Hemisphere: About Us

CASE STUDY: DaimlerChrysler

COMMUNITY RALLIES TO PREVENT PLANT CLOSING

In early 1997, the city of Toledo, Ohio, was faced with the potential loss of thousands of jobs and millions of dollars in tax revenue when DaimlerChrysler announced it was considering closing the local Jeep plant. To prevent this from happening, local leaders took quick action in one of the most organized and aggressive brownfield redevelopment efforts ever undertaken by a community.

"Team Jeep" Delivers Results
Numerous city department representatives, local economic development officials and private consultants, including members of Hull & Associates, Inc., now working as Hemisphere Advisors personnel, mobilized as "Team Jeep" to devise solutions for virtually every issue that stood in the way of keeping the plant in Toledo. The team addressed transportation, property acquisition, funding and environmental issues associated with the site. It worked with key state and federal agencies, including the Ohio Environmental Protection Agency, Ohio Department of Development, Ohio Department of Natural Resources, the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency.

The team's efforts quickly paid off. In July 1997, DaimlerChrysler announced it would not only stay in Toledo, but also would invest $1.2 billion to expand its operations at the plant. The commitment stands as one of the largest private investments in a single brownfield project. The state of Ohio also committed $28.75 million in state grants and low-interest loans, a $96.6 million tax exemption for machinery and equipment, and a $1.5 million Brownfield Site Cleanup Tax Credit. The city contributed $27.5 million for roadway, environmental and other infrastructure improvements.

Eliminating a Potential "Deal Killer"
Although environmental issues represented only part of the challenge in convincing DaimlerChrysler to stay, site cleanup and wetland concerns could have killed the deal if they had not been resolved. Hemisphere Advisors personnel assisted the city in mitigating 27 acres of wetlands needed for site development, saving the city nearly $500,000 by creating a wetland mitigation bank. Hemisphere team members also counseled the city in negotiations with DaimlerChrysler and the Ohio EPA to determine the level of cleanup the site required under the Ohio Voluntary Action Program.

In addition, the team devised a creative plan for the beneficial reuse of more than 300,000 cubic yards of soil from the site as cover for two landfills. Using the soil in this way saved the city approximately $11 million in disposal and other costs.

Project Leads to Further Redevelopment
The magnitude and success of the Jeep plant project generated momentum for further brownfield redevelopment in the surrounding area. Many neighboring properties are undergoing cleanup and redevelopment, spurring additional economic opportunities for the community. Water quality issues for the Ottawa River also are being addressed.

Beyond its participation in financing and environmental remediation efforts for the site, Hemisphere team members assisted the city in publicizing the effort and the project. This public relations campaign has included multimedia presentations to community action groups, local governments, regulatory agencies and other interested groups, as well as press releases, editorials and articles distributed to the media. The project has received a significant amount of state and national recognition, including a feature in Newsweek shortly after DaimlerChrysler announced it would stay in Toledo.