With some good reporting by Eric Ruth and Jonathan Starkey at The News Journal, we now have some details on what happens if Fisker walks. Yeah, they probably just read the contracts, but did you want to do that?
Under terms of the loan and grant, Fisker wouldn’t have to pay back any of that $21.5 million if certain conditions are met.
The $12.5 million loan will convert to a grant — and thus be Fisker’s to keep — if it has 2,495 workers on the job at the plant and its suppliers by March 1, 2015.
For each worker it falls short of that employment goal, Fisker would have to repay the state $5,010.02. So if no workers have been hired by then, Fisker would have to repay the entire amount.
The $9 million grant for gas and electric payments works somewhat differently. That money is Fisker’s to keep unless it fails to meet a different employment goal — 1,495 workers by March 1, 2015. That number reflects the expected employment level inside the the 3.2 million-square-foot plant, excluding suppliers.
When the deadline is reached, Fisker will be expected to pay $6,020.06 for each worker it falls short of the 1,495 goal.
New Castle County, on the other hand, has no “clawbacks” on their 50% cut in property tax. Though, if Fisker defaults, then they pay the full rate.