University of Delaware Seeks to Acquire Newark Chrysler Plant
I think it’s safe to put this one in the “good idea” column.
During the semiannual meeting of The University of Delaware’s Board of Trustees held yesterday, the board approved a resolution allowing the executive committee to pursue a purchase agreement with automaker Chrysler for their Newark plant location.
That means the University could actually buy the property provided that all parties can agree on “price, opportunity and risk”, according to Board Chairman, Howard Cosgrove.
“The University of Delaware and Chrysler are still in the midst of negotiations made more complicated by Chrysler’s pursuit of a multibillion-dollar government bailout,” Cosgrove said. “We realize that Chrysler and any other automaker we’re hearing about in the news have a lot of moving parts in regard to their financial situation.”
The Chairman also said that that beyond being a valuable addition to the University’s main campus, purchase of the Chrysler property could have significant value to the state as the site of strategic partnerships to which the University would serve as a catalyst for economic growth.
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The City of Newark has been dreading this for some time. They will lose whatever taxes they received from Chrysler and they will not make much on the electricity they provide to the site either.
The growth of the UD, which Mr. Harker is encouraging, will make the City feel even more of a pinch in its budget. Perhaps it is time to work out a new deal with the UD. They get money from the State, and exorbitant tuition from the students, so a little bit of wealth sharing with the City would not be a bad thing.