FOR IMMEDIATE RELEASE: September 5, 2013
Connected Vehicle Research Center
Planned on Site of Former
Willow Run Powertrain Plant
High-Tech Development Expected to be a Catalyst
for the Region
YPSILANTI TOWNSHIP, MI —
The former Willow Run Powertrain plant, long a source of economic strength in
Southeast Michigan, is the proposed home for a technologically advanced connected vehicle research center, a project that could become a hub of
research and development for the vehicles of tomorrow and a catalyst for jobs
in innovative automotive research. The announcement was made today by the RACER Trust, Devon Industrial Group and Walbridge Development, LLC.
The project will evolve
in two simultaneous phases, both led by Detroit companies. Devon Industrial
Group, a minority-owned business, will manage the dismantling and removal of
the industrial buildings on the property, supervising the activities of MCM
Management of Bloomfield Hills,
MI. Walbridge Development, LLC, an affiliate of the Walbridge
Group, Inc., one of America’s
largest privately held construction companies, would redevelop the property
into a shared R&D center and test track for connected vehicles. This
facility would jointly serve automakers, suppliers and related technology
companies and would be the first of its kind.
RACER has marketed the
Willow Run property for sale and redevelopment since taking ownership in 2011.
It sought competitive proposals for dismantling and removal of the buildings on
the property, as well as alternative redevelopment proposals, in order to
maximize the property’s substantial redevelopment potential. Devon Industrial
Group and Walbridge submitted a joint proposal that included demolition and
their vision for redevelopment.
“This is a tremendous
opportunity for Ypsilanti Township, the surrounding community and all of
Southeast Michigan,” Ypsilanti Township Supervisor Brenda Stumbo said. “I
believe this will usher in an era of collaboration and cooperation between the
public and private sectors. This development will bring high-tech R&D,
excellent jobs, a stronger tax base and be a source of great pride for our
region.”
Elliott P. Laws,
administrative trustee of the RACER Trust, said: “Finding a buyer and new use
for Willow Run has been one of RACER’s highest priorities. This project fits
perfectly with Southeast Michigan’s long-standing leadership in automotive
innovation. I congratulate and thank Devon Industrial Group and Walbridge for
their vision and spirit, and for their part in shaping what will be a very
dynamic future for this region.”
The contracts will not
impede Yankee Air Museum’s
campaign to purchase and separate a portion of the Willow Run Powertrain plant
to serve as a permanent home for the museum and its collections.
Dismantling and removal
activities are expected to begin this fall and take approximately 12 months to
complete. At that point, Walbridge would buy the majority of the 332-acre
property and begin redevelopment, subject to a development agreement with
Ypsilanti Township. The development agreement would define the scope of the
proposed connected vehicle research center and the number of jobs Walbridge
would commit to attract as a result.
“Since 1916, Walbridge
has played major a role in the history of the auto industry by building some of
its most critical manufacturing, assembly and R&D facilities. But more
importantly, we want to help build its future. The Willow Run property is ideal
for the type of development we envision, one that leverages the region’s assets
— both talent and technology,” said John Rakolta III, Business Development
Director for Walbridge. “We believe in this project’s success, and we’re
committed to helping attract businesses and tenants whose R&D interests
align with the goals of our planned facility — to develop and refine vehicle
technology that will make our roads safer and keep Michigan at the forefront of
automotive innovation.”
Paul Krutko, president
and CEO of the economic development organization Ann Arbor SPARK, said:
“SPARK’s role as the regional economic development organization is to look for
opportunities big and small to build prosperity. We identified automotive
technology as a key area of potential and earlier this year drafted a white
paper, Ahead By A Century — A Proposal to Develop A World Class Test
Facility for Intelligent Transportation Systems and Autonomous Vehicles in
Southeast Michigan, based on our findings. Working initially with Walbridge,
RACER Trust and Ypsilanti Township, and longer term with other private- and
public-sector partners, Ann Arbor SPARK is creating this new economic
opportunity for the region that has the potential to generate significant
investment and jobs.”
