Article published August 26, 2008
Dana move to cut city's Fortune 500 roster to 1
Officials note that auto supplier, property buyer are still in area
By GARY T. PAKULSKI
BLADE BUSINESS WRITER
Once there were seven. Soon there will be one.
Economic development officials and business executives are generally circumspect about a corporate headquarters shuffle announced last week that will leave the city of Toledo with a lone Fortune 500 company and will cut the ranks of prominent businesses downtown by one.
Twenty-eight years ago, the city had seven of the big companies.
"From our perspective, it doesn't really hurt us," said Steve Weathers, president of Toledo's Regional Growth Partnership.
"It would reflect as a negative if these companies were moving to another state. But these kinds of moves really don't get noticed by others. They are staying in the area and looking at ways to grow. …"
He referred to a decision by auto industry supplier Dana Holding Corp. to sell its neo-Colonial headquarters building on Dorr Street in west Toledo as part of a move to a company-owned technology center in Maumee.Metro Toledo's largest corporation is selling the building and surrounding corporate campus to Health Care REIT, a $490 million-a-year real-estate investment trust that is a landlord to nursing homes, assisted living communities, and health care facilities nationwide.
That firm, whose hefty dividend has helped keep its stock near 52-week highs during the current bear market, will leave its longtime quarters in downtown's premier office tower, Fifth Third Center at One SeaGate.
Both sides expect the deal to be completed by Oct. 1, although Dana won't move until September, 2009.
Once the move is completed, Owens Corning, a maker of building products and fiber-glass composites, will be Toledo's and downtown's only member of the Fortune 500 list of the nation's highest-revenue-producing firms.
Downtown had three Fortune 500 firms before bottle-maker Owens-Illinois Inc. moved to Perrysburg in 2006.
As recently as 1980, the local total was seven, five of which were downtown.
The other firms, which were sold and absorbed by other companies, were Libbey-Owens Ford Co., Champion Spark Plug Co., Sheller-Globe Corp., and Questor Corp.
Don Iannone, a corporate site-selection consultant in Cleveland, isn't surprised by the move, especially given Dana's recent bankruptcy and ongoing problems in the U.S. auto industry.
Unfortunately, he said, such moves can tarnish a city's reputation.
"If you've got things going on and your business image is otherwise strong, these situations would have less of an impact," added Mr. Iannone, of Donald Iannone & Associates.
"If there are no visible move-ins and major corporate expansions to offset the losses, it probably hurts a city's business image."
When firms do leave downtown headquarters, it is usually to the suburbs rather than a distant state, the consultant added.
Health Care REIT has fewer than 100 employees downtown. Still, the move could hurt business that depend on downtown workers for sales.
"It's certainly very concerning to us," said Tom Crothers, president of Downtown Toledo Inc.
"We are continuing to work very hard with economic development organizations … to make downtown a place people will want to visit, live, work, and invest."
Downtown restaurants like those at the Docks worry when any jobs are lost in the central business district, conceded Tom Cousino owner of the Navy Bistro and several other establishments at the Docks.
But he said he isn't unhappy with executives of the two companies involved.
"At least we're keeping everything in the metropolitan area," he added.
Councilman Mark Sobczak noted that Toledo will share in income taxes paid by Dana at its new offices because the site is part of a joint economic development district in which the city participates.
"With times being tough like they are, it could have been a lot worse," said Mr. Sobczak, chairman of Toledo city council's economic development committee.
"Dana could have completely moved out of the area."
Contact Gary Pakulski at:
gpakulski@theblade.com
or 419-724-6082.
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