Redevelopment: How We're Doing It
The RACER Trust believes the successful redevelopment of the former GM locations is best achieved when the local community -- with its unique knowledge and perspective -- and state officials are engaged and actively involved in the process.
RACER begins the process by consulting with elected officials, economic development organizations, community leaders and stakeholders to clearly understand local economic development goals, the unique assets of each community, and the local community's optimal vision for redevelopment of the property.
Once the community's unified vision for reuse of a property has been established, RACER will analyze local real estate market conditions and develop a plan to position and market the property for sale or lease. A detailed marketing brochure and standard letter containing the terms for purchase will be developed and RACER will formally open the bidding process.
Offers for purchase will be evaluated by the RACER Trust against six criteria set forth in the Settlement Agreement that created the Trust. RACER also may consider additional factors, in its sole discretion, when assessing whether or not these criteria have been best satisfied by a particular offer. While purchase price will be evaluated, RACER also must consider each offer's ability to create jobs and generate new economic opportunity in the communities hurt by the GM bankruptcy.
RACER strongly prefers buyers who have a specific plan to create new jobs in those properties while reusing, improving and expanding existing buildings, rather than buyers who intend to dismantle buildings and sell components of the properties they have purchased.
The specific steps RACER is following to sell its properties are:
- RACER will prepare a property-specific strategy to position each site for sale or lease. This process will begin with consultations with local and state elected officials, economic development officials, and community stakeholders to learn about their vision for the reuse or redevelopment of the property. RACER will seek, whenever possible, to link the marketing of each property to the community's strategic vision and goals, and to local and state economic development marketing initiatives. RACER also will coordinate closely with state economic development agencies and federal agencies to seek assistance and resources that would aid in the marketing or sale of the property, such as economic incentives. In general, these property-specific strategies will consider a local community's master plan for land use and community development; an assessment of local economic and real estate market conditions; and the specific strengths and challenges of each location, a determination that will draw extensively from local knowledge and experience.
- After these consultations with local and state officials and the community are completed, the Trust will analyze local real estate market conditions and determine how best to position the property for sale in a way that serves the interests of the affected community and state. RACER will issue a marketing brochure that provides the physical description and other pertinent information for prospective buyers to consider and standard form letter of intent containing the basic terms for purchase or lease. This information will be posted on this website. Prospective buyers are strongly encouraged to check this website frequently for these postings. RACER will entertain offers for the real property (buildings and land) only. The machinery and equipment will be sold separately.
- Once offers are received, RACER will require each prospective buyer to furnish detailed information to demonstrate that its offer satisfies each of the six criteria described in the Settlement Agreement that created the RACER Trust:
- The sufficiency of the purchase price;
- The potential for job creation in the affected community and the state;
- Other benefits to the state, the Tribe (if applicable), and the affected community, such as increases in tax revenue, reduction of blight, and providing a sense of renewal;
- Avoidance of interference with environmental cleanups or an increase of costs for the work;
- The views of the local communities, the Tribe or the state; and,
- The reputation and credibility of the prospective purchaser.
RACER will evaluate offers for sale of properties against these criteria. RACER also may consider additional factors, in its sole discretion, when assessing whether or not the Sales Criteria have been best satisfied by a particular offer.
RACER can transfer title to a property prior to completion of these cleanup activities as long as the Trust retains the right of access to complete the cleanup while the new owner or lessee redevelops the property and invests in job-creating activities.
RACER has a fiduciary 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. While RACER has concluded some transactions initiated by its predecessor with buyers that intend to dismantle buildings and sell components of the properties they have purchased, RACER strongly prefers buyers who have a specific plan to create new jobs on the properties while reusing, improving and expanding existing structures.
RACER as a rule will not donate or otherwise give these properties away because proceeds from the property sales are essential to cover the very significant holding costs at these sites, including the property taxes RACER pays on these properties, and maintenance, insurance and security expenses nationwide. As such, these factors preclude donation of property as a redevelopment strategy.
For this reason, RACER also does not invest directly in redevelopment (for example, by providing funding to offset infrastructure improvement costs) or otherwise pay third-party expenses (for example, for consultants to evaluate redevelopment proposals). RACER invests in local communities by maintaining properties in a marketable condition, paying property taxes and acting as an economic development partner in pursuit of new investment and job creation.
For those interested in viewing detailed criteria that RACER will consider when evaluating sales opportunities, click here.
To reach the RACER Trust by phone, call 1-855-RACER-411
For real property sales, contact: propertyinfo@RACERTrust.org
For asset sales, contact: assetinfo@RACERTrust.org