Economic Analysis Reveals Significant Impact of RACER Trust
Nearly 21,000 Jobs, $3.2 Billion in Economic Output Resulted from Activities of RACER and its Buyers over First 10 Years of Trust
RACER Trust’s environmental cleanup and the redevelopment by buyers and end users of RACER’s former General Motors Corp. (GM) properties have had a significant, positive impact on the regional economies that were hurt by the GM bankruptcy, according to a peer-reviewed analysis by a leading economic research firm.
The analysis by Industrial Economics, Incorporated, found that for the 10 years between RACER’s effective date of March 31, 2011 and April 1, 2021, RACER’s expenditures on holding, cleanup and repositioning of properties, combined with investments by buyers and end users of RACER’s former GM properties, generated an estimated 20,956 jobs and $3.2 billion in one-time economic output for communities in 14 states. The estimated return was $5.17 for every dollar spent by RACER and its buyers and end users.
“It is extremely gratifying to all of us at RACER Trust to see the magnitude of the economic opportunities and benefits resulting from the combined, focused efforts of our environmental cleanup and redevelopment teams, U.S. EPA and state regulatory agencies, our buyers and end users, and the many community partners who have worked diligently with us to achieve these outcomes,” said Elliott P. Laws, of EPLET, LLC, Administrative Trustee of RACER Trust. “From day one, we have embraced the challenge before us — to conduct safe, effective and protective cleanups where necessary and under regulatory oversight, and to attract buyers with the experience and funding necessary to maximize each property’s redevelopment potential for the benefit of our communities. A number of RACER Trust properties are located in areas of communities historically underserved and with potential impacts resulting from historic contamination, blight, and a lack of employment opportunities. In addition to our cleanup and redevelopment activities, RACER has acted as an advocate for our communities, identifying and sharing grant opportunities, connecting local leaders with state and national resources, hiring local contractors to perform cleanups and incorporating local infrastructure needs with site remediation and redevelopment plans. We are very proud of the results we have helped achieve and remain dedicated to driving positive outcomes for our communities.”
The analysis found that RACER’s investments in environmental cleanup supported an estimated 4,947 jobs and $713 million in total economic output. Holding and repositioning investments supported an estimated 3,848 jobs and $547 million in total economic output.
Several successful redevelopment and reuse projects are generating significant recurring economic benefits in RACER communities, including but not limited to Moraine, Ohio (Fuyao Automotive, 2,400 jobs); Livonia, Mich. (Amazon.com and National Republic Distributing Co., combined 1,500 jobs); Flint, Mich. (Lear Corporation, 675 jobs) and Pontiac, Mich., where a variety of buyers and end users have transformed formerly blighted or abandoned properties, generating or retaining an estimated 1,840 jobs. The ongoing, recurring annual impact of RACER’s buyers and end users is estimated to be 26,485 jobs and $7.3 billion in total economic output.
“RACER Trust has worked diligently and successfully on behalf of the city of Pontiac, selecting buyers whose investments have been transformative for our community, such as M1 Concourse, George W. Auch Company, Challenge Manufacturing Company, and others,” Pontiac Mayor Dr. Deirdre Waterman said. “RACER has played a significant role in the ongoing revitalization of Pontiac.”
“RACER Trust’s competent approaches to both remediation and preparation for redevelopment were crucial in our decision to move forward with a project that we are pleased to say has resulted in hundreds of new jobs in Livonia, Mich.,” said Susan Harvey, Senior Vice President of Ashley Capital.
The analysis further found that in addition to the economic output generated by RACER and its buyers and end users, RACER’s cleanup activities have had an estimated net, positive impact of approximately $408 million in increased residential property values in RACER communities.
About RACER Trust: RACER (Revitalizing Auto Communities Environmental Response) Trust was created to clean up and position for redevelopment properties and other facilities owned by the former General Motors Corp. before its 2009 bankruptcy. When it was formed in 2011, RACER was one of the largest holders of industrial property in the United States and was the largest environmental response and remediation trust in U.S. history. Its initial property holdings were at 89 locations in 14 states, principally in the Midwest and Northeast. 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. For more information, please visit our website: www.racertrust.org.