Why Should Delaware Care?
More than 13% of Wilmington’s excess savings may be going to a new higher education hub. But without a thorough assessment of the project’s impact, concerns are emerging about how the city decides where to allocate tax dollars and whether the city is considering input from all stakeholders, including community members, before funding decisions are being made.
The Wilmington City Council is preparing to vote on a proposal to take $10 million from the city’s savings to support the creation of a new higher education hub being developed by the du Pont family foundation.
The legislation, which was introduced to council in early September, will provide the Longwood Foundation with funding for The Bridge, a new higher education hub to be housed in the former Bracebridge II building in downtown Wilmington.
The funds will help relocate Widener University Delaware Law School and the Delaware State University nursing program into the building.
While proponents say the project could boost the economy in downtown Wilmington by bringing more people to the area, some locals have questions about how exactly the funds will be repaid to the city and the potential long-term effects it may have on city taxpayers – especially given that the building would no longer be paying property taxes.
“I just feel like I don’t understand why we’re doing this without there being more accountability,” said Meryem Dede, a local resident of Trolley Square.
What is Bracebridge?
Bracebridge is a six-building complex that sits on the northeast corner of Rodney Square in center city Wilmington. The complex was built in the mid-1990s and originally served as the headquarters for the credit card company MBNA until 2006 when it was acquired by Bank of America.
Bracebridge consists of four office buildings and two low-rise auxiliary buildings. Since BOA’s acquisition, the complex has gradually cleared out, leaving significant office space vacant in the city.
In 2012, BOA donated Bracebridge IV to the Longwood Foundation, a historically influential nonprofit philanthropic organization created by the du Pont family. It was subsequently turned into the Community Education Building, a collaborative education space that now houses several schools and programs for pre-K through secondary education.
Bracebridge I, the former crown jewel of the credit giant MBNA located on the northeast corner of Rodney Square, has been acquired by Incyte Corp. | SPOTLIGHT DELAWARE PHOTO BY JACOB OWENS
Meanwhile, Bracebridge I and Bracebridge III were purchased in May by Incyte, a Wilmington-based biopharmaceutical company, to expand their operations.
The building containing the last of BOA employees, Bracebridge II, is now proposed to be turned into an educational hub called The Bridge. BOA, which has already announced plans to move its employees there to a Pike Creek office, plans to donate the building to the Longwood Foundation to develop the hub.
The steady acquisition of the Bracebridge buildings have given hope to city leaders, as the buildings can now fill the spaces, provide new jobs and guide more consumer traffic. But the long-term effects on the city are still unclear.
What is The Bridge?
The Bridge is an academic center that will contain Widener’s Law School and restorative justice program, DSU’s nursing and other programs, and the University of Delaware’s Associate of Arts program.
Thère du Pont, CEO of the Longwood Foundation and chair of the board of the CEB, said they are also working to house different nonprofit organizations, like Delaware Health Equity Coalition, End Community Gun Violence Now and Freedom Thinkers.
According to Longwood, The Bridge is expected to have an economic impact of more than $250 million, while accommodating more than 2,000 students, faculty and staff. Du Pont also said it will create upward of 500 jobs in the city.
“Mostly administrators, professors, certainly some building maintenance folks, our cafeteria, our kitchen staff will have to expand. And then, you know, we have these wraparound services, the student and family advisory services,” du Pont said.
Project planners aim to create opportunities for all city residents, with a focus on Black, indigenous and people of color by boosting the demand for jobs, downtown real estate and housing and connecting different leaders and organizations.
UD, DSU and Widener will be leasing from Longwood once The Bridge is built and du Pont said the terms of those leases – including the guarantees for how long each would agree to be at least initially located there – are actively being discussed.
Project planners gave a presentation on The Bridge in early May, revealing the project needs almost $58 million dollars to be completed. It will require assistance from the state, city of Wilmington, New Castle County, BOA and Longwood.
BOA’s contribution is the building, which is worth $10 million. The state has already provided $22.7 million through the bond bill and Longwood will provide $10 million from its own coffers after all other sources are finalized.
That leaves $5 million from New Castle County and the $10 million from Wilmington, both of which still need approval.
The Bridge is set to be completed in fall of 2027, but if the city does not provide the requested $10 million, the project cannot move forward.
Seeking a value
Mayor Mike Purzycki’s office has been in discussion with Longwood about the funding since the beginning of this year. Yet, no in-depth report has been done to look at The Bridge’s financial sustainability and social benefits to the city.
