A spokesman for the proposed Delaware Board of Trade has confirmed that the start-up has signed a 15-year lease for 10,000 square feet of space at an office building in downtown Wilmington
Brian McGlinchy made the confirmation on Wednesday night regarding space in Hercules Plaza on the southern end of downtown.
It had been widely rumored in real estate circles and confirmed in December by Board of Trade principals that the organization would lease space at 800 Delaware Avenue on the western end of downtown.
The News Journal reported that principals of the group met with its editors and reporters this week to provide details on the board that would trade stocks in small and mid-sized companies electronically. Trading in small-cap stock has been encouraged by recent federal legislation that takes some legal barriers away.
Other than the new location, the biggest news coming out of the meeting was a decision not to use $15 million in county-issued bonds to help in funding the start-up. Cited as the reason were problems in its dealings with the county. The bonds are issued in the name of the county, with the risk borne by investors
County Council members have continued to question the project and the use of a loan from the county.
The Board of Trade is getting a $3 million loan for software from a trust that was bequeathed to the county for use in its parks system. Critics have claimed the value of the software does not come with enough value to offset the risk in the event of a default.
Board of Trade officials had earlier told the News Journal, they had raised the bulk of the funding for the start-up.
The Board of Trade includes a former president of the Philadephia Stock Exchange. Richard Grasso, the former head of the New York Stock Exchange dropped out of the project.
The group chose Wilmington, citing the city’s location as a financial center. Texas had also been rumored as a potential location.
The county took the lead under former Chief Administrative Officer David Grimaldi, took the lead in the project after the Delaware Economic Office took a pass.
Grimaldi was later fired in a dispute with Gordon, with the former administrator filing suit.
