An abandoned site can be a significant safety and financial liability to a community. Urbana’s 605 Miami Street was just that.
Vacant since 2008, the once thriving manufacturing site became a community eyesore and was prone to persistent vandalism. But its prime location and existing utilities had too much potential for Urbana. The community sought out partners to revitalize the site, including much-needed financial support from JobsOhio.
A Major Undertaking
The former home of Q3 and Johnson Manufacturing had everything a company would want: space; nearby highways; proximity to major cities; current and future rail service; and existing utilities, including water, sewer, gas, and electric, thus making it an ideal site for revitalization.
Many companies were interested in the site, but costs to clean it up were a deterrent. The property needed an overhaul to eliminate the ongoing threats to public health, safety and the environment for it to be a viable site. The Journey BackCleanup began in 2015, but the magnitude of remediation needed was beyond what Urbana could accomplish on its own. A collaborative including JobsOhio, Honeywell International Inc., the Dayton Development Coalition, True Inspection Services, the Champaign Economic Partnership and the Champaign County Board of Revision was able to take the project to the next step.
Compelled by the potential for economic impact, JobsOhio committed almost $890,000 from the JobsOhio Redevelopment Pilot Program toward demolition, environmental remediation, asbestos abatement, removal and disposal of waste, and site preparation.
After months of hard work, the remediation is almost complete and final permitting is anticipated to reach the Ohio Environmental Protection Agency by May 2019. Once received, the site will be marketed nationally to attract a new tenant. Because of Urbana’s dedication to the site and the community, it successfully led a movement to turn an abandoned area into an economic opportunity.
To date, JobsOhio has committed over $240 million in revitalization, leveraging an additional $11 billion in capital investment and creating more than 15,500 jobs in Ohio. JobsOhio is committed to working with communities across Ohio to revitalize abandoned properties and return them to sources of job creation and economic growth.
(This article appeared on page 22 in the 2018 JobsOhio Annual Report. To view the entire Annual Report, click below.
Parents and students can attend a 6-7 p.m. Parents Meeting in the elementary cafeteria to learn about work-based learning, career pathways, apprenticeships and job shadowing.
A 6:30-8 p.m. Jobs Fair in the elementary gym will allow students to connect with local employers, interview for jobs and talk to community college reps about opportunities.
Submitted by the West Liberty-Salem school district.
The corporation said it worked on 266 projects with companies committed to create a record 27,071 jobs, a rise of 19 percent over 2017, and a record $1.3 billion in new payroll, an increase of 23 percent year over year.
The 2018 results also include record capital investment of just over $9.6 billion, JobsOhio said in its 2018 annual report.
Sectors leading to the largest number of jobs included logistics and distribution, advanced manufacturing and health care industries.
Of the 266 projects, 73 percent involved small and middle-market enterprises, JobsOhio said.
2018 figures offered by JobsOhio:
“Our 2018 job creation, payroll and capital investment are the highest that our associates and partners have ever achieved,” JobsOhio Chairman Jim Boland said in a statement. “These strong results illustrate the commitment of JobsOhio and its statewide network to generate economic opportunities for Ohioans.”
The new report also notes perhaps the biggest bad news of the year: General Motors’ decision to end production of the Chevrolet Cruze at its Lordstown plant, impacting about 1,500 workers.
“GM’s decision has generated significant attention at the local, state and national levels,” the report said. “JobsOhio has maintained a strong dialogue with GM’s senior team, including meetings with the company’s CEO, and continues to explore opportunities for retaining jobs for the Lordstown workers.”
The report also notes Crown Equipment’s decision to expand in New Bremen, as well as Axo Gen Inc.’s choice to invest some $5 million in a Vandalia Scholz Industrial Park location as a production site.
“These results reflect our culture of collaboration and client focus that makes Ohio more attractive for companies,” JobsOhio President John Minor also said in a release. “Along with our partners, JobsOhio has a strong foundation to address important business issues, and we are well-positioned for the future.”
In December, Ernst & Young ranked Ohio first for job creation in business investment projects for the second year in a row.
