The Council on Development Finance Monday recommended a $1.5 million loan to be used as part of a $50 million package that will create 500 jobs at JP Morgan Chase operations.
The council also approved a bond issue for the Pilot School in north Wilmington as well as a modification for a much smaller loan for the operator of World Cafe Live in downtown Wilmington.
Chase officials were on hand to talk about the project and praised the state as a good place for their operations. The council quickly approved the funding with little discussion.
The company now employs 7,357 in the state. The money will be used for construction fit-out, telecom and other equipment at sites in the Wilmington and Newark areas.
JP Morgan Chase is one of the two largest bank employers in the state, the other being Bank of America, which does not disclose job totals.
Based on previous estimates, it is believed that with the 500 jobs, JP Morgan Chase would be the largest banking employer and perhaps the biggest private employer in the state.
The loan is not related to media reports of the sale of a former AstraZeneca site to J.P. Morgan, Alan Levin, Delaware Economic Development Office Director, stated in a earlier interview.
The Delaware Council for Development Finance, comprised a business, government and community leaders.
The council approved a $14 million bond issue for Pilot School in north Wilmington. The private school educates students with learning challenges.
Reybold Group of Newark plans to buy the current school near the 50-acre school site on Garden of Eden Road for $10 million as part of the financial package that includes school reserves and fund-raising proceeds.
The school will build a new $31 million complex, with classrooms and athletic fields. The bonds will be purchased by Susquehanna Bank, not the public. The state has no financial exposure to the bond issue.
The council recommended $350,000 for the Delaware Manufacturing Extension Partnership. The partnership has undergone a management change, but earned high marks for the quality of its existing staff that assists manufacturing companies in the state. Delaware Technical Community College is the supervising agency for the partnership after the departure of the long-term director. Delaware Economic Development Director Alan Levin says the agency wants to see the partnership grow its operations after being in a maintenance mode that included the appointment of a new director and assistant director.
– Approved a $140,000 grant for Flow Smart, a Seaford-based manufacturer of sanitary seals for various industries. The company produces sanitary seals for pharmaceutical and other industries.
– Approved a loan for Nanticoke Memorial Hospital in Seaford for a state Strategic Fund loan to refinance the existing $3 million loan balance, allow a six- month payment forbearance, and provide $$1.5 million of additional capital for the construction of a 35,000 square foot medical office building near the hospital. Nanticoke is the state’s smallest hospital and has been adding to its base of services and physician network.
– Approved for the operator of World Cafe Live an interest-only payment change on a loan for $250,000. This comes after losses from operations at the former Queen Theatre on Market Street in downtown Wilmington. The applicant stated that venue hopes to become profitable in 2016. The Philadelphia operation of The Queen is profitable. The operation employs up to 100. Levin said that since The Queen opened about a decade ago about 60 businesses have opened in the area. The entertainment venue is also expected to seek changes from its lenders.
