While I was researching the history of all the Owens companies (which seems quite entangled and confusing), I came across this article.  Now that we have some representation from Toledo on here, maybe someone can update this info.  This article is from May 2003.

 

 

3 firms consider downtown exit

O-I, OC, and Pilkington moves could deal tough blows to city

By JON CHAVEZ

BLADE BUSINESS WRITER

 

There's no getaway music playing, but three downtown Toledo signature companies - Owens-Illinois, Inc., Owens Corning, and Pilkington PLC - could bolt from their headquarters buildings within three years.

 

• O-I, the city's second-largest corporation, is exploring its options for when its lease expires at One SeaGate in 2006.  If it moved to a new building on its suburban property, construction would have to begin in about a year.

 

• OC, the city's third-largest corporation, which is trying to get out of bankruptcy, has said it will vacate its riverfront headquarters this year if it cannot get its bondholders to lower what amounts to its lease payments.  It has considered offices downtown and the suburbs.

 

• Pilkington, a British-owned operation once known as Libbey-Owens-Ford Co. and the equivalent in size of a U.S. Fortune 1,000 firm, must decide by July 1 whether to vacate its North American headquarters on Madison Avenue.  The firm has looked at other sites downtown and in the suburbs.

 

A departure by any of the three would be a psychological punch to Toledo's image and potentially an economic blow to downtown and the community.  Toledo's identity and image are so closely associated with the glass industry that the city itself is the Glass City.  To lose companies associated with that image would create a loss of identity, said Bill Hudnut, former mayor of Indianapolis and now a senior resident at the Urban Land Institute in Washington.

 

More at http://www.toledoblade.com

It boggles my mind that OC would even consider leaving their office campus - it's only eight years old and one of Cesar Pelli's best non-highrise designs!

I recall the fate of OC downtown was in disucssion when I visited Toledo around 10 years ago. At that time OC was going to move from its big skyscraper downtown...the discussion was to relocate to a suburban campus in Monclova Township, west of town near the airport or to a site near downtown called "Middlegrounds". I guess the decision was to relocate to the Middlegrounds site and build that lowrise "campus" HQ.

If you want to talk about companies leaving a downtown, you cannot forget about Dayton (which now has only ONE Fortune 500 company, NCR, which is in Oakwood-ish area; we've had more For500's before but all left; Mead, etc).

 

Oh well.

Mead is still in the building. A couple years ago they merged with Westvaco to form MeadWestvaco. The Paper Division and the Consumer and Office Products Division continue to be headquarted in Dayton, along with some corporate functions, but the overall corporate headquarters were moved to Stamford CT.

 

-- ------------------------------------------------------------------------------

 

Here's an update on Owens-Illinois, from the 1/29/05 Toledo Blade:

 

 

Owens-Illinois' future downtown is unclear

By TOM TROY

BLADE STAFF WRITER

 

Owens-Illinois Inc.'s lease on its downtown Toledo headquarters doesn't expire until late 2006, but the company is actively considering a move either to Perrysburg or out of state.

 

Three days after Mayor Jack Ford announced in his State of the City address that the city had made a "generous offer" to O-I, the international glass container manufacturer hasn't made its position known.  "They have not said they're moving from here," Mr. Ford said.  "I just know that they have not accepted the package we talked to them about."

 

The 101-year-old company has had a presence downtown for about 70 years.  Its 32-floor glass skyscraper at Cherry and Summit streets was built in 1981.  The lease expires Sept. 30, 2006.  Real estate experts have said the multinational corporation will have to make its decision before the end of 2005.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050129/BUSINESS03/501290322

 

The best thing about this article is that Toledo just offered Owens-Illinois a deal worth an estimated

8 million dollars to stay downtown-------and then taxes the hell out of them.

 

What the heck is Toledo doing?

 

 

O-I withholds $1.1M in property-tax dispute

By TOM TROY

BLADE STAFF WRITER

 

While Owens-Illinois Inc. debates moving its world headquarters and 350 employees to Perrysburg, the company is fighting Lucas County over the value of its downtown Toledo building. 

 

The company is disputing the value the auditor's office placed on the building.  The auditor believes the building was worth $55 million in 2000; O-I claims the value is just $30.5 million.  As a result of the dispute, O-I has withheld more than $1.1 million in property taxes.

 

The auditor's Web site yesterday said O-I owed $1,593,750 for the first six months of 2004.  Dennis Lyle, an attorney for O-I in the firm of Fuller & Henry Ltd., said the company made a $450,000 payment yesterday, the deadline for property tax payments for the first half of 2004.  Mr. Lyle said the $450,000 is based on a good faith estimate of the valuation between $30.5 million and $55 million.  The dispute is pending before the Board of Tax Appeals in Columbus.

 

More at http://www.toledoblade.com

Neighboring Perrysburg is offering financial incentives...from the 3/5/05 Toledo Blade:

 

 

Perrysburg offer to O-I is really $6M, not $1.9M

Early estimate only included city

By RACHEL ZINN

BLADE STAFF WRITER

 

A Perrysburg official said yesterday that his estimate of the value of an incentive package the city offered Owens-Illinois Inc. was about $4 million short. The package actually would save the company nearly $6 million over the next 15 years.