Nearly $30 million in new projects were started in 2017 in Springfield, down to $16.8 million in 2018. But much of the investment and construction on permits spilled over into the next year as major projects can take years to complete.
“Just because you see the number and the valuation down in 2018 does not mean necessarily that the economy was down,” said Horton Hobbs, vice president of economic development. “It just means the timing may have been in 2017 when the permits were filed.”
In 2017, the city pulled 519 permits, but it pulled nearly triple that number at 1,533 last year, despite the sharp decline in total valuation. During a healthy economy, there’s typically an uptick in activity, but it doesn’t always translate to dollar value, he said.
“Depending on the types of expansion , they may have a little bit less valuation necessarily than a new construction, s o I think it’s really the type of investment versus the volume,” Hobbs said.
Instead of high dollar new construction, 2018 was full of several smaller permits like remodels at Walmart and Kroger, leading to the large number of permits despite lower values.
The economy saw strong growth in 2017 and many businesses began investing money in the Miami Valley, including Clark and Champaign counties.
“They had the extra funding or whatever was needed, so they took advantage of it in that year,” Jene Gaver, Springfield’s chief building official.
Several big projects boosted values across the region, including Wittenberg’s $40 million indoor athletic facility and Topre’s $55 million expansion in Springfield.
In Champaign County, more than $70 million in permits were filed in 2017 including Navistar’s $12 million manufacturing warehouse, a new Memorial Health facility, renovations on a new ColePak building and additions at KTH Parts Industries and Weidmann Electrical Technology, said Marcia Bailey, economic development director for the Champaign Economic Partnership.
In 2018, Champaign’s permits dropped to $2.6 million in valuation.
“It’s just that the big projects did happen in ‘17 with openings in ‘18 and then for ‘18 we didn’t really have major projects going on, but I think we’re going to see more permits this year again,” said Bailey.
Looking into 2019
Springfield leaders echoed Bailey’s optimism, with Gaver saying he expects 2019 to outpace 2017. In 2018. the permits were smaller sprinkler, fire alarm and mechanical permits that followed the major construction values of 2017.
“It’s just timing, honestly. I project that in 2019 we’re going to see an uptick because there are a couple of bigger projects that are continuing into 2019,” Hobbs said.
Last year, Topre announced plans of another $73 million expansion. Along with the growth comes 138,000 square feet and 204 jobs at the Champion City Business Park. Topre has had back-to-back expansions since it first built in the city in late 2016.
Silfex also plans to finish its $223 million facility in 2019. When complete, the project will add 400 total jobs to Springfield.
A major housing development near the Tuttle Road Walmart could bring 226 new homes as well. Construction could begin as early as March or April on the 37 acres with homes meant to handle increased hiring in the region.
Other projects include a second phase to senior housing Community Gardens and a $5.5 million parking garage with funds from the state, county and city.
“There’s a lot of stuff going on . I mean , it’s just we’re constantly busy,” Gaver said.
Local investors in Champaign County are working on a proposal for a new Cobblestone hotel in Urbana. Mercy Hospital in Urbana is also continuing facade changes.
A potential downtown project could turn an Urbana building, along with North and South Elementary schools, into affordable senior housing. If that project develops, it could redevelop a longtime eyesore downtown, find a new use for two of the school district’s aging buildings and provide more senior housing options for residents.
“If we see this hotel start being built , we’re hoping that’s going to spur more activity along that same corridor,” Bailey said.
How development impacts Springfield
Higher permit values are a good thing because they often represent more real estate taxes. Many of the big values that received incentives are about to expire, so the counties could pull more taxes, Bailey said. But it’s also a trade off because some new projects could also receive incentives.
“If you’ve got these high permits, usually it means you’ve got manufacturing coming in,” Gaver said. “When manufacturing comes in, it means more people; more people means more housing, so it just kind of trickles down.”
When commercial is up, usually residential is down and vice versa, but Hobbs said he expects both the be up in 2019 when hundreds of jobs could come to Springfield.
