Chronicle E-dition






Business disputes ‘blight` designation`

Filed by Alicia Castelli May 27th, 2009 in Local and State.
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LORAIN - A public meeting Tuesday to discuss the city`s urban renewal plan for 45 acres that would better connect downtown Lorain with the Black River had at least one company affected protesting the label of “blighted property.”

Erin Fauber, president of American Metal Chemical Corporation (AMCOR), took exception to the fact that nine of AMCOR`s 11 parcels are included in the Downtown Urban Renewal Plan and five of those were deemed “blighted” parcels by Gould Studios, the Cleveland company responsible for the blight assessment.

“We believe the studies are false and do not represent what we`re doing at AMCOR,” Fauber told council. “We`re a very quiet industrial customer down there. Without a deep-river dock, we would not be able to do what we do here.”

Fauber`s concern is the city would ultimately use eminent domain to take the property from AMCOR for other re-development.

Director of Public Service Robert Gilchrist said that`s not the city`s intention.

“It`s really about understanding the definition of blight,” Gilchrist said. “I plan to go out this week and sit down with the owners. We want to make sure they feel comfortable with the city`s direction. Either we`ll agree or we`ll agree to disagree.”

Fauber brought her company`s attorney, Steven Kaufman of Cleveland firm Thompson Hine, to the meeting.

Kaufman told Council AMCOR, which employs five at its Lorain location near East Ninth Street on the river, said the threat of eminent domain is a key issue for AMCOR.

“The threat of eminent domain is there based on the way in which you are proceeding, and that`s a slippery slope,” Kaufman said. “You had to include those five parcels to make your numbers. That`s not right. That would be challenged. –We really don`t think we belong in this plan area at all.”

At least 70 percent of the parcels within an area need to be considered “blighted” in order to label it an urban renewal area and to qualify it for tax increment financing, or TIF funding. TIF funding is frequently used by cities because it allows the city to use property taxes within a TIF area and reinvest that money into the affected area.

Councilman Dan Given, D-at large, said the purpose of the public hearing was to get input from residents.

“I think that`s what`s occurring here today,” Given said. “We want to keep (AMCOR) in town, we want to work with you. — By no means has a decision been made. Council`s going to go back to community development and the administration to see what can be done.”

The area in question includes downtown from East Erie Avenue along Broadway to the railroad underpass. The plan also includes putting in streets at Fifth, Seventh, Eighth and Ninth streets to allow access to riverfront property owned by the Lorain Port Authority. Rezoning much of that property to attract potential developers is also part of future plans for the area if Council approves the plan.

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.



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