DETROIT – JPMorgan Chase is set to make an announcement Wednesday regarding a significant investment in Detroit.
The Detroit News and Free Press are reporting that the financial giant will invest a total of $100 million in city ventures over the next five years.
The Wall Street bank will invest $50 million into two funds, Invest Detroit and Capital Impact Partners, that loan money to local projects. An additional $25 million will go various blight-removal groups. Chase will also put $12.5 million toward workforce development efforts, $7 million toward organizations like TechTown as well as a $5.5 million contribution to the M1 rail project.
CEO Jamie Dimon is scheduled to discuss the project Wednesday morning on NBC's Today Show.
Detroit has been in the midst of an unprecedented restructuring that began last summer when Michigan Gov. Rick Snyder agreed to allow the city to file for Chapter 9 bankruptcy protection.
At the time, Snyder called bankruptcy the only "feasible path" for a city whose population has plummeted to 700,000 from 1.8 million decades ago. Detroit has $18 billion in long-term debt.
Chase's project follows in the footsteps of similar effort from Goldman Sachs as well as the foundation-led "Grand Bargain" intended to shore-up city pension funds while protecting the Detroit Institute of Arts from partial liquidation.
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