“The more money that’s generated here in the city of Springfield , the more people to come in here and spend money , the more places will be open up and survive,” Gaver said.
Even though permit values didn’t have high dollar values in 2018, it doesn’t mean the companies weren’t expanding and improving, Hobbs said.
“There is investment that goes on in companies that may not actually require the point of a permit , but that doesn’t mean that they’re not investing in , you know , infrastructure or they’re not investing in equipment or those kinds of things,” he said.
Clark County, which has its own building department had $14.6 million invested in permits last year, down slightly from the $15 million in 2017.
Parts of the planned $43 million Speedway expansion could also show up 2019 permits, boosting those values. The expansion could bring 200 new full-time workers over the next few years.
“There’s no science still , you know, it’s just like doing your budget , you kind of guess what’s coming in ,” Gaver said.
Local permit values
The Springfield News-Sun is committed to covering business and economic development in Clark and Champaign counties.
The CEP continually updates content displayed on the 11 monitors – one at each of the five Champaign County high schools; one each at Urbana University, Ohio Hi-Point Career Center and in the CEP’s office window in the center of Urbana’s downtown business district; and one each in the windows of three downtown businesses in Mechanicsburg, North Lewisburg and St. Paris.
The project is being supported by Urbana University, Ohio Hi-Point, Dayton Power & Light, FASTLANE, Darby Dental Smiles, Urbana Dental Smiles, Berry Digital Solutions and Weidmann Electrical Technology, Inc.
CEP Director Marcia Bailey said the monitors help inform students, county residents and visitors about local economic and community development growth, job opportunities, and education and workforce training. The monitors, she added, complement CEP’s partnership with local schools and manufacturers to prepare students for local career opportunities. Job openings advertised on the monitors come from the CEP’s local job posting website, Community Job Connect.
“I’m a strong believer in the education-workforce ecosystem. And the CEP is leading the way to organizing education and employers, preparing talent to meet the needs of our employers,” Christopher Washington, Executive Vice President and CEO of Urbana University, a branch campus of Franklin University, said.
The monitors are the ideal way to deliver the information, he adds. “Kids today are digitally wired and pay attention to what’s on the screen.”
Kelsey Webb, Ohio Hi-Point Director of Communications and Marketing, said, “We’re participating because this is completely in our wheelhouse to prepare students for career or college. We’re excited to help spread the message that there are great opportunities here for students.”
By Christopher Selmek, Urbana Daily Citizen
The Urbana City Council voted to rezone the southern portion of a parcel located at 1040 S. Main St. from R-3 High Density Residential to B-2 General Business District at the regular meeting on Tuesday. All council members voted to approve the rezoning following its third reading except for council member Eugene Fields, who abstained because, he said, a member of his family had married into the group of investors. Council members Dwight Paul and Doug Hoffman were absent.
Zoning map and code changes become effective 30 days after council passage. This rezoning is intended to allow for the construction of a 54-room hotel with a swimming pool on three acres of an 11-acre plot near the corner of State Route 55 and South US 68 along South High Street.
"I want to thank coucil for passing the rezoning down at the south end," said Mayor Bill Bean. "When I became mayor, both (Champaign Economic Partnership Executive Director) Marcia (Bailey) and I realized that we were losing a lot of revenue and people were going elsewhere. At least 7,500 room nights a year we were losing. By having the hotel there, it's going to really cement people staying here, and that's good for Urbana, it's good for taxes, and it's something that we needed desperately."
According to Community Development Manager Doug Crabill, the next step in the process will be a site plan review process through the city's Technical Review Committee and the Planning Commission.
Investment group chair Mike Major said the group has been working with Cobblestone Hotels and that investors in communities smaller than Urbana have been pleased with the hotels and in some instances were building more.
"The investment group is made up of community members and people who have invested heavily in the community in many different aspects," he said. "We have the field of medicine represented, we have agriculture, downtown business ownership, real estate ownership, people who really care about seeing this community grow and putting some of the pieces of the puzzle together. We feel this is necessary because there is so much slippage of hotel nights going to Springfield, hundreds and hundreds of thousands of dollars not only from hotel fees, but if people stay in town, they're going to be eating in the restaurants, they're going to be shopping. The university doesn't have enough facilities for the sports teams that are coming in. There are so many different layers of businesses and entities who really need hotel space in town."
