Major Development Firm Reaches Agreement On Purchase Of Former GM Facility
More than 1,100 Jobs Targeted for Revitalized Ohio Facility
Click here to see photos and video highlights from the Aug. 16, 2012 announcement in Ontario, OH.
ONTARIO, Ohio — The RACER Trust announced today that it has entered into an agreement to sell the former GM Mansfield-Ontario Stamping Plant in Ontario to the Brownfield Communities Development Company (BCDC), which has committed to bringing more than 1,100 new jobs to Ohio.
BCDC has identified two tenants that are interested in occupying much of the 2.5- million-square-foot building that sits on 266 acres just west of Mansfield in Richland County. BCDC is a joint venture of Adler Group Inc., a Miami, Fla.-based firm with more than 50 years of leasing, property management, acquisitions, investment, development and construction experience, and Hilco Real Estate, a strategic advisory and consulting services real estate firm based in Northbrook, Illinois. Terms of the agreement were not disclosed.
"This facility served as an economic engine for the community for 55 years under GM," RACER Trustee Elliott P. Laws said. "The agreement with BCDC sets the stage for a new era of economic vitality on this property. We envision the creation of 1,100 new jobs as a transformative event for the entire region. We are delighted for the Ontario/Mansfield community and for Ohio. This agreement is the product of a dedicated partnership of federal, state and local officials who were determined to bring new economic activity to this region."
BCDC will transform a historic single purpose facility into a modern accessible multitenant corporate park. The redevelopment of this location will meet the needs of businesses so they can compete in today’s global market place.
"We're delighted to have reached this agreement, and look forward to being part of the revitalization of this wonderful site," said Michael M. Adler, Chairman and CEO of Adler Group. "Mayor Collins and the people of Ontario and Richland County have partnered with us from Day One, and everything we have seen confirms that this is a terrific investment. I'd like to thank Mayor Collins for his hard work and dedication, as well as Bruce Rasher and the RACER Trust for its commitment to bringing this sale to fruition."
Ontario Mayor Larry Collins said his community worked closely in cooperation with RACER staff to ensure prospective developers understood the benefits of operating in the former GM plant, which was idled in 2010.
"The addition of 1,100 private-sector jobs is a historic event for our community. We're very excited to welcome the new businesses and can't wait to see them get started and be successful," Mayor Collins said. "Ontario understands business, and we work every day to ensure business owners and developers see the tremendous opportunities that exist here."
The Mansfield-Ontario Stamping Plant is the 17th former General Motors location sold since the RACER Trust was established in March 2011. Total sales proceeds thus far have exceeded $24 million.
"The Ontario and Mansfield communities have waited for years for good news regarding the former GM site. Thanks to the hard work of both community and business leaders, more than 1,000 good-paying jobs will soon arrive in Richland County," said U.S. Senator Sherrod Brown, a native of Mansfield. "We offer a skilled and dedicated workforce that is ready to get back on the job. This is extremely welcome news for northcentral Ohio, and I look forward to watching the GM plant transform into a site of economic activity once again."
"This is welcome news for the families of Richland County who have been struggling to make ends meet amidst a hurting economy," said Senator Rob Portman. "Hopefully this agreement will lower Richland County's unemployment from 8.3 percent by providing job opportunities for some of the many people in northeast Ohio who are looking for work."
"There is not a community in America that would not welcome this news with elation," Mr. Laws said. "But I know it is especially welcome news here, where the impact of previous job losses is still felt so deeply in so many families. We look forward to the day when this facility once again will stand as an economic beacon for Ontario and the surrounding communities of Richland County."
About RACER Trust: The 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. RACER is one of the largest holders of industrial property in the United States and is the largest environmental response and remediation trust in U.S. history. When the Trust was formed, it owned 89 properties in 14 states, principally in the Midwest and Northeast. The Trust, which is independent, 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.
About Adler Group: Adler Group, headquartered in Miami, Florida, and its affiliates offer a seamless network of services designed to maximize the value and strength of the organization's real estate assets. Throughout its history, Adler Group has developed, acquired and operated in excess of 20 million square feet of industrial, office, retail and residential real estate. Today, by means of relationships with a prestigious list of institutional and private investors and nationally recognized financial lenders, the company owns and manages an extensive real estate portfolio comprised primarily of multi-tenant industrial and office properties located in strategic markets throughout the Southeast, Mid-Atlantic and Southwest United States. Recently, Adler Group has acquired commercial assets in Florida, Tennessee, Virginia, Washington D.C, Maryland, Texas, and Colorado. For further information, please visit www.adlergroup.com.
About Hilco Real Estate, LLC: Headquartered in Northbrook, Illinois (USA), Hilco is a privately-held, diversified financial and operational services firm whose principal competency is understanding and maximizing the value of business assets, including retail, consumer and industrial inventory; machinery and equipment; real estate; accounts receivable; intellectual property; and, going-concern enterprises. Through 500 professionals operating on five continents, Hilco helps companies and their professional advisors assess asset value, maximize value for said assets through asset monetization solutions, and enhance value through advisory and consulting solutions. Hilco serves retailers, wholesalers, distributors, manufacturers, directly and through their lenders, investors and advisors, including private equity firms, hedge funds, investment banks, law firms, turnaround professionals, accounting professionals, bankruptcy trustees and receivers. For more information please visit our web site: www.hilcotrading.com.
|For the RACER Trust||Sarah Boggess
|For BCDC / Adler Group||Magy Marcano
|For Hilco||Gary C. Epstein
|For the City of Ontario, OH||Mayor Larry Collins