Developers propose massive 'energy park' with thousands of jobs at former GM Willow Run plant
The former GM Willow Run plant could be turned into an energy park if one redevelopers' proposal is accepted.
File photo | AnnArbor.com
The developer's proposal marks the first publicly known offer for the 5 million-square-foot facility, which closed in December.
Trust officials have said they've fielded several offers for the facility, which sits on 335 acres of land, and that they plan to take their time to consider existing offers and seek new ones. They hope to finalize a deal by spring 2012.
But Elmer Roller, a Bloomfield Hills-based attorney for A.E. Equities Group Holdings, said the trust that's managing the former GM property should accelerate the consideration of A.E. Equities' offer.
The developer's offer was previously reported to be $9 million — but Roller said in an interview that the company had boosted its offer to "a little under $20 million."
"When we made the original offer, we had not been given access to the plant," he said. "We just had blueprints on paper. We had to try to figure out what was inside there. We did it without even knowing what was inside the plant. We have since had access to the plant, and there was more in there than we thought there was. So we almost doubled the offer."
Roller said the developers could pay cash and close the deal within 30 days. He said they expected to spend more than $250 million on renovations. They would tear down some walls and ceilings but preserve the physical footprint of the facility and any historic portions.
He said the developers expect that the energy park could employ 1,000 people at the beginning and up to 2,000 to 3,000 eventually.
"We have some large hedge funds out of New York who are providing the money for this investment," he said. "We could use all of the space."
The Willow Run property is controlled by the Revitalizing Auto Communities Environmental Response (RACER) Trust, which is managing 89 abandoned GM properties. The trust is charged with selling, repositioning and cleaning up all the sites.
Bruce Rasher, RACER's redevelopment manager, confirmed A.E. Equities' interest in acquiring the property.
The facility "has enormous potential for redevelopment and already has generated significant interest among several potential purchasers," Rasher said in an email.
"As required by the U.S. Bankruptcy Court settlement agreement that established the Trust, RACER will evaluate all responsible offers for the Willow Run facility based on six criteria, including sufficiency of the purchase price, job development potential, local and state views and reputation of the purchaser."
Roller said the developers had commitments for several different operations that would be housed at the facility:
—A battery manufacturing operation run by Chinese battery producer BYD, which spawned the auto company that is backed by billionaire investor Warren Buffett. BYD is a major producer of lithium-ion batteries but its electric vehicles have failed to hit the market in the U.S. despite the company's ambitious claims.
—A plant that could convert trash into electricity, nitrogen and "a form of basic crude." He said it would be run by a Fort Wayne, Ind.-based company called Nature's Fuel and could be used to supply power to the next-door Willow Run Airport.
"We think it's going to catch on throughout the nation," Roller said of Nature's Fuel's "patented process" for energy conversion. "We'd like to put it in there first."
—A agro-industrial food production operation in a nitrogen-rich environment that could harvest 11 types of fruits and vegetables annually.
—A "designer fish" farm that would be fed with algae that would also be grown on site.
—A solar panel assembly operation.
—Defense-related operations that would handle "classified" government projects.
It's unclear how firm the investment commitments are. Roller said that the waste-to-energy power plant could sell electricity to the Willow Run Airport. He also said the developers "would do several things to help" the Willow Run Airport get a new runway.
But Scott Wintner, a spokesman for the Wayne County Airport Authority, which runs the airport, said the authority was totally unaware of the developers' thinking.
"We would be willing to discuss potential synergies between any developer and the airport at any time," he said.
But, he added, "We have had no discussions with them about it nor have we identified any particular power needs out there that we’re shopping for someone to satisfy."
Among the factors the RACER Trust has to consider in its site marketing efforts is the economic impact of a sale.
The trust is communicating with municipal leaders, county officials and economic development groups to include their input in the site's repositioning.
"RACER fully shares the Willow Run community’s sense of urgency about creating new jobs and new economic opportunity at Willow Run as soon as possible," Rasher said. "We appreciate the continuing assistance of local officials and community leaders and are working diligently to make this property available for sale in the near future."