 

Perrysburg City Council voted Tuesday to offer an incentive package to Owens-Illinois, which is considering moving its headquarters from its location in downtown Toledo to property it owns in Levis Development Park in Perrysburg.  The offer has caused some friction between Perrysburg and Perrysburg Township officials and played a role in the township's decision to set aside plans for a joint economic development district with the city.

 

Councilman John Kevern, chairman of council's economic development committee, said yesterday that when he gave his initial estimate of the $1.9 million value of the incentive package, he only took into account tax breaks from the city.  Because the city has jurisdiction over the development park, it can offer tax breaks for other entities, including Wood County, the Toledo Area Regional Transit Authority, and Fort Meigs Cemetery, Mr. Kevern said.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050305/NEWS18/503050354

 

I have heard from a few sources that OI in downtown Toledo is history. One guy I talked to owns a store there and he said that they most likely will be leaving after the lease expires. Another lady I work with has a husband that works for OI, in P-Burg, and she said that they have already hired an architect to design their new suburban headquarters. This is really sad, people in Toledo just do not get how important a strong downtown is to the local economy. It seems like the Burbs' in Toledo are the place to be right now, and nobody seems to care. :?

Woolly bear, welcome.

 

Seems like Toledo is getting better represented here all the time.

 

Where else but the US could a new 32 story building be obsolete?

 

How sad for Toledo ...

I have heard from a few sources that OI in downtown Toledo is history. One guy I talked to owns a store there and he said that they most likely will be leaving after the lease expires. Another lady I work with has a husband that works for OI, in P-Burg, and she said that they have already hired an architect to design their new suburban headquarters. This is really sad, people in Toledo just do not get how important a strong downtown is to the local economy. It seems like the Burbs' in Toledo are the place to be right now, and nobody seems to care. :?

 

OI is done as far as I've heard too. Toledo is trying very hard to have a strong downtown and there is a housing market starting to grow there, but it's hard when big businesses like OI get offered these huge incentives by Perrysburg to move their company there. Toledo did their best, but at some point you have to realize that it's a lost cause. Toledo gave huge tax breaks to Jeep to stay in the city that it couldn't afford. The city needs all the money it can to spend on the schools and a vastly understaffed police force.

 

The burbs in Toledo are not the place to be right now. Most people in the area want downtown to go back to what it was in 1960 when twice as many people worked there. It's just getting quite difficult to keep business there when they can operate more cheaply in a suburb like Perrysburg.

 

Toledo is trying hard?  I wish they were.  Toledo is "wanting hard", "hoping hard", but they are not "trying hard".  They have anti-business policies, a corrupt union contolled tax+spend city council, and a lazy mayor with a lower IQ than Carty Finkbeiner.  They have done nothing to improve the business climate of Toledo.  Their policy of handing out tax breaks is counter productive.  They would be better served by cutting taxes across the board, which would be more fair to all companies and more pro-growth.  But their anti-corporate mentality prevents them from doiing that, and that is why Toledo will continue to pay the price as the suburbs prosper.

 

When Carty led the "Keep Jeep" campaign, that was a herculean effort that kept jobs in Toledo.  The difference between a city like Toledo and say, a Phoenix, AZ or a Madison, WI, or even a Chicago, IL is that their politicians make that kind of effort to bring/create jobs every single day, whereas here in Toledo it happens once every ten years.  :-(

Thanks for the welcome. My home town is actually Cleveland. However, I re-located here for school. I found it absolutely amazing when I talk to people from Toledo, and they tell me that they have not been downtown for 10 years. I love going to the docks, that may be better then any restaurant area in Cleveland, 5/3 is a beautiful ballpark, but it is only used 50 times a year. I went to club Bijou once and left when people started throwing glass bottles. I totally agree that Toledo is anti-big business, and the unions have control over everything in this town. It tells you a lot when Toledo offers $3 million more then P-Burg and OI still wants out.

Another good ethnic restaurant is Tony Packo's. I know it is not a "high class" place, but you can not beat that food. I actually had an internship down in Atlanta this past summer, and they don't have any real good local ethnic restaurants, but you can not beat the BBQ. Another thing that I have noticed while I have lived here is that people's heritage does not mean as much as it does back home (Cleveland). I don't even think that Toledo has a St. Patricks day parade. Do you think the same thing?

Perrysburg is pushing hard for O-I.  From the 4/20/05 Toledo Blade:

 

 

Tax-break zone widened for O-I

 

Perrysburg City Council last night expanded a community reinvestment area to include the possible site of O-I's new headquarters.

The city extended the southern boundary of a community reinvestment area that encompasses almost all the commercial areas in the city. The area now extends south to Five Point Road and includes the entire Levis Development Park, where O-I is considering moving its headquarters. The company now is headquartered in downtown Toledo.

 

Businesses in the community reinvestment area are eligible for tax abatements. A business can get a 100 percent tax abatement for up to 12 years to expand, and a new business can get a 100 percent tax abatement for up to 15 years. Residences and retail stores are not eligible.

 

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050420/NEWS18/504200461

 

Say good bye to OI Toledo, courtesy of Jack "IQ of 40" Ford!

