Virtually every company has one thing in common these days: the need for more money. Just days ago, Fisker finished the deal on quite a sum of cash, a whopping $528 million from the federal government. Now, Fisker is turning to the state of Delaware, home to one of the company's upcoming production facilities, in search of more dough. They are only asking for pocket change this time around, relatively speaking.
Fisker is asking the state for a $9 million grant to help pay its utility bills. But it doesn't end there, they want an additional $12.5 million in loans (which could become grants) to fund upgrades needed at the production facility, a former General Motors assembly plant. If it comes as a surprise that Fisker is asking the state to cover its utility bills, it shouldn't. This is common practice as states do virtually everything in their power to secure sources of employment.
Fisker has to meet certain requirements to receive the money without being obligated to pay it back. They must employ 2,495 workers and spend a minimum of $175 million on renovations for the $12.5 million loan to convert over to a grant. If they fail to meet those guidelines, the loans will have to be repaid. The $9 million utility grant is icing on the cake to keep Fisker happy. Follow after the jump for the full release.
[Source: Delaware CDF Board]
PRESS RELEASE
CDF Votes for Economic Renewal of Former GM, Valero Plants and Supports Other Jobs
The Council on Development Finance, the advisory board to the Delaware Economic Development Office, recommended the agency award financing Fisker Automotive and Delaware City Refinery, as well as five other projects for job creation, relocation and expansion.
New Castle, DE (Vocus/PRWEB ) April 26, 2010 -- The Council on Development Finance, the advisory board to the Delaware Economic Development Office, recommended the agency award loans and grants to seven projects for job creation, relocation and expansion at a public hearing today.
Among the projects, the Council voted unanimously to recommend the agency to commit $21.5 million to Fisker Automotive and $20 million to the Delaware City Refinery Company, a wholly owned subsidiary of PBF Energy Partners, LP. Both companies will acquire plants previously shuttered in Delaware, pledging to spend millions in capital investments and create thousands of jobs. The recommendations by the Council finalize months of work by the Markell Administration to recruit the companies to Delaware.
"CDF members cast critical votes for Delaware's economic renewal. They made a decision to aid our team effort to get people back to work and help those already working improve their economic opportunities," Markell said.
"The favorable recommendation from the Council on Development Finance reaffirms our work to make wise strategic investments that will contribute to a stronger economic future for our state," said Alan Levin, director of the Delaware Economic Development Office.
Fisker will make plug-in hybrid electric cars at the former General Motors Boxwood Road plant near Newport. If the plant employs 2,495 workers and Fisker has spent at least $175,000,000 renovating the facility after five years, the Delaware Strategic Fund loan will convert to a grant. An additional $9 million grant will help with utility bills. PBF Energy will acquire the former Valero refinery in Delaware City and restart operations as early as spring 2011. Its loan agreement will also convert to a grant if the company spends in excess of $100 million and supports 600 full-time jobs per consecutive year for five years.
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