He added that there will be a partnership between the investors and Urbana University which will create a program training people in the hotel business.
According to Major, research has indicated a need for more than 70 rooms, but investors were being conservative by putting in 54 rooms to make sure the project was a success. The Champaign County Chamber of Commerce website cites a 2013 study by Tourism Economics that shows that total tourism impact in Champaign County resulted in over $47 million in sales and enables the employment of over 350 people in the county.
Major said the developers would keep a curtain of trees behind the hotel so there is a margin between the hotel and the zoned residential property directly behind it. Bailey added that the parking lot would be in front of the building, possibly wrapping around the sides, and that there would be room for future development.
Hotels are a principal use of the B-2 zoning code, meaning that only the site plan review and the zoning permit processes are required. Other principal uses of this land may include commercial recreation, retail businesses, personal services, offices, eating and drinking establishments, or automotive filling stations. There is an extensive list of conditionally permitted uses that require the additional step of getting approval from the city's board of zoning appeals.
"I was asked by (Urbana Zoning Officer) Adam (Moore) maybe six to eight months ago if we had enough B-2 area in the city limits to be able to encourage retail growth or business growth. We really don't," Bailey said at a public hearing for the rezoning on Oct. 16. "The land that is vacant for new builds in B-2 is very hard-pressed to find. By allowing this rezoning, not only to have this hotel project and the potential of that but just having some b-2 area for potential businesses, is really important."
And Ohio’s economy is growing quickly, adding jobs faster than the rest of the nation, said Bret Crow, spokesperson for Ohio Job and Family Services. Average weekly earnings are also growing faster than other states across the country.
“This milestone is a big deal for Ohio, but even further, it’s a positive indicator that Ohio’s economy is continuing its strong trajectory upward,” Crow said.
Experts say the data underline the continued recovery after the Great Recession. Even as the economy improved, consumers worried about spending their savings.
“Finally consumer confidence has increased and they feel more confident spending money on new cars, housing and other consumer products,” said John Bowblis, an economics professor at Miami University’s Farmer School of Business. “And this has made business confidence increase as well, leading them to invest in their businesses and to hire workers to meet the demands of consumers.”
The manufacturing sector added 3,400 jobs last month. Staub Manufacturing Solutions in Harrison Twp., for example, has increased from 23 employees to 40 in the past year and a half, said owner Steve Staub.
“It started moving up a year and a half ago, but once the tax cuts went into effect, it really gave optimism to manufacturers,” he said, adding that the tax cuts are like “jet fuel” for manufacturers.
More than one in 10 Ohioans work a manufacturing job, totaling more than 700,000, according to the Ohio Manufacturers’ Association. The sector boasts an Ohio GDP of $106 billion, ranking third of the 50 states. It’s also the largest of 20 economic sectors in the state.
The “other services” sector, which includes repair shops, hair and nail salons, and weight-reduction services, added 3,400 jobs in September as well, a sector that Crow said does better when people have more disposable income to spend.
“I think what we need to be careful of is what happens to the Federal Reserve policy with interest rates. When you raise interest rates, it makes borrowing more expensive,” Bowblis said. “If the fed over-tightens that could lead to a slowdown in growth and potentially recession. It’s a delicate balancing act.”
As more people lose the option to borrow, their consumer confidence could drop, adding on to the growing concern consumers have as the trade war with China escalates.
And labor force participation has dropped, said Miami University economics professor Michael Lipsitz. Participation takes into account all Ohioans older than 16 who are working or want to work. Before the recession, it was about 67 percent, but now it is closer to 62 percent.
“Another month of falling labor force participation means Ohioans are leaving the labor market — either to move to another state or they are unable to find a job that fits their skills,” said Andrew Kidd an economist with The Buckeye Institute’s Economic Research Center.