Du Pont is confident that revenue will come in from jobs, real estate and foot traffic. Others, however, are concerned about the lack of insight.
Christian Willauer, a candidate for the Fifth District city council seat and a longtime housing assistance advocate, believes the city should invest more time into evaluating the project’s outcomes.
“When we think about what the city is going to get back, it’s wage tax, it’s property tax, it’s the spending that’s going to happen as a result of that investment,” Willauer said. “And I think that the city needs to demonstrate or understand what all of that value is before making a decision.”
The city is also not expecting any direct payment from Longwood in return for the funding, but noted the project will lower Wilminton’s high commercial real estate vacancy rate while the institutions that are being brought into the city will foster necessary growth.
“The Bridge project gives us an opportunity to enhance the City’s profile and provides an incentive for larger businesses to locate here because companies are always looking for a pipeline to legal and health care talent,” Paul Ford, director of communications for the mayor’s office, said in a statement. “This will be a game-changer for people living in Wilmington who aspire to a career in these growing fields.”
The city does not anticipate an economic downturn in the economy, but said that even in that case, the budget reserve is “healthy” enough to support the city’s programs and services.
Tapping reserves
Much like the state, the city of Wilmington has two savings funds: the Budget Reserve Fund and the Tax Stabilization Reserve Fund.
The Budget Reserve Fund, also known as the “rainy day fund,” keeps 10% of revenues annually to protect the city’s bond ratings and help to respond in dire emergencies.
But the $10 million proposal will come from the city’s Tax Stabilization Reserve Fund, an excess savings fund that the city created in Fiscal Year 2018 to pay for city initiatives and to “limit the need to increase taxes,” according to the Purzycki administration. The reserve grows each year on top of the required Budget Reserve Fund, and has a current unaudited balance of $79.9 million.
With a Fiscal Year 2025 operating budget of $193.9 million, the Tax Stabilization Reserve Fund represents about 40% of annual revenues in the city.
Since 2021, the reserve has been used to support different city initiatives with the approval of city council, including $4.5 million for the city’s Neighborhood Stabilization and Development program, $2 million to support the Land Bank’s operations, $3.1 million for the City’s Economic Strategic Fund and $650,000 for the Minority Business Development program.
The proposed $10 million allocation from the fund would be the largest in recent memory, and would leave the city with extraordinary savings of about 36% to annual revenues.
City residents argue such a large chunk of the reserve could be allocated to other needed initiatives, like water billing or the housing crisis, such issues that have been brought to the attention of city legislators in the past.
The upcoming ordinance for funding The Bridge is being sponsored by Fourth District Councilwoman Michelle Harlee, who is also requesting an additional $350,000 from the reserve to be given to the Minority Business Development program.
Harlee and other council members who support the legislation, like Third District Councilwoman Zanthia Oliver, believe that The Bridge will provide more wage taxes as another stream of tax revenue for the city. In addition, Harlee is confident in the project because of the successful example that Longwood set with the Community Education Building, she said.
After talking with different individuals in her district, she has yet to hear anything negative about the proposal. But Harlee now said she plans to bring the topic up at different community meetings she attends.
However, constituents still feel a need for more public input.
“I think they should actually ask city residents what’s necessary for them right now, like what do they actually need,” said Shyanne Miller, a longtime city resident and local advocate. “And it’s not fair to say that we were willing to pass $10 million but you sat and argued on the city council floor about whether or not we should be helping people by not shutting off their water.”
Harlee wants to assure the community that their concerns are being heard and addressed with the city’s needs.
“If you have an issue with your water bill, that whole proposal, that lets the community know, ‘No, we are listening to the community,’ and things don’t all happen overnight. You move the needle bit by bit by bit, and the community can rest assured that we are working for the community at the same time, making sure that we have a balanced budget,” she said.
The city also says their support for the project will not affect any other efforts to meet community needs.
As of right now, council has no plans to hold a separate public hearing on the matter for city residents. But the public can still voice their concerns during council meetings.
The ordinance now sits in the Finance and Economic Development Committee, where it will be reviewed on Oct. 7, before it is voted upon by the full city council.
Get Involved
Wilmington City’s Finance and Economic Development Committee will meet at 5 p.m. Oct. 7 in the Louis L. Redding City/County Building at 800 N. French St. They will review Harlee’’s legislation among other bills and the public will be allowed to comment. To see the agenda and more details, click here.
Funder Notice
The Longwood Foundation has supported Spotlight Delaware with a multi-year grant. The funding bears no impact on Spotlight’s editorial decision-making per our Editorial Independence Policy.
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