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www.company.com Lorain, Ohio Open for Business! City of Lorain - “Open for Business”
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Lorain, Ohio Open for Business!
City of Lorain - “Open for Business”
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LORAIN LANDS
New arc furnace
at REP to create
449 new jobs in
Lorain, Ohio.
First Energy to
construct new
substation.
City of Lorain - “Open for Business”
ELECTRIC
ARC
FURNACE!
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• On February 27, 2012, Lorain City Council approved a 15-year
incentive plan with Republic Steel to construct new arc furnace in
Lorain, Ohio.
• 85.2 million dollar investment in Lorain, Ohio. 449 new jobs!
• $1 Billion dollars in annual economic activity in Ohio
City of Lorain - “Open for Business”
“Working out the details was a long, grinding process, but if the parties stick with it, they
can work it out. This is an opportunity to show the people of Lorain we can take
advantage of an opportunity and become once again a proud city on the water.”
- Eddie Edwards, 5th Ward Council
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LOGO
• Republic Steel has become the lead producer of Special Bar
Quality (SBQ) in the United States. The NEW electric arc furnace
will allow Republic Steel to increase its SBQ steel output by a
million tons a year.
• Without the new substation, REP would have located new arc
furnace in Mexico.
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City Council has a rare chance here to propel Lorain into the top-tier of
desirable lakefront communities, with only a relatively modest risk from
borrowing.
There are moments in the lives of individuals, and cities, when great
opportunities present themselves and require the courage to take a smart
risk.
This is one such moment in Lorain’s community life.
We urge City Council, the Lorain Port Authority Board and the Ohio Power
Siting Board to give the necessary approvals without delay to help make a
historic turn for the better happen for Lorain and its residents.
City of Lorain - “Open for Business” 5
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• The cost of constructing the new substation, removing the existing Edgewater
Substation, and removing the transmission lines along the waterfront is well in
excess of $13 million.
• In true public/private partnership, the City of Lorain is committed to invest
$ 6.5 million to acquire the easement rights from FirstEnergy for the purpose of
economic development of its downtown lakefront and riverfront.
New Substation for Electric Arc Furnace Waterfront transmission towers to be removed
City of Lorain - “Open for Business”
“The removal of Transmission Lines and Towers will give Lorain a clean
canvas to show off to national developers.” - Pat Riley, Lorain Law Director
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Proposed Easements
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• The cost of constructing the new substation, removing the
Lorain is Open for Business!
Clean Canvas for Development
Over 100 acres of waterfront property
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Significance of Acquisition of Easement Rights
& Removal of Transmission Lines and Towers
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City of Lorain and Lorain Port Authority have
conducted the following Master Plans and Studies
• Black River Master Plan – 1989
• The Grove Site (Black River Landing) Master Plan Implementation Strategies – 1995
• Black River Intermodal Transportation Center – 1995
• Black River/Lorain Harbor Shoreline Master Plan – 2003
• Lorain, Ohio Downtown Urban Renewal Plan – 2003
• Waterfront Development Strategy – 2006
• Ballpark Market Analysis – 2006
• Lorain Lakefront Urban Renewal Plan – 2006
• Staubach Report – 2007
• Lorain High School Study - 2011
City of Lorain - “Open for Business” 13
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Black River Master Plan – 1989 Cambridge Systematics & Henderson Group
Comprehensive analysis and master plan to guide development
along the Black River.
GOAL
“Develop an implementable strategy for economic diversification and
development that will lead to job creation and will buffer Lorain’s economy
in future periods of economic change”.
CONSTRAINTS TO DEVELOPMENT
“Some uses along the river, such as the USX facility, waste water
treatment facility, and transmission lines & towers are fixed and will
influence future development”.
“There are barriers, such as railroad tracks and transmission lines &
towers, between activity centers”.
City of Lorain - “Open for Business” 14
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Black River/Lorain Harbor Shoreline Master Plan - 2003 URS Consultants
Master Plan for the former Lorain Pellet Terminal Site.
CONSTRAINTS TO DEVELOPMENT
Noted constraints to development and
its attractiveness to redevelopment
including the First Energy Complex and
its transmission towers and lines.
City of Lorain - “Open for Business” 15
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Lorain, Ohio Downtown Urban Renewal Plan - 2003 Gould & Associates
Blight study analysis for the Broadway area between Erie Avenue
and Norfolk Southern rail line.
CONSTRAINTS TO DEVELOPMENT
The utility overhead, transmission lines
and towers are noted as blighted
conditions.
