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Home My WebLink About07-12-2007 Studebaker Corridor passes tipping point to recovery ,SOUTH e� 4 �d F �y U C PEACE Ins Office of the Mayor NEWS RELEASE July 12, 2007 11:30 a.m. Studebaker Corridor passes tipping point to recovery Contact: Mikki Dobski, Director of Communications&Special Projects, 235-5855 or 876-1564 or Andy Laurent, Project Manager, 245-6112 The Studebaker-Oliver Redevelopment Area, the single largest brownfield reclamation effort in Indiana, now has more open green space than vacant industrial shells as it passes the tipping point toward ready-to-build sites for a proposed light industrial park. The Studebaker Factory Plant 2 section—bounded by Sample Street, Franklin Street, Indiana Avenue and Chapin Street—records two significant milestones this week as the entire Studebaker-Oliver Redevelopment Area passes the halfway mark to total cleanup of its 140 acres and 5.8 million square feet of aging buildings. • The final cleanup of the South Bend Stamping Plant, the largest facility in the Studebaker corridor, was completed June 30 —two weeks ahead of schedule and $500,000 under the contracted amount. The 1.5-million-square-foot project on 40 acres is the largest demolition in the city's history. By itself, the former Stamping Plant is comparable in scope to the Uniroyal site in Mishawaka, although it represents a little more than one-quarter of the Studebaker-Oliver Redevelopment Area's acreage. • Crews from the U.S. Environmental Protection Agency's Region V office began working June 25 at the South Bend Lathe site, 400 W. Sample St., performing initial environmental remediation work in preparation for the start of the facility's demolition later this summer. The Board of Public Works is scheduled to put out the demolition contract for bid in mid-August. Mayor Stephen J. Luecke and South Bend Common Council members will tour the site at 11:30 a.m. Thursday(July 12, 2007) under the guidance of Andy Laurent, project manager for the redevelopment area, to see land reclaimed from industrial mistreatment and to watch as the EPA removes an underground storage tank from the South Bend Lathe site and conducts other cleanup activities. "As these sites are environmentally recovered for productive use, South Bend will have new opportunities for new jobs, new investments and new pride," Luecke said. "The revitalization of the Studebaker Corridor has been the most challenging industrial and inner-city redevelopment issue facing the city. And we have risen to the test. With South Bend's assets of strategic location and high-tech infrastructure with the Metronet, we are poised to welcome distribution centers, data centers and other light industries that will provide good jobs for our residents." The Stamping Plant effort dates back to 2002, when the city bought the property from the bankrupt Allied Products. South Bend Stamping had occupied the facility until 1999. Demolition began in 2006. In December 2005, the South Bend Board of Public Works awarded a $7.9 million contract to Michigan-based J&L Management Corp. to demolish the building. The project was completed for $7,418,250—$500,000 under contract. Last month, Transpo officials announced that they will break ground in spring 2008 for a $14 million operations and maintenance facility on the site. Construction on the 160,000- square-foot structure will take 12 to 18 months, with occupancy anticipated in 2009. Transpo's move from its current location on Northside Boulevard will allow for redevelopment near downtown along the East Bank of the St. Joseph River. "When I first visited the Stamping Plant, which was declared a Superfund site, it was one of the most-challenging sites I've ever seen," said Ken Theisen, on-site coordinator for the EPA's Region 5 office in Chicago. "Now, thanks to the city's demolition and the EPA's environmental remediation, the Stamping Plant site is in good shape. I look forward to the same at South Bend Lathe." Located just north of the Stamping Plant and directly across from South Bend Police headquarters,the former South Bend Lathe's demolition is expected to be completed by May 2008. This 15-acre site with its 440,000-square-foot building represents about 20 percent of land and structures in the Studebaker corridor's Area A. The project will bring the total demolition in the entire Studebaker corridor to 3 million square feet with another 1 million square feet in the Oliver Plow area. The effort is being funded by the city of South Bend as well as federal and state grants and loans, including a recent $9 million Housing and Urban Development loan. The city anticipates new construction of a light industrial park featuring more than 1.8 million square feet of new development. The private investment is projected to reach $46 million and create as many as 1,700 new jobs over the next 15 years. In the Stamping Plant demolition, more than 95 percent of the materials were reused in suitable construction. "These sites will be reused as productive business parks where people once again can find employment opportunities in the inner city," Luecke said. "This is good for the environment and an important part of our Smart Growth strategy." The former South Bend Lathe facility was built in 1917 as the machine shop and engine plant of the Studebaker Corp. South Bend Lathe moved to the site in 1965 when Studebaker went out of business. The firm grew to become the world's leading manufacturer of precision lathes, employing 900 at its peak. Production on site ceased in May 2002. The facility has been vacant since 2003, but South Bend Lathe has continued to provide jobs in the community from a new location on Bendix Drive near the airport. The Studebaker/Oliver complex had 5,775,400 square feet of buildings on 140 acres with eight property owners at the start of the project. The total project cost is estimated to reach $30 million to $35 million with $16.5 million in public investment spent to date. By comparison, Mishawaka's Uniroyal site had 1.7 million square feet on 43 acres and a single property owner. - 30 - Stu Oliver �i• I9 rIS4��R�f } I� 1 5} I ! �'� ■11�J1lIgIi�IgL`t. QYerIA'ne ��s � 'R,{�f.�.- I r - J� n 0. 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