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Justavoice
Sat, Jul 23, 2011 : 3:01 a.m.
Hmm, just what we need. Jobs, jobs, green jobs even. Too convenient. One wonders what the other hand is doing while they are misdirecting by telling everyone what they want to hear.
Tailgate Jim
Fri, Jul 22, 2011 : 4:59 p.m.
This is a brilliant idea. Great for the area and great for the state. Jobs, Jobs, Jobs. I just hope the local and state governments don't create one massive road block after another discouraging the process...aka Costco in Pittsfield Township.
Basic Bob
Sat, Jul 23, 2011 : 1:13 a.m.
Pittsfield desperately wanted Costco, to divert business from the archenemy Walmart. Even so, they almost killed it while perfecting their storybook master plan. That is what bureaucrats do best.
DonBee
Fri, Jul 22, 2011 : 4:05 p.m.
I seriously doubt that a high tech operation would want to be next to a composting operation or a fish farm. I suspect the site will either have to be a fish/waste/bio facility (with all the smells that come with it) or a manufacturing facility (with all the hazardous chemicals that come with battery manufacture) or it will be a high tech manufacturing facility. I doubt all three are compatible. I wonder how much of this is dream and how much is reality? Only time will tell. I hope it goes better than a couple of the plans for manufacturing plants in Wayne County did in the 1980s.
David Cahill
Fri, Jul 22, 2011 : 1:40 p.m.
I'm pleased that this offer is being made. I was concerned that there wouldn't be any reasonable bids at all.
Bogie
Fri, Jul 22, 2011 : 12:35 p.m.
In my opinion, the trust should allow this purchase, with many strings attached. Hold A.E. to their word, and make sure there are grave consequences if employment and investment promises are not met. Even though this building is rich with history, It would be foolish to let it sit and deteriorate. I don't want a "Detroit Packard Plant" in my backyard.
John A2
Fri, Jul 22, 2011 : 12:34 p.m.
This is where Gov's Business tax is bringing in big business and employment to Michigan.
Monica R-W
Fri, Jul 22, 2011 : 7:02 p.m.
Wrong... this is were the elected Public Officials of the Ypsilanti Township Board of Trustees have been working with MEDC and GM's Property Developer Authorizes to redevelop the facility and bring back some of jobs that were lost when GM closed the facility. These actions have been taking place since BEFORE Gov. Snyder was elected into office. But, if you attended a Ypsilanti Township Board General Meeting....you would know that. Thank you Ypsilanti Township Board of Trustees Redevelopment Authority Officials, General Motors and MEDC on your efforts so far, to bring jobs back to our community. The citizens of Ypsilanti Township continue to hope that your efforts will work out with an good result.
EyeHeartA2
Fri, Jul 22, 2011 : 1:52 p.m.
r, r, where did I put the r? Oh, the it is, I left it off of Snyder.
EyeHeartA2
Fri, Jul 22, 2011 : 1:51 p.m.
I realize that Snyde is almost god like in his powers, but do you really believe he caused the Japanese tsunami? <a href="http://www.detnews.com/article/20110721/BIZ/107210405/Michigan-jobless-rate-hits-10.5---highest-since-January" rel='nofollow'>http://www.detnews.com/article/20110721/BIZ/107210405/Michigan-jobless-rate-hits-10.5---highest-since-January</a>
Sparty
Fri, Jul 22, 2011 : 1:31 p.m.
Not yet it isn't. Unemployment under Snyder is UP, as are personal taxes. Trickle down, trickle down, right? The othe only thing down is business taxes.
zax
Fri, Jul 22, 2011 : 12:22 p.m.
We need jobs and we need to move away from a Michigan that totally relies on the auto industry. If there is a buyer with money and the promise of 1,000 jobs this looks like a no brainer. Realizing it was a historic bomber plant, unless that historic fact will bring needed jobs and boost the economy I say move on forward and preserve the past in pictures. We can't turn everything into a museum and leave it the way it was. Thus the historic west side of Ann Arbor where you can't choose your own fence, but you need to pay 2011 taxes and park your Prius in the driveway. Lets move forward people and jump on this wonderful opportunity. Unless of course it is preferable to leave it empty and rusting away.