Another good ethnic restaurant is Tony Packo's. I know it is not a "high class" place, but you can not beat that food. I actually had an internship down in Atlanta this past summer, and they don't have any real good local ethnic restaurants, but you can not beat the BBQ. Another thing that I have noticed while I have lived here is that people's heritage does not mean as much as it does back home (Cleveland). I don't even think that Toledo has a St. Patricks day parade. Do you think the same thing?

 

Yeah, race doesn't mean much in Toledo. The one thing I always love about Toledo is the lack of segregation and polarization that exists in nearby big cities (Detroit, Cleveland, Chicago) We have a huge Irish population, but hardly anyone cares. The white ethnicity that celebrates the most is the Polish, but even then, most of the people at the festivals are Black or Latino. There is no "white superiority" complex in the Toledo area.  Hell, Toledo is home to more "wiggas" and white ghetto than any other major city I've been to. The racial lines are broken down like they should be for the most part.

 

The Arab community also has a few pretty big functions every year that I frequent. The St. George's Festival is outstanding- I'd rank it as one of the most authentic Lebanese/Greek Orthodox functions in the country. The Islamic Mosque (largest in N. America) also is home to a few big events every year. I wish every white person in America was forced to tour the Islamic Mosque. It would really help lessen some of the racism and prejudice in America. Toledo is very open to Arabs and Muslims, but I can't say that about the rest of the country.

 

While Toledo is a lot better than other places, I'm not so sure it's the racial utopia you make it out to be.  There are a lot of Mom and Pop shops in Toledo city that would never hire a black guy.  In the 1980's, people throughout Toledo tried to stop the local Hindu organization from constructing temple on the basis of the ridiculous complaint that "there would be guys handing out fliers at the airport" (Hindus don't proselytize, you can only be born a Hindu).  I'm sure everyone in Toledo has seen the Islamic mosque, what with its prominent location on I-75 and I-475, but it was attacked after Sept. 11 by some local miscreants with a rocket launcher.

 

Some black guy gets shot in Cincinnati and everyone shits in their pants.  In reality, I don't think race relations day-to-day are much different in Toledo or Cincinnati.  It's just that Toledo has been fortunate to avoid bad media episodes.

Some black guy gets shot in Cincinnati and everyone shits in their pants.  In reality, I don't think race relations day-to-day are much different in Toledo or Cincinnati.  It's just that Toledo has been fortunate to avoid bad media episodes.

 

I'm going to agree with that.  Media is the key to success in some cities.  Cincinnati is berated by negative media.  Dayton, which has relatively good race-relations and education of the black community in suburban communities, is the home of moreso positive media compared to the city south on I-75.  Columbus is another example.

race relations are much better in toledo than dayton or cinci in my experiences. toledo having more visible ethnic diversity is what helps. cincinnati is damned by marge, the police and the riot. the media is not letting go no doubt, but hopefully time heals, issues get addressed and the fickle media moves on.

 

the only good news about o-i is they are not leaving the state all togther. still, it's a shame to see them leave downtown.

 

race relations are much better in toledo than dayton or cinci in my experiences. toledo having more visible ethnic diversity is what helps. cincinnati is damned by marge, the police and the riot. the media is not letting go no doubt, but hopefully time heals, issues get addressed and the fickle media moves on.

 

I wouldn't say race relations are "much better" in Toledo than Cincinnati or Dayton, in my experiences.  Hell, I'm from Dayton and I can tell you that race relations are "good" though the city is segregated.  Much like Cleveland, Dayton has embraced the African-American culture and continues to do so.  Dayton is another candidate for "wigger central" as C-Dawg has discussed earlier.  No city in Ohio is a paradise for race-relations but Dayton has rarely shown "racial tension" (with the more obvious exceptions of the Civil Rights Era) and even had *gasps* integrated schols in the early 20th century.  I'm sure Toledo is similar to Dayton in terms of "for the most part, people get along" type of thing (except for the exurban ruralites that all Ohio cities have).

 

Cincinnati's race relations are a national issue and a city/regional issue.  Overblown, sure, but as long as the media and other sources berate the problem, it can only get more and more moronic.  But of course, people don't hear about Cincinnati's progressives in the black community in the 1800's and 1900's nor the underground railroad nor the black sound of the 60's and 80's.  But alas...oh Queen City...

Oh, I never said I thought you meant Toledo as a "racial utopia."  I was simply addressing Dayton in my conversation.

The Nati is a scary set-up in my mind, and I don't see any real way to improve it when whites are fleeing the city at alarming rates (higher than most US cities), leaving behind poor blacks at the center of the donut. I know all of Ohio is hurting, but it just seems things in Nati are a bit more complicated than economics. Perhaps the media has distorted my view, but that's how I feel.

