As published in Toledo Business Journal - July 1, 2016
Rendering of the recently announced Harmon Business Park
The economic health of many communities in the region is clearly impacted by their ability to retain existing businesses and their jobs and then support their growth. In addition, the capabilities of area communities to attract new companies that add new jobs have a significant impact on economic health. Many communities in the region are dependent on successful economic development efforts to attempt to address these issues.
A critical element in the economic development process is the role played by selected developers in the region. The skills needed to be successful in this demanding business are significant. Experience is very important and many successful developers have completed difficult projects that prepare them to address the risks associated with this business.
During and following the severe recession in 2008 and 2009, many of the region’s leading developers either closed their businesses or repositioned investment funds into other areas of the country. A number of these development companies and their principals lost a significant amount of money. The region lost many seasoned and experienced developers and their years of experience.
This loss of developers in our area following the last recession has had a negative impact on economic growth. However, a number of new development businesses are emerging and attempting to fill a very important need.
Communities in the region that attract and support investment being put in place by these developers will obtain the economic benefits that result.
Developers invest in communities that make it easier for them to do business. Communities and their political leaders that make it harder to do business and that place obstacles and hurdles in the development process are avoided and new investment is reduced.
Many political leaders in the area talk publicly about how their community is “business friendly.” Reality is very often far different than the words coming from some political leaders.
Articles regularly published by Toledo Business Journal highlight the critical importance of the role played by these developers in the region and the need to support their efforts. Information on just a few of these development projects follows.
Vaughn Equity Services has created what is now Arrowhead Commerce Park.
Approximately 20-plus additional acres in the new industrial park are available for future development.
In Wyandot County, which includes Carey and other communities, the availability of quality industrial properties that could be used to attract major manufacturers has been extremely limited. Community leaders have had few existing building options that could be used to compete for new manufacturers to bring good paying jobs to the area. This issue stood as a roadblock to development for quite a few years.
Tim Vaughn, CEO of Vaughn Industries, headquartered in Carey, and an active community leader, understood this situation well. His company is a large specialty contractor with close to 600 employees. The company works for industrial and commercial customers providing services that include electrical, mechanical (HVAC and pipefitting), plumbing, and high voltage substation and high voltage transmission and distribution construction.
Vaughn spent a significant amount of time assessing options to address this critical roadblock to development. He began to explore the option of his business undertaking a speculative development project and, in essence, transitioning his company to also become an industrial developer.
The project development process took over three years. As a result, a 100,000 square foot spec manufacturing facility located in Carey was completed. In addition, Vaughn Equity Services also had new infrastructure constructed in the surrounding area and has created what is now Arrowhead Commerce Park. Approximately 20-plus additional acres in the new industrial park are available for future development.
Earlier in the year, a lease agreement for the spec building was entered into with Hanon Systems, a global provider of automotive thermal solutions. Hanon Systems expects to invest over $19 million in machinery and equipment that will be installed in the new facility.
There was significant competition for the Hanon project involving communities in Indiana, Michigan, and Ohio. The spec building that Vaughn and his company put in place was a critical element in Hanon’s decision to invest in Carey and create over 140 new jobs for this community.
Ed Harmon principal of NAI Harmon Group has recently announced a series of planned projects that include a new business park in Rossford, a hotel/retail development near Hollywood Casino in Rossford, and the sale of the former Southwyck Mall site for a major project. Harmon has also constructed a spec industrial building on the site of the former Jeep plant in north Toledo that recently won a $70 million Dana project that will create 300 new jobs.
NAI Harmon Group announced plans, in early June, to purchase an 87-acre piece of land from the Ohio Carpenter’s Pension Fund. Harmon is planning the development of a new business park that will be located in Rossford within the Crossroads development at the corner of Lime City Road and Bass Pro Boulevard. It will be called Harmon Business Park.
The development is being aimed at industrial businesses that need between 25,000 to 75,000 square feet of class A space advised Stephanie Kuhlman, senior development agent for Harmon. It will have frontage lots for retail and commercial businesses. There is strong demand for quality industrial space, according to the development firm.
“I believe this is the anchor the City of Rossford and Wood County needs to redevelop the Crossroads,” stated Neil MacKinnon, Mayor of Rossford.
Harmon is working with the City of Rossford to address road, water, and sewer infrastructure needs and zoning changes that will allow the area to expand now.
“This new business park and facilities will be designed to meet the demands that we are seeing in the market today,” stated Harmon.
Harmon Business Park is positioned alongside I-75, State Route 795, and the Ohio Turnpike and is aiming to attract warehouse / distribution and light manufacturing users. Also, the park will be within an existing TARTA route that will make it easier for employees to access their new jobs.
“I have been meeting with seven possible users for Harmon Business Park and I look forward to developing the property,” stated Kuhlman. “What attracted us was the convenience of I-75, the large employee base in the area, and public transportation from TARTA,” Kuhlman explained.
The development group is looking to attract at least 10 end-users, totaling hundreds of new jobs for the area in the coming years, according to the company. The first tenant to the park is slated to break ground in Q3 2016. “We are currently working with seven or eight tenants and two want to own their space and the others want to lease,” Kuhlman stated. The entire investment is projected to cost over $75 million upon completion and involve over 750,000 square feet of space, according to Harmon. A related business, Logan Creek Construction Company, is also involved with this large project.
The planned development will provide future growth options with the ability to expand to the west and south.
“I am committed to developing this project to the fullest and believe we must create jobs and opportunities to build a strong central metro area,” advised Harmon. He further explained that a number of partners have been critical to advancing this initiative which includes Wood County Economic Development Commission (WCEDC), City of Rossford, Wood County Port Authority, Logan Creek, and others.
Key Hotel and Property Management completed the development of a Hampton Inn, located in Oregon, Ohio.
Steve Roumaya, one of the principals of Key Hotel and Property Management, has had an important impact on the development of Secor Road in west Toledo along with other areas that have received significant new investment for hotels owned by the business.
In the summer of 2014, the company completed the development of a Hampton Inn located on Secor Road near the I-475 interchange. This project involved the construction of a four-story, 73,000 square foot facility. It has 108 rooms. On the same 13-acre site, Key Hotel and Property Management has constructed another hotel, a recently opened Holiday Inn Express with 92 rooms located on four floors.
A retail development is also taking place at this Secor Road site. A 40,000 square foot 365 by Whole Foods Market is currently under construction in front of the new hotels. Additional retail tenants will include Fusian and Pet People and space will be available for future tenants.
A new four-story Hampton Inn located on Navarre Avenue in Oregon opened in late 2015. “Construction of the new facility started in October 2014 and took approximately 11 months to complete,” stated Jon Roumaya, president and owner / principal. The new Hampton Inn is over 67,000 square feet and has 95 rooms. It is located on a 2.5-acre site close to St. Charles Hospital and an entrance to I-280. Investment in the hotel was close to $9 million and it employs approximately 35 people.
The hotel development company also completed construction of another hotel in Perrysburg. This new property is a Holiday Inn Express that has 112 rooms. It is located at the intersection of State Route 25 and Roachton Road, adjacent to the Town Center at Levis Commons. It is also four stories and has approximately 80,000 square feet.
Project examples from these developers highlight the economic impact they are having in the region. Their efforts along with the efforts of other area developers are critical to growth.
Communities and their political leaders that are “business friendly” and reduce the obstacles and hurdles that developers face will obtain new investment and jobs.