The Delaware Council on Development Finance Monday approved a $3.5 million Strategic Grant for National City Bank for an expansion of operations in the Newark area.
The grant is contingent on National City reaching staffing and investment other milestones.
Strategic Grants for banks and other well-heeled businesses have been criticized as examples of “corporate welfare.” Grant supporters point out that other states are offering similar incentives and note that Delaware taxes for jobs allow the state to recoup proceeds from the grant.
The council also approved $46.3 million in revenue bonds for Wilmington Friends School, which plans to build a new lower school in the Alapocas neighborhood near Wilmington. The revenue bonds do not involve any risk to taxpayers but must be endorsed by the State of Delaware.
The new location for the school led to a controversy with neighbors in the upscale residential area with pharmaceutical company Incyte having the option of buying the Friends Lower School property with the private school building a lower school on the upper school site. Chancery Court ruled in favor of the school.
In other action, the council approved:
- CP Cases Inc getting a Delaware Strategic Fund grant of $190,110 to establish its operations in Frankford.
- Governor Lea Road, LLC receiving a Level II Site Readiness Fund grant for $1 million for their project in New Castle..
- LPC First State Holding Company gaining a Level II Site Readiness Fund grant for $1 million for their project in Newark. The Site Readiness Fund is used for getting transportation-related improvement on a faster track.
- Avelo Airlines received approval for an aviation fuel tax exemption. The airline will launch service out of Wilmington (New Castle) Airport on Feb. 1.