 

I can see from an outsider perspective how you might say that but again, the media does a fantastic job with such things. The city is Ohio's most integrated city and metropolitan area and white people really aren't fleeing the city as much as some other Ohio cities (though they still are).  Cincinnati's problem isn't race but class.  Statistically, if you look at Over-The-Rhine and the West End (two of THE most ghetto/segregated neighborhoods in the city) and compare them economically with other black areas of the city, there is a rather large difference.  Roselawn, Bond Hill, Avondale, and even Westwood are black areas with middle-class, some poor, and even some upper-class.  Compare that to the "lower of the totem pole" folks down in the basin, and you'll see that even in Cincinnati, blacks can be a bit classist.  http://www.cincinnati-oh.gov/cdap/downloads/cdap_pdf3574.pdf

 

Because of Cincinnati's "integration," the city pretty much lost it's black community (since a community can't survive without cohesion) compared to the more segregated-but-black-community-oriented cities like Dayton, Cleveland, Columbus, and even Toledo.  The saying of "Blacks sticking together" is very very true in such cases.  Cincinnati might be THE quintessential city of "integration may not always mean positivity."  I, of course, am NOT for segregation but it has historically caused a stronger black community (see the 1960's).  That is why we have black mayors of Dayton, Cleveland, and Columbus (as of recently); black community sticking together, promoting, and eventually winning.

 

Of course, this is also elevated by those suburbanites who give their city a bad name (re: C-Dawg's experiences with Cincinnati suburban whites).  For example, before I & Rich started this forum, I met many people unusually from Toledo that were a bit "sheltered" and a bit "closest racist" (from Sylvannia, Bedford Twp., Perrysburg, and Oregon).  I then associated Toledo with "they aren't exactly the most racial friendly city, eh?" (much like Detroit).  Of course I see on this forum Toledo isn't exactly a racial hotbed thanks to various viewpoints and such and now my impresson of Toledo is currently positive.  But you see what outside sources and/or media can shape impressions? 

 

That is Ohio's biggest problem in general; itself.

Well put Chris.  You are right on.  As a white dude I have my runins with "closet racists" that you speak of...  They think because I am white that I believe as they do.  Dumb crackers...

From the 5/5/05 Toledo Blade:

 

 

O-I decision on headquarters may be imminent

By TOM TROY and RACHEL ZINN

BLADE STAFF WRITERS

 

Toledo and Perrysburg city officials said yesterday they are expecting an announcement imminently - possibly today or tomorrow - about whether O-I will relocate its headquarters from downtown Toledo to Perrysburg.

 

William Carroll, Toledo's economic development director, said he expects a decision before week's end. Neither he nor Mayor Jack Ford expressed optimism yesterday that O-I would remain downtown in the 32-story One SeaGate building along the Maumee River.  "I expect it's going to happen this week," Mr. Carroll said yesterday.  "From my perspective, the earlier the better, and then let's start working on the positive aspects of filling the building."

 

Toledo Mayor Jack Ford said, "I think the odds have been in that direction [of Perrysburg] for some time, even though the city made a very generous offer to try to keep them in the downtown location."  Toledo has offered $10 million, which could be used to renovate O-I's space in One SeaGate at Cherry and Summit streets, to subsidize employee parking, and for other uses.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050505/NEWS16/505050382

 

I just heard on the news that OI is relocating its headquarters to Perrysburg  :x

Here is more on the topic:

 

TOLEDO, Ohio (AP) - Owens-Illinois, a signature name in Toledo business, announced Thursday morning it is moving its world headquarters to Perrysburg.  The announcement came at a morning press conference with O-I Chairman and CEO, Steve McCracken making a brief presentation on the decision.  The new location will be property owned by O-I at Levis Commons.  The company that helped give its hometown the "Glass City" nickname will move to Perrysburg, a suburb where the company already has about 550 employees at an office park. 

 

McCracken said consolidating the offices was the primary reason for the move.  O-I, which shortened its name from Owens-Illinois earlier this month, is the largest manufacturer of glass containers in North America and South America.  It is planning to open a new European headquarters in Lausanne, Switzerland.  The company employs 340 at its 32-story headquarters, the Toledo's tallest building. Its lease downtown expires in September 2006.

 

MORE: http://www.toledoblade.com

 

---

 

(Toledo, OH) --- More fallout could be coming following Thursday's announcement from O-I.  NBC24 has learned that other tenants in One Seagate are now looking to leave.

 

Here's why --- Close to a third of One Seagate is already vacant.  When O-I moves out that will leave the other third empty.  That leaves about 20 other companies in the remaining space, many law offices and financial firms.

 

"We heard the building is going to be mothballed. We heard leases weren't going to be renewed. It's just puts us in a difficult position.  But fortunately we have ample time," said Larry Beebe, Beebe Financial.

 

MORE: http://www.toledoonthemove.com/

Who wants to do business in Toledo with the chimpanzee Jack Ford at the helm?  Can't blame OI for leaving.  In 4 years, Ford has run the city into the ground.

A couple more articles, from the 5/6/05 Toledo Blade:

 

 

Toledo chooses to look forward as Perrysburg celebrates big gain

By TOM TROY

BLADE STAFF WRITER

 

Perrysburg city officials rejoiced over O-I's decision yesterday to relocate its corporate headquarters there while Toledo officials put a brave face on the pending departure.  City officials said they would focus their efforts on finding new tenants for the 32-story, downtown office building along the Maumee River.

 

"It's disappointing, but why be negative about it?" said William Carroll, Toledo's director of economic and community development.  "Certainly I don't like what [O-I chairman and chief executive officer] Steve McCracken did, but that's his job. ... Now we move forward."

