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Local officials seeking 'situational distress' status due to economy

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By TODD HELBERG

cnedit@crescent-news.com

With Defiance County's unemployment rate rising to 14 percent, local officials are seeking a state designation that might help them receive financial help for industrial development.

County commissioners will be asked to send a letter to the Ohio Department of Development (ODOD) for "situational distress" status.

"If it helps get another plant in here, I think we could use it ... if it brings more employment for our people," said Commissioner Otto Nicely.

Commissioner Jim Harris said the county might be ready to send the letter as early as next week.

According to Defiance County economic development director Jerry Hayes, this would increase local officials' chances to receive the state's financial help -- through loans or grants -- to build infrastructure for new or expanding companies.

The county received such status in 2004-2005 following a fire that destroyed a Johns Manville plant on Columbus Avenue and the closure of Dietrich Industries in Hicksville, Hayes noted.

Hayes believes the chances are good that Defiance County will receive the designation. If so, it would likely be notified in a month or so with the designation actually beginning in the new fiscal year on July 1.

But it would not guarantee any state money, according to Hayes, because funds are competitive.

"I'm pretty optimistic that we will get designated, but whether it will bring in new money we don't know," said Hayes. "That's where it gets competitive. This doesn't have immediate payback, but it's a good thing to have."

He said the county's 14 percent unemployment rate should help toward receiving the designation. But he said General Motors downsizing and the fact the Dietrich Industries building remains empty are specific reasons for seeking the situational distress status.

Hayes is hoping for financial assistance to bolster two projects -- extending Commerce Drive, just north of the new Johns Manville plant on Carpenter Road, and establishing a high-power load capacity for Enterprise Industrial Park, owned by R&L Enterprises on the city's southwest side.

At present, Commerce Drive runs for approximately 2,300 feet east from Carpenter Road. Hayes would like to see that extended further east to join Domersville Road, thus opening adjacent land to economic development.

As for the industrial park, he would like to see an electrical line extension that would provide capacity for 25 megawatts of power. The park is currently served by a 12,400-volt line, which Hayes said is too small for a large company.

Such a firm is considering a building project in the industrial park now, he explained, but no details are being released. The effort to attract the company is referred to as "Project Go."

"Even if we don't get Project Go, we will still need an electrical extension into the park to be shovel ready (for development)," Hayes said.

Local officials are also hoping that a situational distress designation would increase the county's likelihood of receiving federal stimulus money.

To that end, Hayes is hopeful that stimulus dollars might be used to extend Hicksville's Industrial Drive to Ohio 249 and also rebuild the Maumee and Western Railroad. The railroad project figures to cost approximately $20 million and could include a local match.




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