Questions and Answers

What does RACER Trust stand for?

Revitalizing Auto Communities Environmental Response Trust

What is the mission of The RACER Trust?

The RACER Trust's mission is to remediate and position for redevelopment 89 former GM locations. RACER is working with local and state agencies and private groups to attract prospective buyers to create new jobs and new economic growth on these properties. RACER also is planning and conducting environmental cleanups at about 60 properties with the approval and oversight of federal and state regulatory agencies. RACER will conduct these cleanups even if properties are sold to new owners.

Is RACER a federal agency?

No. RACER is not an arm of the federal government. It is an independent trust.

How was The RACER Trust established?

The Trust was created by a settlement agreement in the U.S. Bankruptcy Court between the U.S. Government, the 14 states where the former GM properties are located, and the St. Regis Mohawk Tribe, which owns land adjoining one of the properties in Upstate New York.

Where are the RACER properties located?

The available RACER properties are located in nine states: Illinois, Indiana, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio and Virginia. Properties in Delaware, Kansas, Louisiana, Pennsylvania and Wisconsin have been sold.

Does RACER intend to sell the properties, or lease them?

RACER has the flexibility to explore a variety of approaches — as long as they are consistent with RACER's fiduciary obligations and enable RACER's environmental cleanups to continue.

What factors will RACER consider when deciding what redevelopment opportunity to pursue?

RACER has a legal obligation to sell the former GM properties at prices that approximate fair market value and that take into consideration the jobs and other economic benefits new projects can bring to auto communities hurt by the GM bankruptcy.

The agreement establishing the Trust described the criteria that the Trust, at a minimum, must consider when selling properties. These criteria include:

  • Whether the purchase price is sufficient;
  • The potential for job creation in the affected community and the state;
  • Increases in tax revenue or other benefits, like the reduction of blight, to the community, state or Tribe;
  • Avoiding an unanticipated increase in costs for the environmental cleanup;
  • The views of the local communities, the Tribe or the state; and,
  • The reputation and credibility of the prospective purchaser.

For those interested in viewing detailed criteria that RACER will consider when evaluating sales opportunities, click here.

How soon will these properties have new businesses and new jobs?

The RACER Trust and the local communities where these properties are located share a common interest: We want safe and effective environmental cleanups conducted as quickly as possible, and we want new jobs developed and economic activity restored as quickly as possible. RACER is already working to identify qualified, responsible buyers for these properties. In addition, RACER is planning and carefully conducting environmental cleanups, in conjunction with state and federal regulatory agencies. Progress on these endeavors will likely vary by property.

What does RACER do with sales proceeds?

Proceeds from the property sales are essential to cover the very significant holding costs at RACER sites, including the property taxes RACER pays on these properties, and maintenance, insurance and security expenses. Proceeds from the sale or lease of RACER properties are transferred to RACER’s Administrative Funding Account, from which the Trust pays its day-to-day expenses.

Does RACER invest any of the proceeds in redevelopment?

No. The Settlement Agreement that governs the activities of the Trust specifies that the proceeds be transferred to RACER’s Administrative Funding Account. The Trust is self-sustaining, and the anticipated proceeds from the sale or lease of properties were factored into the ongoing operations of the Trust at the time of its creation.

Does a property have to be cleaned up before it can be sold?

No. The Trust can transfer title to a property prior to the completion of cleanup activities as long as the Trust retains the right of access to complete the cleanup while the new owner redevelops the property and invests in job-creating activities.

I live near a RACER property. Will I have any say in the future use of the property?

Yes. RACER representatives are meeting with elected officials and community leaders to discuss the potential re-uses of the RACER properties. For more information, please contact us at
information@RACERTrust.org

I live near a RACER property and have questions. Whom should I contact?

We'd be happy to hear from you. Please email RACER at information@RACERTrust.org or call us at 1-855-RACER-411.

I am interested in purchasing a RACER property. Whom should I contact?

Inquiries about the properties should be directed to the RACER Trust at propertyinfo@RACERTrust.org.

I am an environmental consultant and am interested in working on a RACER property. Whom should I contact?

In order for RACER to fairly evaluate the capabilities of your business, we encourage you to submit a statement of qualifications. Please send it to Envirocontractor@RACERTrust.org