Lorain, Ohio

Open for Business!

City of Lorain - Open for Business

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LORAIN LANDS ELECTRIC ARC FURNACE! New arc furnace at REP to create 449 new jobs in Lorain, Ohio. First Energy to construct new substation.
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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

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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 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 Lorains 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.

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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

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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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

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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 Lorains 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.

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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.

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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.

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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 Lorains (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 has implemented various programs to eliminate these core deficiencies!

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Kenosha, Wisconsin 1980s

Challenges 1. Significant job loss in 1980s; 2. Pervasive urban blight throughout community

1980s
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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

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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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Economic and Fiscal Impact Analysis of Mixed-Use Waterfront Development Projects

ERA/AECOM 2009

Summary Findings:
Direct construction labor costs of about $380 million projected, resulting in 6,979 fulltime 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

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).

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Thank You Lorain

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

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Conclusion Mayor Ritenauer

Closing Remarks and video presentation

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