City of Lorain - “Open for Business” 16
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Ballpark Market Analysis - 2006 ERA Group
Analysis of potential sites for a professional ballpark facility.
CONSTRAINTS TO DEVELOPMENT
Notes the Black River Landing Riverfront site “Additionally, the Black River
Landing site is somewhat complicated by high tension wires that would
have to be buried.
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Staubach Report - 2007 The Staubach Company
Comprehensive review of strategies for marketing and
attracting developers and investment in Lorain’s
(City and Lorain Port Authority) undeveloped lakefront
and riverfront property.
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Key issues in Lorain – Staubach identified the Good, the Bad, and the
Ugly in Lorain.
The Ugly
Environmental Issues will make project a non starter for most
developers unless cleaned up
High Tension power lines bisect 100% corner
Sewer Treatment plant at front door to primary asset (waterfront)
Urban blight/deteriorated housing stock is pervasive
Main access to town needs significant upgrade to streetscape
Infrastructure Improvements = Roads and Waterlines
City enforcement of ordinances is lacking: abandoned properties,
zoning issues/enforcement, signage
Downtown Improvements
City of Lorain - “Open for Business”
City of Lorain has
implemented various
programs to eliminate
these core deficiencies!
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Kenosha, Wisconsin – 1980’s
1980’s
City of Lorain - “Open for Business”
Challenges
1. Significant job
loss in 1980’s;
2. Pervasive
urban blight
throughout
community
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Kenosha, Wisconsin - NOW
NOW
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Kenosha
Key Factors to Success:
1. Strong Mayor that aggressively dealt with Urban blight
2. Persistence: Development took 20 years
3. 4 Museums!!
• Dinosaur
• Civil War
• Kenosha History
• Natural History
4. Renovated Streetcars for nostalgia and public transport
5. Quality Housing Standards
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Observations - General
Key factors leading to the resurgence of communities similar to Lorain. (Based on observation of the following communities: Milwaukee, Racine, Kenosha, and Sheboygan.)
1. Successful Port Redevelopments planned extensively
2. Development challenges were identified early on and dealt with
3. Community support was key
4. Corporate was key
5. Cost was high – alternative was worse
6. Long-term Development Horizon
City of Lorain - “Open for Business” 23
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Economic and Fiscal Impact Analysis of Mixed-Use
Waterfront Development Projects
ERA/AECOM 2009
Case Study: City of Glen Cove, New York. Mixed-Use Waterfront Development
of approximately 56 acres of property.
Project Components:
• A 250-suite luxury hotel, conference, catering and
spa complex;
• Approximately 50,000 square feet of office space;
• 860 residential units, including 180 rental apartments
and 86 units of workforce housing;
• Approximately 25,000 square feet of retail and
restaurants;
• Accessory parking spaces;
• Approximately 19 acres of publicly-accessible
open space; and
• Approximately 85 boat slips.
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Summary Findings:
• Direct construction labor costs of about $380 million projected, resulting in 6,979 full-
time equivalent jobs. Total number of direct, indirect and induced jobs projected at
12,001. This would in turn generate an additional $223 million in earnings.
• Total material purchases of $570 million are projected. In addition, it is estimated that
construction employees will spend about 17.3 million in retail purchases in the county
during the construction period.
• Purchase of construction materials estimated to generate $44.3 million in total sales
tax revenue.
• ERA has estimated that the project will generate $93.0 million in total tax revenues
during the construction period.
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Economic and Fiscal Impact Analysis of Mixed-Use
Waterfront Development Projects
ERA/AECOM 2009
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Permanent Benefits:
• Total on-site employment is estimated at 768 full-time equivalent jobs.
• Total indirect and induced employment is estimated at an additional 273.
• Total wages for both direct and indirect employment are estimated at $41.0
million.
Economic and Fiscal Impact
Development Costs
• Total construction costs are estimated at $950 million (excluding soft
costs).
City of Lorain - “Open for Business” 26
Economic and Fiscal Impact Analysis of Mixed-Use
Waterfront Development Projects
ERA/AECOM 2009
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“We are very pleased that we have come to this agreement
with the City of Lorain. This will be an important milestone
in the expansion of our Lorain facility as well as the many
new jobs that this investment will create.”
“Republic Steel would like to thank the state of Ohio and
the city of Lorain for their support for our significant
investment in the City.”
Republic Steel Chief Executive Officer and President Jaime Vigil
Thank You Lorain
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Conclusion
Mayor Ritenauer
Closing Remarks and video presentation
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