2509 Hayes Avenue Project

Developers Propose Plan For Old GM Plant
Posted on 10/15/2020
Developers' drawing of KBI plant.The owners of the former General Motors’ New Departure property at 2509 Hayes Avenue plan to reinvest $19.3 million to redevelop the facility and market it to manufacturers looking to locate in Erie County.

Representatives of owners, Avgeris and Associates Inc. and Franklin Partners, both of Chicago, revealed their plans for the hulking property during a Perkins Local School District Board of Education meeting on Wednesday. The developers are seeking an incentive package that includes a 30-year, 100 percent tax-increment financing package valued at approximately $3.5 million that would need to be approved by the Perkins Board of Education, as well as other local governments.

The developers’ plan includes razing part of the structure to create two standalone renovated manufacturing spaces of 456,000 square feet and 237,000 square feet. The plan also shows a new 200,000-square-foot manufacturing space on the property.

View the developers' presentation to the PLSD Board of Education

The renovated space is expected to create numerous new manufacturing jobs, though a specific number has not been revealed. The developers have not identified tenants who might move into the facilities once they have been completed.

Perkins School Board members welcomed the plan but took no action on it during the meeting on Wednesday.

“We’re excited at the opportunity to bring jobs to our area,” said Board President Jason Dulaney said. However, he noted that he wants to watch out for the interests of Perkins taxpayers and be sure to present a plan that’s acceptable to them.

Don Shoemaker, of Franklin Partners, told Board members that he and the rest of the owners are anxious to move forward with the project. Ideally, the developers want construction to begin in December, and the buildings ready for occupancy in August 2021.

The property as it now stands annually generates a total of $146,680 in property taxes, of which the school district gets $85,074. The district will continue to collect that amount if the development plan is approved.

Under the developers’ proposal, the tax value of the property would climb to $15.2 million from the current $5.8 million. The plan estimates roughly $3.5 million in additional property taxes, which the developers would like the school district and other taxing bodies to forego and have reinvested into the property.

The deal, though, is open to negotiations with the school district, Perkins Township trustees, and other local governments. The developers also hope to get additional incentives from the Ohio Department of Development.