Roger Roth
Sat, Jul 23, 2011 : 5:36 p.m.
@ Basic Bob, more and more and more minimum wage jobs won't help the US economy or the middle class. If you want to perpetuate the upward flow of wealth in America (trickle UP) then continue to develop more property that will be used for that purpose. I don't think it would be a bad thing for Snyder to get some guarantee from the developers who they are planning on installing in the site and how many and what kinds of jobs will be created. Sure, it would be fine to pay some construction workers for a year, but what then, after that? This state is drowning in minimum wage jobs, which may be good for state tax revenues but bad for the state's overall economy and bad for middle class families. Please note, also, for example, that the jury is still out on burning trash for energy.
Basic Bob
Sat, Jul 23, 2011 : 1:05 a.m.
@Roger Roth, Uhhh, maybe they should just forget redevelopment. Forget about creating any jobs at all since some might not meet your standards. Just let the facility decay and deteriorate. Don't put any money into the hands of construction companies, engineering firms, machine builders, or any other greedy corporations that provide the really good jobs. If people want a miserable job they can simply move out of state. (they will)
Roger Roth
Fri, Jul 22, 2011 : 1:50 p.m.
zax, we need to change the mindset. We don't need jobs, we need jobs that pay a living wage. There are no guarantees here. The first question your beloved Gov. Snyder should ask a developer is "Now, prove to me these jobs you are promising will pay a living wage to the citizens of my great state?" If not, then let's just go with a dozen more 7-11's. Or, zax, is a job a job, and it doesn't matter what it pays or if it has benefits like health insurance and a pension? Also, we do have to be careful: <a href="http://roomfordebate.blogs.nytimes.com/2010/04/13/should-the-u-s-burn-or-bury-its-trash/" rel='nofollow'>http://roomfordebate.blogs.nytimes.com/2010/04/13/should-the-u-s-burn-or-bury-its-trash/</a>
WalkingJoe
Fri, Jul 22, 2011 : 1:08 p.m.
I agree totally zax. You can still recognize the history behind the plant and still employ people. While I worked there GM recognized the fact that the site was rich in history even though it was originally built by Ford. In fact they showcased it at every open house. While I believe we need jobs for people now more than ever I also feel we need to remind people how this area was so very important in helping win WWII.
WalkingJoe
Fri, Jul 22, 2011 : 11:27 a.m.
As a former employee of the GM Powertrain Willow Run plant I found this article interesting for several reasons. I think any of the energy related manufacturing ideas could have merit. But I laughed out loud at the "agro-industrial food production" and "designer fish farm" ideas. I hope someone is telling those folks about the pollutants that permeate this complex. Not just from 40 plus years of auto parts productions but also from when it was a bomber plant during WWII.
Chase Ingersoll
Sat, Jul 23, 2011 : 1:13 a.m.
Shhhhhh! The fish are for export.
Maxwell
Sat, Jul 23, 2011 : 12:51 a.m.
I meant "cover" not cove
Maxwell
Sat, Jul 23, 2011 : 12:48 a.m.
I'm sure they'll expect government hand outs to cove the environmental costs...
Concerned Citizen
Fri, Jul 22, 2011 : 8:23 p.m.
Would you put down a $20 mil bid on something without doing your research? I'm sure they know about the extent of the contamination. We need more reasons to bring business here not focus on negatives.
Roger Roth
Fri, Jul 22, 2011 : 10:48 a.m.
$20,000,000 CASH! What recession?????
trespass
Fri, Jul 22, 2011 : 10:44 a.m.
An outright sale of the property means that once the deal is done the developers have no obligation to fulfill the promises they make for how the property will be developed or for preservation of the "historic parts". The Bomber Plant is a historic icon of Ypsilanti and WWII. This developer sounds like a lot of pie in the sky promises ($9 million become just under $20 million, it is unclear how firm the committments are, we're going to invest $250 million but we can only pay $20 million for the property, etc). The deal should preserve local control over its use and development, such as a long term lease deal rather than an outright sale.