AGP Executive Report

Corporate & Legal: Delaware’s Chancery Court blocked Cloudflare’s recapitalization plan, finding shareholders could show it may have favored founder voting control over the company’s interests. Chemours also faces a securities-fraud class action over alleged misstatements about its financial guidance. AI & Privacy: Character.AI filed for Chapter 11 in Delaware and is pursuing a sale, with Disney offering $20 million for assets; Delaware joined states seeking safeguards for users’ sensitive chatbot data. Local Growth: New Castle County is pursuing Opportunity Zone nominations, while Dover passed a moratorium on data center development. A report says Delaware’s historic tax credit is supporting jobs and investment. Tourism: Rehoboth Beach’s jazz festival is drawing visitors and helping local businesses during the fall shoulder season.

Tourism & Small Business: Rehoboth Beach’s 37th Jazz Festival is drawing visitors and filling local sidewalks during the off-season; businesses are adding staff for the crowds. Public Investment: Delaware’s mapped FY2026 capital spending shows a sharp county divide: $470 per resident in New Castle, compared with $186 in Kent and $146 in Sussex. Corporate & Legal Affairs: EpicentRx faces a bid for partial default judgment and a receiver in Delaware Chancery Court over alleged violations of court orders. Kroger and Albertsons’ dispute over their failed merger is also headed to trial in Delaware, with Albertsons seeking more than $8 billion. Growth & Local Policy: Bayhealth has announced expansion projects across Kent and Sussex counties, while New Castle County approved a second data center rule and Dover passed a development pause. Milton’s new property tax rates are in effect, with officials expecting a 7% increase in town property-tax revenue.

Investment and Small Business: New Castle County nominated 13 census tracts for federal Opportunity Zone status, including areas along Route 9 and around Wilmington and Newark. Delaware also launched a $4.5 million grant program to help small businesses improve properties and commercial corridors; the nominations await federal certification. Manufacturing: Philadelphia-area manufacturers say fragmented economic-development efforts are holding back growth and worker recruitment, with no regional body coordinating workforce, transportation and other business needs. Data Centers: Dover has passed a moratorium on new data-center development, while New Castle County approved its second data-center rule as community concerns grow. Healthcare: Bayhealth is planning further expansion in Kent and Sussex counties, while its CEO questions whether small hospitals are the right way to improve access, arguing for more outpatient care. Commercial Property: The Bellmoor Inn & Spa in Rehoboth Beach sold for $31 million.

Chemours Lawsuit: A securities fraud class action filed in Delaware alleges Chemours misled investors about financial guidance and demand for its Opteon products; investors have until Dec. 7 to seek lead-plaintiff status. Energy Reliability: A federal emergency order targeting blackout risks across 13 states puts power supply in focus for Delaware businesses and data center development. Data Centers: New Castle County approved its second data center rule as public opposition grows, adding to debate over how to manage the fast-expanding industry. Business Costs: Delaware’s higher business taxes and fees are drawing warnings from business advocates and Republicans that added costs could weaken the state’s appeal to companies. Health Investment: Bayhealth outlined statewide expansion plans, including buying the rest of Blue Hen and expanding hybrid emergency care. Solar Projects: Delaware advanced $165 million in housing and solar projects, while a separate $20 million solar push leaves consumers waiting to see how much they may save.

Healthcare Investment: Bayhealth unveiled more than $390 million in planned expansions across Kent and Sussex counties, including a larger Dover hospital, new Smyrna facility and expanded Milton services, with projects scheduled through 2029. Delaware in Court: Character.AI filed for bankruptcy in Delaware, with Disney offering $20 million for selected assets; state attorneys general are urging privacy protections before any sale of users’ sensitive chat data. Real Estate: DiamondRock Hospitality bought Rehoboth Beach’s Bellmoor Inn for $31 million. Growth and Housing: At a Sussex County business summit, developer Preston Schell said new state housing laws may help, but local opposition still threatens affordable and workforce housing projects. Data Centers: Dover passed Delaware’s first moratorium on data center development, putting a pause on a fast-growing sector as communities weigh its impacts. Rural Care: Delaware announced $1.38 million to recruit and retain doctors in rural communities.

