DOVER, Del. (AP) - State officials have agreed to provide up to $3 million to a struggling small private college in Delaware’s capital city, citing the economic impact its closure could have.
The state Higher Education Economic Development Investment Committee approved the allocation to Wesley College this week, subject to certain conditions. The funding is in addition to $2 million already approved and distributed to the college earlier this fiscal year. The school also had previously received permission to use more than $1 million in taxpayer funds to renovate the former Dover Public Library for operational purposes.
“The decision to approve these additional funds proved difficult for the committee,” Bert Scoglietti, a spokesman for the state Office of Management and Budget said in an email Wednesday. “However, the committee understands that should the college cease operations the economic impact to the state’s capital - the loss of over 200 jobs and vacancy of 19 buildings in downtown Dover - would be significant.”
The funding for Wesley is in addition to roughly $15 million approved for distribution to Delaware’s three public colleges and universities from the state’s Higher Education Economic Development Investment Fund.
The funding approval comes as Wesley tries to finalize a merger agreement with another unnamed institution to stabilize its finances.
Under a memorandum of agreement signed Tuesday, the money will be administered on an as-needed basis to meet payroll and maintain appropriate cash balances to leverage Pell Grants and other federal resources.
Funding is also contingent upon Wesley providing written weekly updates on progress toward signing a definitive agreement with another institution of higher education to keep Wesley sustainable.
If Wesley fails to get the definitive agreement, it must transfer ownership of the old Dover library to the state free of any encumbrances. That means city officials must agree to forgo any claim to the property, notwithstanding an existing deed restriction that would return the property to the city if Wesley fails to renovate it.
“The city has not yet taken any formal action to date to provide the state such assurance, however we understand council will consider the issue in the near future,” Scoglietti said in an email.
Wesley also must provide state officials with a “Teach-Out Plan” for graduating the roughly 200 students on track to graduate this spring, about half of whom are Delaware residents.
Finally, officials made it explicitly clear that Wesley is prohibited from requesting any more funding from the state.
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