Sun Feb 12 2012
by Emily Canning-Dean
Reporter
Twinsburg -- The future of the Chrysler stamping plant is still uncertain, but city officials were relieved to learn Feb. 16 that Chrysler has received a firm offer to purchase the plant.
According to U.S. Bankruptcy Court filings, a group called Twinsburg Industrial Park LLC has bid $27.5 million to buy the 2 million-square-foot plant on East Aurora Road, with its presses.
Twinsburg Industrial Park's address is listed as 6200 Riverside Drive in Cleveland which is the same address as Park Corporation.
Crain's Cleveland Business reported on its Web site Feb. 16 that Park Corp. operates the International Exposition Center in Cleveland.
According to the filing, the group has paid a $2.75 million deposit on the property. Under bankruptcy rules, Twinsburg Industrial Park has become the "stalking horse bidder" meaning that other bids -- which will be accepted through March 5 -- must be at least $600,000 higher than the $27.5 million offered.
"We are happy to know that there will be a sale on the property," said Mayor Katherine Procop. "We hope the company will keep production and jobs in the building."
On March 10, all bidders will participate in an auction at the U.S. Bankruptcy Court in New York. The highest bidder will be awarded the property. If there are no higher bidders, the property will go to Twinsburg Industrial Park.
Larry Finch, the city's director of community planning and development, said he is not familiar with Twinsburg Industrial Park LLC and has not been told what the group plans to do with the plant.
Neither Michael J. Canning, an attorney representing Twinsburg Industrial Park, nor officials from Capstone Advisory Group, the group handing Chrysler's bankruptcy proceedings, returned calls for comment by press time.
Chrysler is slated to close the stamping plant in June. Chrysler announced May 1, 2009, that the Twinsburg plant would be one of eight U.S. Chrysler sites not to be included in the sale to the new Chrysler.
The plant has been an anchor for jobs and tax revenue for the city of Twinsburg for more than 50 years, making up about 13 percent of Twinsburg's income tax revenue in 2009.
There are currently about 400 employees remaining at the plant.
Finch said he does not know how many other bidders have shown interest.
E-mail: ecanning@recordpub.com
Phone: 330-688-0088 ext. 3172
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