Rural Health Investment: Delaware announced $1.38 million to recruit and retain physicians in Kent and Sussex counties, with recipients committing to practice in rural communities for five years. Hospital Expansion: Bayhealth plans an 80,000-square-foot, nearly $40 million medical office building in Milford, with more than 100 exam rooms and specialty practices; it is expected to open in 2028. Coastal Hospitality: DiamondRock Hospitality bought Rehoboth Beach’s 79-room Bellmoor Inn & Spa for $31 million, citing the region’s strong leisure market and limited new lodging supply. Data Center Debate: Dover’s council passed a moratorium on data center development amid concerns about the projects, as power-grid strains put large electricity users under greater scrutiny. Delaware in Bankruptcy Court: Character.AI’s Chapter 11 case in Wilmington drew a coalition of 40 state attorneys general seeking safeguards for children and users’ private chat histories as the company pursues a sale and a $20 million Disney licensing deal. Workforce Development: Delaware Tech opened a Seaford Innovation Center to expand workforce training.

Power and Data Centers: A federal emergency order lets PJM use additional generation through Friday to protect power supplies across 13 states, including Delaware, as demand rises and plants undergo maintenance. Dover has also approved a pause on new data-center development amid local concerns. Jobs and Development: Delaware is advancing $165 million in housing and solar projects through its permitting accelerator, while a new Delaware Tech center in Seaford aims to expand workforce training. Regional Manufacturing: A new Greater Philadelphia initiative, backed by $5.4 million, will connect manufacturers with workers and suppliers to tackle hiring and supply-chain challenges. Corporate Delaware: A Delaware-based fund linked to Michael Dell agreed to buy a $406 million stake in South Korea’s SK Inc., whose group includes major chipmaker SK Hynix. Business Compliance: State privacy rules are moving beyond notices and disclosures, putting greater pressure on companies to align data practices, systems and vendor oversight.

AI & Workforce: The University of Delaware is surveying workers and employers about how AI is changing jobs, aiming to guide future training and workforce programs. Redevelopment: New Castle County adopted rules intended to encourage reuse of already-developed sites, including allowing property owners to reuse existing floor area. Energy Costs: Delmarva Power’s proposed rate changes are under review; residents and businesses can comment at public sessions Oct. 20 and 21 or submit written feedback through Nov. 4. Data Centers: Dover has passed a moratorium on new data center development as concerns grow over the facilities’ impacts. Corporate Law: A Delaware jury found Arm breached its licensing agreement with Qualcomm and interfered with its business relationship with Meta, but awarded Qualcomm just $2 in damages. Separately, Delaware’s Supreme Court ruled that a buyer’s missed due-diligence red flags did not defeat a fraud claim based on false contractual representations.

Data Center Pause: Dover City Council unanimously approved an 18-month halt on new data center applications, giving the city time to assess infrastructure needs and protect residents and businesses from bearing potential costs. Investment & Energy: Delaware’s JobsFirst Permitting Accelerator accepted six projects representing $165 million in proposed investment, including 454 housing units and nearly 10 megawatts of community solar. The program speeds state permitting but does not replace local approvals. Workforce: Delaware Tech opened its Seaford Innovation Center, offering training in fields including welding, HVAC and health care to help meet regional workforce needs. Corporate Law: Albertsons is seeking more than $9 billion from Kroger in Delaware Chancery Court over their blocked merger; a two-week trial is scheduled for later this month. Financial Services: Rehoboth Beach’s Blue Rock Financial Group has joined AlphaCore Wealth Advisory. Its nine-person team will remain in Sussex County, and founder Todd Roselle will lead the combined firm’s Mid-Atlantic business.

Development: Delaware advanced $165 million in housing and solar projects, while six projects entered the JobsFirst permitting accelerator. The state says acceptance helps with permitting but does not replace local approvals. Corporate Law: Albertsons is seeking more than $9.3 billion from Kroger over the failed $24.6 billion merger, with a two-week trial set for later this month in Delaware Chancery Court. Business Community: Delaware’s state chamber named Michael Smith as its next president. Coastal Property: DiamondRock Hospitality bought Rehoboth Beach’s 79-room Bellmoor Inn & Spa for $31 million. Workforce: Delaware is among nine states facing high demand for skilled trades workers but a weak pipeline to supply them.

Business Leadership: The Delaware State Chamber of Commerce named Michael F. Smith its next president. A former state representative and current University of Delaware administrator, he will succeed Michael J. Quaranta in mid-December. Shareholder Watch: Bleichmar Fonti & Auld is investigating Priority Technology Holdings’ proposed $8.05-per-share take-private deal, citing potential fiduciary-duty concerns. CEO Thomas Priore controls about 56.5% of the company; minority shareholders must approve the transaction. Transportation Costs: The Cape May-Lewes Ferry has added a temporary $7 charge to vehicle fares per crossing as diesel costs rise. The surcharge is expected to remain through year-end and does not apply to walk-on passengers. Workforce: A national shortage of skilled tradespeople is delaying construction projects, with contractors citing an aging workforce, tighter immigration enforcement and surging demand to build data centers. Higher wages may help, but training more workers remains a key challenge.