“We’re looking forward to
the challenge of dismantling and removing such a large building in 12 months,
but we share RACER’s and Walbridge’s urgency to get started on redevelopment
and job creation, and that begins with our team’s performance,” said David Burnley
Sr., CEO of Devon Industrial Group.
In a separate
development, RACER is engaged in a land swap with the Wayne County Airport
Authority, giving Willow Run Airport control of land it needed to better
utilize an existing east-west runway without physically extending the runway.
This land swap supports the airport authority’s long-term business development
efforts. Full runway utilization had been constrained by the previous property
boundary between the airport and RACER’s land.
“This exciting new project
and the land swap are both indicative of RACER’s commitment to economic
revitalization, not just for Willow Run but for all of Southeast Michigan,”
said Tim Keyes, CEO of VantagePort, a regional economic development consortium focused on driving
expansion and new investment in and around Detroit Metro and Willow Run
Airport. “Our region will reap the benefits of this land swap almost
immediately, enabling more efficient movement of people and products through Willow
Run.”
RACER previously
announced the sale of an adjacent building, the former Willow Run Company
Vehicle Operations facility, to International Turbine Industries, a jet engine
repair and parts sales business.
About
the RACER Trust: The RACER (Revitalizing Auto Communities
Environmental Response) Trust was created to clean up and position for
redevelopment properties and other facilities owned by the former General
Motors Corp. before its 2009 bankruptcy.
RACER is one of the largest holders of industrial
property in the United States and is the largest environmental response
and remediation trust in U.S. history. When the Trust was formed, it owned
properties at 89 locations in 14 states, principally in the Midwest and
Northeast. The Trust, which is independent, was created by a
settlement agreement in the U.S. Bankruptcy Court between the U.S. Government,
the 14 states where the former GM properties are located, and the St. Regis
Mohawk Tribe, which owns land adjoining one of the properties in Upstate New
York. For more information, please visit our website: www.racertrust.org.
About
Walbridge: Walbridge was founded
in 1916 in Detroit and has grown to become one of America’s largest privately
owned construction companies. The company has expertise in many market
segments, including: airports, automotive, commercial, education, government,
healthcare, industrial process, manufacturing, and water/wastewater. Walbridge
is an industry pace-setter in the development of new ideas and methods for
quality construction, site safety, enhancing sustainability, lowering cost and
maximizing long-term project value. For more information, please
visit: www.walbridge.com.
About
Devon Industrial Group: Devon Industrial Group
provides construction management, general contracting, pre-construction,
decommissioning and facility management services for clients in the automotive,
healthcare, industrial process and education fields. The firm was recognized in
2013 by the Associated General Contractors of Michigan with an Outstanding
Safety Performance award earned for a low injury incident rate based on total
amount of work hours generated in 2012. For more information, please
visit: www.devonindustrial.com
About
MCM Management Corp: MCM Management Corp. (MCM) is a vertically
integrated industrial services provider that specializes in repurposing
America’s largest industrial and manufacturing facilities for redevelopment.
MCM has performed more than 100 million square feet of environmental
remediation, asbestos abatement, demolition and recycling services since 1993.
For more information, please visit: www.mcmmanagement.com
About Ann Arbor SPARK: Ann Arbor SPARK, a non-profit organization, is
advancing the region by encouraging and supporting business acceleration,
attraction and retention. The organization identifies and meets the needs of
business at every stage, from start-ups to large organizations. Ann Arbor SPARK
collaborates with business, academic, government, and community investor
partners including the University of Michigan, Eastern Michigan University,
Washtenaw Community College, Washtenaw County, Livingston County, Washtenaw
County etcs/Michigan Works!, the City of Ann Arbor, Bank of Ann Arbor and the
Michigan Economic Development Corporation. For more information, please call
(734) 761-9317 or visit www.AnnArborUSA.org.