 

The effect of the loss of approximately 340 jobs on the city's income tax coffers won't be felt until 2006.  The city's income tax is 2.25 percent, but the mayor refused under media questioning to estimate the amount of revenue that will be lost.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050506/NEWS16/505060339

 

---

 

Company's departure casts doubt on future of 32-story tower

By GARY T. PAKULSKI

BLADE BUSINESS WRITER

 

It has been dubbed the "doomsday scenario" by commercial real estate agents: The possibility that downtown Toledo's two tallest office towers will both be dark.

 

• The 32-story One SeaGate, on the downtown riverfront, will lose its prime tenant next year when Owens-Illinois Inc. abandons its longtime world headquarters for the suburbs, boosting vacancies in the building to near 50 percent.

 

• The 30-story Fiberglas Tower was mothballed eight years ago and has few prospects of attracting tenants, real estate agents said.

 

Everyone from One SeaGate's Boston owners to Mayor Jack Ford said yesterday, after O-I revealed its long-awaited decision about the building, that they will work to find replacement tenants.  But remaining realty agents and tenants in the 24-year-old building are concerned because of rumors of other defections and uncertainty about the intentions of the owners, Newkirk Master Limited Partnership.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050506/NEWS16/505060346

 

From WNWO-TV's website, 5/11/05:

 

 

Toledo Leaders Deny Downtown Exodus

 

(Toledo, OH) --- Owens-Illinois recently announced it is leaving downtown Toledo for Perrysburg. Now three smaller businesses are also moving to the suburbs.  So is there a downtown exodus underway?

 

City leaders say no, but the stats may say otherwise.  A recent office vacancy study shows suburban business locations like Arrowhead Park are easily filling vacant space.  But that same study paints a different picture for downtown Toledo.

 

In the shadows of the Glass Tower and Owens Illinois, King Insurance is one of those small companies planning its exit strategy to the suburbs.  "It was just like home here for the last twenty years and we're quite taken back by having to move out of here," says owner Ron King.

 

FULL ARTICLE: http://www.wnwo.com/Global/story.asp?S=3332369

 

From the 5/14/05 Toledo Blade:

 

 

ONE SEAGATE

Not all tenants want to follow O-I and leave

Firms await new lease terms

 

Some longtime tenants in One SeaGate - the 32-story riverfront skyscraper that Owens-Illinois Inc. will abandon for its new headquarters in Perrysburg next year - said yesterday they hope to be able to remain in the landmark building.  And one longtime tenant, McDonald Financial Group, is leaving the building for reasons unrelated to O-I choosing to relocate to a campus setting in Perrysburg's Levis Development Park.  Other tenants want to see what One SeaGate's owners, Newkirk Master Limited Partnership, of Boston, will offer.

 

"We're looking at all options," said Mark Elliott, chief operating officer for the law firm of Fuller & Henry, which occupies about half of the 17th floor with nearly 50 lawyers and staff.  "Fuller & Henry has been in Toledo for 113 years, and we've always been in downtown Toledo.  That's our strength and our heritage."

 

Factors in the decision include the cost of moving and the firm's proximity to the courts, he said.  There are a lot of pluses to staying downtown, he added, such as new growth in the Marina District, the Toledo Mud Hens' games, and the Docks group of restaurants.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050514/BUSINESS03/505140387/-1/BUSINESS

 

From the 6/18/05 Toledo Blade:

 

 

Newspaper story O-I denies report of HQ move to London

 

Toledo's second-largest corporation said it is moving its headquarters to Perrysburg next year and has no plans to relocate overseas as a British newspaper implied.  There's a misunderstanding, an Owens-Illinois Inc. spokesman said.  "Absolutely nothing is changing," Carol Gee said.  "We are staying in northwest Ohio."

 

A June 6 article in the Financial Times of London said O-I "is considering abandoning its home in Ohio for a new global headquarters in London."  The article speculated that a base in Europe would help O-I to become truly global and that "London would probably win over other European locations on the ground of its central placing in respect of global time zones."

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050618/BUSINESS03/506180425/-1/BUSINESS

 

A couple of articles from the 6/19/05 Toledo Blade:

 

 

PHOTO: One SeaGate has 45 tenants, with Owens-Illinois Inc. occupying eight of the 28 numbered floors.  ( THE BLADE )

 

Inside vertical city, uncertainty on future of businesses' homes

By HOMER BRICKEY

BLADE SENIOR BUSINESS WRITER

 

One SeaGate has been a part of the Toledo skyline for a quarter of a century, and some say it defines the city's skyline.  At 411 feet, it is Toledo's tallest building and is regarded as a premier office site.

 

But last month, the largest tenant - Owens-Illinois Inc., a Fortune 500 firm that also is Toledo's second-largest corporation - announced it will move its 340 headquarters employees to Levis Development Park in Perrysburg.  Although many of the building's 45 tenants say they would like to keep offices there, they are waiting for word from the landlord.

 

Some tenants have decided not to renew their leases.  Some are worried that the landlord, Newkirk Master Limited Partnership, of Boston, may mothball the structure if it can't find enough new tenants to replace O-I.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050619/BUSINESS07/50619049/-1/BUSINESS

---

 

Council panel's leader eyes filling vacancy left by O-I

 

The Toledo City Council committee in charge of economic development has a new chairman, and finding a replacement for Owens-Illinois Inc., whose upcoming departure may leave a large part of one of Toledo's tallest buildings vacant, tops his list of priorities.  And he said city officials already have a potential target company in mind.

