JPMorgan Chase gets council OK for $10.5 million state financial package

178
Advertisement

Chase_01The Delaware Council on Development Finance approved a $10.5 million financial package for JPMorgan Chase and Co.

The financial services giant sought an amount up to $9 million to upgrade and refurbish existing facilities in northern Delaware as well as the newly opened Technology Center near Wilmington.

JPMorgan Chase had previously announced it will spend between $150 million and $300 million on upgrading the many buildings it owns, including the office towers in the Christiana Gateway area in downtown Wilmington.

Advertisement

JPMorgan Chase reportedly paid more than $40 million to acquire the Technology Center site from AstraZeneca, which had operated a campus at the site before its downsizing efforts.

It also sought a grant of up to $1.5 million for training its current and new workforce.

The recommendations of the council go to Bernice Whaley, director of the Delaware Economic Development Office.

“The project that J.P. Morgan Chase is presented to the Council on Development Finance today is exactly the kind of growth that we want to see in Delaware,” said Whaley.  “Delaware’s financial services industry is stronger than it has ever been, and it is increasingly being driven by investments in technology.  This expansion means not only 1,800 good jobs at JP Morgan Chase but thousands of jobs at small businesses throughout New Castle County and Delaware that will benefit from the construction and economic expansion that continues today.”

The company has more than 8,000  employees in the state and has added thousands of jobs in recent years.

Financial packages for businesses have drawn criticism in some quarters as the state struggles with budget gaps.

However, nearby states typically offer more generous incentives, advocates of the assistance have argued. Also, Delaware has recouped the costs fairly quickly from income taxes coming from the new employees.

The council also approved  the following:

  •  Frontier Scientific, Inc., sought a performance grant from the Delaware Strategic Fund for up to  $363,012 and a Capital Expenditure Grant from Delaware Strategic Fund for up to $106,080. Funds would be used to offset equipment and renovation expenditures as well as working capital associated with or expansion of their current location in Newark. In 2014, Utah-based Frontier acquired a Delaware company that makes insect products used in testing of crop protection products.
  • NextFab Studio, LLC – The Applicant requested a grant from the Delaware Strategic Fund for up to $350,000. NextFab would use the funds for building renovations, refurbishing  equipment, purchasing  new equipment and supporting the hiring of new Delaware employees in creating a manufacturing incubator in Wilmington.
Advertisement
Advertisement