Buccini/Pollin appears to be buying Hotel du Pont

The Buccini/Pollin Group has bought or intends to buy the Hotel du Pont and the adjacent office building that houses Chemours, state records show.

On Monday, the state approved $1 million to an investor group dubbed 1007 Market LLC, named for the hotel's downtown Wilmington address. The LLC, which was formed on May 13, lists Robert Buccini as its agent and is registered at the same address as Buccini/Pollin's headquarters, according to state records.

Barbara Neuse, Buccini/Pollin's chief financial officer, is listed at the CFO for 1007 Market LLC on the state grant application.

State guidelines require applicants own or provide intent of ownership in order to be eligible for the funds.

DuPont spokesman Dan Turner said no deal has been reached between the company and Buccini/Pollin, a Wilmington developer.

"We have not made a decision on the hotel business at this time," Turner said.

Buccini/Pollin, under the 1007 Market LLC, applied for state funds through the Downtown Development Districts program, which is distributed through the Delaware State Housing Authority; $1 million is the maximum an applicant can receive through that program.

Julia Mason, a spokeswoman for Buccini/Pollin, declined to comment.

Buccini/Pollin intends to completely gut the office building in a $92 million renovation, according to documents in its application. That application also shows that the Wilmington developer plans to lease 252,000 square feet on floors 4 through 13 to Chemours for 15 years.

The plan does not necessarily mean Chemours will remain in downtown Wilmington.

"We have not made a final decision on the location of our headquarters at this time," said Mark Vergnano, chief executive officer of Chemours, in a statement.

In the investment description filed as part of its application with the state, Buccini/Pollin said it has engaged Minneapolis-based MSR Architects to build "an efficient and modern space" to serve as Chemours' world headquarters.

Other plans for the property, according to the documents, include leasing nearly 60,000 square feet of office space in the DuPont Building to new tenants and adding as much as 50,000 square feet of ground-floor retail and restaurant space along Market and 10th streets.

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A third proposal by Buccini/Pollin for the property was identified in the documents only as a to-be-determined "future phase" that will impact floors 1 through 13 along Orange Street.

Buccini/Pollin's investment description did not detail specific plans for the Hotel du Pont or its iconic Green Room or Gold Ballroom.

Jonathan Starkey, a spokesman for the Housing Authority, said the grants are disbursed as rebates only, once the project is completed.

The city of Wilmington provided a letter of support for the project in the documents stating it warranted "priority status."

“I think it’s a positive investment for the city to have the building updated and modernized,” said Jeff Flynn, Wilmington’s economic development director. “I think it’s the ideal spot for Chemours, but I understand they have not announced a decision yet.”

Buccini/Pollin, in the documents, estimates the project will save the jobs of 900 people who work at Chemours and create 20 new full-time jobs at the retail sites.

Since it was spun out of DuPont last summer, Chemours has been based in its former parent's old headquarters across from Rodney Square in downtown Wilmington. But the company has been debating whether to remain in the city or move elsewhere. Chemours is said to be considering locations in Pennsylvania and New Jersey along with other locations in Delaware.

In May, the state agreed to provide Chemours with $7.9 million in taxpayer grants with the hope of keeping the company in Wilmington. The funds were approved by the Delaware Economic Development Office's Council on Development and Finance.

Chemours would be required to retain 900 jobs in Delaware through 2020 in exchange for the incentive package. About $695,000 of the package would be set aside to upgrade the DuPont Building.

At the meeting to approve the funds, DEDO Director Bernice Whaley said the grant package would not be disbursed until Chemours has made a commitment to remain in Delaware.

Vergnano has said the $7.9 million funding package would be an "important" part of the company's decision.

Chemours' has been the building's sole occupant since DuPont moved its headquarters to Chestnut Run in late 2014 after 107 years at the property. The 13-story office building, completed in 1907, is said to be in need of upgrades.

DuPont began shopping the 103-year-old hotel last spring. Buccini/Pollin was identified as a potential bidder for the property early on after it purchased the hotel's three parking lots. Three other bidders were said to be vying for the property including a local partnership led by Vance V. Kershner, P. Coleman du Pont and Tom Hannum.

The hotel, which has welcomed celebrities and dignitaries from around the world, including presidents Harry S. Truman and John F. Kennedy, became a source of contention during DuPont's proxy fight with activist investor Nelson Peltz. During the fight, Petlz, who heads New York hedge fund Trian Fund Management, called on the chemical company to reduce its non-core assets, including the hotel and DuPont Country Club.

In a Sept. 16, 2014, letter to DuPont's board, Peltz said the hotel, country club and DuPont Theater are "examples of corporate largesse."

DuPont sold the theater to the Grand Opera House in January 2015 for an undisclosed price.

The company defeated Peltz and his nominees for DuPont's board, but continued to market the property.

Contact Jeff Mordock at (302) 324-2786, on Twitter @JeffMordockTNJ or jmordock@delawareonline.com.