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Caraustar | Former Rittman paperboard

INSIDE STRATEGY OF REDEVELOPING A MAJOR BROWNFIELD IN A SMALL COMMUNITY Ohio Brownfield Conference, April 2014. Caraustar | Former Rittman paperboard. 300-acre Production Site that employed 2,100 at peak 2006 Caraustar shut down about 26 plants in the U.S. – Rittman Site was one of those closed

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Caraustar | Former Rittman paperboard

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  1. INSIDE STRATEGY OF REDEVELOPING A MAJOR BROWNFIELD IN A SMALL COMMUNITYOhio Brownfield Conference, April 2014

  2. Caraustar | Former Rittman paperboard • 300-acre Production Site that employed 2,100 at peak • 2006 Caraustar shut down about 26 plants in the U.S. – Rittman Site was one of those closed • Produced own power • Became 300-acre Brownfield Site with registered EPA landfill • Loss of Major Revenue

  3. Massive 300-Acre Site

  4. Massive 300-Acre Site

  5. Problems for a Small City • Location • Left to Decay

  6. Problems for a Small City • Left to Decay

  7. Problems for a Small City • Left to Decay • Citizen Complaints • Business Complaints

  8. What We Did • After Meetings Failed • Property Maintenance • Fire Inspections • Monthly Tap-In Fee • Considered Abandoned Building • Property Tax • Contacted Brownfield Companies

  9. What We Did • City Council authorized City Manager to enter into Development Contract

  10. What We Did • Development Contract allowed City to enter into agreement to treat wastewater, saving developer large amount of funds

  11. Brownfield site today

  12. risk & value | project development continuum FinancingRequired Own and Sell Shovel Ready Design Build Ownand Operate Consult Minority Partner RISK AND RETURN AddedValue

  13. Risk transfer • Complete as is where is • Step in as operator of regulated unit • Step in as respondent to Consent Order • Many entitlements and responsibilities to consider • Right time right place for a transaction

  14. WHY TAKE RISKS ? • Creates work • Owners are entrepreneurs • Results in better returns

  15. Stepping outside the consulting world • Focus on what you know • Build credibility • Understand business, the effort and underlying risks

  16. Caraustar | Former Rittman paperBoard

  17. Caraustar | Former Rittman paperBoard

  18. Caraustar | Former Rittman paperBoard

  19. Caraustar | Former Rittman paperboard

  20. Issues to consider • May not be trained in “business” • Raising capital – needs credibility • Conflicts of interest • Who can be included? • Where does the money come from? • Balancing resources Circular Bike by Robert Wechsler, Spring of 2003, UCSB.

  21. Why do we do it ? improvement excitement opportunity

  22. Larry Boggs City Manager, City of Rittman 330.925.2045 lboggs@rittman.com Craig Kasper CEO, Hull & Associates, Inc. 614.793.8777 ckasper@hullinc.com

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