Article published June 23, 2009
Chrysler moves properties; Values for Toledo parcels differ sharply from state's
Rows of Jeep Libertys and Dodge Nitros are parked across from the Chrysler LLC plant in Toledo in this 2008 file photo.
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THE BLADE
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By LARRY P. VELLEQUETTE
BLADE BUSINESS WRITER
Real estate records in Lucas and Wood counties show multibillion-dollar plants owned by Chrysler LLC were transferred to the automaker's successor corporation under the umbrella of bankruptcy for amounts far different from their state valuations.
In Lucas County, Chrysler transferred ownership of 15 parcels totaling over 404 acres - including the two assembly plants that make the Jeep Wrangler, Jeep Liberty, and Dodge Nitro - for $55.1 million to a shell company called New CARCO Acquisition LLC. The properties include the parcels surrounding the assembly plants as well as a trucking terminal in the 5900 block of Hagman Road.
The former Chrysler Corp. built the complex, starting in the late 1990s, at a cost of more than $2 billion.
Chrysler transferred over 166 acres in Perrysburg Township around its Toledo Machining plant to New CARCO for $32 million. All the transactions were recorded on June 11.
Chrysler Group LLC, an alliance between Chrysler and Italian automaker Fiat SpA, emerged from Chapter 11 bankruptcy protection this month with almost all its local land holdings transferring to the new company. Some property, such as the former Jeep Parkway site, was retained by bankrupt Chrysler LLC. It will be sold and proceeds will be divided among creditors.
The $55.1 million value of the transaction in Lucas County amounted to about 32 percent of the property's state valuation of $172 million.The Wood County property was valued at $26.5 million, meaning New CARCO valued the prop-erty 21 percent higher than local officials.
Figures on Chrysler's transfer of holdings in Dundee, Mich. - where it owns two engine plants operated under the Global Engine Manufacturing Alliance - were not yet available, Monroe County officials said.
Mike Palese, a legal affairs spokesman for Chrysler Group, said the real estate valuations for all Chrysler's assets were set by Capstone Advisory Group LLC, a New Jersey consulting firm that has set property values in several high-profile bankruptcy cases.
"The assets were based on fair market values," he said.
Robert Manzo, executive director of Capstone Advisory Group, testified early in Chrysler's bankruptcy hearing in New York as to the value of all of the automaker's holdings.
Yesterday Mr. Manzo did not return calls seeking an explanation of his methodology on local holdings.
Lucas County Auditor Anita Lopez said the low sale price of Chrysler's properties may one day have an impact on local tax revenues, but that would occur at the next scheduled valuation or if the automaker initiates an appeal sooner.
"The state discourages county auditors from chasing sales, and they've recommended no change occur in industrial and commercial valuations this year," Ms. Lopez said.
"I'm sure like every other company that's been coming in the office, they're going to challenge it. It's just the nature of the economy."
Contact Larry P. Vellequette at:
lvellequette@theblade.com
or 419-724-6091.
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