Fostoria spec building sold
A new commercial member is joining the ranks of North Central Electric Cooperative and will be moving into the speculative building that was built in Fostoria’s Corporate Place Industrial Park off of Rte. 23.
The Fostoria Economic Development Corporation (FEDC) announced in December the 40,000-square-foot building was sold to Fleet Ohio LLC, which will lease the building to Treves Incorporated, an automotive manufacturer supplier based in Paris, France. They support General Motors, Ford, Fiat, Chrysler, and BMW. The Fostoria location will be Treves’ first Midwest manufacturing facility and will create more than 90 jobs.
Treves plans to invest $11.35 million to open the new production facility, which is expected to be in production in April 2018. They are currently building a 4,000-square-foot addition for office space and plan to expand again in the next two to three years, according to Renee Smith, FEDC president.
In 2016, the FEDC secured a $1.2 million loan from the city’s revolving loan fund to finance the construction of the speculative building. North Central, which serves the industrial park, is a longtime member of FEDC.
The cooperative assisted in the project by not assessing FEDC for the initial service connection, a savings estimated at $16,000. The cooperative negotiated a 10-year service agreement with Treves that includes a minimum bill requirement to ensure North Central will recover its initial investment.
“This speculative building and the ultimate end project and its success would not have been possible without a host of critical partners, including North Central Electric Cooperative,” Smith said.
“North Central was an integral part of this project from its inception. They helped with the offset of costs during construction, the overall marketing of the building, and when an end user was identified, they, again, helped contain costs. Partnerships like those that FEDC found with North Central Electric are critical in economic development, and we are so proud to have worked together on this project.”
“We welcome Treves as a new cooperative member and look forward to a long-term relationship,” North Central General Manager Markus Bryant said. “Over the last few years, we have lost some commercial sales, so this will help fill some of the void.
“We also congratulate FEDC on the successful sale of the building. This was a bold move on behalf of FEDC to build a spec building in hopes of bringing jobs to the Fostoria community,” Bryant said. “This was the result of long-term planning with achievable goals. Those of us involved in economic development know where there is no risk, there is no reward.”