 

Councilman Frank Szollosi, who was appointed chairman of the committee last week replacing Wade Kapszukiewicz, listed "stabilizing and expanding tenants" at One SeaGate as one of his "top-tier projects."  Many worry that the riverfront property, known as the O-I building, could grow dark following the company's announcement last month that it will leave downtown in September, 2006, for Perrysburg after 25 years of leasing the space.

 

But Mr. Szollosi said that he and other city officials have been in ongoing negotiations with a Detroit-area transportation company to fill O-I's spot.  Declining to go into details for fear of spoiling negotiations, Mr. Szollosi said the company could bring 400 employees to fill the space - more than O-I's departing 340.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050619/NEWS16/50619028

Poor Toledo, looks like it is becoming "Little Detroit".  I find that whole Toledo riverfront fascinating...one of the biggest failed projects of all time.  They hired Rouse Co. to come up with a festive riverfront just like Baltimore inner harbor or Boston Fannueil Hall.  It included the OI Tower, a L'Hotel Sofitel, Portside Festival Market, An amphitheatre, public river walkways and art, a couple of the other Seagate buildings, condos on the river(torn a few years after being built), Historic rehab of a street nearby, river boat slip with a cruise ship.  Basically the entire Toledo Riverfront was completely redone with one huge project.

 

It was a huge undertaking for a city that size...and I think the Toledo Trust Bank underwrote the project and it put them out of business.  The cruise ship ended up in Cleveland as one of the "Goodtime" boats.  The Portside Mall failed miserably and closed down.  It had weird stores...one in particular that only sold things that were "Purple".  I think there was a Benetton and a few other stores new to Toledo at the time.  There was a Shooter's with a swimming pool.  Now the OI building might become vacant.  Such an ambitous plan with good intentions.  It's really quite sad

 

I wrote a paper on this in college sometime in the early 90's and took a bunch of pics at the time.  I'll try and find them, as they might be of interest to some of you.  At the time, the Mall was shuttered and had broken windows and said " ORT IDE" on the round street front facade because the 'P' and 'S' had fallen off and were laying nearby.  The pool from Shooters was covered with plywood. 

Hope this works...A pic I found here: http://www.library.toledo.oh.us/tprofile/HTML%20Files/h132_2.htm

 

 

And the riverfront in 1982 before redevelopment also found at that website:

 

 

The foreground is the construction site for one seagate.

From the 11/2/05 Toledo Blade:

 

PHOTO: Owens-Illinois, One SeaGate’s major tenant, is to move out next summer.  ( THE BLADE )

 

CAPSULE: About One SeaGate

 

DOWNTOWN TOLEDO

One SeaGate landlord could lose skyscraper

SEC filing points to foreclosure worries

By HOMER BRICKEYand MARY-BETH McLAUGHLIN

BLADE BUSINESS WRITERS

 

The landlord of One SeaGate in downtown Toledo says there is a “substantial risk” in a year that it will not be able to make a big mortgage payment and the premier office structure will go into foreclosure.  Such a move would not by itself boot out the remaining tenants and turn off the lights, but the prospect of foreclosure could make it difficult to find new tenants to fill the 32-story office building on the banks of the Maumee River.

 

The foreclosure notice by Newkirk Master Limited Partnership of Boston, coupled with the departure next summer of Owens-Illinois Inc.’s global headquarters, paints a troubled picture for the building and creates a psychological blow for downtown.  “Tenants just do not like to be in a partially open building, which is known as a ghost-rise,” said Stephen Welly, president of Rudolph/Libbe Properties Inc. and a longtime office specialist in town.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051103/BUSINESS03/51103002/-1/BUSINESS

 

---

From the 11/4/05 Toledo Blade:

 

At One SeaGate, a new owner would face tough calculations

By HOMER BRICKEY

BLADE SENIOR BUSINESS WRITER

 

If the landlord at One SeaGate walks away from its mortgage late next year, the new owner of the 32-story building faces some tough math and assessing of the future of downtown Toledo, local real-estate experts say.

 

Newkirk Master Limited Partnership, of Boston, which owns the landmark riverfront building - home of Fortune 500 firm Owens-Illinois Inc. since 1981 - has said there's "substantial risk" it will not be able to make the final "balloon" payment of $32 million due in October, 2006, and that the office tower could go into foreclosure.

 

Newkirk's situation is mostly the result of O-I's decision to move its headquarters to Perrysburg by the time its One SeaGate lease expires Sept. 30.  No matter who ends up owning the building, the rental rates will have to be in line with other Class A office space downtown, or $16.50 to $19.50 per square foot per year, for it to remain a prime office complex, experts said.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051104/BUSINESS05/511040368/-1/BUSINESS

 

Collier's has the Cincinnati CBD at 12.79% vacancy (8.31% class A and 16.69% class B).  That seems a little low.

 

Grubb & Ellis had a 15% vacancy rate (9.7% class A and around 18% class B).

 

These numbers also include class C space, which in downtown is considered unleasable.  Most of these buildings have/will become condo conversions.

