Textileather and MedCorp Properties Proposed for FCA Investment
The Kapszukiewicz administration continues to advance its policy of economic development, job creation, and redevelopment of underutilized industrial land by announcing today that it will present legislation to Toledo City Council next week to authorize a purchase agreement with Fiat Chrysler Automobiles (FCA) for the sale and redevelopment of the former Textileather and MedCorp properties.
If approved by Toledo City Council, the agreement would allow for the construction of a 250,000 square foot vehicle customization facility that would support Jeep Wrangler and Jeep Gladiator production at FCA’s nearby Toledo Assembly Complex. FCA intends to invest $23 million in the new facility, which will be operated by a supplier employing an estimated 300+ people.
“This is another major economic development win for Toledo, which is already benefiting from the redevelopment of the former Southwyck Shopping Center property in South Toledo, the Overland site, the Ironville property, and the Marina Lofts Toledo development,” Mayor Wade Kapszukiewicz said.
As an incentive for FCA’s proposed investment, the city will sell the property for $1. In exchange for the reduced sale price incentive, the city will authorize a tax increment financing (TIF) for the property prior to the sale. TIF is an economic development financing tool that utilizes new real property tax revenue from a project to fund public improvements. The city will use the economic development tool to recoup its $6.8 million investment into the site over a period of time. No other incentives are being offered by the city of Toledo. As part of the proposed deal, and in an effort to protect the city’s investment into the property, FCA will provide the city with a conditional buy back option. It gives the city the option to purchase the property back for $1 in the event FCA has not developed the property for a vehicle customization facility within four years.
“Several years ago, FCA was evaluating numerous scenarios of how to expand production to meet the rising global demand of the iconic Jeep Wrangler. There was uncertainty about the future of production of the Wrangler because of the limited ability to expand the largely landlocked Toledo Assembly Complex. In an effort to retain the facility’s existing workforce and production of the Jeep Wrangler, which has only ever been manufactured in Toledo, the city proactively worked with its economic development partners, including JobsOhio, to redevelop the shuttered Textileather and MedCorp properties into a 40-acre site ready for development, “the mayor said. “Ultimately, we were successful in accomplishing our retention goals and are very pleased to announce today that our proactive efforts are paying off in the form of new jobs and private investment for our community. These jobs are needed now more than ever as we recover from the pandemic.”
For decades, the Textileather Corp. manufactured vinyl fabric for the automotive industry in North Toledo. In 2009, the company closed its doors and laid off hundreds of workers. In 2013, the adjacent property utilized by MedCorp, an emergency ambulance service provider, shuttered its facility leaving two functionally obsolete industrial buildings available for redevelopment. One of the biggest challenges for FCA’s Toledo Assembly Complex is the limited ability to expand the facility. This challenge became a primary factor during FCA’s assessment of how to expand or relocate Jeep Wrangler production to meet growing global demand. In an effort to retain jobs and production of the iconic Jeep Wrangler and facilitate an expansion of the assembly complex, the city proactively acquired, remediated, and demolished the underutilized industrial properties to create a 40-acre pad-ready site.