Rehoboth Planning: The city chose Dover Kohl & Partners to shape a new master plan, with economic research on business trends and market needs. Tourism supplies 63% of Rehoboth’s general-fund revenue, and officials want future redevelopment to reflect the city’s vision. Coastal Hospitality: Southern Delaware Brewing is planning a third brewpub, Fenwick Island Brewing, with Carl M. Freeman Companies at Bayside Marketplace. Separately, DiamondRock Hospitality bought Rehoboth’s Bellmoor Inn for $31 million. Travel Costs: The Cape May–Lewes Ferry added a $7 vehicle surcharge as diesel prices rise, raising costs for visitors and businesses that rely on the route. Economic Development: Delaware Prosperity Partnership CEO Monique Claiborne says the state needs to market itself more aggressively to attract investment. State leaders also celebrated the film tax credit as a tool to draw productions and related business to Delaware.

Rehoboth Planning: The city hired Dover Kohl & Partners to shape a new master plan as tourism supplies 63% of general-fund revenue and aging commercial buildings face renovation or replacement. The plan will include research on local market needs and opportunities for businesses. Coastal Growth: Southern Delaware Brewing is planning its third brewpub, Fenwick Island Brewing, at Bayside Marketplace. Hotel Investment: DiamondRock Hospitality bought Rehoboth’s 79-room Bellmoor Inn for $31 million and plans offseason upgrades aimed at boosting profits. Rising Costs: The Cape May-Lewes Ferry added a $7 vehicle fuel surcharge per crossing through Dec. 31 as diesel prices climb.

Coastal Investment: DiamondRock Hospitality bought Rehoboth Beach’s 79-room Bellmoor Inn & Spa for $31 million, with offseason upgrades planned. Southern Delaware Brewing is planning a third brewpub in Fenwick Island with the Carl M. Freeman Companies. Consumer Costs: The Cape May-Lewes Ferry added a $7 fuel surcharge for cars each way through Dec. 31 as diesel costs rise. Business Incentives: Delaware’s new entertainment production tax credit offers eligible projects a 30% credit on spending above $100,000, aiming to attract investment and create local work. Six projects, including Belle Meade in Lewes, were also accepted into the state’s JobsFirst permitting accelerator. Consumer Compensation: Delaware joined a 43-state coalition seeking court approval of a $400 million settlement over alleged generic drug price-fixing; eligible buyers may be able to claim compensation. Corporate Law: A Texas business court dismissed a shareholder suit against Coinbase over alleged conduct from its Delaware years, ruling that Texas’s demand requirement applied after the company’s move.

Tourism Investment: Maryland-based DiamondRock Hospitality bought Rehoboth Beach’s 79-room Bellmoor Inn & Spa for $31 million. The company plans offseason upgrades as it expands in Southern Delaware’s visitor market. Development Pipeline: Six projects entered Delaware’s JobsFirst permitting accelerator, representing about $165 million in proposed private investment. Plans include 454 homes and nearly 10 megawatts of community solar capacity. Travel Costs: The Cape May-Lewes Ferry added a $7 surcharge for cars on each crossing through Dec. 31, citing higher diesel costs; walk-on passengers are exempt. Film Industry: Delaware’s new entertainment production tax credit offers eligible productions a transferable 30% credit on qualifying in-state spending above $100,000, aiming to attract investment and support local jobs.

Energy Costs: Gov. Matt Meyer joined a bipartisan group of governors in launching the PJM Governors’ Collaborative, which aims to give states and consumers more influence over grid decisions and curb electricity costs. A separate analysis argues Delaware’s electricity-market structure makes it difficult to finance new power plants as demand rises. Millsboro Development: The town’s new Downtown Development District status and a federal Opportunity Zone nomination could attract investment with tax breaks and state incentives for downtown projects. Sussex Growth: District 4 candidates Justine Cuccia and Douglas Hudson clashed over development and energy. Cuccia called growth without adequate infrastructure the county’s most urgent issue; Hudson pointed to his local roots and public-service record. Housing Agency: Delaware’s cabinet-level housing agency is now Housing Delaware, a rebrand meant to better reflect its broader work in housing, financial stability and community development.