 

Vacancy rates will also go up in the short term due to a new building coming on line, some corporate reshuffling, etc.  The worst case scenario would put class A vacancy around 13 or 14 percent, but that wouldn't last too long.

 

I don't know what the figures are for other Ohio cities.  There are quite a few websites that put out that data at least quarterly.

 

From the 11/8/05 Toledo Blade:

 

One SeaGate faces four possible scenarios

Mortgage holder or landlord could sell or seek new tenants

By HOMER BRICKEY

BLADE SENIOR BUSINESS WRITER

 

There are four possible fates for One SeaGate, the 32-story riverfront office tower that defines Toledo's skyline, and none is ideal.

 

The building could go into foreclosure and be claimed by the lender; the mortgage holder could sell it or recycle it into another sort of office structure; the landlord could sell it or attempt to fill it with new tenants; or an insurance company could have a distressed building on its hands.

 

The skyscraper's future darkened recently when the landlord, Newkirk Master Limited Partnership, of Boston, disclosed to the U.S. Securities and Exchange Commission that there is a "substantial risk" that it won't be able to meet a final "balloon" payment of $32 million on its mortgage next fall and that the building could be foreclosed upon.  Peter Braverman, president of Newkirk, said last week that his company hopes to prevent foreclosure by finding a solution to keep most of the building's 707,000 square feet of offices space rented.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051108/BUSINESS05/511080345/-1/BUSINESS

 

Ouch  :-(

From the 11/17/05 Toledo Blade:

 

 

One SeaGate could make real-estate history

Insurance policy may pay loan on downtown building

By HOMER BRICKEY

Blade Senior Business Writer

 

With the ultimate owner of the landmark One SeaGate building in downtown Toledo in question, the fate of the office tower could make history.  If the worst happens in a year and the current landlord defaults on its mortgage, the new owners could be investors in a real-estate trust or perhaps an insurance company.  That means, some real-estate experts said, the 32-story structure might be the first in the United States where a relatively new type of insurance policy had to pay because the building value declined after 25 years.

 

If the landlord, Newkirk Master Limited Partnership, of Boston, fails to make its final "balloon" payment of $32 million late next year, an insurance company is obligated to make the payment, or at least pay the difference between the market value of the building at the time and the $32 million.  "I think it's something of a unique case," said Stephen Jacobson, a credit-leasing financing specialist with the Chicago firm William Blair & Co.  "In most cities the value [of an office building] would go up after 25 years."

 

The fate of the building, which has been world headquarters for Owens-Illinois Inc. for 24 years, is unknown because O-I has said it plans to move by next fall to a new structure in Perrysburg.  That will leave more than half the building empty, and Newkirk said there is a significant risk the lender could foreclose on the property.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051117/BUSINESS07/511170369/-1/BUSINESS

 

as far as national average office vacancy rates it went from 17%+ improving to 16% this year.

 

for ohio this sw/central ohio this dayton-based blurb is what i found. its a year and a half old & keeping in mind rates vary everywhere quite a bit quarterly from what i could tell:

 

"Dayton's empty office space at 15.6 percent, a 1 percentage point increase from 2002's 14.5 percent vacancy rate and slightly higher than 2001's 15.1 percent.

 

But Dayton's vacancy rate pales in comparison with other Ohio cities and many parts of the country. Nationwide, the office vacancy rate increased slightly this year to 17.6 percent, according to Northbrook, Ill.-based Grubb & Ellis Co. Cincinnati posted office vacancy rates of 20.2 percent in 2003, and Columbus was even higher at 23.8 percent."

 

for ne ohio this is what i found for the second quarter of this year. basically clev is 23% class a/b space and improving. it's acrobat so i could not cut&paste so here is the link, basic info is on the first page:

 

http://www.terrycoyne.com/uploads_library/Office%202nd%20%20Quarter%202005.pdf

 

***so bottom line it looks like toledo aint doin too bad overall vs everywhere else.

 

 

 

 

 

 

well toledos low suburban vacancy rate prob has mostly to do with the fact that toledo has very little in the way of suburbs (to its credit).

From the 12/22/05 Toledo Blade:

 

Tax board sets $41M value for 1 SeaGate

O-I, county have 30 days to file appeal

By JON CHAVEZ

BLADE BUSINESS WRITER

 

A state tax board has ruled that the value of One SeaGate downtown is $41 million, about midway between what Lucas County and Owens-Illinois Inc. claimed.  If left unchallenged, it means a five-year tax dispute is settled and that O-I, principal tenant in the office tower along the Maumee River, could owe a small amount of back taxes.

 

Neither party in the case has decided whether to file an appeal, which could go to a state appellate court or the Ohio Supreme Court.  The sides have 30 days.  The ruling was issued Friday but the parties weren't notified until Tuesday.

 

The Ohio Board of Tax Appeals, which weighed evidence in a case that stems from 2000 and affects the property's taxes for 2001 and 2002, has placed the tax value of the 32-story building between the county's value of $55 million and O-I's figure of $30.5 million.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051222/BUSINESS05/512220370/-1/BUSINESS

 

From the 2/9/06 Toledo Blade:

 

City official says Fifth Third eyeing One SeaGate

By JULIE M. McKINNON and TOM TROY

BLADE STAFF WRITERS

 

Fifth Third Bank (Northwestern Ohio) is considering relocating its downtown Toledo headquarters to One SeaGate, the riverfront skyscraper that would be left half empty this fall when Owens-Illinois Inc. moves to Perrysburg, a city official said.

