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POLITICS

Is Delaware as anti-business as some say?

September 15, 2015

It’s become almost an article of faith that Delaware is anti-business.
“Delaware has become a government-first state with a hostile anti-business political culture,” said state Sen. Colin Bonini, R-Dover South, in 2014. Bonini plans to run for governor in 2016.

State Sen. Gerald Hocker, R-Ocean View, said he could never succeed if he were trying to go in to business now.

“If I had to do it all over again today,” Hocker said in a 2014 letter to the editor, “there is no way I could even think about starting a business in a state that has devolved so quickly from ‘business-friendly’ to ‘anti-business.’”

Hocker’s main culprit? Regulations.

But another 2014 letter to the editor struck a remarkably different chord.

It was from Sam Calagione, founder of Dogfish Head, based in Milton and one of America’s most popular craft beer breweries.

“Dogfish Head,” Calagione wrote, “has become more and more successful in large part because of the business climate in Delaware, not in spite of it.”

Calagione countered those who complain of the state’s onerous regulatory system. “We have found the opposite,” he wrote.

He applauded Gov. Markell’s review of state regulations, but continued, “We haven’t really seen problems with that or with the cost of doing business. Quite the contrary.”

Are we talking about the same state here? And who’s right?

Perhaps it depends on whether you see the beer mug as half empty or half full. Or perhaps Dogfish Head’s famous “off-centered” approach allows Calagione to see things others don’t.

But there are more than 60 million reasons for listening to Calagione. In the past few years, Dogfish Head has invested “north of 60 million dollars” in its Sussex County operations.

And there’s more to come.

“All of our companies are growing this year,” Calagione said in a Friday telephone interview. That includes the restaurant in Rehoboth, the inn in Lewes and the brewery in Milton.

The company now has 240 co-workers, he said, and plans “to add 50 new jobs in the next 12 months.

“We’re very bullish about Delaware’s economy and Delaware’s local, state and federal leadership.”

Not surprisingly, Calagione credits his company’s success first to the support of Delaware beer drinkers.

But he got a taste of working with state government before he even opened his downtown Rehoboth restaurant.

It’s a funny story. In retrospect.

But as it was happening, it must have hit the 25-year-old entrepreneur like a punch in the gut.

On what he described as a “cold, cold January day” in 1995, Calgione was in downtown Rehoboth Beach, putting up a sign for his new restaurant, Dogfish Head Brewings and Eats.

A man walked by, saw the sign and said, “You know it’s illegal to open a brewery in Delaware, right?

No, he did not know that.

Calagione had invested time and money in a business that could be closed the second it opened.

But he did know what to do.

“Without knowing anybody, I was able to drive up to Dover, knock on doors … and quickly worked with a lawyer friend to draft our own bill,” Calagione said.

The law passed and Dogfish opened as planned. That tradition of support from government officials has continued.

Recently, Calagione ran into roadblocks trying to get plans approved for a restaurant expansion in Rehoboth.

At one hearing, former state representative Donna Stone spoke on behalf of Dogfish Head. For the next, Calagione was on the road but received texts on the hearing’s progress from Sen. Ernie Lopez, R-Lewes.

“He went to that hearing on a Friday night, gave up a weekend night, because he cares,” Calagione said.

And that is Delaware’s advantage.

We’ll never compete with states like Nevada, which recently put up $1.2 billion to entice Tesla Motors to build a car factory.

But we are small enough to be nimble and to get enough decision-makers in the room at the same time.

No doubt, there are regulations that need to be modified or dropped, but let’s not needlessly talk down the business climate of a state that, despite challenges, has much to offer.

Just ask Sam.

And now if you’ll excuse me, all this physical exertion pounding away on the keyboard has built a powerful thirst for a Dogfish Head 60 Minute.

Addendum: In last week’s column about PATS Aircraft Systems, I should have mentioned that the runway extension helps not only PATS, but also expands the potential tenant pool for the airpark. PATS, which employs about 300 people, refurbishes and modifies jet planes for clients around the world.

 

Don Flood is a former newspaper editor living near Lewes. He can be reached at floodpolitics@gmail.com.


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