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Pat Howard, Managing Editor RE: International Paper Site Redevelopment Dear Pat: A very significant chain of events has occurred over the course of the past several months, culminating with Governor Rendell's announcement this past weekend that ownership of the International Paper site will change hands. This brownfield will once again be occupied by companies creating manufacturing jobs. At the risk of sounding overly-dramatic, this is of monumental significance to the City of Erie, the County, and the region generally. It is a very positive development that deserves public attention, and is the reason I write to you today. As we all know, IP closed its facility in 2002 and left town, taking roughly 750 jobs away. In late 2004, Presque Isle Downs (a subsidiary of MTR Gaming) purchased the roughly 220 acre waterfront property, with the expectation at the time that a thoroughbred racetrack and slots casino would potentially locate there. Presque Isle Downs/MTR had also purchased and has considered other sites for the gaming facility in various Erie County locations as well. We have all seen reports of the various machinations that have ensued since then, involving the IP site, as well as the development of the track/casino. Most recently, lobbying efforts were underway to try to change the site of the Convention Center, and move it to IP. We saw local governments competing with each other for the racino, heard talk of enormous public subsidies, and experienced a general circus-like atmosphere. Several months ago, in the midst of all the hullabaloo, an investment group (with roots in Erie) quietly put forward a $40 million proposal to develop the site and create manufacturing jobs, despite the obvious problem of not actually controlling the site. Negotiations between the Governor's Action Team, the Greater Erie Industrial Development Corporation (GEIDC), the investors, and MTR racing commenced, ultimately resulting in the great news we received last weekend: GEIDC will buy the site from MTR. The benefit to our region is huge- more jobs (roughly 300 to start); a diversified manufacturing sector with new companies and technologies not seen in Erie before; reclamation of an urban brownfield; increased tax base for the City of Erie- and all of that is just the beginning. Expansion of the companies, new additions to the industrial park, as well as spin-off developments from those businesses hold the promise of a bright future to come. As is typical of all successful projects, there were many people involved who not only deserve credit for making it happen, but who also deserve the thanks of the entire region. There are two people in particular who were absolutely critical to the success of this deal. Governor Ed Rendell- without his interest, involvement, and commitment of resources, this deal would not have been possible. The Governor, together with his Secretary of Community & Economic Development Dennis Yablonsky (who has been instrumental in assisting with several local economic development initiatives), were personally involved for several months, and they provided invaluable technical assistance along with state funding. Governor and Mr. Secretary- thank you. Equally important and deserving of thanks is Ted Arnealt, CEO of MTR Gaming. His willingness to negotiate and compromise is commendable. Ted could have held-out for months, or demanded a higher price, and sabotaged the deal, but he did not. Instead, he put the best interests of the Erie community above his own, and we are grateful. With this sale complete, MTR can now focus on the design and construction of Presque Isle Downs. We wish Mr. Arneault and his team all the best in accomplishing their new project, which will further enhance and diversify the regional economy. Thank you to the economic development professionals who have had the job of crunching numbers, conducting negotiations, and actually figuring-out how to make the transaction work for all parties (and the community). Monica Brower, President of the GEIDC, is an invaluable community asset who serves the Erie area below the radar screen competently and professionally every day. David Yeager and Tom Ehrensberger from the Governor's Action Team provided essential technical expertise and assistance and gave this project their utmost attention. We appreciate your contributions as well. Lastly, thank you to the Erie Management Group. These investors will infuse some $40 million initially into this project. They have made a commitment –a strong one- using their own money to grow manufacturing jobs in the City of Erie. It is their confidence that provides optimism for us all that our community is a place where we can create jobs which will sustain the quality of life we all desire. As I said, this chain of events is very positive news. Thanks again to all those who had a hand in this tremendous achievement.
Sincerely,
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