks, which convert them to their own needs and in return raise the amount of their equity in the project covered by the credits. It is rather like an individual taxpayer borrowing against an income tax refund.