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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2011 > April > 30 > Entry
Editorial: It’s good to have IRG betting on Dayton
Industrial Realty Group, the developer that is buying the former Moraine truck plant, is becoming a big name in Ohio.
IRG also is taking over United Parcel Service’s lease at its former air freight hub at the airport, and it owns a former Delphi building near the University of Dayton Arena.
With nearly half of the 70 million square feet of property it owns concentrated in Ohio, the firm is showing a lot of clients options in the state.
The Moraine plant sale was supposed to take place on Friday, but was delayed. The snag is reportedly technical and not anything to worry about.
IRG thinks, in due time, it could attract as many as 3,000 jobs to the Moraine and UPS sites. Though it’s not promising any overnight miracles, the California firm has a track record of success.
The company has gone so far as to say it’s bullish on Ohio. It knows communities, including Dayton, are hungry for development because of the collapse of the manufacturing sector. The company is getting idled industrial property at fire-sale prices. Ohio is in a centrally located spot. And IRG officials say that, notwithstanding the state’s problems, it has a reputation for having a strong workforce.
Moraine City Manager David Hicks, who deserves much of the credit for convincing IRG to take a look at his city’s former GM plant, is among those who like to point out that IRG doesn’t make any money by simply owning a vacant building.
It profits only if it attracts tenants and buyers. Tenants and buyers translate to jobs.
IRG’s niche is reclaiming shuttered space and starting over. In Moraine, that will mean downsizing the complex by half and breaking it into four buildings. The plan is to make the site suitable for light manufacturing, logistics, research or any number of mixed uses.
Meanwhile, at the airport, IRG is taking over UPS’s lease payments, with the option of renegotiating with the city in 2016. The payment could then be reduced.
The appeal of working with IRG is that it says it has clients who are possibly interested in locating at the facility.
UPS employed 1,400 people before it pulled out in 2006 and consolidated operations in Louisville.
Dayton, with the chamber of commerce, initially wanted to market the facility. But that’s not the city’s or chamber’s expertise. Having a private entity with knowledge of the marketplace scouring for prospects enhances the chance for success.
Mayor Gary Leitzell objected to the airpot deal, saying that a local small business man hadn’t been given a chance to make a case for turning the 188-acre site into a renewable energy facility.
One problem with that pitch is that UPS has had every financial reason to work with anyone who brought money to the table. It didn’t think Mark Herres had a business plan.
Given IRG’s bona fides, given the fact that the company is obligated to invest more than $1 million back into the facility, it’s hard to understand the mayor’s objections.
It’s easy to get the impression that attracting developers and new business to Ohio is an uphill climb. But in defying what some see as conventional wisdom, IRG is creating opportunities for it and for Dayton.
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