 

No decisions have been made about staying in Fifth Third Center or moving, but the bank is weighing various options for improving accommodations for its regional headquarters, Karen Fraker, senior vice president at the bank, said yesterday.  She declined to comment on whether a move to One SeaGate is being considered for the 337 employees at the bank's quarters at Huron Street and Madison Avenue downtown.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060209/BUSINESS05/602090384/-1/RSS04

 

From the 2/10/06 Toledo Blade:

 

PHOTO: Fifth Third occupies seven floors of an office building at Huron Street and Madison Avenue, where it has 337 employees.  ( THE BLADE )

 

Fifth Third Bank verifies its interest in One SeaGate

By HOMER BRICKEY

BLADE SENIOR BUSINESS WRITER

 

As the probable future owner of downtown Toledo's hallmark office building is hustling to find new tenants, the chairman of Fifth Third Bank locally said yesterday he would consider moving to One SeaGate if the deal were sweet enough.

 

"Obviously, One SeaGate is the signature building in downtown Toledo, and if an attractive enough offer to lease space was made, we would have to consider it," John Szuch, chairman of Fifth Third of Northwestern Ohio, told The Blade.

 

The 32-story glass office tower on the bank of the Maumee River is about a quarter vacant now, but it will be about half empty by fall when Owens-Illinois Inc. moves its headquarters to a new building in Perrysburg.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060210/BUSINESS05/602100348/-1/RSS04

 

From the 3/16/06 Toledo Blade:

 

 

Connecticut insurer to buy One SeaGate

 

A Connecticut insurance company responsible for paying a $32 million balloon payment this fall on One SeaGate in downtown Toledo has decided to purchase the office tower.  RVI Group, which has been working to renew tenant leases and to find new tenants, said yesterday a subsidiary will buy the 32-story riverfront building to be vacated by Owens-Illinois Inc. before fall.

 

"It is our belief and commitment that the building will continue to be the pride of Toledo," Tom Cox, executive vice president of RVI Group, said in a statement.  "This latest development should provide the city of Toledo and One SeaGate's current and prospective tenants with tremendous peace of mind that the building's future is completely secure."

 

The building has been owned by Newkirk Master Limited Partnership of Boston. Newkirk has said that, with the impending departure of O-I, it likely would default on the September loan payment.  RVI Group, of Stamford, Conn., said it will assume ownership Sept. 29.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060316/BUSINESS05/603160389/-1/RSS04

 

From the 8/17/06 Toledo Blade:

 

 

Filing lists 1 SeaGate at $33 million

 

When the 32-story One SeaGate office tower changes hands late next month, the purchase price will be $33 million, according to new regulatory filings by the current landlord, Newkirk Realty Trust Inc., a Boston real-estate investment trust.

 

Newkirk said the buyer, RVI Group Inc., of Stamford, Conn., will pay $1 million to Newkirk and will assume the remaining $32 million mortgage debt on the riverfront structure that was built for about $100 million in 1981 and has housed Owens-Illinois Inc. since then.  The figures were in U.S. Securities and Exchange Commission filings.

 

O-I is officially opening its $20 million headquarters in Perrysburg's Levis Development Park tomorrow and has said it hopes to relocate the last of its 360 headquarters workers by the end of September, when its 25-year lease expires.  Those employees will join about 500 who have offices in three older buildings in the park.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060817/BUSINESS05/608170384/-1/RSS04

 

From the 8/20/06 Toledo Blade:

 

PHOTO: The riverfront glass skyscraper was built a quarter-century ago as O-I's headquarters. Fifth Third Bank would like to move in.  ( THE BLADE/JEREMY WADSWORTH )

 

PHOTO: David Nunn says his law firm, Eastman & Smith, is renegotiating its lease on its offices on the building's 24th and 25th floors.  ( THE BLADE/LORI KING )

 

TOWER AT CROSSROADS

Empty space not filling at One Seagate

By HOMER BRICKEY

BLADE SENIOR BUSINESS WRITER

 

Three weeks before Owens-Illinois Inc. moves out and six weeks before a new landlord takes over downtown Toledo's premier office tower, One SeaGate is half empty and has no new signature tenants.  Fifth Third Bank (Northwestern Ohio) remains a prime candidate to move in, but a local leader at the bank said such a move could require selling its current Toledo headquarters at Madison Avenue and Huron Street.

 

"Within the next 90 days we will know one way or the other," Bob LaClair, the bank's local president and chief executive, told The Blade last week.  "We have a real strong interest in keeping one SeaGate a viable part of the downtown. … That building going dark would not be good for this city."

 

The vacancy level and prospective shutdown of the 32-story riverfront glass building has been known for 1 1/2 years, when O-I first said it would leave for a suburban office.  But some smaller tenants in One SeaGate have left or will leave, and no new major renters have been landed, experts have said.

 

FULL ARTICLE: http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060820/BUSINESS05/608190386/-1/RSS04

 

Sounds like it would be better if 5/3 stayed where they are.