Plans calls for tearing down 65 percent of the 2.2-million-square-foot plant, leaving an 800,000-square-foot, "high-bay" section, Timothy Elan, development manager for Scannell, said in a press release from the city.
View full sizeThe DiGeronimo Cos. and Scannell Properties have purchased the former Chrysler stamping plant in Twinsburg. The deal involves 167 acres and 2.2 million square feet of buildings.
TWINSBURG, Ohio -- Less than a year after Chrysler Corp. shut its Twinsburg stamping plant -- raising worries about a giant, vacant eyesore scarring the entrance to town -- two companies have closed a deal to buy and redevelop the 167-acre property.
"It's amazing news for Twinsburg," Mayor Katherine Procop said. "We believe these developers have the same goals and vision as Twinsburg does."
The DiGeronimo Cos. of Independence and Scannell Properties, based in Indianapolis, purchased the automotive complex for an undisclosed price. The transaction was not yet on file Thursday with the Summit County recorder's office.
Plans calls for tearing down 65 percent of the 2.2-million-square-foot plant, leaving an 800,000-square-foot, "high-bay" section, Timothy Elan, development manager for Scannell, said in a press release from the city.
The space has 42-foot-high ceilings and 10 or 11 giant cranes left from Chrysler days that could be used for heavy industry operations, said Larry Finch, Twinsburg director of community planning and development. Twinsburg has fielded inquiries from both Ohio and out-state companies, including a wind turbine maker.
Once the low-ceilinged part of the plant is razed, there will a total of 120 acres available for new development, said Terry Coyne, a Grubb & Ellis industrial broker who represented the buyers and who will market the property.
The location is fed by rail and is just off Interstate 480, making it a prime choice for industrial and distribution companies, city officials said.
"Twinsburg has very little vacant industrial land, so this actually will serve as our economic development foundation for years to come," Finch said.
If fully developed, the property could bring significant job growth and revenue to the city. Conservative estimates show the potential for nearly 3,200 employees, $128 million in wages, $2.5 million in local income tax revenue and $4.5 million in income tax to the state, according to city calculations.
Assuming the buildings are valued at $70 per square foot, the total market value of the property would be more than $200 million, producing more than $4 million in unabated property taxes, Finch said.
Chrysler unexpectedly closed the stamping operation as part of its 2009 bankruptcy reorganization. The plant had about 2,400 workers in recent years, a fraction of its peak employment of 5,200 at the end of the 1960s.
Maynards Industries Ltd. and several partners bought the property and its heavy machinery for $45.5 million. Maynards was interested mostly in the machinery, especially the massive stamping presses, and has since sold most of it.
Finch said at the time that Twinsburg might be faced with a huge vacant building on the edge of the city.
"This is good news for us because it transfers the property from a company whose primary interest was salvage, taking money out of the property, to a company that has the wherewithal and incentive to redevelop the property," he said.